I’ll tell you how people make money using AirBnBs...
If the rent for a property is at Rs 30k per month for a long term tenant, that makes it Rs 1k per day.
If the same property is put up as an AirBnB, people price it at Rs 5k per night...
And assuming your place is taken up on AirBnB for only half the month, you still end up making Rs 75k instead of Rs 30k...
And then you deduct the following costs.
AirBnB’s commission and GST = 15%
Consumables, Toiletries and Damages = 10%
Profit Left after removing variable costs = Rs 56,250/-
Expenses for Housekeeper = 10k
Profit after all expenses = Rs 46,250 i.e. ~55% higher compared to long term rent.
That means, if someone runs this as a side gig (as do a number of homemakers), it generates almost Rs 2 lakh of extra income per annum in this example.
The income goes higher when:
The number of nights being let out increase (reduced seasonality)
The pictures of the property are great
The reviews and ratings go up
There are people running businesses of just managing AirBnBs, and earning double the rental yield through short term stay compared to long term let out.
And I personally think it’s great as a side gig for a number of people who are retired / homemakers and have a vacant apartment available as an investment.
-----------------------------------------------------------------------------------------------------------------------
Click here to subscribe to my YouTube channel: bit.ly/3cpTleK
------------------------------------------------------------------------------------------------------------------------
Like, Share, Subscribe for more!
Follow me on my other social media handles for all updates, events and live sessions-
Instagram: / casarthakah. .
LinkedIn: / sarthak-ah. .
Website: www.casahuja.com/
------------------------------------------------------------------------------------------------------------------------
A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.
Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years.
Sarthak Ahuja