How to Start an Airbnb Business Without Owning a Property

By Judy J. Beasley Last updated Oct 26, 2022

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Since its launch in 2008, Airbnb has become one of the most popular online rental platforms in the world. And at this point, it’s no wonder that more and more people are convinced to join the Company. However, most people also assume that you need to buy at least one property becoming an Airbnb entrepreneur, and more often than not, it’s kept non-owners from even planning to get started.

But, this is a huge misconception. The truth is there is a business strategy who can help you make a profit on Airbnb without owning or buying property. This strategy is calledsublet“, and you will learn more about it here.

Subletting and commercial management

By definition, sublet use rental arbitration model. Rental arbitrage involves using other people’s properties to make a profit for yourself. First, you need to find a property to rent, call the owner, and pitch the idea that you’ll be using their space as a short-term rental on Airbnb. Once you get confirmation, you draft an agreement and start your business.

Is it legal? Yes. Just think of yourself as a store owner lease a place inside the mall. The mall owner receives rent from you and you earn income on his space – it’s a win-win! Plus, you even learn how to run your business without having to buy the whole building.

Subletting — pros and cons

Before you jump in, you might want to know what you’re getting yourself into. So here are some of the pros and cons of using this strategy for your Airbnb business.

Advantages:

You don’t need to buy a property. Therefore start-up costs will be weak.
Airbnb will do the marketing for your business.
You can build your income from here and start investing in other businesses.

The inconvenients:

Your monthly Airbnb bookings may fluctuate.
You are responsible for any damages and must pay for additional utilities on your rental property.

Now, if you’re ready for all of this and have decided that subletting is a good choice, then it’s time to research the best type of property you can rent out and list on Airbnb.

Subletting according to your budget

Usually you sign a rental agreement for 12 months to rent a property. If your capital is a little low, you can opt for a studio, a T2 apartmentor a two-bedroom house with a monthly rent of $1,500.

After paying the first month’s deposit, you can install your furniture, add some decorations and take professional photos. These photos will be downloaded to your Airbnb website and are the first thing your guests will see.

Of course, depending on your capital, you can opt for a larger space. But all of this can be done even if your budget is between $7,000 and $15,000.

Three things to check

1. Municipal ordinances. The first thing you need to do is make sure you are operating in an area where Airbnb rentals are allowed. Approximately 97% of cities in the United States allow short-term rentals with or without a license, but that leaves at least 3% who do not allow it to operate in their area.

For this, I advise you to continue Google to find the local building service phone number for the city you want to get into and ask for their ordinances. This will help you save more time on the process.

2. Ownership Standards. Not all properties can be sublet, so you need to make sure this meets your standards. First of all, your property must respect your budget. It would be ideal if you could get a place with parking for two or more vehicles.

Second, it must have air conditioning and heating already installed. This ensures that you don’t have to worry about installing air conditioning and heat. using your money.

Your property must also have already been renovated because you do not want to renovate a property that is not yours. Also, if you can get a property already fully furnished, that would be even better for your budget.

3. Location of Property. There are areas you should avoid when looking for a property to rent. These areas include properties near train stations, busy roads, and congested corners. It may not seem necessary, but sometimes these areas can be noisy and disturbing. Your guests have booked your spot to relax, and they won’t be able to do that if they hear constant honking from incoming trains or cars.

These are just a few of the most important things you need to know when starting a business. Airbnb Company through subletting. It can be your first step toward creating long-term wealth for you, your family, and future generations.