The approach of initiating a short-term rental business, specifically an Airbnb, without direct real estate ownership involves leveraging rental arbitrage. This entails securing a lease on a property and subsequently listing it on platforms like Airbnb to generate income through short-term stays. The revenue obtained aims to surpass the rental expenses, yielding a profit. For example, an individual could lease an apartment, furnish it attractively, and then advertise it for nightly or weekly rentals on Airbnb at a price higher than their monthly rent and associated costs.
This strategy offers a pathway to entrepreneurship in the hospitality sector without the significant capital investment of purchasing property. It provides flexibility, enabling individuals to test the market and adapt to changing trends with relative ease. Historically, this model has allowed individuals to capitalize on tourism booms and event-driven demand in specific locations, creating income opportunities that were previously inaccessible without property ownership.