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Updated about 3 years ago on . Most recent reply

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Bruce Woodruff
#1 Contractors Contributor
  • Contractor/Investor/Consultant
  • West Valley Phoenix
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Please explain benefits of arbitrage to a dumb landlord....

Bruce Woodruff
#1 Contractors Contributor
  • Contractor/Investor/Consultant
  • West Valley Phoenix
Posted

After all these hundreds of posts about arbitrage, I just don't get it........so I have a question to ask. I have never actually done arbitrage from either side, so excuse my ignorance :-).

Here goes: Can anyone explain what the benefit is to a property owner to have a literal stranger sublet their house to a whole bunch of other strangers and pocket the difference in rent profit?

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Lauren Kormylo
  • Rental Property Investor
  • Phoenix, AZ and Rehoboth Beach DE
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Lauren Kormylo
  • Rental Property Investor
  • Phoenix, AZ and Rehoboth Beach DE
Replied

The landlord gets a little higher than market rent, and gets the place taken care of (interior, and exterior landscaping) much better than a normal renter would. It's a good deal for a landlord if they don't want the day to day responsibilities of running an STR themselves.

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