AirBnB Host Calculator - How accurate is it?

[mikelowrey]

Hello,

Thinking of hosting soon. I noticed ABB has a Host Calculator that tells you how much you can make a month depending on how many guest and type of place.

Its telling me that in my location I can make $2,351/month. How accurate is this?

Thank you.

[Astaire]

You wouldn’t want to trust any figure Airbnb produces as accurate.

To save yourself disappointment, aim for 60% of what it says you can make.

[KKC]

Also, if you have not done so already, familiarize yourself with all the things that can go wrong.

Warning! Don't depend on Airbnb!

I just read this on another thread. A host lost out on 2600 euros because of a last minute cancellation. In reply @sandy2 commented that she lost out on 2 months income due to licensing laws changing in her city. While I am empathetic to those who depend on airbnb income, I “cringe” when I think of the the many disruptions that can occur. This cringing isn’t a condemnation of the person dependent on the income, it’s an “I feel your pain” sort of thing. Here are some of the ways your month…

[mikelowrey]

Thanks both.

One reason to do it is for the additional money that I really don’t need. Thankfully I have a an income besides this and if things dont turn out to be what I expected then I can cancel it.

And if I can get 60%, I think is doable. Thank you!

[KKC]

@mikelowrey

additional money that I really don’t need.

Same here. And I made an investment almost two years ago of $15000 in upgrading my space and I’ve nearly made of it back. But still I know it could all end tomorrow.

[mikelowrey]

Aw, nice to know Im not the only one, My basement have been furnished/done with everything to be used as a rental unit and since we are never downstairs giving it the proper use I figured that, whats better than get money for the unused space just a few things that I need to add for it like a camera outside, locks and wireless. and get the sheets and towels for me to start.

Thanks again!

[Emily]

Do take into account the implications of tax when you sell your home that’s now an Investment property; tax on Airbnb income; disruptions to life and privacy; work involved in managing guests and listing etc etc etc. Its a lot more complicated than just getting easy for unused space and buying a few towels.

[azreala]

If it’s your primary resident it is not an Investment Property, ABB is no different , from a tax standpoint, then taking on a roommate

[Emily]

@azreala

If it’s your primary resident it is not an Investment Property, ABB is no different , from a tax standpoint, then taking on a roommate

That may be the case in your jurisdiction but not mine. Irrespective of the property bring your primary residence any proportion being used to obtain income from a roommate or ABB means that proportion is considered an investment property under tax law and will be subject to all relevant taxes, including capital gains tax on sale.

I always say people should seek professional advice from a qualified tax agent or lawyer and my intention was for the OP to consider this.