Is there a calculator for short-term rentals? Or any suggestions on how to determine how a property will perform as one?
TIA ~ Jennifer
The hard part is gathering the data. You need to put in your expenses. Mortgage, utilities, maintenance, repairs, consumables, advertising, etc. Then look on VRBO and Airbnb and guesstimate rates and occupancy for your area on comparable properties.
Put all this in a spreadsheet and let it do the math.
Hey @Jennifer Lopez , here is a spreadsheet you can start with that I used and have shared on BP for a long time. ADR and occupancy rates can been found from tools such as Everbooked and AirDNA.
Feel free to reach out with any questions.
Try the link below. It works better in some markets than others but for the most part is accurate.
Let me know if I can be of any more help!
Honestly in Vacation I follow the 1% rule BY WEEK vs Month. If you can rent the property in peak season for 1% of asset value per week you will virtually always cash flow. Of course length of season and fringe weekends etc all come into play the 1% a week is a great place to start
@Jennifer Lopez Good question about LLC's for protection. You'll get a couple of different answers and one of them is relying on great insurance specifically for a STR. Apparently they differ in terms of coverage- what would be covered if it's deemed a business- and what wouldn't be covered.
There is much debate about that but ideally you’ll talk to an experienced agent who can advise based upon experience as compared to an experienced insurance sales person who can sell.
@Eric A. Do you have a policy with a local agent or do you use Proper or Foremost?
Here's my calculator: Determine what your weekly rent is going to be on the property and multiply it by 26. If that number is greater than the purchase price of the house, then I would consider buying the property after looking at other factors (location, condition, neighborhood, zoning, etc).
In other words, 6 straight months of rent should pay for the house. My market is not like yours, property is cheap here. To make things more realistic, multiply the weekly rate by 104 and see if that is greater than the purchase price.
you had to bring up year old thread to suggest a solution to someone who likely is no longer looking?