SHORT-TERM-RENTALS
SHORT-TERM-RENTALS
4. Rental Arbitrage: Low Capital, High Reward Rental arbitrage- renting a property long-term and re-renting it short-term is seeing a resurgence in 2025, especially as high interest rates price many investors out of property purchases.
Why it works:
• You lease a unit at R15,000 per month.
• You earn R45,000- R60,000 per month during peak seasons.
• After expenses( cleaning, furnishing, platform fees), net profits can range from R12,000- R20,000 per month.
Caveats to keep in mind:
• Landlord consent is crucial. Be transparent and consider offering revenue sharing or added guarantees.
• Regulations matter. Ensure the building and zoning laws allow STR activity.
• Seasonality must be accounted for. Plan cash flow around peak / offpeak cycles.
Arbitrage is especially effective for testing new markets, building brand presence, or scaling quickly without the burden of large capital outlays.
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