My learnings on PROFIT AND LOSS starting my Airbnb

[Thomas746]

I first posted this (incorrectly) to the Host Voice page and it was suggested I post it here in the Hosting section of Discussions.  I thought I had done this but when I looked today it was not there.  So here it is:

I've just begun hosting but have been involved with rental properties for many years here in the US.   One of the first things I wanted to understand was the daily rate I would have to net in order to reach a profit.   I looked at the site and around the community but I don't see a spreadsheet - especially one you can personalize.   So I put together a spreadsheet that you can personalize if you like, as I did.  For instance, in Los Angeles, there is a Transient Occupancy Tax (TOT) of 14% in the city (incorporated) and 12% in unincorporated areas outside the city.  The Nut I refer to is a complete breakdown of that unit's mortgage, taxes, gardener, rent stabilization fee, gas, electric, water and sewer and a contingency.

Have a look, use it, let me know how you think it can be better. 

Enjoy

Thomas 

[Fred13]

WPS Spreadsheets is free and I have found very useful to list all incoming expenses/income and to give me an idea of profitability. (Link didn't work for me).

[Thomas746]

Hello Fred,

Yeah, I had to paste another link into the conversation.  Couldn't figure out how to edit my post, so I put the new link in a comment to my post.  Here it is again:

https://www.dropbox.com/s/4eticw1i1ep4mr3/AirbnbProfit%26Loss.xlsx?dl=0

Sorry to sound ignorant but what does WPS (Spreadsheets)  stand for?  I used a simple Excel spreadsheet.  

Thomas 

[Thomas746]

I made changes to the spreadsheet but can't figure out how to edit in the new link:   

https://www.dropbox.com/s/4eticw1i1ep4mr3/AirbnbProfit%26Loss.xlsx?dl=0

Thomas

[Caroline1599]

Hey Thomas! I cant seem to get this link to work? I could really use help with a P&L spreadsheet sprecifically designed for Airbnb.

[Caroline1599]

Any chance you could email the document to me? **

**[Personal information removed in line with - Community Center Guidelines]

[Thomas746]

https://www.dropbox.com/s/6ucysw7y55t9ygg/AIRBNB%20FORMULAS%20PAYOUT%20Cash%20Flow.xlsx?dl=0

I've opened this one so the link should work.  I opened it in Google Sheets and Excel.  

Let me know if it  works for you.  Thanks.

Thomas 

[Thomas746]

I download the CSV from Airbnb and after loading it, cut down on the stuff I don't need, like the name of the place (I have only one) and other non-essential info.  To what you see in the link I just sent out.  I would suggest anyone using my template download from Airbnb and do a side by side comparison so you can see for yourself what I've taken out and left in.  You might want more info.  The main thing is the stuff from the point of  "nights stayed" amount on.  That is where the formulas begin interacting with totals.   Any questions please feel free... 

Thomas 

[Robin4 · Accepted solution]

@Caroline1599 

I have been using my own profit/loss since I started hosting.

You need to have an accurate idea of what expenses you have in order to set a listing amount that will actually make you money. 

I have made up this as an editable  Excel file, I have given it to some hosts around here and a couple of them (after accurately filling it in) discovered they were not making a cent out of hosting......they were not allowing for all their costs.

These are just my screenshots of it but, if anyone is interested and is using Excel, I can send the above editable Excel file in an email.

This is how it related to my hosting.....

I don't include a labor component in this because I am not making a living from it.

If this was a commercial undertaking in a purchasing property I would have to allow for....

Mortgage percentage.

Actual Cleaning costs.

Property upkeep.

Electricity usage. 

And if these were taken into account my listing amount would need to be at least 40% higher than what I currently charge. 

By not running an accurate profit/Loss, hosts are not only cutting their own throats, they are cutting those other hosts throats around them as well, by setting an unrealistically low listing amount. Everyone is in a race to the bottom in order to survive, and Airbnb go out of their way to encourage this. They don't care if a host makes money or not, they just want the bookings....... and the more, the better.

There is no such thing as cheap enough to Airbnb!

But realistically, there is no point in doing something if there is no profit in it!

Cheers.......Rob

[Ricardo1425]

@Robin4 can you share with me the editable Excel file by email.

it might be very helpful.

Best regards

[Justeon0]

Hey, Thanks so much for this screenshot is there any way you could send this over to me. ***

Thank you!

**[E-mail address removed - Community Center Guidelines]

[Patricia3644]

Hi, would you be able to email me this?

[Isobelle1]

Hello! would you be able to email me this as well? 

[Isobelle1]

Hello! would you be able to email me this as well? 🙂

[Robin4]

@Quincy @Emilie @Stephanie 

Since I first posted a comment about the use of an editable profit and loss sheet on this thread I have been asked a number of times by other contributors for an Excel/workbook copy of this profit/loss file and I can't find a way to include a link for it....post it here as a editable Excel file for others to use.

Here is a screenshot of the Excel sheet in question.........

Here is how I use it to keep track of my hosting!

If you guys can offer a way I can send this to other contributors I would be grateful.

Cheers........Rob

@Isobelle1