5 Part Series: How To Make $10k Per Month in Airbnb Revenue

Airbnb can be a great source of additional income, and if you get the strategy right, you can make a great business from it. In this 5 part blog series, we’ll walk through our top tips from choosing the right team to making your property stand out to generate a healthy Airbnb revenue. First up is doing your research.

woman relaxing after setting up a successful Airbnb business
Photo by Artem Beliaikin on Pexels.com

Part One: Do Your Research

The first and most important tip is DO YOUR RESEARCH. You want to find the areas where the property prices are low, but the price per night is high, and demand is good. This is an ideal scenario of course; these places are difficult to find, and getting more difficult as Airbnb gets more popular. However, they do exist, you may just have to travel further from your home, or even set them up remotely to find the best Airbnb revenue. 

Wide Search

A great place to start is by Google-ing best vacation rental locations, and reading all you can to get a feel for the market. AirDNA also has some great free reports to get your started as you cast your net wide in these initial stages. 

Also think about the purchase side of the equation, i.e. how much will your vacation rental cost to buy and run. In a lot of well established vacation rental markets, the properties will be expensive for good reason. My tip is that you want to find a market that is up and coming where you won’t pay a premium for a property yet, but demand obviously won’t be as hot as in a more established market either. It just needs to be the right balance. If you’re in the U.S. try sites like Zillow or Realtor to research sold prices in the markets you’re looking at.

Local Market Research

Once you’ve found a few places that look interesting, dig in a bit deeper. I recommend buying AirDNA MarketMinder reports to get a full look at the market you’re interested in. With these reports you can start to get a feel for the demand and supply in the area, competition, typical revenues, typical occupancy rates, what types of properties make up the majority, and which perform the best etc. I’d also recommend just searching Airbnb and VRBO themselves to get a feel for how the competition looks. What features do they call out? How are they decorated? And don’t forget that hotels are also your competition. 

Once you’ve honed in on the ideal market for you, read all you can about the area and make sure it’s going to generate Airbnb revenue for the longer term. What I mean is, where might demand go in the future? Is the city expanding its transportation network to attract more people in? Is a new stadium being built? Are they expanding the ski resort? Etc… You want to be sure that your investment will hold up for the long term. 

When you’re in the weeds of finding potential properties, something we learned was be open-minded about HOA fees. They can be incredibly steep, but even with steep HOA fees, you can still make good money with the right strategy. I actually ruled out our second vacation rental location for a year because the HOA fees on a one bed condo were almost $800 per month! However, even with these crazy high HOA fees, this property is actually making more money than our first property. It’s therefore important to research the price per night to understand the potential ROI.

Potential Airbnb market
Photo by Felix Mittermeier on Pexels.com

Airbnb ROI Calculations

Once armed with all this information, you should have a good idea about what you can realistically charge per night, typical occupancy rates, and what the property will cost to buy and run. Now you can work out a simple ROI calculation armed with the predicted Airbnb revenue and expenditure, like in the example below. I’d always recommend erring on the side of caution, and doing a worst case scenario as well as a best case scenario, and know that it will probably land somewhere in between. If the property breaks even at the worst case scenario then you’re good to go. 

Don’t forget though that these ROI calculations are just a prediction. Try and validate the values in your calculations by asking other investors in the area, you’ll be surprised at how much other hosts want to help each other out. Also ask Real Estate Agents about typical costs to run the properties you’re looking for, and also ask for the current owner’s P&L for the past few years (if it’s currently being run as a vacation rental). Tip: Don’t let the current P&L put you off if they’re not making money. Assess and compare how you’ll present the property, how you’ll run it and how you’ll make it stand out when it’s yours. Use the P&L to validate the costs only. 

BEST CASE: $350 pn
86% occupancy
WORST CASE: $220 pn
68% occupancy
INCOME
Annual gross rental income$ 109,865$ 54,604
EXPENDITURE
Mortgage$ 4,272$ 4,272
Insurance$ 324$ 324
Tax$ 554$ 554
HOA$ 9,336$ 9,336
Cleaning fees$ 9,720$ 6,480
Maintenance (5%)$ 3,924$ 2,730
Utilities$ 1,080$ 1,080
Total costs$ 29,210$ 24,777
RETURN
Annual net profit (before tax)$80,655$29,827
Monthly net profit (before tax)$ 6,721$ 2,486
PAYBACK PERIOD
Mortgage downpayment$15,000$15,000
Closing costs$5,000$5,000
Renovation & furniture$35,000$35,000
Total cash needed$55,000$55,000
Cash payback (years)1.11.8
Example ROI Calculations for a $100,000 property with HOA fees


This is the first in a 5 part series on How To Make $10k Per Month in Airbnb Revenue. The next lesson will be about how to find a gap in the market. So you don’t miss it, consider signing up for my blog or following me on Instagram @britflipper. You can also check out our properties on Instagram @thehyggesuite.

If you’ve already found your Airbnb, you may be interested in my other blog for the Ultimate Airbnb Set-Up List.

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My Favorite Modern Black Side Tables

Modern black side tables are versatile pieces that can work with modern or traditional decor. They can add a more modern twist to a more traditional design (like the below design from DecorMatters), or they can add contrast and drama to a minimalist room just as easily.

I recently used a modern black side table in a dark and moody study design in DecorMatters. The problem with spending time playing interior design games is that you create beautiful designs but don’t realize the items you’re choosing are luxury items. Then… you fall in love with the pieces you choose. Like this gorgeous side table by Arteriors. Dilemma. Do you fork out $1480 for a side table? Or find a cheaper alternative?

My DecorMatters design using the Scout Side Table by Arteriors

After falling in love with the Scout Side Table by Arteriors I decide to try and find a cheaper alternative. Here’s my pick of the best modern black side tables.

Scout Modern Black Side Table by Arteriors

Modern black side table by Arteriors

Let’s start at the beginning, where this all started. The Scout Side Table by Arteriors is voluptuous and beautiful. It’s made from sand blasted wood to give it a charred look. Then finished with a wax coat to give it a shine. Priced at $1480 it’s the most expensive on the list.

Kellaman Drum End Table by Upper Square

Modern black side table by Upper Square

Another textured end table, this time made from stone. The Kellaman Drum End Table is a sturdy piece that won’t fall over easily. It can also be used outdoors which is a bonus. Priced at $241 and is available from Wayfair.

Fernando Accent Table by Crate & Barrel

Modern black side table by Crate & Barrel

The Fernando Accent Table from Crate & Barrel is a beautiful piece. I love the texture of this table from the handcrafted hammered iron finish. This is the piece I’ll be buying for my living room from this list. I love the organic shape of it and of course the texture. Priced at $249 it’s great value.

Macbeth Hemlock Modern Black Side Table by CB2

Black wood side table by CB2

Another beautiful table, the Macbeth Hemlock Side Table has great texture from the wire-brushed matte black wood. Made of solid Canadian hemlock wood and priced at $349, it’s a little more expensive than the Crate & Barrel option, but is still a great value piece.

Aurea Modern Black Side Table by Kathy Kuo Home

Textured side table by Kathy Kuo Home

A stunning side table by Kathy Kuo Home. The Aurea Side Table is made from oak and oak veneer, and has a ribbed texture on the plinth to give an interesting profile. Priced at $688, it’s the second most expensive on the list, but is certainly worth the splurge.

Black Iron Contemporary Accent Table by Studio 350

Contemporary side table by Studio 350

The base of the Black Iron Contemporary Accent Table is made from iron and the top from real marble. Although it doesn’t have texture like the others, at a price of $172 it’s a bargain considering the luxe materials. Available from Overstock, this is a great cheaper alternative.

I hope you liked the list of modern black side tables. It shows that if you do fall in love with an expensive piece, it’s definitely worth shopping around to find a more affordable alternative.

For other luxe looks for less tips, you should check out these other blogs:

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My favorite modern black side tables

The Ultimate Airbnb Set-Up List

Following on from my previous post on Vacation Rental Business – 6 Tips For Success I had a new host ask me what my ultimate Airbnb set-up list was, and how they could access it. I only had a combination of private Amazon wish list, spreadsheet and notes list at the time, so I committed to making a true public list that I could share with other newby hosts.

This list contains 150+ items of everything you’ll need and more, to easily add to your Amazon shopping cart. It will literally save you HOURS of searching for products, and then forgetting things. (Like I did!)

This list covers everything from kitchen essentials to bathroom products, cleaning closet essentials, linens, toys, games, things for dogs and kids. And it’s all available from Amazon so it’s incredibly easy to add to your cart and wait for the delivery.

Airbnb host with laptop taking notes in kitchen Photo by EKATERINA  BOLOVTSOVA on Pexels.com

After setting up our first vacation rental on Airbnb and VRBO last year, we learned a lot about what we needed to buy, what we didn’t and how to streamline the process. One thing I learned was that buying everything from one store (ideally) makes life so much easier. Amazon is a great choice, as it’s easy to see what you ordered, the invoicing is great for accounting, and everything ships free (with Prime) in just a few days.

The list contains items that are aimed at a mid-market target audience, so contains good quality modern designs and products that will appeal to this market. I’ll be keeping the list evergreen as I find new items to add, and products i’ve tested and liked. So check back regularly and add what you like to your Amazon lists. Click the link below to find the ultimate Airbnb set-up list!

Ultimate-Airbnb-Setup-List

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The ultimate Airbnb set-up list

Thanks for reading!

Jo