By - Wednesday, October 16, 2024
If you’ve heard all the reasons why Airbnb arbitrage supposedly "won’t work," you’re not alone. But here’s the truth: subleasing properties for corporate housing is 100% legal, provided you get the proper permission. And the best part? It can be incredibly lucrative.
While others are busy making excuses, my students are making $3K to $5K per month from each property they rent. How are they doing it? Through corporate housing arbitrage, and it’s easier than you think.
What Is Corporate Housing Arbitrage?
Corporate housing arbitrage is when you rent a property from a landlord with permission to sublease it to corporate clients—like employees on temporary work assignments, insurance companies providing housing for displaced families, or medical professionals on travel contracts. Instead of buying the property, you take advantage of the growing demand for mid-term housing (30 days or longer) and sublease it at a higher rate than your monthly rent, keeping the difference as profit.
Why Corporate Housing Instead of Airbnb for Vacationers?
Unlike short-term rentals for vacationers, corporate housing clients are more reliable. They’re not here to party or trash the place. Corporate clients pay on time, stay for longer periods, and take better care of the property. With corporate housing, you don’t have to worry about a revolving door of guests every few days like with traditional Airbnb stays. You might even secure months-long contracts, guaranteeing steady cash flow.
Is It Legal?
Absolutely—subleasing is legal, but you need the landlord’s permission. Be transparent from the start. Explain that you’re offering the property to high-quality, responsible corporate clients who will treat the home with care. Once you have written consent, you can start leasing to corporate clients.
The Easy Permit Process
In most cities, getting a short-term rental permit is straightforward. A quick trip to your local zoning office, or even an online application, can usually get you the approval you need. Some areas may have stricter regulations for short-term vacation rentals, but because corporate housing falls into the mid-term rental category, it often avoids many of these restrictions.
After securing the permit, you’re ready to roll!
Breaking Down the Numbers
Imagine renting a 2-bedroom home for $2,000 a month. By subleasing it as corporate housing, you can often charge $4,500 to $5,000 per month, especially in markets with high demand for corporate rentals. After covering rent and other expenses, that’s a solid $3K in profit from just one property.
Now imagine scaling this model across multiple properties. Many of my students manage several units, earning $3K to $5K per property, adding up to a significant monthly income without needing to buy real estate.
Why Others Make Excuses
I’ve heard it all—"the market is saturated," "it’s too risky," "landlords won’t agree." The truth is, these are just excuses. The demand for corporate housing is booming, and as long as you approach landlords professionally and transparently, they are often open to subleasing arrangements. My students are proof that it works. They’ve been able to quit their jobs, replace their income, and even surpass it—all with properties they don’t own.
Ready to Start?
Corporate housing arbitrage isn’t complicated. It requires a little upfront work—getting permission from landlords, securing permits, and furnishing the property. But once it’s up and running, it can become a passive source of income.
Stop letting excuses hold you back. The path to earning $3K-$5K per month per property is right in front of you. While others are sitting on the sidelines, you can be the one cashing in on this opportunity.
Final Thoughts
Corporate housing arbitrage is one of the best ways to generate consistent cash flow without the headaches of traditional Airbnb hosting. The market is growing, and there’s no better time to get started than now. Stop making excuses and start making profits!