I am looking at a 5 bedroom, 3 bath home in Kingston, MA. The unit is well set up for 5 privaterooms, two with baths. other units shared bath. Two large hang out spaces and a big kitchen. Multiple outside relax zones. Not a fancy house but very private location in the woods. 15 minutes to Cape Cod, 50 minutes to Boston, 10 minutes to great beaches. I would manage the units. Question is what advice can you give me on estimating my occupancy rate ? Probably fuller in Summer season, less in winter. Any wisdom out there on how to approach this. I would have a 3200 Mortgage (100K cash, borrow 350k) 8K taxes plus all the other stuff. Average ABB rental for private room shared common is about $50 during off season. Any wisdom from somebody who has done this in past ?
Maybe check with local hotels. Some managers may let you know their typical occupancy.
As this is an international forum, I think you would be better asking a local host facebook group for that area.
Not the answer to the question you’re asking, but 5 bedrooms with 5 private rooms for rent means that there’s no host/cohost onsite. I.e. random strangers will be sharing space with no authority figure present. It’s a recipe for disasters and bad reviews.
good point. We live very close but you are right. Its like leaving the kids without a baby sitter.
There are people who do it successfully but it’s not something I would attempt. I would think occupancy on that kind of place would be lower than a stand alone private room or with an on site host.
Massachusetts being well north, the summer season would be short. Maybe four months? That leaves eight months of “low” season.
Would you be relying on Airbnb income to pay all this? If so, for just the mortgage, at $50 per night, that would require 64 stays a month. And that doesn’t touch other expenses. Or produce a cent of profit.
If Airbnb is the primary or only funding source, it’s a no-go, in my opinion.
Is there a reason you are choosing multi-occupancy rather than letting it as a whole home @jtwilber
I would imagine you would need to factor daily cleaning of communal areas if you are having multi-occupancy.
In terms of rates you could buy research from Airdna. You could also speak to your local tourism board and see if they have research on tourism footfall you can use for your target market.
@jtwilber - If you haven’t already, take a look at airdna.co it’s a tool that aggregates and provides trend information based on geography offering many ways to analyze a market. You have to get a subscription to get access to the information, but can be really helpful for modeling. Beyond that I would also take a look at Pricelabs (https://hello.pricelabs.co/) with dynamic pricing, you are more likely to book in slower seasons.
These are all great responses. When we take it all together We’ve decided to pass on this. Thanks everyone for your input. Its helpful hearing from like minded people.
Jonathan