TLDR; Finding landlords who are interested in arbitrage is a by-product of targeting the right landlords, creating a valuable offering, then putting in the work.
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I have a portfolio of 10 arbitrage units in Phoenix and work with three landlords.
One of the questions I hear a lot from newbies trying to do their first STR arbitrage unit is that they can't find landlords willing to try it. I also hear from a lot of landlords that they aren't interested because it doesn't sound like a "Win" for them.
Here is what I've found works
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(1) Picking your target correctly
Theoretically, you could rent any residential space and Arbitrage it, but realistically you need to find a place where you, a total newbie, can create enough value to begin a partnership.
SO Who can get value from working with a small-time "arbitrager"?
Not large complexes. They don't get any value from having 1-2 of their units as STR. It reduces the quality of the property for long-term tenants, introduces risk, and could potentially make the leasing desk look bad in front of their bosses. If they are interested in arbitrage they will work with a well-funded company like Sonder or Avant Stay or Marriott Apartment and can sign 50-100 + leases at a time. This shouldn't be your target as a newbie.
Properties that are operated by a management company are also out. PMs are usually guarded about working with arbitragers and rightfully see them as a competitive threat. So calling on a listing that has a property management company already managing the property is a dead end. This shouldn't be your target. (there are some exceptions, but expectations don't make you money)
So that leaves "individual landlords" who self-manage. Ideally, an individual landlord who self-manages a 2-8 unit property where you rent the majority of the building.
(2) Creating a valuable offering:
In business, you have to think about the problems your target customer has and then find a way to profitably solve them with a valuable offering.
If an individual landlord works with you how does their life get better? How does their business improve? How do you reduce the risk of working with you?
There are the questions your offering should answer!
The most common benefits a landlord can get from an arbitrage agreement are: reduced vacancy expense, decreased maintenance costs (most arbitragers agree to fix any damage done by guests), increased rent (most pay a premium), reduced number of hours managing the property (aka it's more passive)
Some less common benefits, but still worth mentioning: Using the property to host their own guests at a lower rate during the "vacation season", Revenue sharing, arbitrage managing landscaping, and other management tasks.
These benefits multiply the larger number of leases you can sign. The highest benefit will be if you can rent their whole building even if it means taking over leases one at a time over a year or so.
One of my partners went from self-managing a small complex doing 5-10 hours of management work a week to cashing checks and "catching up" with me once a month to see if there was anything they needed to be aware of. Nothing says value, like being able to go on an extended vacation knowing that rent will be paid on time and any problem that comes up will be fixed!
They make more money, more passively - it's a win-win.
(3) Sales effort
Like any business offering, it won't be for everyone. Some landlords value control over making more money. Some landlords want to manage themselves. Some aren't even willing to listen. That's ok and not worth worrying about! You only need to find 1-5 landlords that are open to it to get your first deal going.
So go and find landlords that see the value in your offering, which requires "sales effort"
Set up Zillow alerts for all multifamily units for rent in the desired area and call each new one that comes up.
Set up Zillow alerts for all small multifamily that "sell" (when properties transfer ownership landlords will be more open to talking)
Network with small multifamily relators about buildings that are under renovations and will have multiple units coming up that need to be filled (problem) where you can "pre-lease" the unit and pay the landlord the 1st day it's available (solution)
Look up commercial landlords that own strip malls and see if they have any residential properties. Commercial landlords "get it" because they rent out their property to small business people already, why would an apartment be any different?
Find other arbitragers and "buy a listing from them"
Whatever you do keep hustling and keep offering value!
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Remember the name of the game is "How do I profitably solve problems for the people I want to work with!"
