Fixed monthly rent under a standard lease
In a typical rental arbitrage deal, the operator signs a standard lease and pays you a fixed monthly rent, the same way any tenant would. They earn their income from guests; you earn yours from the lease. The rent doesn't move with how many nights they book, how the season goes or what they charge guests.
That is the trade at the heart of it: the operator takes on the vacancy and seasonality, and you give up the upside from bookings in exchange for a predictable payment. For how that compares with running a rental yourself, see guaranteed rent vs running an Airbnb yourself.
This guide is general information, not legal or financial advice. Deposit rules and landlord-tenant law differ by state, so have a local attorney review your lease.
When rent is due
Write the due date, the payment method, any grace period and the late fee your state allows into the lease, just as you would for any tenant. Rent should be due whether or not the unit has bookings that month. If an operator asks for a delayed start or a reduced first month while they furnish the unit, treat it as a concession you are choosing to negotiate, write its exact dates into the lease, and make sure rent at the full amount starts on a fixed date.
Security deposits
Ask for a security deposit at signing, before keys. Many states cap how much a landlord can collect and set rules and deadlines for holding and returning it, and those rules can differ for furnished or commercial leases. Check what applies to your property with a local attorney, then set the amount and what it can be used for in the lease. A move-in condition report with dated photos, signed by both sides, is what makes the deposit useful at move-out.
Personal guarantees
Operators usually sign through a company, often an LLC. If that company is new or has few assets, the lease is only as strong as the company. Many owners ask the principal for a personal guarantee, so a person, not just the entity, is responsible if rent stops. Have your attorney draft it, and run the same checks on the guarantor as on any tenant, with their consent. Our vetting guide lists what else to ask for.
What "guaranteed rent" means
You will hear operators describe their offer as guaranteed rent. In plain terms, it means: the operator has signed a lease promising you a fixed amount every month, regardless of bookings. That promise is real and enforceable like any lease, and it is the main reason owners say yes.
What it doesn't mean
- It isn't insurance. If the operator's business fails, the guarantee is only as good as the company, any personal guarantor and the deposit you hold.
- It isn't a promise from a platform. No booking site, listing service or marketplace is guaranteeing your rent. On ArbiBase, rent is between you and the operator under your lease.
- It isn't extra income on top of rent. Your income is the lease rent. Be wary of anyone promising you more.
- It doesn't remove normal landlord remedies or duties. If rent stops, the usual lease and state-law processes apply.
Red flags
- Rent that depends on bookings, or a "revenue share" presented as guaranteed rent.
- Pressure to hand over keys before the deposit and first month have cleared.
- A long rent-free period with no fixed date for full rent to start.
- Payments from unknown third parties, or requests to change how rent is paid without a lease amendment.
- A brand-new LLC with no assets and no personal guarantee offered.
- Promises of income to you beyond the lease rent.
- Reluctance to put the rent terms, deposit and guarantee in the lease itself.
- Fixed rent, due date and payment method in the lease
- Grace period and late fee within state rules
- Any concession written with exact dates
- Deposit collected before keys, within state limits
- Signed move-in condition report with photos
- Personal guarantee if the entity is new
- No rent tied to bookings unless you chose a revenue share
How ArbiBase fits
Operators' proposals on ArbiBase show their offered rent and lease term up front, alongside their business and insurance, so you can compare offers before anyone tours. ArbiBase doesn't collect rent and doesn't guarantee payment.
Listing your property on ArbiBase is free. You sign a consent form and set your rules (rental type, quiet hours, guest caps, insurance minimums, HOA limits), and vetted short- and mid-term rental operators send proposals showing their business, insurance, offered rent and lease term. You decide who tours and who signs, and you can withdraw consent anytime.
The operator signs a standard lease directly with you. ArbiBase is not a party to the lease, and is not a broker or property manager: we don't collect rent, supervise guests or run operations. A listing is marked Verified only after signed owner consent, a Greenlight underwriting pass and a check of the city and ZIP rules for that address. List your property free or read how it works for owners.
Frequently asked questions
Is rent tied to how many nights the operator books?
Not under a standard fixed-rent lease. The operator owes the same rent each month whether the unit is booked or empty. If someone proposes a revenue share instead, treat it as a different deal and have your attorney review it.
How much security deposit can I ask for?
It depends on your state. Many states cap deposits and set rules and deadlines for returning them, and furnished or commercial leases can be treated differently. Ask a local attorney what applies, then set the amount in the lease.
What does guaranteed rent actually guarantee?
It means the operator has signed a lease promising fixed rent each month. It is as reliable as the operator, any personal guarantor and the deposit you hold. It isn't insurance, and no platform is promising the payment.
Should I ask for a personal guarantee?
It is common to ask when the signing company is new or has few assets. A guarantee from the principal means a person, not just an LLC, is responsible if rent stops. Have your attorney draft it.
Does ArbiBase collect rent or guarantee payment?
No. The operator signs a standard lease directly with you, and rent is between you and the operator. ArbiBase is not a party to the lease, doesn't collect rent and doesn't guarantee payment.
Own a rental? List it free and get proposals from vetted operators. All landlord guides