Does anyone have any tips for determining what the net profit is for a night of rent?
For tax purposes my utilities, property tax, etc., are charged to the airbnb at 29% based on square footage. I pay business insurance, I serve breakfast. I pay self-employment and income tax.
I’m coming up with some numbers but I’m not sure they are accurate or if I’m thinking of it correctly.
It’s one thing to know how to price a room based on the market and amenities offered, but another thing to know that it’s actually putting money into my pocket and not just funneling it to the tax man.
Based on my amateur calculations my after-tax net for 3 people to stay in one room is about $40. While I love hosting I’m not sure it’s worth the amount of work to allow 1-night bookings (this is what started me thinking - I have begun to not want to accept 1 night bookings). I know that adding a cleaning fee will solve this problem - but I’ve price-shopped and for what I offer my base price of $69 is fair. So I’m not sure I can add a cleaning fee and remain competitive - so that would mean setting my minimum nights to 2.
Any thoughts? It seems people want to make apps that do what airbnb already does - create a guest book, etc., but some good, hard, basic tools to help us analyze our profit? That’s what I need now.