Short Term Rental Analysis

[Eric McCarty]

What's up All?

I'm very comfortable with analyzing residential real estate.  However, I haven't found any good videos or topics that discuss analyzing short term rentals.  I'm pretty sure I can come up with some analysis that gets me close, but I'm looking to talk with someone who is in the short term rental game or someone who knows a good article, video, etc.. that goes over a few examples.  I run the calculator on AirDNA and it gets you started with some high level numbers, but I'm looking to dig into the fine details and map everything out before a purchase.  Any insight would help.  Thanks!

Eric

[Marissa Liesenfelt]

Make sure you account for all utility bills, pest control (if that is relevant in your area), ongoing maintenance needs (like lawn care, spa care, power washing, deck staining), % held for future CapEx, % held for misc. maintenance, disposable supplies, non-disposable supplies (linens, towels, etc.), property management, cleaning/turnover (mostly pass-through). One important thing I realized when I purchased the AirDNA market data is that the AirDNA nightly rate they give you INCLUDES the cleaning fee. That really elevates the nightly rate vs. what is real if you're not factoring in cleaning. I like to look at cleaning separately because then I can compare to what is listed on AirBNB & VRBO which does not factor in the cleaning until you go to book. So, keep that in mind. In my market I want to say the main AirDNA page had an ADR of like $267 when in reality, without cleaning, it's more like $175 for my size place.