We are now looking to see if Airbnb arbitrage may be something we can start to help us generate the cashflow we need. 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 is NOT good business and its simply NOT an intelligent way to find success. 1. Rental arbitrage involves leasing properties to rent on platforms like Airbnb. We'll walk you through the basics of Airbnb rental arbitrage, including key strategies, potential earnings, and the steps needed to get started. San Jose's Finance Director Believes Proposed Arbitrage Regs May Adversely Affect Marketability Of Local Issuer Bonds. JAN. Yes, rental arbitrage is legal in California! The Bay Area has been known for overlyinflated real estate prices and the tech industry's direct effect on the real estate market. Second, it assumes that investors are riskaverse and seek to maximize their expected utility. If the investment does not perform as expected or if borrowing costs rise further, the investor may end up incurring substantial losses.