How Rental Arbitrage Works | Margin on Rentals Explained

How Rental Arbitrage Works | Margin on Rentals Explained | Short Term Lease Tips

Рет қаралды 108,911

6 жыл бұрын

Here’s how to make money on Airbnb without owning any property. Yes it may seem far fetched, it's not. Here's a walk though of how leases work financially and where the profit is achieved when flipping leases.
Become A Host. airbnb.vaz6fn.net/c/2097051/2...
Subscribe for more videos!
Airbnb Automated is committed to providing you the best airbnb advice possible, real airbnb hosting tips, airbnb strategies that you can apply, and short term rental reports and news in real time as we discover information that you need to know. We hope to be your number 1 source for Airbnb instruction. Tell us what you want us to teach you below in the comments! - Sean Rakidzich
MORE VIDEOS:
How I make a fortune on Airbnb owning no property
• DONT BUY A HOME FOR AI...
Airbnb Hosting trick you MUST master -
• Airbnb Hosting trick y...
Airbnb Pro Tips: Bedroom and Bathroom
• Airbnb Bedroom and Bat...
Are Your Airbnb Hosting Costs Out of Control??
• FREE CHART - Are your ...
Tips For Guests: How To Be a 5 Star Guest
• Traveling On Airbnb | ...
PLAYLIST - Airbnb MBA Course Everything you need to know to run an Airbnb Business
kzfaq.info?list...
How To Be The Best Host Ever, The only Hack You'll need
• How To Host On Airbnb ...
The Art Of Giving A Discount
• Airbnb Tips Host Disco...
FREE Market Research Webinar
• Forget AirDNA | You Ne...
Setting Up A Small Kitchen
• Ultimate Airbnb Proper...
Setting up the Bedroom
• Ultimate Airbnb Host T...
Ghost Hosting Explained
• Ghost Hosting: Airbnb ...
5 Reasons to set up multiple airbnb listings at the same time
• 5 Reasons To Set Up Mu...
4 1/2 reasons to NOT buy property
• 4 1/2 Reasons Why You ...
My Newest Properties Are Not On Airbnb
• My Newest Properties A...
Why is automation so important??
• Why is automation so i...
House Manual Trick To Automate Your Airbnb
• Use This House Manual ...
Where to set up your first Airbnb. Pros and Cons of close to home
• PROS and CONS of Start...
Lead Time And Occupancy Percentage
• Airbnb Host Videos: Le...
How Rental Arbitrage works. Leases explained.
• How Rental Arbitrage W...
Cohosting Walkthrough
• Airbnb Cohosting Walkt...
Thinking of hosting?
www.airbnb.com/r/srakidzich

Пікірлер: 139

@AirbnbAutomated 3 жыл бұрын

Hey guys hope this was helpful! Leave me a comment with your thoughts? Here are some resources for you: 1. Learn how to start a six-figure Airbnb business here: ss.milliondollarrenter.com/free-training 2. Free Facebook Group: facebook.com/groups/442411303158530/

@J23STSP 3 жыл бұрын

thank you!

@sierracc44 2 жыл бұрын

Im new here and I was wondering how does it work when you sign a lease so its under your name but then you rent it to someone else. How do they get access to amenities if they are under your name?

@chanbriellebeason8475 4 жыл бұрын

How do you go about convincing a landlord to allow you to run an AirBnb on their property?

@s.martin5546 4 жыл бұрын

Thanks again Sean. I like how you took what could have been a complicated theory and made it simple enough where anyone could understand it. That corporate housing method is great insider secret information.

@APWoodworking 4 жыл бұрын

Thanks for the video!!! Very good knowledge thrown out to us all to use!

@joshdglasscock 6 жыл бұрын

Hi Sean, Thank you for all these helpful videos. I see that one of the biggest hurtles of doing this business is getting these units leased. Could you do a video detailing how you work with property managers to get the units leased?

@carriebradshaw3746 5 жыл бұрын

RIGHT!!!

@calebnyanidadzie5810 4 жыл бұрын

I got a home but i don't know how to start. Can I get ur email?

@ecaldwell9 6 жыл бұрын

Thx U Sean for slowing the verbiage/explanation on this video down. I received the communication a lot better.

@rylanreed3862 4 жыл бұрын

thx u scaldwelded balls i agree bros

@spencerstephens7594 Жыл бұрын

First video Ive seen on these topics that actually discloses practical, specific advice. Thank you

@AirbnbAutomated Жыл бұрын

You’ll find tons of other topics covered on this channel. From design, to pricing strategy, resolutions, guest relations. The works

@history6988 4 жыл бұрын

I worked in the apartment business for 12 years and 5 years as an apartment locator. He's right on every point except that NO property does a month to month lease for a new renter.

@yennifercabrera3816 2 жыл бұрын

Do they allow to do Airbnb after you rent the apartment lease for 12 month under your name or we don’t have to say anything ?

@chelsearodriguez919 2 жыл бұрын

@@yennifercabrera3816 you’re going to have to ask for permission.. everyone will mostly say no it’s not allowed.. and you can possibly break your contract if you the lease says “no subleasing allowed” and you can be either fined, sued… etc.. I want to try it out.. idk if there’s loopholes to do it other than corporate leasing

@jillianwhite69 Жыл бұрын

Great information! Thank you for explaining so clearly

@ladygypsysoul122 4 жыл бұрын

Thank you. Good guidelines on how to charge the nightly rent. Thank you again.

@drbrycedavis 5 жыл бұрын

Great vids, You got me thinking. So do you have a video that explains how insurance works. I ask because regular home insurance usually does not cover short term rentals. Do you have to go out and get umbrella insurance or anything like that to ensure you do not get sued if someone gets hurt. Also what if your guest burns the place down, what happens?

@norahberumen 4 жыл бұрын

Thank you !

@jakeb9757 6 жыл бұрын

do you have a video for beginning steps to finding first property on craigslist?

@COREYEIB1969 6 жыл бұрын

great channel, please post how you find leases to sublet, Thank You!

@mrs.fredrick_ 4 жыл бұрын

Can you list some of the past properties you've used in the DFW/Houston area? Or do you have any new workshops coming up.

@nancyfahey7518 4 жыл бұрын

You are such a nice guy.

@Health_Is_Wealth_Media 6 жыл бұрын

This is awesome and obtainable.

@sheril8739 4 жыл бұрын

Thanks for the info on the Corporate housing model. I am a nurse and looking in to how to develop a better housing system for travel nurses. Work in progress 🙌🏻

@rekkahwilliams9525 4 жыл бұрын

Sheri L I was going to go the rv route

@sheril8739 4 жыл бұрын

The RV Route is awesome! Good luck there is a Facebook page dedicated to that FYI if you aren’t already a member there.

@floydtyrone8268 6 жыл бұрын

Do you have any sample leases or clauses that need to be added to a regular lease when you plan re-lease via short term rental. I know this was about month to month but I was more interested in doing long term leases and doing short term nightly/weekly rentals

@Godblack1 4 жыл бұрын

great video i m in montreal what tool would you use for market research ?

@claudew6418 4 жыл бұрын

Great content Airbnb Automated and I'm amazed that you're giving it for FREE :) I have a question: So you're business is in the USA right? But... are all these rules applying to Europe? If not... (someone) can recommend some online courses that applies for Europe? (I am from Romania)

@erincheek7002 5 жыл бұрын

Hi Sean, I have been running into owners not wanting to rent for rental arbitrage purposes. Was this common for you when you first started?

@msmichelletoliver651 4 жыл бұрын

How do I decide which city & area? I don’t want to run into a problem having a lease w/slow weeks of no rental income (eg New Orleans no visitors in the summer) no tenants which equals no income no money

@slimfast0555 Жыл бұрын

What platform do you use to advertise that you have a unit for short term rental?

@bloxburghighschool3623 5 жыл бұрын

Hi, when you get a LLC do you fill out the application with the LLC name or your personal name? Once they see you are a LLC won’t they say no to the lease usually? I’m having a hard time finding yes’s.

@haydenhill5364 5 жыл бұрын

Becca Beckler LLC name always

@deanbirmingham7347 4 жыл бұрын

⭐⭐⭐⭐⭐ Can you send the formula for that apartment arbitrage? TX YOU ROCK 🎆🎆🎆🎆🎆

@rondaleestill3360 3 жыл бұрын

What esle do you do ? In the long run to hurt society ? Your thinking is so very clever !

@mandy81841 4 жыл бұрын

Thank you for this valuable information. Do you have any paid courses and do you offer private coaching?

@AirbnbAutomated 4 жыл бұрын

I’m working on a course now. It’s almost finished. And yes I do coaching one on one through my site milliondollarrenter

@d333pmind8 4 жыл бұрын

hi sean, do you have a video on how to renegotiate and renew the leases at the end of the term? What's to stop the landlord from seeing how profitable your business is and take the properties off you so they can profit themselves?

@AirbnbAutomated 4 жыл бұрын

I can do a video on this

@d333pmind8 4 жыл бұрын

@@AirbnbAutomated AWESOME BRO. thank you

@amylawrence1876 4 жыл бұрын

Hi, so do you have to ask your property permission from your apartment or home rental owners?

@stephenbalda6390 4 жыл бұрын

Yes, some contracts state that is it illegal to do so, so if you go behind their back and do it and something happens you can be sued. Sometimes they will want a % of the profits. Sometimes they won't mind

@bkeindl 4 жыл бұрын

sean how do i figure if im payig too much for a monthly lease ?

@TheDreamersJourney365 4 жыл бұрын

@AirbnbAutomated Hey Sean, thanks for the great content. I already have an LLC do I also need to apply for the EIN number to start presenting the idea to Landlords as a business?

@AirbnbAutomated 4 жыл бұрын

Yes get an EIN and yes. Pitch as a corporate housing company

@TheDreamersJourney365 4 жыл бұрын

Airbnb Automated thanks Sean🙏🏾

@handyhelperjavi728 6 жыл бұрын

Hey. Good vid..do you have to get business lic. city permits for each unit renting?

@HealingMoments7 3 жыл бұрын

It depends on where the unit is...city/county/state.

@ryanknight6360 6 жыл бұрын

Sean, If the building knows your subletting their unit, how does that conversation go? Are you totally up front about what’s going on, or is their ways of wording it that will keep you less liable throughout the lease? Living in ATX looking to input this business model soon

@AirbnbAutomated 6 жыл бұрын

Working on this content now

@haydenhill5364 5 жыл бұрын

Every leading agreement pretty much includes a no subletting agreement. Doesn’t matter how you “word” it with them. You just gotta be up front and honest with full clarity with the landlord.

@shawnpower9836 4 жыл бұрын

Hayden Hill Honesty is the best policy. No need for games bc in business it’s very transparent

@smoofwah3552 4 жыл бұрын

How is this channel not over 100k subs yet? Everytime i see 37k I'm like wait what

@AirbnbAutomated 4 жыл бұрын

It’s not a “big” topic yet. Like justin Bieber or something

@JMREIInvesting 6 жыл бұрын

Hello Sean, Great Video.. Do you lease the properties or apartments in your name or find people who have properties already? Thanks!

@101lukman 4 жыл бұрын

Llc

@LifestyleRealEstate 3 жыл бұрын

Sean, what about using the BRRRR strategy to build a huge portfolio that you own vs renting? No doubt arbitrage is a powerful tool, but with BRRRR, you can recycle the same down payment indefinitely (huge scalability). What are your thoughts?

@AirbnbAutomated 3 жыл бұрын

BRRRR is for a very rare and small group of people. Requires way too much cash

@wholesalewideye2750 3 жыл бұрын

Is this for air bnb arbitrage?

@SuitsSocial 4 жыл бұрын

Huge question here.... if you run this type of business personally and not through a Corp. if you collect let’s say $30K a year I’m AirBnB revenue. Won’t you get taxed on that full amount? Even though maybe of that $30K half of that is going to the landlord....?

@AirbnbAutomated 4 жыл бұрын

You can deduct the rents and utilities. Plus all supplies wages and cost of furniture first year. (It won’t always be that way for furniture though)

@SuitsSocial 4 жыл бұрын

Airbnb Automated even running it personally not as a corporation? And thanks so much for the super fast reply!

@twanaldn2062 4 жыл бұрын

Heyy, amazing information, loving all your content. However a lot of your examples are based in the US. Is the procedure the same in the UK?? If not any advice ??

@AirbnbAutomated 4 жыл бұрын

We have a host group with some UK hosts

@twanaldn2062 4 жыл бұрын

How would I get in contact with these host ??

@shuyazhang8354 4 жыл бұрын

Same question, how about Canada?

@iamtoyaknowles 5 жыл бұрын

Hi I’m new and I was looking for your video on how to properly set up an air bnb in an apartment can you share that with me please

@AirbnbAutomated 5 жыл бұрын

There’s an unboxing everything playlist . It’s not a full tutorial but there’s some goodies

@iamtoyaknowles 5 жыл бұрын

Thank you

@reborntechnology6689 4 жыл бұрын

Hi, which is recommended? Rent unit with no furnish or partial furnish or fully furnish? thanks for anyone who reply

@AirbnbAutomated 4 жыл бұрын

Rent the empty space and furnish it on your own

@Bradstorm127 4 жыл бұрын

Hey Sean, Is it necessary to have a broker? We plan to have upwards of 20 properties. Is there any way we can go over some questions with you? We are worried about the legality of it. How can we set up the entity properly? I'd appreciate your time.

@AirbnbAutomated 4 жыл бұрын

It’s not necessary to have a broker Partnerships with realtors can be useful but tricky partnerships with realtors can be useful but tricky You can schedule a call through my coaching site Milliondollarrenter.com

@Bradstorm127 4 жыл бұрын

@@AirbnbAutomated Is there a specific lease you do for homes with owners to co-host there home? 15 min is pricey. I'd like to know if there is a copy of the lease that we can see during the paid 15 min.

@vacationboyvideos 6 жыл бұрын

I have Airbnb but I'm lucky if I get one renter ever 4 months

@haydenhill5364 5 жыл бұрын

vacationboyvideos charging too much

@szasremmurd8002 3 жыл бұрын

Omg I asked an apt complex if they allowed corporate housing because I have a company and are looking to attain leases they said yes, then proceed to direct me to wat I can only assume is THEIR IN HOUSE corporate housing and proceeded to charge me 74 DOLLARS/day for a 12 month lease , when the regular rent is 1200 same unit🧐 guess it’s time for me to rental arbitrage espionage tf

@christopherhardy245 5 жыл бұрын

Are you renting condos or apartments?

@geoncox 4 жыл бұрын

Anyone have a lead in Dallas? Looking for $1000 ish lease. Thanks

@marlissaevans1435 5 жыл бұрын

Hey Sean- Please advise if you find a good property to turn into an air bnb but the property needs updates to bring it up to air bnb potential aesthetics. Does the landlord make those updates or do you, need it and how do you persuade them to do so? What if the property is unfurnished?

@69jefke 5 жыл бұрын

you buy the furniture etc.

@coreypetroskey4222 4 жыл бұрын

I don't understand how property owners lease to you if they know your going to be making profit off of them

@buzzmania 4 жыл бұрын

What about competition tho How will I know I won’t get blown out of the water

@kennethdoyle667 6 жыл бұрын

learned a lot from you, 1) searched homes on craiglist on beachfront property's that cost about $900 a month on 12 month lease 2) other people on this same area are already doing Airbnb for about $90 a night and have about 60-80% occupancy for the next 3 months 3) property near 1 hotel 4) fully furnished I'm still thinking on how to approach landlord because I do not have that much money to invest on the property, would it be a good idea to do a 50/50 partnership with the landlord? or should I just go all in and rent it out myself?

@AirbnbAutomated 6 жыл бұрын

If it’s your first one, making the deal sweeter for the landlord is not a bad idea if it means you’ll get started faster.

@garryg3802 6 жыл бұрын

How do you know the vacancy rate?

@kennethdoyle667 6 жыл бұрын

G Granger you go on airbnb like if you were a costumer and hit book it will tell how many days in the month each home has already been booked, just do for homes near the place you want to rent I did about a mile radius from where I am subletting

@garryg3802 6 жыл бұрын

Thanks Kenneth I appreciate ya :)

@JayJay-bo8dk 4 жыл бұрын

Where is there a beach front lease for $900 a month?

@jmoe4896 Жыл бұрын

Can anyone tell me why I should pay $91 tax in to listin to this information what am I really getting and is it worth it ?

@Rayna429 5 жыл бұрын

After binge watching your channel and (amongst other factors) . I sought out a 2bdrm apt, got approved with the property manager aware that I'd be renting out the 2nd bedroom. I've sent out for my LLC and have a meeting with my current landlord to pitch/discuss if she would be interested in letting rent out my studio apartment. This is all happening hella fast! When you started out did you tap into your credit cards? How long did it take you to make a profit from airBNB?

@SonicMaverick3000 5 жыл бұрын

How did the meeting with your landlord go? Did it work out?

@Rayna429 5 жыл бұрын

@@SonicMaverick3000 my old landlord wasn't game about airbnb but the new one was okay with longterm month-to-month

@sirreal73x 5 жыл бұрын

@@Rayna429 Are you equating the phrase 'longterm month-to-month' with 'airbnb'? Are you saying your 'new one' is 'game about airbnb'?

@ivanmervill2282 4 жыл бұрын

how was the property? did you profit from it?

@levifancher1171 4 жыл бұрын

so, the landlord no longer makes money on his unit?

@AirbnbAutomated 4 жыл бұрын

They make the same as usual.

@rondaleestill3360 3 жыл бұрын

These people want to share with you how clever and deceit fulness works

@sandyreed1802 2 жыл бұрын

You must need a “special” contract for arbitration.

@elainewduree 4 жыл бұрын

how did you furnish for $700??

@joeyluna9727 4 жыл бұрын

$7000

@js5072 4 жыл бұрын

This is called a subletting. It's extremely risky.

@CesarGomez-nw4zt 4 жыл бұрын

Agreed. Start by renting a room in your house and see how that goes. Then add a second room and see how that goes. If both go well, then try this arbitrage thing in your city... If it works then research a nearby city and expand...

@AJ-wp3pw 4 жыл бұрын

You just mentioned corporate housing companies rent their furniture. Why should we not do the same? Why buy our furniture outright? Just curious.

@AirbnbAutomated 4 жыл бұрын

Rent over 2 years far exceeds purchasing. And you have less design options

@kmb6325 4 жыл бұрын

🤙🤙🤙

@Nyunique98 2 жыл бұрын

Landlord wants to charge me $300 more above market rents to short term rent his property. Should I pay or walk away? He won’t budge after negotiations.

@AirbnbAutomated 2 жыл бұрын

No way. Stay disciplined, use logic to counter offer. You want to get slightly under market rent if possible

@Mentalsamurai28 3 жыл бұрын

$300 per month seems low for furniture. Also, who pays for maintenance issues in this biz model?

@AirbnbAutomated 3 жыл бұрын

With apartments, the building. Single family homes, it’s a bit of a split

@AirbnbAutomated 3 жыл бұрын

If you spend $5000 on furniture and keep the place for two years that comes out to less than $225 per month

@rondaleestill3360 3 жыл бұрын

People with charactor and integrity would say no ! I will not be apart of your scheme!. . . .and go to city counsel's and disgust blocking these thieves

@AirbnbAutomated 3 жыл бұрын

Love you

@albiefresh1993 4 жыл бұрын

Didn’t really understand it. HELP! Lol

@SCheco3 2 жыл бұрын

Pay $2,000 in rent and charged enough to make at least $3,000 with a profit of $1,000 roughly. You can make more money by getting a second part-time job.

@AirbnbAutomated 2 жыл бұрын

How many hours of work per month is the job? How many hours of work is this?

@SCheco3 2 жыл бұрын

@@AirbnbAutomated I was playing devils advocate. I'm genuinely curious as too how many hours on average it takes to run an Airbnb week to week even if it is automated. It can't be zero, or can it?

@SCheco3 2 жыл бұрын

@@AirbnbAutomated BTW thank you for all your free content.

@Bert1010 4 жыл бұрын

Moral of the story renting out a place and airbnb it?

@AirbnbAutomated 4 жыл бұрын

That’s the cliff notes. This video just breaks down the nature of lease length and why things cost what they do

@propane2862 4 жыл бұрын

@jaylove😿😽🙀

@JimDixonRealEstate 6 жыл бұрын

So what happens when the landlord finds out you sublet his property and evicts you because the neighbors tell on you??? Also how would you feel if one of your clients harassed or harmed another resident? What landlord has a lease that allows subletting? Total BS Video!

@AirbnbAutomated 6 жыл бұрын

All the buildings know. We aren’t subletting. It’s all good James!

@TheRealHairMaven 5 жыл бұрын

Why would someone who is paying that much in rent be a degenerate or irresponsible? I'm sure it can work

@TheRealHairMaven 5 жыл бұрын

@@AirbnbAutomated How are you not subletting. Please message me if you prefer

@AirbnbAutomated 5 жыл бұрын

If you are an LLC that’s half of it. The rest is all protocol with the property

@shawnpower9836 4 жыл бұрын

Airbnb Automated Aren’t you just phrasing it in a way that says subleasing but with a loophole?

@latoyafort545 4 жыл бұрын

I’m starting to see how these people really make their money and it’s from teaching others not the actual business itself so disappointed

@guitarsz 4 жыл бұрын

LaToya Fort how do you figure that? You are correct that they can and do make money from offering teaching packages but if you’ve watched this channel, Sean is just now building a curriculum this month. All his money has been from businesses he’s created. one of which using the rental arbitrage method.