Rental arbitrage: lease a property and sublet on Airbnb. Calculate monthly profit, ROI on setup capital, payback period, and full P&L.
📍 Property Address (optional)
✓ Saved
InputsYour Numbers
Your Lease Costs
Monthly Rent (to landlord)?
$
Security Deposit?
$
Lease Term (months)?
Setup Costs (One-Time)
Furnishing & Decor?
$
Photography & Setup?
$
STR Performance
Average Daily Rate (ADR)?
$
Occupancy % (As-Is)?
%
Pro Forma Occupancy %?
%
Cleaning Fee per Stay?
$
Avg Stay Length (nights)?
Operating Costs
Utilities / mo?
$
Supplies / mo?
$
Platform Fee %?
%
Co-Host / Mgmt %?
%
As-Is AnalysisCurrent
Enter values to see results
Monthly Net Profit
--
after lease & costs
Monthly Spread
--
STR rev minus rent
Setup ROI (12-mo)
--
annual return on setup
Payback Period
--
months to recoup setup
Monthly P&L
STR Gross Revenue--
Platform Fee--
Co-Host / Mgmt--
Net STR Revenue--
Master Lease Rent--
Utilities + Supplies--
Monthly Net Profit--
Setup Investment Return
Furnishing + Setup--
Security Deposit--
Total Cash Invested--
Annual Net Profit--
ROI on Setup Capital--
Pro FormaAfter Plan
Enter pro forma values
Pro Forma Profit
--
vs as-is
Pro Forma ROI
--
on setup capital
12-Mo Total Profit
--
full lease year
Lease Year 2 Profit
--
deposit returned
Pro Forma vs As-Is
As-Is Monthly Profit--
Pro Forma Monthly Profit--
Annual Profit Improvement--
📄 Email My Free Report
Full analysis sent to your inbox instantly.
1
Enter Your Lease Cost
Your monthly rent to the landlord is your biggest fixed cost. Lease cost must be covered by STR revenue before you make any profit.
2
Enter All Setup Costs
Furnishing, photography, smart locks, and security deposit. The calculator shows ROI on your total upfront investment, not just monthly cash.
3
Enter STR Performance
ADR and occupancy determine your top line. The spread between STR revenue and lease cost is your gross profit before utilities and supplies.
4
Read the Payback Period
Months to recover your setup investment. Strong arbitrage deals typically pay back in 3-6 months. Over 12 months suggests thin economics.
5
Check the Spread
Spread = STR net revenue minus monthly rent. This needs to be positive and large enough to cover utilities, supplies, and leave profit.
6
Know the Risks
Rental arbitrage requires landlord permission (ideally explicit written consent). STR regulations change. Slow seasons can hit hard when the lease is a fixed cost.
Rental arbitrage is leasing a property long-term and subletting it short-term on Airbnb -- generating profit from the spread between the nightly STR rate and the monthly lease cost. No property purchase required, meaning lower capital investment and faster to scale.
The advantages: minimal upfront capital (just deposit + furnishing), no mortgage or property risk, and ability to exit if the numbers stop working. The risks: lease obligation regardless of occupancy, landlord or regulation changes can kill the business overnight, and thin margins when ADR or occupancy falls.
Keys to success in arbitrage: Deep market research on ADR and occupancy before signing any lease, landlord consent in writing, understanding local STR regulations, and having 3-4 months of expenses in reserve for slow seasons.