Charbel Milan got into short-term rentals about three years ago now, using a strategy called rental arbitrage. That’s where you’re re-renting property, of course, with the owner’s permission.
This allows you to get started with zero money down, zero experience, and you can eventually automate the whole process.
But is now really the time to jump on the Airbnb bandwagon? Aren’t hosts getting slaughtered lately?
Read on for my BNB Standard Academy review.
First off, isn’t it hard to get a landlord to agree to this? Not when you pitch it right.
“For one, I tell ’em we’re not going anywhere,” Charbel says. “So when we sign a lease with you, we’re gonna be renewing and renewing and renewing.”
“Number two,” he continues, “I’ve never slept a night in any one of my units. Because this is business. So we’re doing multiple inspections on the property per month. We got cleaning companies coming in and cleaning the entire property.”
“If we just look at the average person who’s traveling for business or personal or leisure, an unfortunate death in the family, a wedding, whatever it is,” he adds, “they’re not even spending that much time in the property.”
“They don’t know people in the area. You’re decreasing foot traffic. No one’s hardly using the oven, the stove. There are so many aspects of the property that aren’t even being used. Maybe the microwave, the washer and the dryer. But that’s it. So there’s just way less wear and tear on the property.”
“Also, helping the landlord understand, we’re not an Airbnb company. We’re a short-term rental company, catering to high-level clients or people on high-level personal leisure,” he points out.
“So, when you’re painting things that way, it’s a lot more appealing to the person who owns the property. You gotta get ’em to realize this is a real business and we’re providing value here.”
“And now the landlord knows, ‘Okay, my property’s being taken care of. I basically have free property management. And my rent’s guaranteed.'”
Once you find a good owner who gets it, and they agree to it, a lot of times they’re gonna have multiple properties.
So it’s not like you’re constantly cold calling; you just need to get that first solid relationship built with the right person, and you can grow just with them.
Charbel admits, look, Airbnb arbitrage isn’t perfect. It might take a little longer to get going than friggin’ flipping couches or doing ecom, but it’s worth it.
You’re pulling in 3-5x what you’d make with traditional long-term rentals.
In terms of types of property, Charbel’s go-to is one-bedroom condos. Why? Versatility. You can rent that to the traveling nurse, the couple who’s just in town for the weekend, the bridesmaid who flew in for the wedding, right?
Whereas, if you get a three-bedroom house, now you need like a big family or a group of friends who’re traveling together. Which, yeah, that definitely happens, but it’s just easier to stay booked, Charbel’s found, when you keep it simple with one-bedroom condos.
Obviously, you want granite countertops, nice cabinets, parking on site, make sure the staging’s on point.
But from there, it’s more about what’s around there to do? Restaurants, shopping centers, the stadium, downtown, the interstate, the airport, etc.
BNB Standard Academy will teach you the rest. Charbel poured his heart and soul into this course.
Cost is $747, but he’s gonna bump that up as he enrolls more students.
Just not sure about the timing. Too many Superhosts barely breaking even right now.