Getting Started With Airbnb Arbitrage.

Getting Started With Airbnb Arbitrage.

Hi all I'm currently 17 waiting until I'm 18 to do R2SA I just want to know what type of experiences people have had and what to expect.

 

Also where have you found it to work best (uk ideally) looking forward to hear from everyone!

6 Replies 6
Helen3
Top Contributor
Bristol, United Kingdom

@Mccauley0 Arbitrage is a very risky business model ... why is this something you want to try .

 

what plans do you have if you don't generate the bookings you expect - you will still have to pay rent, utilities etc.

 

your other issue is that standard long term rental leases have clauses that forbid sub letting 

 

you'll find lots of YouTube videos and ads selling get rich quick books and courses in arbitrage but the reality can be quite different @Mccauley0 

Hi Helen,

 

I understand that Arbitrage is a risky business model just like any business each ones come with their own risks however, as long as our knowledge is there (which it is) and the standards of the place is high and our compliance is right then we should not have an issue in that matter.

 

Me and my business partner are going to ensure the landlord gets guaranteed rent (no void periods) and we cover maintenance etc, we are also going to systemise the properties with surveillance, key master, sound monitor, cleaners so the property is under control at all times with weekly inspections.

 

I also understand that we will have to pay rent and utilities etc but we completely understand what we are getting ourselves into and we're excited 🙂

 

Thank you for your response!

Helen3
Top Contributor
Bristol, United Kingdom

What are you going to do about STR invalidating the landlords building insurance @Mccauley0 ? 

impressive as a 17 year old you've already gained a 'knowledge' of the STR market and how arbitrage works 😀

Hi @Helen3  thank you for your response,

 

To go about the STR invalidating the landlords building insurance I would simply:

 

. Check the existing building insurance

 

. Call the insurer and declare the STR use

 

. get specialised short term rental insurance

 

. Get written permission from the Landlord

 

If the Landlord does not want to comply with the insurance or just STR in general then that is completely fine I will carry on my search for someone that would without risking legal and financial issues, if they are happy to comply with these then I would of course go forward once my personal due diligence is done to ensure numbers meet my criteria (usually done before but pricing can change)

 

Thank you!

Helen3
Top Contributor
Bristol, United Kingdom

you can't contact the building insurance company as you are not the one being insured 

 

You can't get STR insurance for a property you don't own 

 

@Mccauley0 

Wendy-May0
Level 2
London, United Kingdom

That is a good goal! Waiting until 18 to start R2SA shows you're serious, and that focus is what makes the model work.

 

Here’s the reality of R2SA: It's a negotiation and operations business, not just a rental hack. You will hear 'no' many times from landlords about subletting, so you need a polished, confident pitch and a strong business plan to get your first property.

 

What to Expect (The Capital): Don't forget the upfront capital. You'll need at least 1.5 to 2 months' rent for deposit, plus money for furniture, insurance, and compliance (Gas Certs, EICR). Budget for a minimum of £4,000 to £6,000 per unit to set up properly.

 

Where it Works Best (UK):

Corporate Hubs (Hypothetically. Manchester, London, Birmingham): Target areas with high business demand. You fill your weekdays with professionals on short contracts (mid-term renters).

 

Commuter Towns: Look for places near London with great transport links. Consistent demand from professionals is safer than relying on seasonal tourism.

 

It's all about making your operations so reliable that the profit is predictable. What are you most excited about learning first: the negotiation side or the operational setup?

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