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> If you average out AirBnB rental income over a year, you probably will end up with a slightly higher percentage than rent perhaps 10-30%. Really depends on w
by KingMachiavelli 5y ago
> If you average out AirBnB rental income over a year, you probably will end up with a slightly higher percentage than rent perhaps 10-30%.
Really depends on what kind of 'AirBnB' it is. If it's a condo competing with hotels then that's one thing - although probably still more than 30%. In comparison, vacation rentals can easily take in ~$500 to $1200/night. The only real difference between the two is that the later targets larger parties so the cost per person is actually cheaper than a hotel.
That said there are a lot of costs besides rent but net profit is still going to be 2-3x that of a long term renter but these only work in certain locations (that said the ban on AirBnB in certain cities actually produces more of these areas). Also, the house and other costs are all deductible such that you actually have near zero taxable income while having significant positive cash flow.
- muzz 5y agoAgree with everything but the last sentence. Not sure how that could be the case-- if your actual costs are the same as your revenue your taxable income is zero but your cash flow would also be zero.