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Rookie Reply: How Do I Analyze Short-Term Rentals?
Description
We’re asked a lot on how to analyze short-term rentals. Since short-term rentals have different expenses, rent estimates, and occupancy rates, running a short-term rental analysis may seem tricky at times. Both Ashley and Tony own short-term rentals and know the often overlooked costs of running a profitable getaway.
If you’re still looking for the best way to analyze your short-term rental prospect, Ashley and Tony may offer some much needed guidance!
Here are some suggestions:
- Understand your average nightly rate, occupancy rate, and annual expenses
- Use tools like AirDNA and Mashvisor
- Use Tony’s short-term gross revenue formula
- Try out the BiggerPockets Airbnb Calculator
- Know the permitting laws and fees of the area you’re looking into
- Add regular business expenses to your calculations (accountants, insurance, taxes, etc.)
- And more!
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
Links from the Show
Check the full show notes here: https://www.biggerpockets.com/rookie60
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