AirBnB rental analysis

[Justin Bartram]

My wife and I are new to short term rentals. We have our eyes set on a property on a lake that we frequent, and want to know how to analyze it to make sense if we could purchase for us and our family to enjoy, while tenants pay for it when we aren’t there.

Do you all analyze short terms like you would a long term? We have been looking on AirDNA and comps on Airbnb and it appears the monthly average at 50% occupancy is 1200-1400$ to be conservative I would probably analyze at 1,000$.

Any advice?

[Jon Crosby]

@Justin Bartram  Here is a spreadsheet I share often on this forum if you would like to check it out.  It helps line up your expenses against your total revenue. 

You need to know ADR and Occupancy rate to generate your gross revenue.  I usually start with Airdna and then manually review Airbnb and VRBO listings to confirm or adjust what Airdna shows.  Keep in mind, Airdna often shows your ADR with cleanings included which would only apply if you are cleaning the place yourself.  

Also remember when comparing to Airdna numbers that somebody's else's success (or failures) are not necessarily indicative of your results.  In the end you will either do better or worse then those numbers show based on how you run your business.

Best of luck! 

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