The arbitrage process takes advantage of an imperfection between markets which allows the investor to make a low-risk profit. This blog post will explain what rental arbitrage is and how to use it effectively through Airbnb.Īrbitrage is a term used in finance that describes the practice of profiting by buying a commodity at a lower price and selling it at a higher price in a different market based on the varied pricing. The process is called rental arbitrage and it is becoming an increasingly popular way to make extra income without having the responsibilities of owning the property. While owning real estate may be the safest and easiest way to rent out a property, you can also rent out property without owning anything. It is commonly believed that you have to own real estate in order to rent out a property to others, but this belief is actually a common misconception. Many individuals are interested in renting out a property as a source of extra income.
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