1. Market Intelligence With AirDNA & Rabbu
Start with data that landlords respect. Pull your primary demand signals from AirDNA (often called the Airbnb DNA data set), Rabbu market pages, and STR Analyzer pacing dashboards.
Use the Revenue Drivers panel inside the arbitrage scorecard to confirm the following inputs pulled from your main model:
- Projected ADR from Rabbu or AirDNA Smart Rates
- Seasonally adjusted occupancy ranges and shoulder-season dips
- Average stay length sourced from your PMS or comparable listings
- AirDNA annual revenue target to benchmark your modeled run-rate
Pro tip: Export the AirDNA market grade plus Rabbu rent-to-rent comps and attach them to your landlord pitch deck. It signals you understand both top-line demand and the rent curve.
Cross-check these projections against our AirDNA calculator for sensitivity testing.
2. Master Lease Negotiation Checklist
Landlords approve arbitrage deals when you frame risk in their language. Use this checklist before signing:
- Confirm vacancy assumptions, renewal terms, and escalation caps in the lease
- Budget security deposits, key deposits, and guarantee requirements in the financing inputs at the top of the model—the arbitrage scorecard automatically rolls those into startup capital
- Set the Master Lease rent input inside the arbitrage scorecard so landlord pass-through charges stay in your modeled burn
- Reference local STR ordinances and licenses—tie them to your tax strategy
- Collect IOIs from vendor partners (linen, cleaning, maintenance) to lock pricing before go-live
Use current mortgage rates today and prevailing cap rates as negotiating leverage: if a landlord sold the unit, what cap rate would they achieve? Share the math using our rent vs own comparison and operating breakdown.
3. Operating Cost Framework
The fastest way to lose an arbitrage deal is underestimating operating expenses. In the Operating Stack panel, verify every recurring cost coming from your operating expense inputs:
- Channel and OTA fees across Airbnb, Vrbo, Booking.com, plus Rabbu PMS fees
- Turnover cleaning cost per stay multiplied by projected turns
- Utilities, Wi-Fi, smart-lock subscriptions, consumables, and maintenance reserves
- Automation stack or management percentage if you outsource operations
Pair this with the Stress Metrics panel—break-even ADR, break-even occupancy, and nights to cover the fixed nut.
4. Key Airbnb Arbitrage KPIs
Once inputs are dialed in, focus on the numbers landlords and investors ask for most:
- Monthly net cash flow vs. master lease obligations
- Cash-on-cash return on furnishings, deposits, and setup fees
- Payback period measured in months until your initial capital is recovered
- AirDNA variance (modeled revenue minus AirDNA target) to show upside or warn about gaps
These metrics update instantly inside the STR Analyzer arbitrage dashboard. Screenshot the results and include them in your landlord pitch or investor memo.
5. Recommended Calculators & Automations
Bundle these tools with your arbitrage underwriting workflow:
- Airbnb Arbitrage Calculator – core rent-to-rent underwriting
- Airbnb DNA / AirDNA Calculator – comp pulls and seasonality forecasting
- Short Term Rental Expense Model – monthly burn and automation costs
- Cap Rate & Break-even Analyzer – translate arbitrage cash flow into investment-grade metrics
- Rent vs Own Comparison – show why arbitrage beats buying (or when to pivot)
Need to present debt options? Tie your results into the cap rate calculator and note prevailing mortgage rates today to prove you are underwriting conservatively.
6. FAQ: Airbnb Arbitrage & Market Trends
What is Airbnb arbitrage in 2025?
Airbnb arbitrage—also called rent-to-rent—means signing a long-term lease, outfitting the unit, and subletting on short-term rental platforms. In 2025, landlords expect AirDNA-backed underwriting, professional cleanings, and automation to de-risk the agreement.
How do I estimate revenue without AirDNA?
Pair the Airbnb DNA calculator with Rabbu comps and your PMS pacing data. Feed the ADR and occupancy inputs into the arbitrage calculator to translate demand into cash flow.
How much capital do I need?
Include first month’s rent, security deposit, furnishings, design, licensing, and contingency. Track it inside the financing inputs (closing costs + furnishing spend) so the arbitrage scorecard updates automatically.
When should I pivot to buying?
Run the rent vs own comparison once your monthly net cash flow equals the down payment carry cost at today’s mortgage rates. If arbitrage margins compress below 15% cash-on-cash, ownership may win.