Airbnb is a prominent frontrunner in tourist bookings, driven by the growing desire of individuals to experience a destination as a local resident. Introducing a short term rental option on your property presents a seamless opportunity to generate a passive income, offering a convenient and straightforward avenue for financial gains.
Do I actually make a profit?
One of the significant expenses typically associated with operating a short term rental is the mortgage or lease payments, which can consume approximately 32% of the overall expenses. Nevertheless, with Hewing Haus, our Pender 3 (300 SQFT) home can be entirely paid off within three years, thanks to the ability to offset the cost using the short term rental income. This ensures a swift and efficient return on investment, leading to enhanced profitability in the long run.
Times rented per month: 21
Value per night: $242 **Based on the average price for a 4-bedroom home on Air BnB
Income per month: $5,082.00
Minus general expense per month (avg): $500 **such as heating, electricity, internet, water
Minus 3% Air BnB service fee: $137.46
Income minus Expenses: $4,429.54
REVENUE PER YEAR: $53,154.48
Tourism hotspots are highly sought-after locations for rentals, and residents on the West Coast are particularly fortunate in this regard. Whether nestled in the mountains, near a picturesque lake, or in a bustling city center, every corner offers an abundance of incredible tourist destinations. This broad spectrum of attractive locations ensures ample opportunities for property owners to tap into the thriving tourism market and capitalize on the demand for accommodations.
An example of an Oregon based client using a Hewing Haus as a short term rental. The Airbnb listing can be viewed here