So this inspiredme to do some better calculations to validate my “it’s a wash” estimate. My average rate is $83 per night (factoring in price variations, and cleaning fee over average length of stay). So $83 x 30 days is $2,497, compared to $950 per month I could get with LTR. So STR is 2.6 times LTR whoo hoo. But my actual gross is $1,300 per month, given occupancy rate, including the fact that I block a day between bookings for turnover because I work full time. Still lookin’ good, right? However, I provide snacks and breakfast items, about $32 per month. 5 turnovers average per month, $50 imputed cleaning fee per, that’s minus $250. $500 per year additional insurance costs, that’s minus $42. So $976 net per month. So STR = LTR. Pros: I have use of the suite when I want it, essential for elderly parents visiting (no stairs), holidays or backyard parties when I have a dozen or more guests and want the property to myself. My options to increase net revenue: Am I priced too low? I’m competing with over 300 other Airbnbs in the locale plus extremely good hotel deals on the weekends. Drop the snacks? My chosen niche is “the host who thinks of everything,” Nobody has to run to the store for a toothbrush or tampons. Reviews confirm that guests feel well taken care of. This attracts stable couples, business travelers and special occasion (birthday, wedding attendees) guests. And allows me to charge $5-$10 more per night than similar properties. Hire a co-host and cleaner to up my booked nights? I’ve already taken the cleaning into account, but a co-host increasing my bookings by 50% and taking a 30% fee would increase my net by a whopping $50 after additional snack inventory.
Any suggestions from you experienced hosts on how I could increase net revenue? And for a brutal assessment of the sharing economy, see the latest Mr. Money Mustache blog on his Uber driving experiment.