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Since its launch in 2008, airbnb has become one of the most popular online rental platforms in the world. And at this point, it is not surprising that more and more people are convinced to join the business. However, most people also assume that you have to buy at least one property to become an Airbnb entrepreneur, and more often than not, this has prevented non-owners from even planning to start.
But, this is a big mistake. The truth is that there is a business strategy that can help you make a profit on Airbnb without owning or buying property. This strategy is calledsubleaseand you will learn more about it here.
Subleasing and business management
By definition, sublease use rent arbitration model. Rental arbitration is when you use other people’s properties to make a profit for yourself. First, you need to find a property to rent, call the owner, and pitch the idea that you’ll be using their space as a short-term rental on Airbnb. Once you get confirmation, you draft an agreement and get your business up and running.
Is this legit? Yes. Just think of yourself as a store owner rental a place inside the mall. The mall owner gets the rent from you and you are earning revenue on your space – it’s a win-win situation! Plus, you’re even learning how to run your business without having to buy the entire building.
Subleasing: pros and cons
Before you jump in, you might want to know what you’re getting into. Here are some of the pros and cons of using this strategy for your Airbnb business.
- No need to buy any property. Therefore start-up costs it will be low
- Airbnb will handle the marketing of your business.
- You can generate your income from here and start investing in other companies.
- Your monthly Airbnb reservations may fluctuate.
- You are responsible for any damage and must pay for additional utilities at your rental property.
Now, if you are ready for all this and have decided that subletting is a good option, then it is time to look for the best type of property that you can rent and list on Airbnb.
Sublease within your budget
Usually you sign a Leasing contract for 12 months to rent a property. If your capital is a bit low, you can opt for a studio, a one-bedroom apartment Departmentor a two-bedroom house with a monthly rent of $1,500.
After paying the first month’s deposit, you can set up your furniture, add some decorations, and take professional photos. These photos will be uploaded to your airbnb site and they are the first thing your guests will see.
Of course, depending on your capital, you can opt for a larger space. But all of this can be done even if your budget is between $7,000 and $15,000.
Three things to check
1. City ordinances. The first thing you need to do is make sure you’re operating in an area where Airbnb rentals are allowed. About 97% of cities in the US they allow short-term rentals with or without permits, but that leaves at least 3% that do not authorize their operation in their area.
For this, I would recommend following Google to find the phone number of the local building department in the city where you want to pitch and request your ordinances. This will help you save more time in the process.
2. Property rules. Not all properties can be sublet, so you need to make sure it’s within your standards. First of all, your property must be within your budget. It would be great if I could get a spot with parking for two vehicles or more.
Second, you have to have air conditioning and heating already installed. This ensures that you do not have to go through the hassle of installing air conditioning and heating. using your money.
Your property should also have been renovated because you do not want to renovate a property that you do not own. Also, if you can get a property that is already fully furnished, that would be even better for your budget.
3. Location of the property. There are areas that you should avoid when looking for a property to rent. These areas include properties near train stations, busy highways, and congested corners. This may not seem necessary, but those areas can sometimes be noisy and disturbing. Your guests have booked their spot to relax, and they won’t be able to do so if they hear constant honking from oncoming cars or trains.
These are just some of the most important things to know when starting a business. airbnb business by sublease. This can be your first step toward creating long-term wealth for yourself, your family, and future generations.