People Are Becoming Millionaires on Airbnb Without Owning a Single Property - Here's How

People all over the world are becoming successful Airbnb hosts without owning a single property - this is through a business model called Airbnb Arbitrage.
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Airbnb has really taken off over the last decade and it has proven to be a great way for property owners to make more money leasing out their properties through short term rentals on Airbnb rather than a traditional long term tenant rental.
But, how does Airbnb Arbitrage work and how can you get involved?
Airbnb Arbitrage is when you lease a property - like a house, apartment or condo - and while leasing it through a traditional tenant lease, you are simultaneously subleasing it out to short term tenants on platforms like Airbnb. With this business, you would lease a unit, furnish it and then list that same property on Airbnb.
The first thing to understand is that Airbnb Arbitrage does not work in every city - when deciding if Airbnb Arbitrage is the right business for you, you need to first figure out if your city can sustain it. To do this, you need to figure out what the average rental price is for a 1, 2 or 3 bedroom apartment in your area. Next, you need to see what that same type of apartment is renting out on Airbnb for. Once you know the average cost of a traditional lease, and you know the average cost of a short term rental - you can now know if your city supports this business model. If the average cost of a short term rental is MORE than the cost of a traditional lease, then this could be a good business for you.
Next, you need to find a property - make sure when searching for a property that you find one that allows for subleasing, specifically short term subleasing. When going about this business, you want to make sure that you ask permission from the landlord or property owner.
Once you find a property, it really is as easy as ensuring that short term leasing is allowed, signing the lease, furnishing the unit and then listing it on Airbnb!
But, when does this business model make sense and is this something I personally recommend?
Airbnb, in general, is a great way for property owners to maximize their profits while adding equity into their properties. My issue with Airbnb arbitrage is that though you have a property on Airbnb, you don’t own it and you aren’t building equity or growing any sort of investment portfolio. As a long-term business play, I do not think that Airbnb Arbitrage is a great option, but as a short term play to help you get to where you want to go (ie: real estate investing, owning property...etc) then yes, I think it could be a great option!
I hope that you enjoyed this video and it taught you about Airbnb and the business of Airbnb Arbitrage. See you in the next video!
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#Airbnb #RealEstateInvesting #RentalArbitrage
I am not a CPA, attorney, lender, or financial advisor. The content in these videos should not be construed as tax, legal, or financial advice...etc, and may be outdated or inaccurate; it is your responsibility to verify all information yourself. This is a KZbin video for entertainment purposes ONLY. IF stocks or companies are mentioned, Aubrey may have an ownership interest in them - Please do not make buying or selling decisions based on Aubrey’s videos. If you need advice, please contact a qualified professional.

[@AubreyJanik]

What are your thoughts on this business model? Comment below!

[@deanbirmingham]

A thank you for all the insight Aubrey What's the best way to get in touch with you. Dean Birmingham 305 331 6072

[@ogmike8219]

You're so beautiful

[@neilhupping9106]

It works. 5 units and I’m pulling in 5,000 a month in profit. Passive income rules

[@TheMogulMommy]

Do you mind having a mentee? I’d love to learn with someone who’s legit.

[@carolinem868]

@ Neil Teach me your ways

[@EBlack1111]

How did you get your landlord to agree to it?

[@dukeduke2790]

Don’t look for mentees in the KZbin comment section, he won’t reply because he’s full of it also💯😂

[@michaelcalmeyerhentschel8304]

This is brilliantly organized and effective as an analysis of a business model. All sides objectively in one place without losing any enthusiasm and interest. Helpful and even visionary.

[@AubreyJanik]

Thank you! I appreciate the kind comment

[@justiceobeng214]

Lease the newly built apartment. Property managers wants to fill those units, but DO NOT REVEAL YOUR INTENTIONS ELSE THEY WILL DENY YOUR APPLICATION BECAUSE OF LIABILITY ISSUES. YOU HAVE TO HAVE MONEY TO FURNISH YOUR LISTING TO ATTRACT GUEST. PHOTOS APPEARANCES ARE YOUR BEST BET. MONEY MONEY MONEY. At least $4500 to furnish it. You would be surprised how much money you would need to make your Airbnb competitive in Dallas Tx market. It is not cheap to compete in the Dallas Market like you think. Love your video, very accurate.and helpful info.

[@ashleyfreeman7145]

It is NOT illegal to sublet--it is a breach of contract--not illegal. Know the laws for the city, county, and state that you are in though-because there may be laws that you are breaking. For example-you may have to live in the property yourself in order to sublet it or -you may need to own it depending on the cities laws.

[@youtubecarspottersguide1]

most owners in the contract don't allow sub lets ,airbnb vrbo , renting out the couch , garage space etc.... , liability. who is responsible if some one gets hurt or dies on your property ? you still have to qualify to rent the apt.

[@TaylorKing-wu2sr]

Wanna know why Jewish people own all the property in America? "CREDIT" - Jay Z

[@dr.d8112]

What about corporate leasing?

[@joerosato1163]

rental arbitrage has been around for decades..there is 100 percent longevity in this business model..look at the big players in the game, sonder, lyric, zeus, all big companies that lease over thousands of arbitrage units backed by big money and investors and hedge funds. I don't think companies like that would invest thousands if not millions into these companies if they didn't have longevity in them. Facts 100

[@jinmo3586]

Dallas is actually one of worst market because there is no regulation. Most apartment allows sublease. “Sublease allowed = Airbnb allowed” More supply than demand causes people lower their price and chicken game started.

[@AubreyJanik]

I’d have to disagree- Dallas was ranked last year as one of the best markets for Airbnb Investors. There is a lot of units available to rent but Dallas and the surrounding cities (Plano, Frisco, Allen) are growing like crazy, leading to a lot of demand for both hosts and guests. Of course this may shift over time, but in the past it’s done very well

[@jinmo3586]

Oh I meant Dallas... like Dallas downtown uptown area. Plano,Allen,Mckinney still has market. I used to own a house near lovefield airport and oh well price of house went up crazy that area and these property taxes killed me. I sold and moved on to Columbus Ohio where it’s heaven for investors and Airbnb hosts.

[@AubreyJanik]

Yeah you’re right on that! The love field area of Dallas is insane and it seems to just keep going up- so you are correct to say Dallas specifically isn’t the best. I suppose I should have clarified DFW

[@shereent3121]

Pay landlord a couple hundred under table?

[@Shantaelatrese]

If I live in California, can i sublease apartments in another state using a property manager to manage the properties? Or is there regulations against that

[@wagerinvestments]

It’ll be better if you know someone personally to do it from previous experience

[@alexaandfriends1]

i wanna see if can do it and like it before buying one out of state is that bad?

[@ladyboss38]

I thought you cannot sub-lease apartments??? I've called many, and they said they don't do that. in fact, its illegal

[@ashleyfreeman7145]

The downside to this is that you don't get the tax depreciation like the owner of the property does-this is a downside.

[@JorgeFlores_one]

as long as you scale effectively your cash flow will beat the depreciation

[@iTravelDirectClub]

Great Content - Thanks!

[@scotthester2189]

Lots of hurdles and pitfalls with this business model, most corporations that own lots of apartments will not go for subleasing or subletting the apartment, next you need 3 to 5k to furnish the apartment, probably another 5k to lease the apartment, 1st month, last month and security deposit, 3 months at 1700 month is 5100.00 , next who is going to clean the apartment between stays, if you don’t that will cost more money, next damage control , accidents happen , something breaks or gets stolen , that will cost more money, then god forbid you get stuck with squatters or people who use the property to commit crime , human or drug trafficking, pets damage the property, smokers, Ect, ect.

[@vides51]

Well Done! Great content, objective analysis and presented effectively. Regards from Australia. Alberto

[@alexaandfriends1]

what if its a year lease? and alot of ppl dont allow

[@john_dee1431]

This arbitrage model escaped my notice but is totally believable as an income source. I'd say it takes the same or better level of dedication as it takes to successfully profit with Turo.

[@AubreyJanik]

Agreed! Definitely not easy or passive income, but in the same way as Turo can be a way to start a business relatively organically and with limited funds needed up front!

[@ericwilliamson23]

Great video thanks for sharing!

[@barbielocs0074]

I think you need an llc for it to be legal and of course asking landlord

[@AubreyJanik]

You don't need an LLC to run a airbnb

[@barbielocs0074]

@@AubreyJanik I know that!

[@workhardtoplayhard]

No rental contract these days allows this. All standard rental contract specifically prohibit this.

[@Sab8190]

That’s what confuses me. I don’t know how to legally do it

[@jacobladder6165]

you have to negotiate....some leasing agents are stressed trying to maintain a certain occupancy...

[@gissepmarin8938]

@@jacobladder6165 I am in the same boat as the comment above. So you basically you do have to tell the landlord you will use it for AirBNB, Correct?

[@cassandrarodriguez5150]

@@gissepmarin8938 yes

[@Abetterphiladelphia]

How do you approach an apartment complex and tell them you want to do this? Do i just sign the lease and say hey btw i wanna rent this out 😂

[@Goddess_Blossom]

Or would it be better to purchase a home and do Airbnb?

[@tanikiawashington7228]

lmbo

[@wandayoung5904]

@@Goddess_Blossom Then your noises neighbors will complain!

[@ForeverE12]

@@wandayoung5904 they gone complain whether you own the home or rent an apt or home lol

[@wandayoung5904]

@@ForeverE12 True that!

[@williammorrison920]

I can promise you the monthly rent in Hawaii is not 1700, it's 2300+ 😭😭😭

[@martinzuniga6605]

Omg nice. Cali is $2800+

[@waldorsockbat5737]

​@@martinzuniga6605 2800 if you want to live in a shack lol. more like 3500

[@Camila-im9ws]

True. 1700 for a 1-bedroom + kitchenette or sometimes a full kitchen is average for what I've found here in recent months as I've been searching- not always including amenities or parking, so its closer to 2k. most of these properties are in busier areas, though closer to town (Honolulu) and are older. But with some nice furnishings, it could go a long way. If being rented in resort areas, however, it would be important to find places in good neighborhoods, and that's where the prices will go up.

[@deanbirmingham]

🌟 🌟 🌟 🌟 🌟 I want to give you 5 stars this was excellent info. Very insightful thank you for the information. Any other way to find out what are the best states and best cities that are aribnb friendly and is there a way to contact you. 💎 💎 💎 💎 💎

[@Haidy_Ch]

Best way will be Airbnb you own properties!!!!!

[@MelindaLongoria]

What happens to your credit score from getting all these rental properties?

[@Emystarot]

You can buy it under your company and not use your credit

[@AirbnbRentalEmpire]

Keep crushing it! 🙂

[@jeremiah8716]

In theory it sounds easy, but in reality it’s really hard but once u gets the ball rolling it becomes easier 🙏

[@netaverse7694]

Like everything in life

[@mahoganyspiritually]

You know why it's hard for you and everybody that like this comment is because of your way of thinking. You have a negative mindset if you believe it's going to be hard for you then it's yes it's going to be hard for you Siri everybody that's successful in this Airbnb in any other type of business have positive mindset they don't ever think about failing. You have been so conditioned all your life to think that nothing will work for you and it doesn't work for you negative people should not be able to comment

[@wardroberts9600]

just be careful, cause airbnb does not care about the hosts and can blacklist you anytime. Especially if a scammer complains to the platform...

[@Ohdarling_]

What about renting an Airbnb for a month and reposting it for 130 a day

[@anewday1017]

Without owning the property is now misleading u have to still pay rent on it every month even if your not getting bookings

[@ChristopherAddes]

Right that’s the risk you run if they don’t book you lose money, in a perfect world you collect every day of the month at that juiced up rate

[@tiegideon9816]

Well, obviously. That goes without saying

[@TaylordSpirit]

Renting is NOT owning. Your comment shows that you misunderstand the point.

[@kirbcutscals]

Personally i just think its way too much work for how long the upside would run for. they might be making "millions" but those millions will run out eventually. its not something you can make a career out of, consistently making that kind of money over a lifetime.

[@broneatsai8238]

Look at your topic and what you say?

[@freddyperezjr]

Thanks, that was helpful.

[@dukeduke2790]

As more people use them for drug dens and brothels eventually nobody will slow you to airbnb

[@ctstewart6209]

Just for the cornball sign that reads “smash…” I’m not interested. Plus, there’s nothing new here.

[@garrettmcneil8383]

Isn’t this illegal? If not how do you do it legally?

[@garrettmcneil8383]

Ok you just answered my question lol!

[@anthonyingram6916]

It’s better to just own the properties

[@AubreyJanik]

100%, but not always feasible

[@ashleyfreeman7145]

It is a great way to make money though-I do it myself

[@GAMEBRO0]

Ask permission to host and the landlord will steal your idea

[@AubreyJanik]

No necessarily, it's less passive - some landlords are lazy

[@GAMEBRO0]

@@AubreyJanik they might ask for percent of profit

[@yyysns9868]

Not at this time... I feel sorry for people running airbnb / Turo business now

[@AubreyJanik]

Yes, but this will pass and when it does life will continue on, as will the need for business models like both Turo and Airbnb

[@anthonydraper1231231]

And now, business is booming.

[@jaliscopow6814]

Chicago here I come

[@mariom6449]

Watch out cities all over are banning AirBnB or short term rentals.

[@danieljmelanson]

Looking out for everyone! Good looks

[@djonenonly8381]

If my landlord found out am doing this she gonna kill me

[@expatlifestyle1144]

So cute

[@sdnisew]

Ii

[@slw04]

So basically this business model is built on the backs of the actual hard working homeowners? Only with the homeowners consent, I could see doing this. Even then the business model should be temporary and eventually get your own properties. If the homeowners wanted this to be an intended purpose for their properties they could just do this for themselves. Why not get your own? Why keep building off the backs of the people that work hard to own these properties?

[@Simplyolivia1000]

Oh shut the hell up! Your right homeowners can do it themselves. Did it ever occur to you they don't want to?? They rent an empty house and collect money every month. Airbnb you have to FURNISH THE HOME, PROVIDE COMFORTS LIKE TVS, POTS, PANS MICROWAVE COOKWARE ETC. And clean or pay a cleaner after they leave and get it ready all over again for the next guest. That's alot of work. Meanwhile the owner gets his money with not having to worry about any of it.

[@ChristopherAddes]

Yea because if your not a homeowner there’s no way you could be a hard worker

[@ericawilliams3168]

And the owner makes a lot less than the person running the air bnb

[@joerosato1163]

they don't do it themselves because they are not in business for that they want the rent every month and thats it rental arbitrage is a legit business.

[@joerosato1163]

@@ericawilliams3168 not there person doing airbnbs problem ?