Question 1

How do you calculate short-term rental income?

Accepted Answer

Multiply your average nightly rate by the number of nights booked per month. Then subtract expenses: cleaning fees, platform fees (Airbnb takes 3%), property management, supplies, utilities, mortgage, insurance, and maintenance. The remainder is your net cash flow.

Question 2

What is a good occupancy rate for a short-term rental?

Accepted Answer

Most successful short-term rentals maintain 60-75% annual occupancy. Higher occupancy is possible but may mean your nightly rate is too low. Seasonal markets will swing between 90%+ in peak season and 30-40% in the off-season.

Question 3

How do short-term rental returns compare to long-term rentals?

Accepted Answer

Short-term rentals typically gross 2-3x more revenue than long-term rentals on the same property, but expenses are also much higher: furnishing, cleaning, utilities, higher insurance, and management time. Net returns are often 20-50% higher if managed well.

Question 4

What expenses are unique to short-term rentals?

Accepted Answer

Cleaning between guests (typically $75-200 per turnover), furnishing costs, consumable supplies (toiletries, coffee, paper goods), short-term rental insurance, platform listing fees, dynamic pricing tools, and potentially a property manager (20-30% of revenue).

Short-Term Rental Calculator for Insurance Agency

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