What is rental arbitrage?

Ryan Perez (0:04)

Now serving customer number 11 What number are we again, Bridget?

Bridget Bodner (0:08)

You literally just asked me this, Ryan, and once again, we're number 93

Ryan Perez (0:12)

This is taking forever.

Bridget Bodner (0:14)

Trust me, these cupcakes are going to be worth the 45-minute wait.

Ryan Perez (0:18)

45 minutes? Is there gold in the cupcakes?

Bridget Bodner (0:21)

No, but they're supposedly really good, okay? I read a whole article about them yesterday.

Ryan Perez (0:25)

I read a whole article about the flu yesterday, but I'm not going to stand in line to catch it. Is there anything we can do to liven up this wait?

Bridget Bodner (0:32)

Let's see, you've already finished all my sudoku, and I only allow myself one crossword a week on Fridays, so I got nothing.

Ryan Perez (0:39)

Oh, I know. Let's play Would You Rather.

Bridget Bodner (0:41)

Oh, that's a good idea. I love Would You Rather. It feels very million bazillion-y because you have to think about your values and your preferences when making a choice. That's right for you. Okay, go for it.

Ryan Perez (0:52)

Okay. Would you rather have your face on a $2 bill or a penny?

Bridget Bodner (0:57)

Okay, that's a tough one. They're not making pennies anymore, but they're still pretty easy to find. $2 bills are still in print. They're rare to come across.

Okay, I'm going to say $2 bills because when people do get one, they're always really happy and then they'll see my face and they'll be all like, Oh yeah, I'm as happy as a $2 bill to see Bridget. So yeah, $2 bill. How about you?

Ryan Perez (1:19)

I got to go with penny because you get the wishes.

Bridget Bodner (1:22)

Interesting. So I guess it's true what they say. A bad penny always turns up.

Ryan Perez (1:27)

Oh, nice one. Sick burn. Actually, that was a good one. You got me.

Bridget Bodner (1:31)

Okay. This is silly. We should just answer a Million Bazillion question. We're here. This line is moving so slow.

We have plenty of time. There's just no excuse.

Ryan Perez (1:38)

Yeah. Is there a question we've been putting off like one where we keep saying, Oh, we'll get to it next season.

Bridget Bodner (1:43)

Might as well cross it off the list. Well, in the entire history of Million Bazillion, there is no question we've put off more than this one.

Ryan Perez (1:57)

What is rental arbitrage? What is rental arbitrage?

SPEAKER_3 (2:01)

Can you explain rental arbitrage?

Ryan Perez (2:04)

What is rental arbitrage? You've mentioned it many times in past seasons, but never answered it.

SPEAKER_3 (2:09)

So I wanted to know what it was.

Ryan Perez (2:13)

This one's been following us for years. It haunts my dreams, Bridget.

Bridget Bodner (2:18)

Yeah, this is just one of those phrases that sounds like, ooh, snooze, city, you know what I mean? Rental arbitrage.

Ryan Perez (2:26)

Rental arbitrage. I mean, rental, I'm like, okay, already this isn't going to be fun.

Bridget Bodner (2:32)

Uh-huh, and arbitrage is just like, welcome to French class, arbitrage, mirage, fromage.

Ryan Perez (2:37)

Rental arbitrage. It sounds like a nine-hour streaming series that takes place in a brown room. Dun, dun, dun. This fall, stream rental arbitrage. Dun, dun, dun. Starring Jeff Daniels and Laura Linney. Dun, dun, dun.

Bridget Bodner (2:53)

Featuring Glenn Close and Ed Harris. Dun, dun, dun.

Ryan Perez (2:56)

And a special appearance by Sam Waterston. Rental arbitrage coming to Hulu. Dun, dun, dun.

Okay, so wait, do you know the answer to this question?

Bridget Bodner (3:06)

Oh, yeah, I know the answer.

Ryan Perez (3:09)

Okay, well, can you share it?

Bridget Bodner (3:11)

Okay, fine, but this might not be as exciting as you hoped.

Rental arbitrage is when you have a long-term agreement to rent something, like an apartment. So you're paying rent for it every month, right?

Ryan Perez (3:23)

Okay, yeah, I'm following.

Bridget Bodner (3:24)

And then you re-rent it or you sublet it, which means you in turn rent it out to someone else for a shorter amount of time, and you are charging more per night than you are paying per night in rent.

Ryan Perez (3:40)

That's it. Well, that's just how Airbnb and Verbo work.

Bridget Bodner (3:43)

Yeah, that's it. And some Airbnb hosts do this on a larger scale. So they rent out dozens of homes, and then they repost them on Airbnb or some other company.

That's exactly how some Airbnb hosts are themselves practicing rental arbitrage.

Ryan Perez (3:57)

So that means I, Ryan, have practiced rental arbitrage. I am a master rental arbitrager. Do you remember what I'm talking about?