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My learnings on PROFIT AND LOSS starting my Airbnb

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‎05-04-2018 08:26 PM
Thomas746
Level 4
Los Angeles, CA
‎05-04-2018 08:26 PM

My learnings on PROFIT AND LOSS starting my Airbnb

 

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 

 

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‎05-04-2018 08:26 PM
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1 Best Answer
‎16-04-2020 01:09 AM
Robin4
Level 10
Mount Barker, Australia
‎16-04-2020 01:09 AM

@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.

Profit statement A.png

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.....

Profit statement.png

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

 

 

 

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‎16-04-2020 01:09 AM
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‎28-09-2022 01:53 PM
Stephanie
Community Manager
Community Manager
London, United Kingdom
In response to Robin4
‎28-09-2022 01:53 PM

Hey @Robin4 !

 

Us Admins have the ability to attach files to posts here on the CC - feel free to email me the file and I can add it to your post.

 

Thanks,

Stephanie

-----

 

Please follow the Community Guidelines 

‎28-09-2022 01:53 PM
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‎28-09-2022 02:10 PM
Robin4
Level 10
Mount Barker, Australia
In response to Stephanie
‎28-09-2022 02:10 PM

@Stephanie 

Thanks Steph, if you can DM your work email I will send it to you.

 

Cheers.........Rob

‎28-09-2022 02:10 PM
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‎15-10-2022 03:23 PM
Sarah4784
Level 1
SF, CA
In response to Robin4
‎15-10-2022 03:23 PM

Hi Rob,

I’d love if you could send me this as well! Thank you!

‎15-10-2022 03:23 PM
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‎16-10-2022 01:54 PM
Robin4
Level 10
Mount Barker, Australia
In response to Sarah4784
‎16-10-2022 01:54 PM

@Sarah4784 

Hi Sarah, there appears to be some logistical problems trying to post my Excel file here on the CC. I have been asked by a number of contributors for a copy of my Excel profit and loss but to this point we don't seem to be having any success in making it public here on the CC.

 

I don't know if it will work, the sanitiser might work against us but, if you send me a DM (direct message) with you personal email I will be able to attack the spreadsheet as an attachment in a return email for you. Give it a try!

 

Cheers........Rob

‎16-10-2022 01:54 PM
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‎28-09-2022 04:56 PM
Helen3
Level 10
Bristol, United Kingdom
In response to Robin4
‎28-09-2022 04:56 PM

Great work @Robin4 

‎28-09-2022 04:56 PM
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