Assumptions of occupancy and expenses for Airbnb

[Patrick Britton]

Hey Folks,

I am curious to know what typical assumptions are made with respect to the occupancy rate for an Airbnb.  I've heard and seen some at 50%, others at 70%.  

As well, what other expenses should be assumed with these sorts of rentals?  

thanks

[Michael Greenberg]

@Patrick Britton - as @Brandon Sturgill indicated it does vary by location.  I average 78% in my market, but it's also a HIGHLY seasonal in AZ, rates vary dramatically.  While occupancy is an important stat, I think you're 2nd questions is more important.  Airdna is a decent investment tool and I've used it before, but I prefer to do my own analysis.  I want to know my "net" per night, per stay and per property.  It takes first hand experience to get to these numbers as it can vary, again by location, amenities, etc...  

Here's the categories I track by property:

Supplies

Utilities

Maintenance

Cleaning HOA

Insurance 

Mortgage (not applicable anymore)

Cable-Internet

Pool Expenses

Here's what else I track for combined properties:

Advertising

Travel

Promotions

Other

I also track assets for depreciation.  Some are section 179, others can be expensed immediately so check with your CPA.

Hope that helps,

Mike