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Jun 21st, 2023

Are you tired of the traditional hassles and costs that come with owning a property? We feel you! That’s why we’ve got an exciting topic lined up for you today. 

What’s the deal with rental arbitrage? 

Well, imagine bypassing all those pesky transactional costs that usually accompany property ownership. With a head lease, you can take over someone else’s property and convert it into a House of Multiple Occupation (HMO). 

Picture this: five rooms, individually rented out, bringing in increased revenue without the burden of stamp duties or land tax. And here’s the best part – if things don’t work out, you can simply shut down operations. Flexibility at its finest!

But wait, there’s more! 

We’re diving deep into our hosts’ intriguing thesis that this rental arbitrage model is spreading like wildfire. Remember when Airbnb burst onto the scene? People hopped on the bandwagon, renting out their properties left and right. Now, by taking a head lease, you’re giving property owners a longer lease option, even above market rent, while taking the maintenance responsibilities off their hands. It’s a win-win situation!

Now, let’s talk numbers. When you’re banking on Airbnb as a livelihood, crunching those figures is essential. You’ll learn about upfront costs, contract considerations, and the importance of striking a balance between profit and break-even points.

So, if you’re seeking new strategies to boost your property portfolio, rental arbitrage might just be the missing piece. 

But remember, always evaluate the numbers and conduct thorough due diligence. 

Ready to level up your property game? Hit that play button now and join us for an engaging discussion on rental arbitrage with our hosts, Moxin Reza and Cheryl Leong. 

We can’t wait to hear your thoughts in the comments section!

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Episode Highlights:

  • 00:00 Welcome to Helpmebuy Property Podcast
  • 01:56 Why Is Head Leasing Not Famous in Australia?
  • 03:47 Exploring the Hybrid Lease Phenomenon
  • 05:35 Unraveling the Benefits of Head Leasing
  • 07:52 The Achilles’ Heel of Passive Income: Uncovering the Biggest Problem
  • 09:25 What to Know When Buying a Home on Airbnb
  • 11:50 Debunking the Myth of Perpetuity
  • 13:51 Decoding the Property Management System
  • 15:50 The Key to Success in Rental Strategies



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