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If you profit from renting out your Airbnb space what do you do with the money?
I allocate 25% of it to luxuries like fast food/takeaway and whatever else I feel like spending it on, I manage to save most of it though.
The other 75% I invest. This is split between small investments in companies like start ups/existing companies looking for funding in return for equity in the company. Hopefully one day they will get bought and give me a good return or even pay dividends.
Also invest a portion into lending. Currently getting about 7% interest per annum. Better than saving it in a bank for less than 1%.
Finally I do a bit of CFD trading too.
After a year Iām going to evaluate if itās been worth it. Then choose which to continue. Iāll have to wait a bit longer for the company investing it can take many years to see a return (if any).
we invest our profits in real estate. In six years of hosting on Airbnb weāve bought two 2-family homes so along with our primary residence we own three places.
I started ABB because I had a bathroom that needed a new tub/shower unit professionally installed.
Now, 30% of my ABB income goes to my two nieces to help them with their college and other expenses (long story). But they are very hard working, frugal and grateful young women.
The rest of itāsolely into maintaining the house and paying for things like plumbers when needed, this is an old house in rugged weather territory, maintenance is a rather large line in my monthly budget, ABB allows me to not have to allocate part of my paycheck to that line item in my budget.
Next yearā¦big year as I need my ABB earnings to buy me 14 new windows. These windows are, I think, from the 1940ās. And itās winter here 6 months of the year.
I am really new to this AirBNB āgame.ā I have no idea how much profit I can expect. If the first 6 weeks are any indication, I will have to consider what to do with this extra money. I hope to reduce the number of hours I spend working with clients, and have more time to hang with my family. And, of course, I would love to take a trip a year.
I bought new stuff to host. [Furniture, coffee cups, electric kettle, towels, etc.] That is now paid for, and I am completely in the red at this point.
Of course, Mr. SMT thinks we need to use the money to rebuild the front porch. Sadly, he isnāt wrong. So the fun stuff might have to wait.
Iām still new too. Done 3.5 months. Been booked 90% of the time and slowly been increasing the per night rate. I hope it continues throughout the whole year.
I have joked with my husband that he has a job, I have a job, and now our house has a job. Our houseās job is to pay for its own repairs.
We bought this house knowing that it needed love and there were some things that had to be done right away. Other things Iāve had to put off, and theyāve been rattling around in the back of my mind. With the extra income I can do these projects sooner, and I also have a real reason to invest in those areas since they increase the appeal of the space. So far weāve added granite and new faucets to all the sinks upstairs (there were 5 of them) and that was something I didnāt think weād be able to do for years.
We are still paying off the decor, since I did spend a lot of money getting the rooms ready and it will take a while to pay that off. However, I donāt need to make money to live off of from this venture, What this has allowed me to do is decorate the rooms in the style I really wanted instead of piecemailing together old stuff, and I didnāt have to justify this to my husband - he was on board with spending the money.
Five years ago I bought a three bedroom/2 bathroom house that I couldnāt really afford without working as much overtime as possible, and I started Airbnb a year and a half ago because my student loans refused to be ignored any longer!
I had hoped that by this point my life there might be a man around to help with all thisā¦
I just wanted a hobby for the summer, Iāve done short term rentals on and off and I use the Airbnb money to pay for Airbnbās to places I travel to, upgrade my house a little, and pay off debt.
I do my Airbnb only at a summer time. It is money for vacations and good wine.
I plan to move to another continent for our retirement and do the same Airbnb, but without arthritis pain. Traveling and looking for a such nice painless place.
30% on everyday living and extraordinary travel
20% to savings
15% invested on real estate
15% improve the place.
5% to charity and causes
5% on helping local people who assume because I am an American (living in a foreign country), I must be rich.
10% I have no clue where it goes.
After allocating a portion of our utilities, tax, and mortgage interest to the airbnb, then specific expenses, and then setting aside what I expect to have to pay the IRS (tax man in the US), I only keep about 35% - 50% of what I take in. Not bad in one respect, but I donāt get much more than $100 most nights.
But I started with a totally ārawā space, so we are still finishing up purchasing furnishings.
So - any profit goes towards my kidās expenses. The summer profit helped pay this yearās tuition at their ballet academy, anything beyond goes into their college funds.
To be honest, Iām a bit surprised that you do make a profit! Maybe itās easier if youāre renting a spare room but in our case (separate apartment) there are things like property tax, income tax, TOT, utilities, insurance, supplies, wear & tear ā so many expenses!
Oh I know, especially if youāre competitively priced! Iāll easily be able to claim a loss on our taxes. But at least I am ahead as I would be paying utilities and taxes and upkeep on the building even if it was empty.
