“Escape the Grind” is celebrating the launch of a new Short Term Rental Arbitrage instructional service by its founder John Howard. He is offering a 20 minute instructional video for new investors to launch their first Airbnb arbitrage. More information can be found from https://bit.ly/STRAMP.
3-time 7 figure online entrepreneur, John C. Howard, has organized nearly two decades of learnings and launched a side hustle program for the average person to escape the 9-5 grind. This online semi-passive cash flow strategy is known as Short Term Rental Arbitrage. Rental Arbitrage can be done by investing minimal upfront capital in residential real estate as a renter and capitalizing on high short and medium term rental rates from Airbnb and VRBO. This means that an investor can sublease a leased property to tenants through Airbnb and VRBO.
It is a way to capitalize on the growing market of short and medium term rentals without having to acquire the subject property. Short Term Rental Arbitrage is an enticing investment for real estate investors without capital or lower amounts of capital. "Escape the Grind" will be celebrating the launch of its new Short and Medium Term Rental Arbitrage instructional service by offering a free 20 minute instructional video on how new investors can launch their first Airbnb and VRBO rental arbitrage property.. This event will kick off in Summer 2023.
In an online space where most of the competition simply teaches drop shipping, landing agency clients, ecommerce or other ways to make money online, this Rental Arbitrage strategy has proved to be a very lucrative and profitable online business income stream and extremely consistent especially for those who have minimal knowledge on real estate and rentals and especially compared with other online business models.
The Escape the Grind brand provides intel on how to get and sublease the most appropriate rental properties without having to worry about owner expenses like maintenance and repairs expenses. It shows how people can maximize revenue management by mixing short and medium term rentals and make use of hassle free and automated maintenance and management services that effectively relieve investors of property operational stress,
Find out more about this service and video visit -https://bit.ly/STRAMP
John C. Howard is a seasoned online entrepreneur who has been generating income online since 2002. He has been involved in several different businesses and online projects that have generated 7 figures or more per year. His largest recent success, QuickApply.com is known as a financial marketplace and provided credit solutions to consumers and was the #1 highest traffic mortgage website in the world during the mid 2000s according to Alexa.
In addition to his internet ventures, John C. Howard has generated consistent revenue from vacation rentals since 2005 and is introducing this new education platform so that the average person can also realize the same potential in quickly generating four and five deposits frequently and consistently..
Escape the Grind thrives on the idea of standing out. It's all part of the fun and it's going to allow newbies to experience the excitement they need to from what can be the fastest and easiest way to generate revenue from a new business. Mr. Howard's hope is that those newbies discouraged by other online businesses like drop shipping or launching an agency can consider short term rental arbitrage and experience how quickly deposits can start showing up. This launch celebration is just one of the many ways Escape the Grind is adding value to the average person. .
When asked about the Short and Medium Term Rental Arbitrage instructional service, John C. Howard said: "It should be a real hit because one of the best parts is that there’s no need for any form of marketing or advertising for a newbie to launch successfully because all the marketing and advertising is handled by Airbnb and VRBO - These massive sites bring all the traffic to you! ".
Escape the Grind's Short and Medium Term Rental Arbitrage instruction service launch is set to go live' Summer 2023. To find out more about the service and Escape the Grind itself visit https://bit.ly/STRAMP.
Rental Arbitrage is known as investing lower upfront capital in real estate for first and last months rent + security deposit and you also have to include furnishing costs. The investor can then capitalize on the high nightly rates for short and medium term rentals. Here, an investor can sublease a leased property to short term rental tenants in order to maximize on the growing market of short and medium term rentals without having to acquire the subject property. Rental arbitrage is an appealing investment for real estate entrepreneurs and investors without capital or with limited capital.
To be more specific, rental arbitrage is when an entrepreneur rents a property as a tenant on a long term lease, furnishes it and then re-rents it on VRBO and Airbnb to short and medium term tenants. This rental arbitrage strategy is capitalizing on the huge gap between the price that a property can be leased as a long term unfurnished property and the nightly rates it can achieve on short and medium term rental platforms like Airbnb and VRBO.
Rental arbitrage is simply another way of investing in real estate without having to spend massive capital on buying the property and the investor is also not required to pay for the repairs and maintenance expense on the property.
How Does Rental Arbitrage Work on Airbnb and VRBO?
The concept of being a host and renting out a property on Airbnb and VRBO is not new locally or globally. Airbnb and VRBO are both platforms that offers homes and apartments to travelers on short and medium term durations for vacations, temporary work, housing for insurance needs and many other reasons.
Airbnb and VRBO arbitrage has grown in terms of it being an entrepreneurial online business due to the extremely high demand for accommodation from Airbnb and VRBO during vacations or any other temporary stays that are not hotels or hostels. After the pandemic, countries and the world reopened for tourism and work-related travel and activities and people who have been confined for those years were eager to get out and explore once again. Even in local markets during the pandemic, short and medium stays were extremely popular for people as nearly everyone in the world was working remotely and they travel and stay locally. This all caused the high surge in demand for rentals and made rental arbitrage a very popular and lucrative business strategy.
Benefits of Rental Arbitrage on Airbnb and VRBO
Rental arbitrage offers a lot of benefits for people who want to start an online business or a real estate business but have little capital thus cannot buy properties. Here are some of the benefits:
· Lower Capital Investment: Rental arbitrage requires much less initial capital investment in comparison to buying a property or any other real estate investment.
· Fastest to start collecting: Rental arbitrage offers possibly the quickest turnaround of collecting revenue and return on investment. This is because the properties are for short and medium terms and the platforms pay the host approximately 24 hours after check in.
· Little property management and on site requirement: You can easily hire people part time who will take care of necessary errands and any work on the property.
· High Demand: Short and medium term stays are in very high demand and its only growing.
Get Started on Rental Arbitrage on Airbnb and VRBO:
1. Research on the market
Before jumping on a business idea, it is very important to engage in market research and analysis. Always take sufficient time to research rental properties around your locality or other popular areas if you plan to operate remotely or semi-remotely. Look for what type of properties will be popular in a specific area, and how successful such properties have been in past years and be sure to account for how seasons affect demand in the area you are interested in.
It is ideal to know what is unique about the area or local market you are interested in.
2. Local Real Estate Regulations
Local real estate regulations are crucial to the area you are interested in. Before launching your first rental arbitrage, it is ideal to obtain all permits or licenses, pay regulatory and local fees and adhere to the local rules governing short and medium term stays on residential real estate.
3. Cost of all Expenses
After thorough due diligence and in the event you feel that rental arbitrage is profitable for you and could be a great side hustle, or main hustle, for cash flow then it is time to consider the expenses. Estimating the cost of rents, furnishings, insurance, and utilities will help you to determine the appropriate pricing and if the property will be profitable for rental arbitrage.
4. List the Property
Once the property you are most interested in has been found and secured, you will need to create your property listing on VRBO and Airbnb. You can also use other smaller sites, but Airbnb and VRBO will be the main websites used. Always take professional pictures of the property for your listings. Thoroughly describe every aspect of the property and its available amenities. Create a competitive, but realistic nightly, weekly and monthly rate. Keep in mind your prices can change week to week.
5. Stay in line with Market
Keep in line with the market and its demand and allow your pricing to go with the flow of the demands. Seasonality, rate optimization and length of stay is a key to success in rental arbitrage on Airbnb and VRBO. Its important to discover whatever edge you may have over competitors in your market.
6. Build Experience and Comfort
To ensure reasonable and consistent cash flow on Airbnb and VRBO, properties need to get bookings on a regular basis thus you will need to maintain a reasonable occupancy rate. Therefore, you will need to regularly maintain the property, pay special attention to the furnishings and their care and respond immediately to property complaints.
If you’re not comfortable with managing a property or lack the adequate time needed then you may need to consider part time people to help you manage the property. This will save you time and enable you to focus on other areas of the property where you could enhance it to keep getting higher rates.
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Risk Factors on Rental Arbitrage
While rental arbitrage has a ton of benefits, risks are involved as well. Here are some risks that can be considered:
· Legal Problems: Local regulations can cause most of the legal issues you may encounter along the way. Always get signed agreements from the landlords and property owners you engage with.
· Less Control: You have less control over a leased property vs. an owned property because you usually cannot make changes to the property without the owner’s permission.
· More Competition: As more people venture into rental arbitrage on Airbnb and VRBO, it might lead to more competition.
· Seasonal Demands: The location of the property will determine its demand and seasonal occupancy.
· Unexpected Damages: Accidents may occur on your properties and damages such as water damage or anything plumbing related. While insurance or the property owner most often will cover this there can be some cases where it the rental tenant can be liable if they were negligent.
Earnings and ROI on Rental Arbitrage
The amount of profit and cash flow in rental arbitrage depends on many factors including seasons, locations, property size, number of beds and of course rates. Larger properties are much more likely than smaller properties to generate high nightly rates and higher revenues in shorter amounts of time.
The duration of the stays you accept as a host, or the length of stays, will also be a big factor in determining your earnings and the size of each transaction or deposit . For example, renting out an apartment or house for a few weeks or a month or longer will generate a single deposit than consistently doing on a few night rentals at a time. You can increase income by taking advantage of peak holidays by doing shorter rentals and charging higher rates during these times.
The ultimate goal in investing and business is to generate profits and generate a consistent flow of income that exceeds expenses. In general, rental arbitrage can be the quickest business out there to start generating size-able (four and five figure) and consistent deposits.
In Conclusion:
Rental Arbitrage on Airbnb and VRBO is a unique business strategy to generate quick and consistent cash flow as extra money on the side or as your main job and business. The startup business process is simple and almost anyone can get it done without many complications. It is a lucrative real estate business strategy for beginners and people wanting a side hustle.
It is important to know the inherent risks along with the many benefits of a rental arbitrage business therefore, entrepreneurs are advised to understand and research their local market regulations before venturing into a property.