Question 1

What is a good occupancy rate for Airbnb profitability?

Accepted Answer

A good Airbnb occupancy rate varies by location but typically ranges from 50-70%. Properties in tourist hotspots or business districts often achieve higher rates. Factors affecting occupancy include pricing strategy, property condition, location, reviews, and seasonal demand. Most successful hosts aim for at least 60% occupancy to ensure profitability.

Question 2

How do I calculate Airbnb ROI?

Accepted Answer

Airbnb ROI is calculated by dividing annual net income (gross rental income minus all expenses) by total investment (property value plus setup costs). For example, if you earn Rs 3,00,000 annually after expenses on a Rs 50,00,000 property, your ROI is 6%. Consider both cash-on-cash return and total return including property appreciation.

Question 3

What are the main costs of running an Airbnb?

Accepted Answer

Main Airbnb costs include mortgage/EMI payments, property taxes, insurance, utilities, cleaning fees, maintenance and repairs, Airbnb service fees (typically 3%), supplies and amenities, and potential property management fees. Many hosts underestimate cleaning, maintenance, and replacement costs for furnishings and appliances.

Question 4

Is Airbnb more profitable than long-term renting?

Accepted Answer

Airbnb can be 2-3 times more profitable than long-term rentals in high-demand areas, but comes with more work and variable income. Long-term rentals provide stable, predictable income with less management effort. The best choice depends on your location, property type, local regulations, and how much time you can dedicate to hosting.

Question 5

What occupancy rate do I need to break even on Airbnb?

Accepted Answer

Break-even occupancy depends on your nightly rate and monthly expenses. Generally, if your nightly rate equals 2-3% of monthly expenses, you need 35-50% occupancy to break even. Use our calculator to find your specific break-even point by adjusting your nightly rate and occupancy percentage until monthly profit is near zero.

Airbnb Profitability Calculator

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