Estimating STR Income

[Chase Davidson]

What are some resources one can use when trying to estimate the gross revenue a STR will bring in?

I am analyzing a deal that would be a house hack with a detached garage that I would love to turn into an ADU. Are there databases with comps of what good Airbnb prices go for like what BP insights provides or do I just need to grind on AirBnB's sight for comps?

[Jon Crosby]

@Joe Splitrock 

Excellent points and it certainly is important, and likely the reason Airdna uses this methodology.  One problem I have with with including fees in this manner (unless you are the one doing the cleaning) is that those are pass thru fees to the guest generally (some people charge a little more also), so it's one less expense to analyze against. 

Additionally, if you include it as expected revenue on your cash flow statement then you have to have a corresponding line item for the expense (as you mentioned), but here is where the problem lies...what is your expected expense on that?  Cleaning fees are directly correlated to the number of bookings you get, not the number of nights occupied so there is an inherent disconnect there since revenue is a product of occupancy and average daily rate (not number of bookings).  That is why I prefer to back the cleaning fees out of the ADR and then calculate my expected revenue on non-cleaning ADR and expected Occupancy rates when looking at a new property. 

Hopefully that makes sense, once again, this is simply a preference from my experiences with the data and my own business models. 

Thanks!