What's your net operating expense ratio?

[Jaeseok An]

What is your net operating expense ratio? and how much of the operating cost is paid out to cleaner? So I have this number for example. 

Revenue $90,000 ($75,000 from nightly fees, $15,000 from cleaning fees)

Operating cost: $40,000 (Including insurance, tax, utilities, supplies). Cleaner expense is $12,000. 

So operating cost is around 44% of revenue. And, 30% of operating cost is cleaners fees, which I believe is the biggest expenses for most STR owners.

I'm curious what number you've got and knowing this would be useful for people who are just starting out. 

[Mark Miles]

Originally posted by @Jon Crosby:

I generally tell people to expect anywhere between 50 to 70% Op Ex ratio, usually to bring them back down to reality when they are only looking at Revenue projections.  ; )

Agreed! I always warn new STR investors to be prepared to constantly reinvest some of your profits into your house in order to keep it in tiptop shape. I think a lot of new investors look at the allure of STR and see the big revenue numbers and forget how much damage your house and your furniture and your furnishings will take with guest after guest after guest staying in your house

If you let your house and the furniture and the furnishings fall into a state of decay, what originally started as a big moneymaker will instead become a constant source of guest complaints and bad reviews and headaches and sleepless nights (for you & your guests!) and refunds to guests