2. Is it profitable?
Hosting only makes financial sense if you are making a profit off your rental. How much of a profit depends on your financial goals. How much you need to make off your Airbnb to make a profit depends on whether you own or rent the space, whether you have paid off your mortgage, etc.
In order to determine whether your Airbnb will be profitable, you need to know:
How long it will take you to pay off your initial investment
How much profit you will make each month after you pay for your initial investment
How much you need to make every month to break even
If you own the space, it is important to keep in mind that the cost of running a short-term rental is significantly higher than the cost of renting or subletting a property long term. If you rent or sublet your space, the amount you are currently paying for rent will directly determine how much you make.
When considering a short-term rental as an investment, you must account for the initial investment as well as the recurring monthly costs associated with short-term rentals like utilities, wifi, and cleaning supplies. This can be a difficult calculation before you have set up your short-term rental and know exactly how much you will be making, but you can make an educated decision based on the following estimate.
Calculate whether you'll make a profit step by step, by clicking on the tiles below: