Startup, variable, fixed costs...Oh my!

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ASSUMPTIONS

(Assumes 30 day avg month)

COSTS

Startup Costs
Furniture $2,000 (Major furniture items like, bed & mattress, couch, coffee table, dining, etc)
Appliances $700 (Major appliances like TV, fridge, washer/dryer, work station, game console, etc)
Security deposit $750 (Per leasing requirement)
Bedroom (non furniture) $150 (e.g. sets of sheets, curtains, décor, etc)
Bath (non furniture) $75 (e.g. towel sets, basic disposable toiletries, mats, shower curtains, etc)
Kitchen (non furniture) $75 (e.g. plates, utensils, coffee, décor, etc)
Rent contingency $450 e.g. Cost of rent before first rental 0.75 Number of Month
Total Startup Cost $4,200
Recurring Costs (Monthly)
Monthly lease $600 Gross lease you pay for unit
Utilities $60/month
Internet/cable/etc. $40/month
Parking $50/month
Laundry $0/month
Total Recurring Cost (Monthly) $750
 
Recurring Costs (per Stay)
Maid Services (Your Cost)   $0/stay
Consummables $15/stay
Total Recurring (per Stay) $15
 

INCOME

Revenue Assumptions
Avg days leased per month 15 Days
Avg daily leased rate $60.88 /Night Airbnb Unit Rates
Avg nights per stay 3 Nights/Stay Weekday Rate Weekend Rate
Airbnb Hosting Fee 3%   of gross rents $35 $45
Cleaning Fee Charged/Stay $10 /stay
Tax Reserve 14% set aside for future hotel taxes
 
Ramp - Up Pricing Assumptions
Months to Ramp up 3 months before reaching full market rate
Initial Discount off Price 25% starting, then ramp up to normal pricing

TIME

Hosting Assumptions
Hours Spent/Booking 3.0 hours (e.g. communicating, coordinating, check-in, check-out, etc…)
Admin Hours/Month 6.0 hours/month of admin
Total Hosting Related Hours 21.00 hours per month


RETURNS

Paid Back in 24 Months
Breakeven in 2 Months

                    $           %
Monthly Yield $95 2.3%
Annual Yield $1,143 27.2%
 
Stabilized Monthly Cashflow $95.25

Host Effective Rate per Hour $4.14


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