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Airbnb hosting setup

While being in London I enjoyed an Airbnb hosting setup.

Airbnb hosting setup

Everything worked out perfectly.

But the setup was a bit different than the original idea of Airbnb was, as far as I know. And I guess this is true for a lot of the Airbnb offers.

During the whole stay I didn’t get in any physical touch with the owners at all. Via the app the communication was perfect.

It looked that all the rooms in the house were used to rent out. So we had a shared bathroom and a shared kitchen, with a space for each room in the fridge.

So let’s make a calculation about the money they are making.

Assuming 4 rooms with 50€ each a night, sums up to 200€/night, or 6000€/month. Assuming that only 70% of the time the rooms are booked, it ends up as a revenue of 4200€ a month.

Let’s look at the cost side now.

They have one time costs setting up the rooms, maybe 2000€.

Maintenance costs are almost nothing, we neglect it for the time being.

Then they have higher costs for power and water. Let’s assume 200€/month.

And finally Airbnb takes a share of normally 3% for providing their service.

So the final earnings before tax are 3880€/month, or 46560€/year. Not bad for such a business, isn’t it?

One can imagine that with an airbnb hosting setup people are making much more then renting out a house in a standard way.