Haven’t calculated all my costs but I’m wondering what I actually make in profit. I only charge $110/night and AirBNB collects city occupancy taxes. i need to pay Fed and State income taxes (and I think additional hotel taxes to the state?) My husband and I pay around 40% for income taxes.
On average, I put around $3 of extras (sodas, cream, coffee) into each visit. My monthly supplies (toilet paper, cleaning supplies, soap, etc.) cost around $12/month. i’m thinking i might make almost $60/night taking utilities into account?
The monthly amounts on my dashboard are wonderful until I think about how much we really take home, esp when I take into account the stress of having guests downstairs.
I’m glad we don’t have to worry about all the extra taxes in the UK. It means I can air out spare room out quite cheaply <£25 a night (quite season) and still a make money.
Exactly. Some of those taxes can be write offs. As well as the expenses. So you might consider filing a schedule C with your taxes. Keep track of all the expenses. Air is going to be reporting you on a 1099 so… I would do what you can to declare it as a business. If they collect occupancy already, then that is hotel tax right?
Ask Cabinhost… She’s a CPA student and a financial planner!
Also, my two cents. Don’t supply sodas, drinks, etc. I used to do that, and began to realize that every little thing starts to take off the bottom line… So eliminate all the frills. In my experience guests don’t appreciate them anyway and leaving frills that are not up to their expectations can get you smacked in a review (it’s too bad KonaCoconutz didn’t leave us KONA COFFEE) or I got smacked once because my bagels weren’t gluten free. Know what I mean??
I would take a look at all the frills you’ve been supplying and start cutting back. Every penny counts. Time is money too. I eliminate things that cost me extra time.
I bill myself upfront as budget. There’s no way I can compete with some place that has granite and travertine. I state that provisions are the responsibility of the guest. Complaints in reviews have gone down ever since I downsized on frills.
$60 a night for a hundred nights is 6000 …plus you get pepreciation on your home.