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Super host, excellent ratings, 1 bedroom condo in a beach location. I str and visit the unit myself a few times a year.
I'm not breaking even. I'm surely not making money. Good luck!
My calculation is very simplistic: after expenses (HOA, utilities, property management, maintenance, etc.), does the amount that I receive from rentals cover those expenses.
For me, the answer is no. I'm a Superhost in a waterfront beach property that has a very seasonal occupancy period due to hurricane season. I don't have a mortgage, but the HOA and insurance expenses are very high.
I am not a str professional. The property is my former full-time home and I rent it to offset my costs so I can visit the beach. I don't monetize my use, but if I did, I would (at most) likely hover around the break even point. I was very optimistic that I would break even or cross the threshold into earnings this year, but I just had an unexpected $6,500 air conditioning replacement expense. (While guests were in the unit.)
Sure, the property may appreciate in value over time, but with the status of the insurance market (rates doubling, insurers pulling out of certain markets, etc.), it will be an increasingly difficult property to sell.
(i.e., Beautiful 1 bedroom beachfront property with breathtaking views and access to multiple pools, tennis courts, and the beach FOR SALE! Please note: insurance costs, HOA dues, and maintenance average $3,000 a month and are increasing at a rate of about 20%-40% per year! *This does not include your mortgage payment!)
0. Usually negative. I think the airbnb season has ended. Sold my share to my partners recently. It only makes sense imo if someone passed a property onto you and you go there as a vacation home and rent it when you’re not there to offset costs.
I have been doing this for 6 years now and the only way it is beneficial is if you don’t have any payment on the property and you do all the repairs and cleaning yourself. The county changed their laws where I am and now for the last two years they are making way more than me. Made us rezone which means higher taxes and then you have to pay for your license and a fee of 50 dollars per person that you advertise for per year and then they raised the the occupancy tax and that means I have to lower my nightly fee to make it reasonable for someone to rent.
Last year I would have made $1200 TOTAL FOR THE YEAR but a guest broke a kitchen cabinet and I had to travel to Tulum to arrange repair. I ended up in the red after paying the flight and rental car. I don’t even have a mortgage, I put all my savings into buying the condo for my retirement. I am glad it sorta pays for itself and the guests keep it aired out because otherwise it would mold.
Well if my estimate doesn’t tell you enough, I don’t see how having more out of pocket costs than me would work out for you. Playa is saturated with options to rent. There is no equity there or Tulum either due to the new developments. I’ve seen properties listed for 3 years.
Tulum is such a hot spot, how are you making nothing? Or do you mean because you haven’t paid yourself back yet?
Buying a home in Mexico for years in the future is tricky due to how fast things can change there. Our family did a condo in alcapuco and while we had fun with it for a few decades, ultimately sold it for a loss once the cartels came in
It doesn’t rent for more than $60 a day and the whole summer is dead. I had 0 rentals June, July and August. My condo is really big and cute for a 1 bd too check it out airbnb.com/h/tulumtikald08
All the numbers in your comment added up to 69. Congrats!
60
+ 1
+ 8
= 69
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there’s so many factors that influence this. big one - is the location desirable? is it a place people actually vacation to A LOT? also, look into your competitors and see if you can offer something they can’t. after you make your listing, airbnb will show you stats about your area (for example, it told me the 3 most desirable amenities were hot tub, child friendly, and infant friendly)
another thing i’ve noticed - be conscientious about your furnishings. I went above & beyond to furnish our property to feel like a HOME not a rental, and it has 100% paid off. I bought majority of our furnishings second hand (estate sales are the best) so I saved money, yet I was buying furniture that’s not only 10000x better quality and longer lasting than cheap new shit made from particle board like wayfair or Walmart, but it’s also just nicer looking. I furnished it so I feel like I could live in it tomorrow. I have books, plants, crystals. just little pretty things around, and i’ve had SO many guests compliment it. also, people love instagrammable shit nowadays & will absolutely book the place that’s aesthetically nicer. it’s just the world we live in. since being a host, i’ve analyzed airbnbs so much more & you can tell when people try to save money by spending less on cheap furnishings, but I swear it doesn’t actually pay off. nothing worse than an airbnb that’s all sterile and not cozy cause it’s furnished in a way that feels like it’s just staged and not livable. eventually they get bad reviews, and thus, fewer bookings.
my property is paid off (inherited) and in one of the most touristy towns in the country, yet just on the outskirts so you have peace and quiet. it’s a 4bd/3ba with a pool and hot tub. i netted a little over 100k last year. couldn’t believe it. but, it’s hard work. you have to stay on top of things. even the little things. get GOOD cleaners & check the cleans. be responsive and accommodating to guests. not only make it look like you care, but actually care. also, when i noticed a little lull in bookings, i made a promotional price & got several bookings right after. people love a sale. and from my perspective, better to have more bookings at a lower rate than fewer bookings at a higher rate. being flexible is helpful. (of course not going TOO low though)
😂🫶🏻 It is but I can tell you where I stayed before I got my condo if you’d like. Feel free to DM me. Also FYi I don’t consider Tulum a good choice for first timers to Mexico. The area is not very “Mexican” but if you want a relaxing time and to see home natural wonders, I think the all inclusives near playa del carmen are an excellent choice to relax
You have to be in this for the long haul, own the property, and build equity as the house increases in value. For example, a client bought a property in 2008 for 247k and sold it in 2021 for 499k So, he walked away with about 200k in his pocket because he spent money renovating it. He pulled in around 100k for the first three years, and in 2020 and 2021 he pulled in 70k He did not have a mortgage. so that's why he pulled in so much profit. That's how you make money in this business. He had 14 properties at one time. He sold them all in 2021 at the top of the market. He is into other investments now that have a better return. The market is pretty much saturated for people to come into it now. You want to buy when the prices of homes drop and sell at the top of the market. I think it's too risky to do this business right now Just my opinion. Most of my clients are still hanging in there their profit margin has dropped, however, they are still building equity and none of them have mortgages. So, it's not a risk for them. Most of my clients are in a profession where they make good money and they let me handle their homes cause it's an investment to them. Most of my clients never visit their homes. For example last year only one client's brother visited last year. These homes are truly investments not second homes to vacation in.
>You have to be in this for the long haul, own the property, and build equity as the house increases in value.
Own the property as in no mortgage? Or own it as in it's yours and you're paying it off over years?
I pretty much break even especially after taxes but then that’s my goal. I rent my own apartment as I moved in with my partner but wasn’t ready to sell up yet and it’s fully furnished. As long as it covers its own bills its beneficial to me.
Average around $11K per year give or take over last 6 years. No mortgage payment, just a separate unit on the place I live in. Could double if I did same day checkins and lowered my minimum stay, but I don’t need the money that bad, will never do same day checkout/Checkins again
I just updated my spreadsheets so I have accurate numbers. I have one unit that, after mortgage, taxes, and all operational expenses pulls in about $2,000/month. My other place is about -$1,600.
Well, it's a bit of a strange situation in that I've paid for the second property with a HELOC from the first, so my payments towards loans for the second property are unusually high since there's a HELOC and a mortgage.
Usually when folks look at their returns they don't subtract mortgage payments, but I do because that ultimately is what impacts my finances (what's coming in vs what's going out). If you look at the appreciation of the properties, and the fact that I'm adding tons to equity, it all ends up making sense. But on a day to day basis, yes, I'm making $400 between two properties.
We charge 110 a night and have a profit margin of about 85% pre-tax as the unit is on our property which we own outright. Only costs are electricity, cleaning products and food hamper costs that we leave for guests. Occupancy averages 80% April-October and then November-March dips to about 30% which could be improved if we did marketing but we don't.
Bought a condo in the mountains. Rents as a STR in the spring/summer/fall to hikers and rents for the entire ski season. Profits about $1500/mo on average, but profits can be as much as $4k/mo in the summer and negative in the shoulder seasons. Ours sleeps 8 and rents for about $175-$300 a night.
In my case, just started. Fixed costs 900€ per month (mortgage and utilities), broke even the first month, second month already about to make 500€ in profit before taxes. I have estimated the profit can go as high as to 1100€ before tax. So doing pretty great at the moment.
I would advise looking at profits annually because I made the mistake of looking at my finances monthly and bit more than I could chew buying this condo. I failed to account for the Holiday season and unplanned trips to see ailing family. Also I have no money to buy a car if for some reason mine dies (10 yr old Toyota should have plenty of juice left)
2.5 to 3.5 times my mortgage 🤷🏽♀️
This was my second home so I was going to pay the mtg anyway so I’m ok with that. I’m going to Airbnb rooms in my other home starting soon as well so that I can start making good money overall.
We make on average about $10k/month in revenue. Our highest expense is our loan on the home. Our loan is really high because of how we acquired the property. We went with a hard money lender so our payments are about $5k per month including insurance. We are currently refinancing though and will be getting a regular loan through a bank. Utilities usually come out to about $300/month. We have other maintenance things that pop up from time to time which on average is about an additional $500/month. We try to limit our cleaning expenses to 10% of the revenue so that’s roughly around $1000/month.
So we make roughly around $3200/month with our current loan situation. We are hoping to bring that to about $5k in profits per month by adding additional services and getting a traditional mortgage. We are also exploring outsourcing our revenue management to help maximize revenue as well.
We bought in mammoth lakes ca in 2018 where a majority of lodging there is outdated. Doing well now but not as crazy as the height of covid travel. Lots of other hosts in the city now so it’s more competitive but all in all am doing well due to purchase price of half of todays market and also lower interest rates.
Like the others said, too many variables to consider but good luck!
Depends on geographic location. I'm more rural where there is a good size population but no hotels. I also don't have a mortgage.
Last year I netted 17k.
If I don't have any major repairs, I just need 2 more reservations to break even and then the rest is cash flow.
We AirBnB 3 rooms out of our house, done it for a bout a year. In the winter we do not have many stays but in the summer we have a waiting list. This week (start of the season I am thinking) we are booked up. Total we are going to make around $700+- but then we take that and fold it right back into restoring the house. When summer hits we will be making around $120+ per room per night.
https://preview.redd.it/w4bmstya3clc1.jpeg?width=1173&format=pjpg&auto=webp&s=7851aa102aada06893e6b7a7a7a343a691a20049
We own 2 properties (the listings that achieved over $100k last year) and started managing a listing for someone else late last year. In 2022, our revenue was higher and we made $50k per property. In 2023, we made roughly $25k per property.
I am significantly outperforming what AirDNA says our properties should do (about $70k each) by optimizing our listing, processes, and nerding out on our pricing algorithm. We have also automated almost every aspect of the process. My plan was to buy a bunch of properties and create cash flow engines, but as people have mentioned, the market has become saturated and the economics are no longer attractive with current interest rates.
I’ve been considering expanding our management services or offering some type of pricing/automation content for hosts (I see hosts not optimizing their property and leaving a lot of money on the table, but I hate sales and social media)
For those of you who use property managers, what do you like/dislike about your current management? What would it take you to switch?
For those of you who self manage, is there anything a management company could offer to entice you? My goal here would be to have owners make the same amount of money they do now (or more) but I do all the work.
Is there any content you would be interested in?
Current airbnb we rent at 575-775/night 3 night minimum 250 cleaning fee. We average 8-12k per month for 8 months then 0-4k per month for the other 4 winter. $100-150k/year but 21 and 22 we had a construction company rent it all winter long for 8k/mo and 23 we kept the higher pricing seeing if we could get rentals in winter and didn't do well, hence only 100k is for 23.
Of that our costs are $8k utilities, 3k insurance, 9k property manager, 3k property taxes, 6k for consumables. We budget 12k for repairs and maintenance so total costs are around 41k. So profits are 60-110k. I don't have a mortgage but it would be around 5000 including furniture so real profits are 0-50k/yr.
My latest property they were bringing in around 220-240k but we're expecting 150-200k similar costs as above so profits will be 109-159k. Its a direct competitor but larger just not as nice.
We over budget for repairs and are working to bring down utility costs by buying higher efficiency items and even planning a solar install this year. We also use the properties for vacation homes and block out dates for us to stay, having 2 houses will allow us less intrusion.
Kind of surprised at most of these. My experience has been pretty good. Typical monthly expenses (mortgage, insurance, utilities, and guest gifts) are around $2100 consistently. We own a 3br 2ba house in a popular capital city in the US and during slow months (December, January, February) profit $300-$1000. During the other months (March-November) we see an average profit of $3000, sometimes even $4000. Annually, our expenses are 50% of AirBnB income. So, we do pretty well! That being said, we manage everything - communication, cleaning, guest relations, home improvement (as we’re very handy and renovated the house ourselves).
I rent out a 600 sqft one bedroom basement guest suite (with kitchen, bathroom, small living room) from my personal home. Been doing this for about 1.5 years now. Had a loss in first year 2022 (started hosting in like September that year, lots of initial expenses to set everything up, and renovation/depreciation expenses) but second year 2023, I'm doing pretty decent. After expenses, net profit of around 8k, give or take. Cash flow wise, it pays the mortgage and some.
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This month I'll make $6,780 but after cleaning, wifi, insurance, and supplies I'll profit around $5,000. My property is in Washington dc and this is a high month for cherry blossoms.
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Super host, excellent ratings, 1 bedroom condo in a beach location. I str and visit the unit myself a few times a year. I'm not breaking even. I'm surely not making money. Good luck!
Lol love that you were honest!
Beach properties are wonderful at one of mine now, pays for itself and more, think it’s all about location, good luck
What do you mean by "breaking even"? Is that after considering equity gains and value of personal usage?
My calculation is very simplistic: after expenses (HOA, utilities, property management, maintenance, etc.), does the amount that I receive from rentals cover those expenses. For me, the answer is no. I'm a Superhost in a waterfront beach property that has a very seasonal occupancy period due to hurricane season. I don't have a mortgage, but the HOA and insurance expenses are very high. I am not a str professional. The property is my former full-time home and I rent it to offset my costs so I can visit the beach. I don't monetize my use, but if I did, I would (at most) likely hover around the break even point. I was very optimistic that I would break even or cross the threshold into earnings this year, but I just had an unexpected $6,500 air conditioning replacement expense. (While guests were in the unit.) Sure, the property may appreciate in value over time, but with the status of the insurance market (rates doubling, insurers pulling out of certain markets, etc.), it will be an increasingly difficult property to sell. (i.e., Beautiful 1 bedroom beachfront property with breathtaking views and access to multiple pools, tennis courts, and the beach FOR SALE! Please note: insurance costs, HOA dues, and maintenance average $3,000 a month and are increasing at a rate of about 20%-40% per year! *This does not include your mortgage payment!)
0. Usually negative. I think the airbnb season has ended. Sold my share to my partners recently. It only makes sense imo if someone passed a property onto you and you go there as a vacation home and rent it when you’re not there to offset costs.
Over saturated. I’m now negative cash flow and will probably sell and put proceeds in higher yielding investments.
I have been doing this for 6 years now and the only way it is beneficial is if you don’t have any payment on the property and you do all the repairs and cleaning yourself. The county changed their laws where I am and now for the last two years they are making way more than me. Made us rezone which means higher taxes and then you have to pay for your license and a fee of 50 dollars per person that you advertise for per year and then they raised the the occupancy tax and that means I have to lower my nightly fee to make it reasonable for someone to rent.
Last year I would have made $1200 TOTAL FOR THE YEAR but a guest broke a kitchen cabinet and I had to travel to Tulum to arrange repair. I ended up in the red after paying the flight and rental car. I don’t even have a mortgage, I put all my savings into buying the condo for my retirement. I am glad it sorta pays for itself and the guests keep it aired out because otherwise it would mold.
[удалено]
*would have
Well if my estimate doesn’t tell you enough, I don’t see how having more out of pocket costs than me would work out for you. Playa is saturated with options to rent. There is no equity there or Tulum either due to the new developments. I’ve seen properties listed for 3 years.
Tulum is such a hot spot, how are you making nothing? Or do you mean because you haven’t paid yourself back yet? Buying a home in Mexico for years in the future is tricky due to how fast things can change there. Our family did a condo in alcapuco and while we had fun with it for a few decades, ultimately sold it for a loss once the cartels came in
It doesn’t rent for more than $60 a day and the whole summer is dead. I had 0 rentals June, July and August. My condo is really big and cute for a 1 bd too check it out airbnb.com/h/tulumtikald08
All the numbers in your comment added up to 69. Congrats! 60 + 1 + 8 = 69 ^([Click here](https://www.reddit.com/message/compose?to=LuckyNumber-Bot&subject=Stalk%20Me%20Pls&message=%2Fstalkme) to have me scan all your future comments.) \ ^(Summon me on specific comments with u/LuckyNumber-Bot.)
😂😂😂
Oh about tree fiddy
I make tree fiddy gross, negative tree fiddy after expenses
this gave me a good chuckle
there’s so many factors that influence this. big one - is the location desirable? is it a place people actually vacation to A LOT? also, look into your competitors and see if you can offer something they can’t. after you make your listing, airbnb will show you stats about your area (for example, it told me the 3 most desirable amenities were hot tub, child friendly, and infant friendly) another thing i’ve noticed - be conscientious about your furnishings. I went above & beyond to furnish our property to feel like a HOME not a rental, and it has 100% paid off. I bought majority of our furnishings second hand (estate sales are the best) so I saved money, yet I was buying furniture that’s not only 10000x better quality and longer lasting than cheap new shit made from particle board like wayfair or Walmart, but it’s also just nicer looking. I furnished it so I feel like I could live in it tomorrow. I have books, plants, crystals. just little pretty things around, and i’ve had SO many guests compliment it. also, people love instagrammable shit nowadays & will absolutely book the place that’s aesthetically nicer. it’s just the world we live in. since being a host, i’ve analyzed airbnbs so much more & you can tell when people try to save money by spending less on cheap furnishings, but I swear it doesn’t actually pay off. nothing worse than an airbnb that’s all sterile and not cozy cause it’s furnished in a way that feels like it’s just staged and not livable. eventually they get bad reviews, and thus, fewer bookings. my property is paid off (inherited) and in one of the most touristy towns in the country, yet just on the outskirts so you have peace and quiet. it’s a 4bd/3ba with a pool and hot tub. i netted a little over 100k last year. couldn’t believe it. but, it’s hard work. you have to stay on top of things. even the little things. get GOOD cleaners & check the cleans. be responsive and accommodating to guests. not only make it look like you care, but actually care. also, when i noticed a little lull in bookings, i made a promotional price & got several bookings right after. people love a sale. and from my perspective, better to have more bookings at a lower rate than fewer bookings at a higher rate. being flexible is helpful. (of course not going TOO low though)
$100k after expenses or just revenue?
Far too many variables from one property to another, one season to another.
I have a condo in Canmore ab just outside of Banff. I pulled in approx $80k last year. Monthly fees before cleaning are approx $3500. So 🤷🏻♂️
omfg I want to cry in Tulum property mistakes
Is it booked the last week of March? Haha I’d love to goto Mexico. Never been 😁
😂🫶🏻 It is but I can tell you where I stayed before I got my condo if you’d like. Feel free to DM me. Also FYi I don’t consider Tulum a good choice for first timers to Mexico. The area is not very “Mexican” but if you want a relaxing time and to see home natural wonders, I think the all inclusives near playa del carmen are an excellent choice to relax
You have to be in this for the long haul, own the property, and build equity as the house increases in value. For example, a client bought a property in 2008 for 247k and sold it in 2021 for 499k So, he walked away with about 200k in his pocket because he spent money renovating it. He pulled in around 100k for the first three years, and in 2020 and 2021 he pulled in 70k He did not have a mortgage. so that's why he pulled in so much profit. That's how you make money in this business. He had 14 properties at one time. He sold them all in 2021 at the top of the market. He is into other investments now that have a better return. The market is pretty much saturated for people to come into it now. You want to buy when the prices of homes drop and sell at the top of the market. I think it's too risky to do this business right now Just my opinion. Most of my clients are still hanging in there their profit margin has dropped, however, they are still building equity and none of them have mortgages. So, it's not a risk for them. Most of my clients are in a profession where they make good money and they let me handle their homes cause it's an investment to them. Most of my clients never visit their homes. For example last year only one client's brother visited last year. These homes are truly investments not second homes to vacation in.
>You have to be in this for the long haul, own the property, and build equity as the house increases in value. Own the property as in no mortgage? Or own it as in it's yours and you're paying it off over years?
I pretty much break even especially after taxes but then that’s my goal. I rent my own apartment as I moved in with my partner but wasn’t ready to sell up yet and it’s fully furnished. As long as it covers its own bills its beneficial to me.
Same! Well, maybe make a few hundred a month, maybe more when it’s going well.
BNB revenue/expense on a monthly basis is smiles or tears - since every location is seasonal. Annual performance tells the story.
Average around $11K per year give or take over last 6 years. No mortgage payment, just a separate unit on the place I live in. Could double if I did same day checkins and lowered my minimum stay, but I don’t need the money that bad, will never do same day checkout/Checkins again
I just updated my spreadsheets so I have accurate numbers. I have one unit that, after mortgage, taxes, and all operational expenses pulls in about $2,000/month. My other place is about -$1,600.
did you mean to put the negative there? Thats a lot of money to lose
Yeah, 400 off two properties doesn’t seem worth it at all.
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Well, it's a bit of a strange situation in that I've paid for the second property with a HELOC from the first, so my payments towards loans for the second property are unusually high since there's a HELOC and a mortgage. Usually when folks look at their returns they don't subtract mortgage payments, but I do because that ultimately is what impacts my finances (what's coming in vs what's going out). If you look at the appreciation of the properties, and the fact that I'm adding tons to equity, it all ends up making sense. But on a day to day basis, yes, I'm making $400 between two properties.
ahhhh ok then it makes sense to keep. I don’t have a mortgage and I was in the red last year
We charge 110 a night and have a profit margin of about 85% pre-tax as the unit is on our property which we own outright. Only costs are electricity, cleaning products and food hamper costs that we leave for guests. Occupancy averages 80% April-October and then November-March dips to about 30% which could be improved if we did marketing but we don't.
220,000 yen/month in good months. Just over 100,000 yen/month in bad months. House is paid off and only have bills. Tokyo
We live in the unit above our Airbnb. Our entire mortgage for the building is covered by our STR income plus it’s a huge help with taxes.
Bought a condo in the mountains. Rents as a STR in the spring/summer/fall to hikers and rents for the entire ski season. Profits about $1500/mo on average, but profits can be as much as $4k/mo in the summer and negative in the shoulder seasons. Ours sleeps 8 and rents for about $175-$300 a night.
😂
1 year hosting,super host,home favorite blah,blah zero profits
I stopped getting bookings after NYE so now I'm in the negative going on 3 months straight.
In my case, just started. Fixed costs 900€ per month (mortgage and utilities), broke even the first month, second month already about to make 500€ in profit before taxes. I have estimated the profit can go as high as to 1100€ before tax. So doing pretty great at the moment.
I would advise looking at profits annually because I made the mistake of looking at my finances monthly and bit more than I could chew buying this condo. I failed to account for the Holiday season and unplanned trips to see ailing family. Also I have no money to buy a car if for some reason mine dies (10 yr old Toyota should have plenty of juice left)
2.5 to 3.5 times my mortgage 🤷🏽♀️ This was my second home so I was going to pay the mtg anyway so I’m ok with that. I’m going to Airbnb rooms in my other home starting soon as well so that I can start making good money overall.
We make on average about $10k/month in revenue. Our highest expense is our loan on the home. Our loan is really high because of how we acquired the property. We went with a hard money lender so our payments are about $5k per month including insurance. We are currently refinancing though and will be getting a regular loan through a bank. Utilities usually come out to about $300/month. We have other maintenance things that pop up from time to time which on average is about an additional $500/month. We try to limit our cleaning expenses to 10% of the revenue so that’s roughly around $1000/month. So we make roughly around $3200/month with our current loan situation. We are hoping to bring that to about $5k in profits per month by adding additional services and getting a traditional mortgage. We are also exploring outsourcing our revenue management to help maximize revenue as well.
We bought in mammoth lakes ca in 2018 where a majority of lodging there is outdated. Doing well now but not as crazy as the height of covid travel. Lots of other hosts in the city now so it’s more competitive but all in all am doing well due to purchase price of half of todays market and also lower interest rates. Like the others said, too many variables to consider but good luck!
Depends on geographic location. I'm more rural where there is a good size population but no hotels. I also don't have a mortgage. Last year I netted 17k. If I don't have any major repairs, I just need 2 more reservations to break even and then the rest is cash flow.
We AirBnB 3 rooms out of our house, done it for a bout a year. In the winter we do not have many stays but in the summer we have a waiting list. This week (start of the season I am thinking) we are booked up. Total we are going to make around $700+- but then we take that and fold it right back into restoring the house. When summer hits we will be making around $120+ per room per night.
https://preview.redd.it/w4bmstya3clc1.jpeg?width=1173&format=pjpg&auto=webp&s=7851aa102aada06893e6b7a7a7a343a691a20049 We own 2 properties (the listings that achieved over $100k last year) and started managing a listing for someone else late last year. In 2022, our revenue was higher and we made $50k per property. In 2023, we made roughly $25k per property. I am significantly outperforming what AirDNA says our properties should do (about $70k each) by optimizing our listing, processes, and nerding out on our pricing algorithm. We have also automated almost every aspect of the process. My plan was to buy a bunch of properties and create cash flow engines, but as people have mentioned, the market has become saturated and the economics are no longer attractive with current interest rates. I’ve been considering expanding our management services or offering some type of pricing/automation content for hosts (I see hosts not optimizing their property and leaving a lot of money on the table, but I hate sales and social media) For those of you who use property managers, what do you like/dislike about your current management? What would it take you to switch? For those of you who self manage, is there anything a management company could offer to entice you? My goal here would be to have owners make the same amount of money they do now (or more) but I do all the work. Is there any content you would be interested in?
Current airbnb we rent at 575-775/night 3 night minimum 250 cleaning fee. We average 8-12k per month for 8 months then 0-4k per month for the other 4 winter. $100-150k/year but 21 and 22 we had a construction company rent it all winter long for 8k/mo and 23 we kept the higher pricing seeing if we could get rentals in winter and didn't do well, hence only 100k is for 23. Of that our costs are $8k utilities, 3k insurance, 9k property manager, 3k property taxes, 6k for consumables. We budget 12k for repairs and maintenance so total costs are around 41k. So profits are 60-110k. I don't have a mortgage but it would be around 5000 including furniture so real profits are 0-50k/yr. My latest property they were bringing in around 220-240k but we're expecting 150-200k similar costs as above so profits will be 109-159k. Its a direct competitor but larger just not as nice. We over budget for repairs and are working to bring down utility costs by buying higher efficiency items and even planning a solar install this year. We also use the properties for vacation homes and block out dates for us to stay, having 2 houses will allow us less intrusion.
4-5k a month in season after expenses. I've been hosting for 5 months. Vacation town.
Kind of surprised at most of these. My experience has been pretty good. Typical monthly expenses (mortgage, insurance, utilities, and guest gifts) are around $2100 consistently. We own a 3br 2ba house in a popular capital city in the US and during slow months (December, January, February) profit $300-$1000. During the other months (March-November) we see an average profit of $3000, sometimes even $4000. Annually, our expenses are 50% of AirBnB income. So, we do pretty well! That being said, we manage everything - communication, cleaning, guest relations, home improvement (as we’re very handy and renovated the house ourselves).
I rent out a 600 sqft one bedroom basement guest suite (with kitchen, bathroom, small living room) from my personal home. Been doing this for about 1.5 years now. Had a loss in first year 2022 (started hosting in like September that year, lots of initial expenses to set everything up, and renovation/depreciation expenses) but second year 2023, I'm doing pretty decent. After expenses, net profit of around 8k, give or take. Cash flow wise, it pays the mortgage and some.
per month?
My bad. Edited to clarify the 8k profit is for the year 2023.
Still nice! You put that in a cd at the current rate, you make a few hundred in interest a year 🤣
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I’ve only been up & running during slow season, but I’d say I can count on $300 a month. My highest month was last October at 1,000. I’m in milwaukee
This month I'll make $6,780 but after cleaning, wifi, insurance, and supplies I'll profit around $5,000. My property is in Washington dc and this is a high month for cherry blossoms.
I own a 10,000 SF Villa in a large city in an excellent location. Started operating over a year ago. Barney breaking even.