Airbnb Profit Calculator for Prefab Houses

Calculate how much you can make by renting prefab houses on Airbnb

What is included in the calculation

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Revenue
Define seasons and rates, then predict the occupancy rates for each season.

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Fixed costs
Monthly costs of staff, amortization, marketing, legal services and administration.

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Variable costs
Costs that correlate with your occupancy rate: house keeping, customer acquisition, and supplies.

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Profits
Calculate profitability of your project and different variants of how you can scale it.

Tips for the calculation

1. Location, location, location...
How much you can charge per night depends a lot on your location. Research on Airbnb similar listings in the area to define your pricing. Airdna is an amazing tool for analyzing Airnbn data.
2. Visual presentation is crucial
When you look on the prefab houses rented on Airbnb, you can find one common pattern: the most expensive ones have ALWAYS amazing photography. Good looking prefab house even in mediocre location but with epic pictures will attract many guests and allow you charge significantly more than the average rates in the area.
3. Take amortization seriously
One of the most common mistakes is not considering amortization in your costs structure. You need to count with a lot of costs for refurbishing after years of renting. There is also a huge difference in quality between different manufacturers. The price of prefab house doesn't always correlate with the quality. Some manufacturers with an amazing visual presentation and marketing sell houses for significantly higher price than better-quality alternatives. Wrong choice of the manufacturer will cost you a lot of money in the future refurbishments.
4. Land preparation can be expensive
Depending on your land and location, the land preparation and utility hookups can be expensive. Don't forget to include them into calculation as they can significantly influence your return of the investment.
5. Customer acquisition costs can smash your profits
Airbnb charges hosts about 3% commission, Booking about 15%. Try to build a marketing channel that allows you to get direct bookings. A website is a must. Open an Instagram account. You might pay some ads to boost the direct traffic. All these are costs, don't forget to add them to the calculation.
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