Short Term Rental Start Up

[Kyle Ransom]

Hi,

I am looking to build my short-term rental business and was wondering what I should expect to pay in start-up costs to put my first rental on Airbnb. Insights form you all would be much apprieciated. 

[Scott E.]

Kyle

Here is what you are going to have for out of pocket expenses:

  -DOWN PAYMENT: 25% of the purchase price

 -REMODEL: Cost to renovate property, if applicable. Varies by area and house.

 -FURNISHINGS: Budget $10-$15k to furnish the home. Varies by area and house.

  -PHOTOS: $500 for a good photographer. This is important. Don't shoot from your phone. 

  -UTILITIES: $3000. I would set aside 6 months reserves for electric, water, gas, cable, internet, landscaping, pool maintenance, etc. Remember as a short term rental landlord, you're going to be paying for all of these things.    

 -PROPERTY MANAGEMENT: This is optional. But expect to pay 20%-25% of your gross monthly income if you hire a property manager.

Hope this helps.