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. Geographic arbitrage means taking advantage of the differences in prices between various locations.You earn money in a stronger economy. Rental Arbitrage is an excellent option for property investors who will sublet properties for a limited budget. Airbnb rental arbitrage involves leasing a property longterm and then renting it out shortterm on platforms like Airbnb. Arbitrage is the act of taking advantage of a price difference in two different markets. Airbnb rental arbitrage is the act of renting a property longterm and then rerenting it shortterm on vacation rental sites like Airbnb or Vrbo.