Master Lease Arbitrage Calculator
Master lease arbitrage rents apartments long-term and re-rents them on Airbnb at premium rates. The spread between long-term rent and short-term revenue (minus operating costs) creates profit. Calculate your specific deal.
How Master Lease Arbitrage Works
Sign a long-term lease (12-24 months) at $2,000/month. Furnish for $5,000-$10,000. List on Airbnb at $180/night. At 70% occupancy ($3,780/month gross), after rent and operating costs, net $1,200-$1,500/month per unit. Scale to 5-20 units. Best in tourist markets with high nightly rates and tolerant landlords.
Legal And Landlord Requirements
Most leases prohibit subletting. You MUST get written landlord permission, usually requiring an addendum to the lease. Many cities require business licenses, occupancy permits, lodging tax registration, and HOA approval. NYC has effectively banned short-term rentals in most buildings. LA limits to primary residence only.
Risk Factors
City regulation tightening (LA, NYC, SF, Boston, Honolulu have all restricted). Platform de-listings (Airbnb pulls listings without warning). Low-occupancy seasons (winter in beach markets). Property damage from guests. Maintenance cost surge. Always have 3-6 months reserves and exit plan.
Source: Skift short-term rental regulatory tracking, AirDNA market data, Inside Airbnb city compliance research. Last updated: May 2026.