Hello
I calculated my own ROI is about 8% per year that is so low I think (total revenue of year/valeu of home)
I want to know your approximately ROI
Thanks
ROI - Return of Investment; for those not totally hip with the new short-hand language. I had to Google it!
My ROI - 40% from the beginning (6 years ago).
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Although I spent my career managing millions of dollars, I dare not look closely at my Airbnb ROI. It’s very difficult to calculate since I do a homeshare. Plus I meet and usually enjoy all my guests so that part is priceless. I also believe that my big old Victorian should be used! Thanks to COVID I reduced to one room versus three and I suspect that I’m doing well to break even with one. I haven’t been able to buy as many things in bulk and food is often wasted.
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4 properties, LTR was $70k annually.
STR is $240 K annually
Total purchase price of the properties $680K
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Since the STR for me is the second floor of my home (separate door to entire 2nd floor) and I no longer need the space, for me it’s a win-win because I can deduct 50% of my mortgage, taxes, utilities, insurance and outdoor landscaping.
Even with all the deduction, I usually come out at least $15,000 a head so while it’s not ROI it allows me to stay in my home and live comfortably. Prior to the pandemic I was clearing over $25,000 but I’ve also eliminated a bedroom and made it a den and usually leave a day before and after guests check in/out so that cleaning and can be worked into my schedule easier.
I’m grateful that Airbnb came along when I needed it.
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roi for one property about 120%, the other about 60%, its sound ridiculous, but the numbers are correct, one property is super popular an unique and whatever price I put its almost 100% booked, its so high right now that I feel bad to raise it more, the other one is not so popular but doing ok for what it is.
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Our stand alone home ROI is around 7%. We’re seeing occupancy dropping a bit during the last 3 years due to market saturation.
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ROI isn’t usually calculated as revenue over value. It’s income over investment. The investment is the value of the property if it’s paid off.
We are at about 20 %
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I have two rental properties in the same complex. So they are more or less identical. One is free and clear, the other has a mortgage but I obviously can’t price them differently.
ROI is a job for ,my accountant, not me.
Yes it is. Why is it so low?
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Yours is low why?! 8% per year
Can you tell me STR LTR and and your property valeu?
Really?!?! Its amazing.
38 % per year! I think ROI of hotels are 10-15 %
Witch city?
I think you are in mistake calculating!
Can you tell us your STR LTR and purchase
It is a normal number
Your STR/purchase is 20%, am I true?
I am here for finding a average number at the first!
Do you have any idea of average number ?
No idea at all. We do home-share hosting. It’s income, of course, but we don’t depend on it. It’s just an extra.
In our busy years (three to five years ago), we made significant money, compared to what we spent.
Now, we spend almost nothing, since we bought stuff in our first years. We of course claim the income, but we don’t even keep track of expenses any more. Too much trouble.
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No city, a small regional town in Australia. There are 19 Airbnb listings here and I have 4 of them.
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My ROI averages 12%. Basement 2 bedroom full functioning vacation rental with us living on main level. But what I don’t put in my calculation is benefit of up keeping our primary residence and value it provides for resale. That value will only be realized once we sell our home. Doing STR has allowed us to improve our property to a greater extent then we could have without running this business.
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Same with us. We refurnished three rooms with Airbnb income. We could have done it anyway, but we didn’t have to touch our personal savings or investments.
I’ve lived here 20 years and remodeled the entire house. I added more than 1,000 square feet and an indoor pool, third bath, etc., and I redid both existing baths, the kitchen, and updated every room. All that was done and paid for long before we started Airbnb.
Having two guest rooms and two baths we can host guests in won’t affect the resale value of our house. The value has quadrupled over 20 years, but that’s because of the improvements I’ve made and the still growing real estate market, especially in our area.
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Real quick & dirty, 12% annually, totally unweighted average, for my attached suite.
This is hugely weighted because I am not considering the land value of my primary residence, and only the proportional square footage of the suite as part of the building value (appropriate as only the building portion is the basis for my expense calculations).
Pleasantly surprised after the lost year of 2020 with my COVID shut down and some huge unexpected repair expenses.
I excluded the long term care insurance fees I expense – as I use Schedule C sole proprietorship not Schedule E on my U.S. tax returns – and I probably should add in the self-employment tax, which is a hefty 15.3%, as well as proportionate income tax.
That also includes depreciation, which I may have to recapture at resale (it’s murky).
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