Short-term rentals
Airbnb and nightly rentals: fees, bookings and what’s left.
2 articles
This Airbnb needs 220 booked nights a year just to match a $2,400 lease
Find the booking rate at which the Airbnb catches the lease. In this example, a $250,000 house that leases for $2,400 a month has to be booked about 60% of nights, around 220 a year, before the Airbnb earns more, and it takes $20,000 more cash to set up.
What occupancy does an Airbnb need to break even? This one needs 71%.
Break-even occupancy is the share of nights that must be booked before the income covers every cost. At $300 a night, an example $350,000 Airbnb needs about 71%, roughly 258 nights a year, because Airbnb’s fee, a co-host, cleaning and the mortgage come out first.