AirBnB Fees / MKE Fees?

[Michelle Reshel]

Hello! New STR investor here that is looking to purchase a duplex in the City of Milwaukee (Shorewood, East Side, Bay View, River West). Can anyone whom currently hosts an AirBnB share the following?

Percentage, fees that AirBnB collects?

Taxes / fees that Milwaukee collects?

Lastly, is it common that the guest pays the cleaning fee and the host collects such to cover their costs?

For purposes of math, trying to determine if I rented a unit for $100/night for 1 night, what my take home $$ would be. 

[Michael Baum]

Hey @Michelle Reshel. Let me search that up for you:

AirBNB Fees - https://www.airbnb.com/resourc...

AirBNB Taxes Remitted - https://www.airbnb.com/help/ar...

VRBO Host Fees (per booking charge) - https://help.vrbo.com/articles...

VRBO Taxes Remitted - https://help.vrbo.com/articles...

I included VRBO as you should be listing there as well.

Yes it is common to charge the guests the cleaning fee. Some charge a bit more than their cleaner charges the host to cover incidentals like cleaning supplies etc. Some, like us, charge less than the cleaner charges. We are 36 miles down lake from town so she has to charge us more to include travel. So we charge a little less to be competitive.

[Sarah Kensinger]

I would suggest a deep dive into all things STR before you purchase anything. If you need help analyzing a property, I can help you do that. Feel free to DM me if there's anyway I can assist you!

[Marcus Auerbach]

Quote from @Michelle Reshel:

Hello! New STR investor here that is looking to purchase a duplex in the City of Milwaukee (Shorewood, East Side, Bay View, River West). Can anyone whom currently hosts an AirBnB share the following?

Percentage, fees that AirBnB collects?

Taxes / fees that Milwaukee collects?

Lastly, is it common that the guest pays the cleaning fee and the host collects such to cover their costs?

For purposes of math, trying to determine if I rented a unit for $100/night for 1 night, what my take home $$ would be. 

STR is pretty unrestricted in Milwaukee. Here is what you need to know about taxes: https://www.airbnb.com/help/ar...

How much make depends on a lot of things. From what I see the premium segment makes more sense, but you also have to offer value. A duplex makes most sense when you live in one unit and rent out the other, it allows you to self manage with the least amount of effort. Generally the closer you are to downtown the better. And there are listings that are not very attractive for owner occupants, but are really an ideal target for STR. For example houses without parking, without a yard or tow houses on one lot are not ideal for regular home buyers, but what is perceived a disadvantage for them is in fact great for STR and will allow you to pay less, not have to maintain a yard or garage or even have 2 houses you can rent out independently. Lastly, also consider MTR when you start out. That's fully furnished, but less transactional and usually 1-3 months. Easier to self manage.

[Michelle Reshel]

Thank you @Marcus Auerbach!! Super helpful. We did end up purchasing a duplex in Riverwest. Plans to do STR and MTR as back-up. Do we need to register our AirBnB with the city of MKE?