My parents have an unfinished room above their garage that is being used as storage right now, and it is an absolute complete waste of space. I'm trying to convince my dad to let me and my brother pitch in to finish it into a 2 bedroom apartment and start renting out via Airbnb. We live in a suburb north of Houston and I've done a bit of research on nightly rates. I think $110 is reasonable, even a little conservative because there are some pretty nice amenities they will have access to (outdoor fire pit, basketball goal, swimming pool, hot tub). Are there any other aspects I should consider in my quick analysis below? Like any occupancy tax, additional expenses, etc.?
How did you calculate that you will only be able to rent it for 12% of the time?
Are you able to lower the daily rent amount so you can project a higher occupancy rate?
I'm in Wyoming but did a quick Google search and found the following: Houston AirBnB
@Basit Siddiqi , I went very conservative on this number. Took the lowest occupancy % in the nation. I hope to get a much higher % than 12. I'm just not sure how the occupancy is in the area
In your cost to finish does this include furniture? How many people will you allow in? How many beds? If its a small number you might have to work your way up to $110/night but the pool and hot tub should get you there pretty quick. In Houston you should easily be able to rent out 20 days/mo on average. Research your area to see what amenities, how many guests, and pricing on other nearby listings that are similar to yours. If you want to start out at $110/night are any of the investors an Airbnb superhost? If so you can just put the listing under his name and you could start out at $110/night and start moving from jump. You seem like you've done your due diligence. Go for it!
Well, are all the amenities really available? Will your parents want to share a hot tub, fire pit, swimming pool with strangers every weekend? I love my privacy too much to have someone I don't know using my stuff and living in my space.
@Myka Artis , thanks so much for the information. How does putting my listing under the superhost work?
Well you get the automatic superhost status when you list under a superhost. Higher rankings and more views. If you don't do this of course you will have to work your way up to this and you may have to slant your numbers a bit.
Hey @Jordan McDonald - smart to always keep it conservative, but 12% might be too low... especially when you consider that Houston may have housing shortages right now because of the hurricane. I think you could bump that up to 30% at least, and be safe. Agree with @Myka Artis that 20 days should be feasible.
You can find videos on getting started here: https://www.biggerpockets.com/videos. Good luck.
@Jordan McDonald Yes a number of guests don't leave reviews. 24 reviews just reflects the guests that have left reviews.
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