# Rental arbitrage Firstly, rental arbitrage is one of the most important concepts to understand with the Globees model. It’s the process of contracting someone else’s property for the purpose of renting it out, as opposed to purchasing multiple properties for the same purpose, a process that is not only costly, but very time intensive. Here is an example that will highlight the key differences between what Globees will offer, compared to other competitors like AirBnB: Let's say that you own a property in Marseille that was purchased for seasonal rentals, but that you live in Paris or elsewhere in Europe. You offer your rental property for **1000 Euros per week**. The average annual occupancy rate of a property in a tourist city like Marseille, according to research is **62 - 72%**. * So, over a 1-year period, you can expect an upper occupancy rate of roughly **67%** or 34 to 35 weeks rental in that 12-month timeframe. * With this, AirBnB commissions are between 15 to 20%, but usually **19%.** * The concierge fees that cover admin, bookings etc. are an additional **20%.** * On top of this, as you live a fair distance from your rental property, you will likely outsource entry and property cleaning to another company, something that you will have to source yourself. So, over the **34-week** period at **1000 euros / week**, you’ll receive **34k€** for 1 year. Now, deduct **19%** commission and the **20%** for concierge / service fees, you’ll receive around **20k€**. (Before tax). The Globees rental arbitrage model will offer an entirely different, more property owner centric model. We will offer the customer a **cash payment of one year** (12 months) rental revenue upon signing the contract with us. Generally speaking, this will be **10-15%** under the market price (so roughly 18k will be offered), this will be so Globees can also finance the home staging of the property and create that unique Globees brand experience. To be onboarded to the Globees charter, we will ask the owner for 1 additional month to carry out the necessary home staging, which will be outside the negotiated one-year contract, so that the full 52 weeks of rental is available. Rental arbitrage and the Globees model will offer the following benefits: * The upper-level occupancy rate guarantees an income for property owners upon signing with Globees, where the AirBnB model is limited by marketing, reviews, quality of the service provided and how many weeks the property is actually booked for! * The signed contract with Globees will ensure that the customer service, booking, enquiries, cleaning and staging of arbitraged properties is all handled in house by us and consumers will have access to 24 hours a day, 7 days a week customer care service. * After the point of signing the contract with Globees, the owner of the property will not have to handle any of the above. A lot of property owners who use other services underestimate how time consuming managing a rental property can be. * Ultimately, Globees will offer a unique and eco-friendly experience every time you stay at one of our properties, whether it’s owned or arbitraged. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://globees.gitbook.io/globees-docs/rental-arbitrage.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.