A rental arbitrage is when an individual rents property for the long term and then rents it out on OTAs such as Airbnb, Vrbo, Booking. Arbitrage is when an asset (stocks, currencies, etc.) is bought in one market and sold in another for a higher price.Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price. For example, an arbitrage opportunity is present when there is the possibility to instantaneously buy something for a low price and sell it for a higher price. In an arbitrage-free market, the forward price is F = S0er. Airbnb rental arbitrage is the act of renting a property longterm and then rerenting it shortterm on vacation rental sites like Airbnb or Vrbo. Arbitrage refers to a profit making activity where buying and selling of a security is done on different exchanges or markets. Arbitrage is a financial strategy that involves exploiting price differences for the same asset, security, or commodity in different markets or locations. Arbitrage in layman's terms is the possibility to make money with no risk. More specifically, it is the simultaneous purchase and sale of something.