AirBnb | Average Profit Margin
I know this is fairly contingent on your market, but I am having trouble confirming what typical Operating Margins are for AirBnB companies.
We are in Charlotte and seeing ~40% on our units (4 doors) which are quite close to downtown and stay booked >75% of the month. Worth noting that we are not subbing out management but do have a cleaning crew.
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40% sounds really good. That is Net profit?
I think everyone is going to be very different so it will be hard to get an average.
I quit worrying about the numbers and just buy what I like in locations I like, but I don't need the money.
Hey @John Underwood,
Operating Income/Total Revenue
Id love to see replies to this. I haven't been up and running long so its not consistent enough to say. Right now I'm running about 30% for my 6 bed in Kissimmee with a rate of 4.3%. This is in the ramp up period, so I am finding things to fix and replace. So far I have had to replace a broken bed, bathroom paper roll, fix a tub sink twice, and I added a heating control system to the pool. I also have my rates lower then usual to ramp to super host faster. There seem to be many strategies but mine is to get that badge as fast as possible while making profit then normalize my rates
I have a house flip deal that I'm probably going to convert to an airbnb when I'm done with it so I've been interviewing a bunch of local investors and property managers looking for this same information.
In my market, seems like the operating expenses run at about 50-55% of the gross revenue.
Hi Jesse. Has your profit margin stayed around that rate over the months?