This article takes an in-depth look at the factors that you should consider before carrying out rental arbitrage in San Diego including the laws, regulations Rental Arbitrage is a method similar to house hacking, however, the only difference is that you don't own the house.Yes, rental arbitrage is legal in California! Airbnb rental arbitrage is the act of renting a property longterm and then rerenting it shortterm on vacation rental sites like Airbnb or Vrbo. Hi I am looking to start a new business in San Diego doing Airbnb rental arbitrage. Is anybody in San Diego doing it? Rental arbitrage is a business model where an individual or entity rents a property longterm and then rerents or sublets that property on a shortterm basis. Curious how Airbnb hosts in San Diego feel about having business cut off? Seems like the natural reaction would be to raise the rent on a monthly rental. If you rent your property or a portion of your property to a guest(s) on a short-term basis, you are subject to the San Diego Municipal Code requirements.