Maximizing Airbnb Returns: A Comprehensive Case Study of Our Guest Suite’s Performance

Introduction: Having built numerous Guest Suites for short-term rental on Airbnb, one of the most frequently asked questions we receive is, “What can I realistically earn on Airbnb?” To provide valuable insights, we’ve collaborated with our client, who graciously shared their host data. In this Airbnb case study, we’ll delve into the numbers and shed light on the potential financial outcomes.

Disclaimer: It’s crucial to note that profitability can vary significantly based on factors like location, decor, hosting style, and amenities. The following figures represent a specific case study, and we make no guarantees regarding individual results.

By The Numbers

Sample Duration: May 4, 2017 – July 12, 2018 (435 days)

  • Number of Guests: 159, with an average stay of 2.375 days
  • Occupancy Rate: 87%
  • Average Nightly Rate: $95.69 + $22.48 cleaning fee
  • Total Income: $38,144.98 (Nightly Rate + Cleaning Fee – Host Fees)
  • Annual Income: $32,000.00 (rounded)

Analysis: Generating an annual income of $32,000.00 from a single Guest Suite is indeed impressive. However, it’s important to consider various factors that impact the bottom line. Taxes, operating expenses (which can serve as deductions), and the labor involved in maintaining the space require careful consideration. With an average of 134 guests annually, tasks such as laundry, cleaning, and guest interactions contribute to the overall effort.

If you’re prepared to invest the effort, a net income of $24,000.00 per year (after taxes) can significantly boost your financial standing. This income can be strategically utilized, such as paying off the Guest Suite in approximately four years, simultaneously enhancing your property’s value. For those opting for a more extended loan to cover initial construction costs, this income becomes a valuable supplementary source.

Conclusion: Regardless of your financial situation, integrating a Guest Suite into your property can create an additional income stream while building equity. If you’re considering building a Guest Suite to harness this income potential, we invite you to contact us to get started.