Airbnb long term rental

[Mariam Jalalzada]

For those who have tried Airbnb long term rentals (typical more than a month), how do you factor in the utility bills? Do you factor it in the monthly rent or do you charge the guest who is basically a short term tenant separately? Any suggestions - especially in regards to high value bills such as electricity during summer when air conditioning is on-  are highly appreciated. 

[Account Closed]

For long term renters on Airbnb I think it comes down to 2 models that make the most sense.

1. A percentage discount off of what it would cost for daily stays on the booking platform. I offer a 20-30% discount depending on the property, time of year (sometimes a long term guest just isn’t worth the amount of money you can lose), and length of stay.

2. If this is a property you are renting add up all of your expenses and figure out what will the margin need to be worth the booking. For example, if you are doing a rental arbitrage model and paying 1000 in rent 300 in utilities I would at least double this to make a profit cover depreciation of the furnishings and leave some extra breathing room just in case. Also, you can work in weekly or bi-weekly cleanings at an additional cost to ensure your property isn’t a disaster when you get it back.

Side note. Keep in mind long term stays will significantly reduce your page ranking on Airbnb unless you are actively updating the listing to keep it fresh as it won’t come up in search results since it’s booked.

Hope this helps!

Happy Hosting