Locating suitable properties for rental arbitrage involves a multifaceted approach requiring careful market analysis, property evaluation, and lease negotiation. For instance, a potential arbitrage opportunity might involve leasing a furnished apartment in a high-demand area and subsequently subletting it on short-term rental platforms. This strategy hinges on securing a lease agreement allowing subletting and achieving a higher rental income from short-term stays than the long-term lease cost.
This approach to real estate investment offers the potential for significant returns without requiring property ownership. It allows investors to leverage market dynamics and capitalize on the increasing demand for flexible accommodation. Historically, this practice existed in various forms, often informally. The rise of online short-term rental platforms has, however, formalized and amplified its accessibility and potential, creating a distinct niche within the real estate market.
