❓How do you know if the property is profitable to use for Airbnb? 🤔

[Drew4043]

Hi everyone!

I’m expanding my listings and looking to add more properties. Quick question for you all: how do you typically analyze whether a property will be profitable?

Since I’m based in Malaysia, it’s challenging to use software designed for the US market.

How do you assess if a property has good profitability potential and a higher occupancy rate?

Would love to hear your insights! 😊

[Elisa]

Hi @Drew4043 😊, 

Thank you for asking this question in the community and welcome!

Since your question is really specific, I would recommend connecting with local hosts from your area through our 👉 Local Host Clubs and asking them directly.

Let me know how it goes!

Warm regards 🌻

[Drew4043]

Sure, I've joined thanks! @Elisa 

[Helen3]

By doing your market research and putting together a profit and loss account with all your set up and ongoing costs and as estimate of your likely day rate and number of days a year you are likely to let out a property for . @Drew4043 

this will give you likely profit levels .

you don't need American software 

[Sophia699]

Hello Drew, 

I believe the best way to assess whether a property will be profitable is through location and nightly rate. 

You can figure out nightly rate estimate for free on a lot of sites or even look around at Airbnb availabilities a month out and see what everyone is charging. 

Location is harder to determine. Is there enough tourism and travel to the area? Is this a popular destination for business, families, ect.? Is there only 2 months of travel into the area, and other times of the year it is quite empty or is it year-round? 

Is the property conveniently located from things like lakes, beaches, ect. all the popular tourist attractions? 

To give you an example, I have 2 properties, 7 minutes apart from one another. One is within a popular tourist resort RIGHT on the ocean. The other is 1 block away from a very popular beach. 

However, the one in the resort gets me $450+ a night while the other barely $200 a night. The demand for tourism at the property at the resort is significantly higher and even if only 7 minutes away, the location drives the nightly rate significantly. 

Hope this helps!! Cheers!