Projecting occupancy rates as they change from year 1-5

[Laura Casner]

Hi! I'm putting a business plan together for a short term rental and I can find plenty of data from comps on projected vacancy rates of established rentals, however, I know I can't expect to come out of the gate with 50-60% occupancy. Is there any rule of thumb for occupancy as the business grows from year 1?  How have others projected this? 

[Theresa Holl]

Hey Laura,

As far as benchmarks go, be sure not to limit yourself to what you see on AirDNA. I have a business partner who exceeds 100% occupancy because he has AI booking on top of last minute cancelations...plus tons of other tricks.  You can also rent out the interior to a content creator,  the swimming pool to a family having a cookout (swimply app) and the garage for storage all at once.  Revenue goes thru the roof when you parse it up like that.