How to Collect Rent from Arbitragers
- Symple Leases
- Sep 1
- 4 min read
Managing short-term rentals can already be a challenge, but things get even more complicated when you’re renting your property to arbitragers – individuals or companies who lease your space long-term and then re-rent it on platforms like Airbnb, Vrbo, or Booking.com.
While rental arbitrage can help landlords keep units consistently occupied, the main concern for property owners is ensuring that rent collection for landlords is smooth, reliable, and on time.
In this guide, we’ll break down what arbitragers are, why collecting rent from them is different, and practical systems landlords can put in place to protect their income streams.
What Is Rental Arbitrage?
Rental arbitrage is when someone rents a property from a landlord and then lists it on short-term rental platforms like Airbnb or Vrbo. Instead of living there, they profit from the difference between the long-term rent they pay and the higher nightly rates they earn.
For landlords, this can work out well—steady rental payments with less concern about managing guests. But it can also introduce risks, especially if arbitragers fail to pay rent while continuing to generate income from subleases.
👉 Learn more about rental arbitrage and how it works.
The Challenges of Rent Collection from Arbitragers
Collecting rent from arbitragers isn’t always as straightforward as collecting from traditional tenants. Here are some common challenges landlords face:
Cash flow risks – if an arbitrager’s bookings drop, they may delay paying rent.
Limited tenant stability – arbitragers may exit suddenly if profits shrink, leaving landlords scrambling for new tenants.
Higher property wear-and-tear – while arbitragers profit, landlords carry the risk of more frequent guest turnover.
Enforcement difficulties – tracking and enforcing agreements can be more complicated than with regular tenants.
Because of these risks, rent collection for landlords must be carefully structured when working with arbitragers.
Best Practices for Rent Collection from Arbitragers
1. Use Strong Lease Agreements
A clear and legally enforceable lease agreement is the first line of defense. This should specify:
exact rent amount and due date,
late fees and penalties,
permission (or restrictions) for subleasing, and
security deposit requirements.
Consider consulting with a real estate attorney to ensure that the lease is airtight. The American Bar Association provides useful landlord-tenant law resources.
Pro Tip: Add clauses that require arbitragers to provide monthly booking reports or revenue statements so landlords have better visibility into cash flow stability.
2. Automate Rent Payments
Instead of relying on checks or manual payments, landlords should set up an automated rent collection system. Online platforms like Avail or Cozy can help streamline this process.
Automated payments reduce excuses, create a paper trail, and ensure landlords get paid on time.
👉 Check out Avail’s rent collection tools for landlords.
Pro Tip: Consider requiring tenants to set up autopay linked directly to a business account, not a personal account, for added reliability.
3. Require Business Documentation
Since arbitragers operate as short-term rental businesses, landlords should require proof of:
business licenses or permits,
insurance coverage, and
tax compliance.
This ensures arbitragers are running legitimate operations and have the financial stability to cover rent.
Pro Tip: Request annual proof of liability insurance and verify that the landlord is listed as an “additional insured” on the policy.
4. Enforce Late Fees Consistently
Landlords should enforce late fees and penalties consistently when dealing with arbitragers. This prevents tenants from becoming lax with payments and reinforces the seriousness of timely rent collection.
For guidance, see Nolo’s landlord late fee rules.
Pro Tip: Clearly outline a grace period in the lease (e.g., three to five days) so there’s no ambiguity about when penalties apply.
5. Monitor Property Activity
If your lease allows arbitrage, landlords should periodically check property listings on Airbnb or Vrbo. This ensures that subleasing is happening within the boundaries of the agreement and prevents unapproved use.
For insight on monitoring, check out Airbnb’s responsible hosting resources.
Pro Tip: Set up Google Alerts with the property address or unique keywords to help track unlisted subleases.
6. Consider Rent Escrow Accounts
Another protective measure is requiring arbitragers to deposit a few months of rent upfront into an escrow account. This ensures landlords are covered if tenants fall behind during off-seasons or low booking periods.
Pro Tip: Pair escrow accounts with quarterly financial check-ins to stay informed about the arbitrager’s performance.
Should Landlords Work with Arbitragers?
Working with arbitragers can be profitable if landlords use the right safeguards. Arbitragers can keep properties occupied year-round, saving landlords from long vacancies. However, without solid systems for rent collection, the risks can outweigh the benefits.
Ultimately, landlords should:
screen arbitragers like businesses, not just tenants,
use legal protection to secure consistent payments, and
automate and monitor rent collection regularly.
Key Takeaways for Landlords
Rent collection for landlords renting to arbitragers requires a more business-minded approach than traditional leasing. By leveraging automation, requiring documentation, and using strong legal agreements, landlords can secure consistent rental income while still allowing arbitragers to run their operations.
If you’re considering renting to arbitragers, make sure your lease is clear, your collection system is automated, and your risk protection is in place. With the right safeguards, arbitrage partnerships can be a win-win for both landlords and short-term rental operators.