Short-term Vacation Rentals Net Profit

[Andy Beal]

Brand new to the forums and to real estate investing. Totally new direction for my career that began back in January 2020 when I got my real estate license.  Real estate investing is the next step for me and my family.  I'm intrigued by short-term vacation rentals and have been struggling when analyzing deals to know how to determine the net profits for properties along the panhandle of Florida.  What are the costs that need to be taken into consideration when analyzing deals?  Is there a resource that could help me determine actual numbers when it comes to the short-term vacation rental market in a given state?  Would you suggest contacting property management companies?  Any direction you're willing to provide would be super helpful.  Thanks so much!

[Nathan Gesner]

There are a lot of costs that most people fail to account for.

• Sales taxes
• Lodging taxes
• Marketing
• Booking fees
• Credit card fees
• Repairs
• Cleaning
• Landscaping
• Furnishing the unit
• Replacing consumables (tp, coffee, soap, etc)
• Utilities, including cable/internet
• Insurance

There's more I'm forgetting. One of the biggest unaccounted expenses can be your personal time. I know people that manage their own vacation rentals and claim to "net" $6,000 a month but don't account for the 40 hours they spent answering calls, booking reservations, greeting guests, handling maintenance, or whatever else is involved. 40 hours may be an exaggeration, but you get the point.