It depends on your capital, risk tolerance and goals. Rental arbitrage offers higher potential earnings per unit because you keep the margin after costs, but you take on the lease obligation and financial risk of void periods. Co-hosting has lower upfront costs and no lease risk, but income depends on the owner's property and how many clients you can win and retain. Most people starting without property find co-hosting the lower-risk entry point. Rental arbitrage suits those with more capital and a higher tolerance for operational and financial pressure.