Airbnb rental arbitrage is a strategy where someone rents a property with a long-term lease and then sublets it on short-term rental platforms like Airbnb. This method lets hosts earn rental income without buying real estate, making it an attractive option for those unable to afford owning property. Instead of paying a hefty down payment to purchase a property, an arbitrage host covers costs like the first month’s rent, security deposit, furnishings to get started. Managed well, income from short stays can cover the long-term lease and turn a profit. Hosts must secure landlord permission and stay aware of local laws on short-term rentals, among other challenges. Airbnb property management services can help streamline these efforts.