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This isn’t really arbitrage by my reckoning. Arbitrage normally means selling the same product. A long term unfurnished apartment is a very different product t
by dghlsakjg 4y ago
This isn’t really arbitrage by my reckoning. Arbitrage normally means selling the same product.
A long term unfurnished apartment is a very different product than a short term vacation rental. Cleaning, laundry, taxes, key exchange, booking, and compliance is what you are signing up to deal with that a long term landlord doesn’t touch.
- bombcar 4y agoThere's a similar term (it's not buy long sell short) and arbitrage is close, but the basic idea is you make a longterm commitment and turn around and resell it to short-term committers. And it can work quite well until it doesn't.
- fy20 4y agoThe thing is short term rents really do pay that much more in some areas. There's an apartment in my building on Airbnb that brings in over €8k/mo. It has a minimum stay length of 14 days. It's booked (well, the calendar shows unavailable) until February next year. To rent a similar apartment long term would be around €1500/mo. With the difference you can easily pay taxes and could even hire someone full time to look after it for you.
- cmeacham98 4y agoYes, it can be a profitable business strategy: that doesn't make it arbitrage.