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STR Arbitrage Breakeven Calculator

Rental arbitrage: sublease long-term lease as STR. Must hit occupancy to break even.

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Breakeven nights / mo

29

Monthly cost

$3,305

Net per night

$114.09

How the math works

Monthly cost = rent + utilities + cleaning × turns + furnishing. Net/night = rate − (cleaning/22).

$2,200 + $175 + $680 + $250 = $3,305. $145 − $31 = $114. 29 nights breakeven — too high.

How to Use

  1. Enter long-term rent.
  2. Enter STR nightly rate.
  3. Enter utilities + wifi cost.
  4. Enter cleaning + supplies / turn.
  5. Enter turns per month.
  6. Enter furnishing amortization.
  7. Read breakeven nights.

Frequently Asked Questions

What is STR arbitrage?

Business model: sign long-term apartment lease. Furnish. Sublease as short-term rental. Landlord lease permits (critical). Operator captures margin between long-term rent and STR revenue. Popular since 2016. Risks: lease violations (if not permitted), regulatory crackdowns, market softening, property damage.

Unit economics?

Urban 1BR apartment: $2,500/mo lease + $200 utilities + $2,000 furnishing amortized over 24 months = $83/mo + $400 cleaning/supplies = $3,283/mo total cost. STR rate $130/night × 22 nights/mo × 75% occ = $2,145 revenue. NEGATIVE $1,138. Need: higher rate ($175+) or higher occupancy (100%+ impossible) = tough economics in 2024.

Where does arbitrage work?

Tourist destinations with seasonal peaks: Miami, Nashville, Vegas, coastal towns. Business travel hubs: select markets. Tight vacancy markets hurt: landlord competes for STR rents. Expensive apartment markets (NYC, SF): regulatory + cost challenges. Best: mid-tier tourist towns with 30-50% below-urban rents and STR premium 80-150%.

Legal considerations?

Lease clause 'subletting prohibited': blocks arbitrage legally. Landlord must permit in writing. Many cities banned non-owner STR (NYC, LA, SF, Boston, DC, etc.). STR registration + host-required-on-site rules. Violation: lease termination, fines, business shutdown. Arbitrage viable only where: (1) Lease permits, (2) City permits, (3) HOA permits (condo).

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