Investor · Atlanta, GA · Member since 2016 · 241 posts · 86 votes
Good Day everyone,
Can someone tell me what is the total startup cost to prep a property for Airbnb including the cost to stage the property, hire management, buy all the dishes, toiletries etc.?
Every property, business model, region and owner is different so there is not really a 'number' one can give you unfortunately other than what fit into their particular situation. If and when possible, I like to purchase a property with furniture already and then swap with new pieces that fit my level of quality and comfort I want to provide to my guests.
As for management that also depends on your business model because as @John Underwood mentioned you could/would be giving a sizable piece of your revenue for any local management. There are some hybrid management models you can use but you want to vet that out ahead of time.
Other than that you need to consider professional photography, setting up your booking platforms, writing copy for your listings, local permits, landscaping, hot tub/pool, garbage, water, sewer, electricity, cable, internet, snow removal, etc. etc.
Here is a spreadsheet you can check out to get an idea on all the different expenses, although it's not a totally comprehensive list it will get your brain thinking about all the different things that are involved with setting up and running an STR.
Every property, business model, region and owner is different so there is not really a 'number' one can give you unfortunately other than what fit into their particular situation. If and when possible, I like to purchase a property with furniture already and then swap with new pieces that fit my level of quality and comfort I want to provide to my guests.
As for management that also depends on your business model because as @John Underwood mentioned you could/would be giving a sizable piece of your revenue for any local management. There are some hybrid management models you can use but you want to vet that out ahead of time.
Other than that you need to consider professional photography, setting up your booking platforms, writing copy for your listings, local permits, landscaping, hot tub/pool, garbage, water, sewer, electricity, cable, internet, snow removal, etc. etc.
Here is a spreadsheet you can check out to get an idea on all the different expenses, although it's not a totally comprehensive list it will get your brain thinking about all the different things that are involved with setting up and running an STR.
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
7y
Hey Kyle, that is a great question. If you could provide some more details about the property? Location, size, number of beds/baths, type of property, etc.
I setup a 2400sqft 4 bedroom/3 bath lake house for around 15k. I started with a bare house. Zero anything except trash, fridge, oven and dishwasher.
I did end up replacing both the oven and the dishwasher, adding a washer/dryer, refinishing the deck, replacing the deck railings and redoing the deck stairs.
Almost everything furniture wise was used from Craigslist, used furniture stores and family updating. No garbage. All the stuff is made in USA (Drexel, La-Z-Boy and others). Better quality fabrics hold up much better.
As far as outfitting kitchens, there are so many options, but I went with a full complement, just like I would have in my own home. Tri-Clad pots/pan, Pyrex bakeware, Anchor Hocking glasses and mixing bowels etc.
I found a ton of stuff at places like Ross, Marshalls, TJ Maxx and Burlington. They have a great bargain area for housewares and you can find some great stuff. Made in Italy or France stuff. Really good deals to be had.
It takes time, but you can do a lot with a little.
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
7y
@Kyle Ransom. They come furnished in my market. That being said of course it’s likely you won’t like it need to replace some of the furniture.
Management is of course free because I do it myself which is super easy.
I usually budget around $1500 for a 2 bed 2000 for a 3 bed 4000 for a 4 bed something like that. Then I let the guests pay for new furniture once I’m up and running.
Of course there are always many “oh crap” situations but those get easier.