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2 Proven Strategies to Find Best Airbnb Markets in 2024

This is the complete Airbnb market research guide for property investors. 1. City analysis (high rental yield, appreciation, and regulations) 2. Neighborhood analysis.

2 Proven Strategies to Find Best Airbnb Markets in 2024

Airbnb Market Research

2 Proven Strategies to Find Best Airbnb Markets in 2024

This is the complete Airbnb market research guide for property investors. 1. City analysis (high rental yield, appreciation, and regulations) 2. Neighborhood analysis

Best Airbnb Markets provide you with high rental yields and good appreciation potential. The local government’s standpoint on short-term rental is important as well. 

In some markets, you can make four times more than a traditional rental. Start Airbnb in the right location! 

This blog isn’t about the top market list but about short-term rental market research. So, you can find profitable markets among your preferred markets. There are some blog posts and YouTube videos online talking about the top Airbnb markets. There’s a good chance that those markets will become saturated after a dozen investors enter the area this year and more next year.  

The successful short-term rental market research step is as follows 

  • City Analysis: Find 2-3 good markets with 1) high rental yield, 2) good appreciation outlook, and 3) STR-friendly government. 
  • Neighborhood Analysis: Identify the profitable neighborhoods and types of property 
Airbnb Market Research

 

Now you’ve found a profitable property, and it’s up and running, giving you a good income. What more can you do? 

Increase the value of your property as a turnkey property by 

  • Refurbishments
  • Remodel
  • Expansion
  • getting a short-term rental permit
  • increase your occupancy rate by optimizing your Airbnb listing

As you can see, there are more chances for you to increase the value of your real estate investment as a short-term rental than a traditional long-term rental.

City Analysis: 3 pillars of good short-term rental markets 

Use these 3 criteria to identify markets that will give you a better return. These pillars are for choosing the right markets, not the right property. In a market fitting those 3 criteria, you will have higher cash flow. You will expand your property investment business faster. 

 

Start with listing down 10 cities that you are considering to start an Airbnb. It’s good if you have some connections in the place or you’d like to spend a good amount of your time. It can be your favorite vacation spot, or have family living down there. After doing the city analysis, you will have clarity on the top 2-3 markets out of the 10 markets you were considering. 

High Airbnb Rental Yield 

The first pillar is a rental yield as a short-term rental. This is the ratio between the property price and your first-year short-term rental revenue. The higher the average rental yield, the better. 

Tip: You’ll compare different cities during this research. Choose a specific number of bedrooms to calculate your Airbnb rental yield. 

 

How to find short-term rental revenue in a city?

You can get this data easily from a free Airbnb analyzer. Enter any global market names after signing up for Airbtics. Then, you will get the average year-round short-term rental revenue, daily rate, and occupancy rate of a market. 

This will also answer the following questions. How much does an average listing in the city make per year? What’s the year-round average occupancy rate? How much do they charge per night? 

How does this data work? Airbtics tracks over 10 million short-term rentals from various sources every day. Please note that the occupancy rate per number of bedrooms is only available in the premium account. 

How to find an average property price? 

It’s time to find cities with cheap property prices. Heated property markets, like San Francisco, aren’t usually an ideal place. Whereas places like Joshua Tree with cheap prices, are better. 

Different countries have different sources of information 

US, Canada: Redfin, Zillow  

UK: Rightmove 

Spain, Portugal, France, Italy: Casafari 

Australia: realestate.com.au 

Market research summary

  1. 1) Use an Airbnb analytics tool to get the average Airbnb revenue potential.
  2. 2) Use a real estate site to get the average property sale price. 
  3. 3) Get gross rental yield by dividing Airbnb revenue into property prices.

Population and economic trends 

In the end, you’ll earn money from both rental income and equity appreciation. Real estate market analysis is what you need to incorporate here. Typical factors you need to look into are as follows, and you want them to be on an inclining side in the last 5 year 

– Population growth 

– Income growth 

– Crime rate decline 

– Employment rate growth 

You would also look into planned major real estate developments. 

However, you could simply focus on two major indicators: Population and income growth. You may incorporate other indicators. This sort of data is usually available from government websites. 

What you want to do here is to check population and average household income changes over the past 5 years. Then, calculate the “change rate in the past 5 years” for both population and income changes. Finally, get the average of those two rates. 

How to calculate the change rate?  it’ll be (population_2022 – population_2018) / (population_2022)

Short-term rental regulation 

Some city governments are more welcoming to visitors to the city. It’s usually the cities where tourism is a major economic activity.

 You should verify the following information for each city 

  1. 1. What is the current short-term rental regulation? 
  2. 2. How strictly is it enforced? 
  3. 3. Read through news about short-term rental regulations in the city. 

What is the current short-term rental regulation? The short-term rental regulations are somewhat similar worldwide. I’ve sorted out regulations by most “strict” to “lenient”. The one at the top is the most strict. Put the “regulation” score between 1 (strict) and 5 (lenient). 

  1. 1. The owner must live on the property 
  2. 2. Only able to rent out as a short-term rental for a certain number of days (90 days, 3. 180 days, etc) 
  3. 4. Only certain zone or type of property is allowed to do short-term rentals 
  4. 5. Required to apply for a short-term rental permit and pay annual fees 
  5. 6. Required to inform the local government 

How strictly is it enforced? Take a look at Airbnb in the market, and read the recent reviews in the listings. Verify if the laws are really enforced. They might say the owner must live on a property, but some hosts may run 10 units in the same market. There are many markets where the regulations are not properly enforced for various reasons. In this case, you should re-adjust the regulation score. 

Read through the recent 2 years’ news. Search on Google to go through the news about short-term rentals in the market. Is the mayor talking negatively about short-term rentals? You can see the sentiment towards short-term rentals by checking the news. If they talk negatively about reducing the regulation score by 1, if they talk positively about it, increase the regulation score by 1. 

How use these numbers? 

The final result should look something like this.

From here, it is up to you to determine your focused markets. There is no set-in-stone formula to determine because it depends on what you put more weight on whether short-term profit or long-term appreciation. 

Personally, I first took a look at the top 2 by Airbnb rental yield and the top 2 by appreciation factors. I removed the one with strict regulation (where they restrict STR by number of days a year). 

In the above example, I’d choose Liverpool and Lisbon for the high gross rental yield and friendly STR regulation. Their population and income changes are positive as well. 

Don’t choose more than 3 cities. You will need to do neighborhood analyses of those 3 cities as the next step. You can add more cities after doing the neighborhood analysis. Each city would have at least 3 interesting neighborhoods. This can lead to 9 neighborhood analyses if you choose 3 cities. Having to do so many neighborhood analyses will lead you to decision paralysis. 

Try to do a neighborhood analysis on at least 2 cities. This will help you to be detached from one specific city you love. 

Have 2-3 cities ready? Then, read below to learn how to do neighborhood-level analysis! 

Neighborhood Analysis: How to choose the right property type? 

Once you’ve got the idea of 2-3 good markets to start an Airbnb, it’s time for you to do a more specific analysis. You need to find a good neighborhood and the right type of property. 

The outcome of this analysis is as below 

  1. 1) Top 2-3 most desirable neighborhoods for short-term rentals 
  2. 2) Best number of bedrooms (E.g. 3 or 4 bedrooms) 
  3. 3) Best property type (E.g. House with a pool) 

Finding the neighbourhoods.

Neighborhoods don’t have to be zipcodes or certain administrative divisions. It just refers to an area with a similar property price and Airbnb revenue. This can be determined by how close your place is from specific landmarks or many other ways. 

In the same market, different neighborhoods have different levels of demand. Starting in the right neighborhood goes a long way since you can’t change the neighborhood once you commit to it. This can be counterintuitive. There is a case where in-land properties have a higher occupancy rate than beachfront properties. After our analysis, we found out people like to stay near train stations for easier access to restaurants and public transport. 

How to? 

So, how can you find an area with high demand? You can use the heatmap feature from the Airbtics app. Dark red represents an area with a high occupancy rate. You can change the color to represent a number of listings or year-over-year change in occupancy. This will give you where are the hotspots and with a high demand.

airbnb occupancy rate heatmap

Number of bedrooms

First of all, it depends on your budget. Are you looking for a big size or a small size property? 

Then, take a closer look at occupancy rates and the number of listings per number of bedrooms. A certain number of bedrooms may do better than the other. Keep in mind – the number of bedrooms is one of the most important factors for Airbnb guests. 

Here, write down on your worksheet about average yearly revenue of different sizes of bedrooms. This will give you a good guide once you start looking at different properties for sale. 

Neighbourhood A (Airbnb yearly revenue) 

  • 2 bd: $85,000 
  • 3 bd:  $92,000
  • 4 bd: $135,000

Neighbourhood B (Airbnb yearly revenue) 

  • 3 bd: $59,000
  • 4 bd: $70.000
  • 5 bd: $92,000

Type of property: 

Take a look at the top properties in each of the neighborhoods. What do they look like? 

Firstly – is it a condo or a standalone house? 

Secondly – what other characteristics? 

It might be a wood cabin or a tiny house or a condo with many amenities. Note this down in your worksheet. 

 

How to? 

You can achieve this by using the Airbtics app. There is a section called “Top properties”. This section shows the top-performing properties in a specific neighborhood that you see on the map.  

Ensure your data is accurate 

Your entire market research should not depend on a single data source unless it is from an official source. 

For Airbnb revenue data, there is no officially available data anywhere. If you are using the Airbtics app, it’s a good idea to cross-check with other data platforms’ free data. Check if the occupancy rate or yearly revenue is similar in multiple data sources. If yes, the data you are using should be fine. If they all show very different numbers, you may have to check further. Go and check the Airbnb website and review the listings. Ask realtors or hosts in the area.

 

Review of best Airbnb markets available online 

Data source: Airbtics, 2022 Nov – 2023 Oct data. 

Sedona, AZ 

  • Occupancy rate – 68 %
  • Daily rate –  $235
  • Yearly revenue –  $32,116
  • Number of listings – 1,116

Santa Fe, New Mexico 

  • Occupancy rate –  74%
  • Daily rate –  $196
  • Yearly revenue – $55,174
  • Number of listings – 1,318

Savannah, GA 

  • Occupancy rate – 67%
  • Daily rate – $189
  • Yearly revenue – $29,674
  • Number of listings – 2,597

Barcelona, Spain 

  • Occupancy rate – 88%
  • Daily rate – €128
  • Yearly revenue – €10,591
  • Number of listings – 13,829

Bourne, MA 

  • Occupancy rate – 68%
  • Daily rate – $284
  • Yearly revenue – $59,251
  • Number of listings – 23

Colorado Springs, CO 

  • Occupancy rate – 70%
  • Daily rate – $121
  • Yearly revenue – $32,502
  • Number of listings – 2,492

Dallas, TX 

  • Occupancy rate – 59%
  • Daily rate – $124
  • Yearly revenue – $8,863
  • Number of listings – 5,0525

Eureka, IL 

  • Occupancy rate – 55$
  • Daily rate – $80
  • Yearly revenue – $19,010
  • Number of listings – 11

London, United Kingdom 

  • Occupancy rate – 82$ 
  • Daily rate – £236
  • Yearly revenue – £16,812
  • Number of listings – 4,432

Melbourne, Australia 

  • Occupancy rate – 66%
  • Daily rate – A$196
  • Yearly revenue – A$17,641
  • Number of listings – 20,327

Pascagoula, MS 

  • Occupancy rate – 48%
  • Daily rate – $124
  • Yearly revenue – $24,355 
  • Number of listings – 26

Rome, Italy 

  • Occupancy rate – 96%
  • Daily rate – €129
  • Yearly revenue – €17,033
  • Number of listings – 22,863

Salt Lake City, UT 

  • Occupancy rate – 71%
  • Daily rate – $98
  • Yearly revenue – $27,401
  • Number of listings – 1,845

Vancouver, Canada 

  • Occupancy rate – 85%
  • Daily rate – C$182
  • Yearly revenue – C$53,282
  • Number of listings – 5,361

Conclusion 

 

Here’s a recap. The goal of this market research is to find the best cities for you to start an Airbnb. You’ll start with 10 cities you like to consider starting an Airbnb. You’ll select 2-3 cities based on appreciation factor, STR regulation, and yearly rental yield. After this, you’ll do a more specific neighborhood-level analysis. 

 

Now, this is it! You have 2-3 cities. You have 2 neighborhoods in each city with the best number of bedrooms and type of properties. Use this knowledge to search for properties for sale. Let the realtors know about your criteria. Go and visit the properties for sale. 

 

It’s a good idea to tweak a little on this framework so that it makes more sense to you. Best luck! 

 

Categories
Airbnb Occupancy All About Airbnb

Unlock Airbnb Occupancy Rates Worldwide! Explore Any Market’s Insights.

Instantly See An Average Airbnb Occupancy Rate

Discover 30+ Airbnb statistics of any city worldwide!

What Is Occupancy Rate?

It is the percentage of nights booked among the available nights on an Airbnb listing. How can you find the average occupancy rate of your market? 

Simply enter an address above, and it’ll show you the average occupancy rate of any address in the world for free! The average occupancy rate is calculated by 10-20 similar listings around the input addresses. 

“70% is considered a good year-round occupancy rate.”

As a short-term rental data company, we’ve been tracking Airbnb listing occupancy rates and bookings since 2019. This allows us to have comprehensive statistics of listings. 

You will be taken to the “calculator” page – a totally free resource! For deeper insights into your city, you should sign up to the platform and use the “Market Research” feature. This dashboard will unlock comprehensive data in your city. It’s all at your fingertips! 

Those statistics includes:

4 Interesting AirBNB Occupancy Rate Facts

Average Airbnb Occupancy Rates (US)

City Active Airbnb Listings Average Airbnb Occupancy Rate (2023) Peak Season
Fort Collins 2,533 68% July
Seattle 5,791 76% July
Memphis 1,488 58% April
Milwaukee 1,552 60% July
Ontario, NY 632 56% July
Phoenix 7,600 60% March
Austin 10,779 61% April
San Antonio 5,290 57 % July
Newark, NJ 1,480 60% July
Houston 10,263 56% July
Fresno 1,830 54% July
Chicago 6,634 66% July
New York 10,048 72% June
Boston 2,690 81% October
Gainesville, FL 871 56% August
Nashville 8,137 62% April
Miami 8,533 61% March
Jacksonville 8,874 59% March
Orlando 1,351 64% March
Denver 4,595 77% June
Pittsburgh, PA 2,195 63% July
Wichita, KS 683 60% July
Kansas, MO 3,433 61% July
Tampa 3,820 62% March
Raleigh 1,504 63% July
Baltimore 1,769 58% June
Dallas 5,025 59% June
Birmingham, AL 1,043 57% July
Cleveland 1,511 59% June
Atlanta 6,224 56 % July
Philadelphia 5,304 56.5 % July
Washington 4,702 75 % April
Colorado Springs 2,530 70 % July
Fort Lauderdale 4,528 62 % March
Los Angeles 15,731 66 % July
Las Vegas 1,776 59 % April
Reno 942 61 % July
Greensboro 797 60 % April
Sacramento 2,298 61 % July
Detroit 1,469 51 % July

                                                                                                             

                                                                                                             

Average Airbnb Occupancy Rates (Canada)


City Active Airbnb Listings Average Airbnb Occupancy Rate (2023) Peak Season
Toronto 12,637 77 % September
Calgary 5,290 77 % July
Quebec 1,443 76 % July &August
Edmonton 2,954 69 % July
Montreal 7,605 74 % August
Vancouver 5,478 85 % June-August
Winnipeg 1,588 69 % July
Kitchener 793 69 % September
Victoria 1,267 79 % July & August
London, ON 830 66 % September
Halifax 1,238 84 % July & August
Sudbury 352 67 % April
Kingston 453 70 % August
Ottawa 2,248 69 % July

                                                                                                             

                                                                                                             

Average Airbnb Occupancy Rates (Australia)

 
 
City Active Airbnb Listings Average Airbnb Occupancy Rate (2023) Peak Season
Adelaide 3,782 73 % April
Perth 5,312 87 % April
Canberra 1,738 73 % April
Newcastle 1,125 62 % January
Melbourne 20,327 66 % April
Brisbane 3,901 85 % July
Sydney 11,732 79 % April
Darwin 1,110 69 % August
Wollongong 855 64 % January
Hobart 1,057 72 % April
Toowoomba 303 75% April
Central Coast 2,598 43 % January
Ballarat 510 59 % April
Greater Bendigo 484 60 % April

                                                                                                             

                                                                                                             

Average Airbnb Occupancy Rates (UK)

 

City Active Airbnb Listings Average Airbnb Occupancy Rate (2023) Peak Season
London 4,000 87 % June & July
Edinburgh 6,857 91 % June- September
Liverpool 3,376 57 % April
Manchester 2,338 66 % July
Glasgow 2,329 76 % August
Leeds 1,465 65 % July
York 1,730 66 % July
Birmingham 2,762 61 % July
Nottingham 1,212 61 % September
Bristol 2,299 77 % September
Sheffield 1,114 61 % July
Cardiff 1,880 60 % July
Aberdeen 725 70 % July
Belfast 1,446 74 % July

                                                                                                             

                                                                                                             

Average Airbnb Occupancy Rates (Top 50 Global Cities)


City, Country Active Airbnb Listings Average Airbnb Occupancy Rate (2023) Peak Season
Amsterdam, Netherlands 5,778 96 % April- September
Athens, Greece 11,223 79 % June & September
Atlanta City, USA 6,224 56 % July
Auckland, New Zealand 5,026 77 % December
Austin, Texas 10,779 61% April
Bangkok, Thailand 14,532 55 % December
Barcelona, Spain 13,829 88 % April, July & October
Batumi, Georgia 4,564 49 % August
Beyoglu, Turkey 7,891 61 % October
Bogota, Colombia 11,249 54 % July
Bordeaux, France 4,369 82 % September
Berlin, Germany 7,754 87 % June & September
Brooklyn, New York 8,858 79 % June
Budapest, Hungary 9,741 79 % July
Buenos Aires, Argentina 24,453 70 % April

                                                                                                             

Why do you need to know the Airbnb Occupancy Rate?

Market Research: Starting on your Airbnb venture? Knowing the occupancy rate will steer you in the right direction. The two most important factors are 1) choosing the perfect location with the highest average occupancy rate and 2)  determining the right number of bedrooms because you can’t change these two once you commit to a property.

Airbnb Occupancy Rate

Get more bookings: Knowing the peak season allows you to maximize your profit by charging higher fees. During low season, you can consider giving a discount for long-term rates, or it might be the right timing for you to use it as your vacation home! 

9 Simple Tips To Boost Your Airbnb Occupancy Rate

1. Choose the Right Airbnb Market

Finding the ideal Airbnb city or market is crucial in optimizing your occupancy rate. Look for popular destinations and analyze their Airbnb demand. These can positively affect your property’s visibility and desirability.

2. Search for the Best Submarket

Identify the most lucrative submarkets within your Airbnb city. A good Airbnb submarket includes the best neighborhoods, property types, and number of bedrooms. Targeting the specific preferences of potential guests in different areas can help you tailor your Airbnb to meet their needs and attract more bookings.

3. Add Some Amenities

Adding basic amenities such as towels, toilet paper, and wifi just meets guests’ expectations. However, going for an extra mile differentiates you from the rest. This may include adding a few small fancy Airbnb amenities, an Airbnb hot tub, or a swimming pool.

4. Furnish your Rental

Don’t skimp on quality furnishings because they will make your rental stand out. A thoughtfully designed and comfortable Airbnb is more likely to receive positive reviews and repeat bookings. Target the needs of your guests then create a welcoming environment conducive to longer stays.

5. Take Nice Photos

First impressions matter. Photos are worth a thousand words. Lure your guests with your property’s features captured in the best light. Showcase each room from different angles and center your rental’s unique aspect. While you can pick up some Airbnb photo tips, opting for a professional photographer can significantly enhance the visual appeal of your listing.

6. Boost Your Listings Visibility

Optimize your listing for Airbnb and search engine algorithms. Use relevant keywords in your title and description to target potential guests. Regular calendar updates and quick responses to guests’ inquiries also improve your search ranking.

7. Enable Airbnb Instant Book

Active Airbnb Instant Book for a seamless booking experience. This attracts spontaneous travelers. Plus, Airbnb often prioritizes and boosts the listings with this feature. 

8. Aim To Be An Airbnb Superhost

Aspire to have a Superhost status by giving exceptional hospitality. The rewards can be outstanding. These include increased visibility that can lead to higher occupancy rates and earnings.

9. Consider Professional Airbnb Managers

Consider hiring professional Airbnb managers who specialize in optimizing property listings. Aside from doing the marketing side of your rental, these experts can also handle tasks from the pricing strategy to communication with guests. You can also hire them for property upkeep and maintenance. However, these services come at a cost usually with a commission-based pricing structure. 

In the below, I’ve compiled the occupancy rates of major cities in the US, UK, Australia, and Canada. (There’s also a bonus of 50 global cities too!)  

 

Categories
Airbnb Investment Blog posts

Airbnb Calculator | Host Profit Estimator

Airbnb Calculator

Instantly See Your Airbnb's Estimated Revenue

The leading Airbnb profit calculator in the short-term rental industry. Discover your Airbnb earnings potential.

Check out our Free Airbnb Calculator

Wondering how to make the most money from Airbnb? Use the Airbtics Host Profit Calculator, a free Airbnb calculator to simulate your return on investment and cash, with any address worldwide.

Enter any address on earth to access the following data points for free with full transparency:

Airbnb Calculator by Airbtics
Airbnb Calculator

How much can I make on Airbnb?

A simple way to calculate your Airbnb revenue is by multiplying the year-round occupancy rate and your average daily rate. If you charge $150/night and achieve a 70% occupancy rate, you will make around $150*0.70*365, which is $38,325 before expenses and taxes. 

Airbnb Occupancy Rate x Average Daily Rate x 365 = Your Airbnb Revenue

Currently, there is a lack of good short-term rental (STR) income calculators in the market, and the ones that are available do not clearly show how they calculated the numbers. If you want to know how much can you make on Airbnb, then use Airbtics’ free Airbnb calculator to get a full transparent computation of your Airbnb earnings.

Airbtics is a short-term rental data platform providing historical, current, and forecasted rental data. With the Airbtics app, you have access to over 15 million short-term rental listings from Airbnb and 54,000 visible markets globally.

We take our data accuracy seriously. Therefore, we update our data every week so our users can only get the fresh and latest Airbnb data from our app. Since 2020, the Airbtics data has 97% data accuracy in correlation with Airbnb’s financials. In fact, Awning’s Airbnb Estimator is powered by Airbtics. 

We believe that making data-based decisions should be easy and accessible for you. Whether you’re an Airbnb host, property manager, property investor, estate agent, or anything in between, access valuable data most relevant to you and your business. 

 

The ENEMY Method (DIY revenue estimation)

Along with the calculator, you can also use the ENEMY method to ensure you estimate the accurate amount of revenue. The ENEMY method simply means going to the Airbnb site to find 5-10 listings that are most similar to the house you want to list on Airbnb. Then, check how many days are booked in the next 6-8 weeks. Also, check how many reviews on average they get every month. Compile them on an Excel sheet. You may see some interesting patterns.

Airbnb calculator - 2

How Does Airbtics’ Free Airbnb Calculator Work?

Our free Airbnb calculator has nearly 9,000 active monthly users–from Airbnb investors, hosts, property managers, real estate agents, and anyone who wants to know how much can they make on Airbnb. Here are simple steps to use it:

Enter property address anywhere in the world

Enter the property address, select property type, choose the # of bedrooms, # of bathrooms, and whether the property has a pool. The provided details enhance the accuracy in generating optimal Airbnb estimated revenue.

You can also search directly in the Airbtics dashboard to calculate ROI of your property. All you need to do is to sign up for free.

Airbnb Estimator: Forecast your Airbnb Estimated Revenue

Our Airbnb profit calculator goes beyond the typical Airbnb calculators out there. With its notable features, you capture more insights to make smarter decisions.

  • Comps Transparency: Imagine you want to know how much money you can make from renting your house on Airbnb. This special tool not only tells you about houses nearby but also finds ones that are a lot like yours. That way, you can trust the information more and be sure you’re making a good choice for your rental.
  • Rental Arbitrage: This Airbnb calculator tells you how much money you’ll earn in Airbnb arbitrage by looking at things like how much you pay for rent, one-time costs, and monthly expenses. It helps you know if renting your place is a smart money move.
  • Mortgage Calculation: Let’s say you borrowed some money to buy your house, and you’re wondering if it’s a good deal. This free Airbnb estimator lets you put in the details, like how much interest you’re paying and how much you put down. It’s a calculator that helps you see if your house is making you money or not.
  • Comparison Tool: This free Airbnb tool is like having a magic way to see lots of different houses all at once. It helps you pick the best one by showing you how much money you can make, whether it’s all the money or just what’s left after paying bills. It helps you choose the one that will give you the most money. So, it’s like your money-making assistant!

Airbnb Earnings Calculator FAQs

Which expenses should I include?

Monthly Expense: You should include 1) repayment portion of mortgage 2) bills and utilities and 3) supplies fee. You should not include cleaning fees. Airbnb guests pay the cleaning fee, so it isn’t included in either ADRs or expenses. 

Yearly Expense: You should include 1) property depreciation 2) any other annual recurring fees. 

What is a one-off cost?

One-off cost is a one-time expense (legal fees, refurbs, transaction fees, mortgage fees etc) you pay when purchasing property and paying for renovations. The one-off cost (combined with the down payment) is used to calculate Cash on Cash return

I'm confused with profit tax

In most countries, you need to pay taxes on any profit generated from your properties. However, the way they calculate tax isn’t a flat rate. For example, in the U.K., you won’t have to pay tax on a certain amount of profit at first. 

In that case, you can first simulate the profit with 0% profit tax, which will then show you how much your revenue and expenses are. Then, you can calculate yourself around how much % of tax you need to pay from your profit, then put that % in the profit tax section. 

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Airbnb Data

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