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Sunday, November 11

AirBnB October Performance

AirBnB - October 2018

We converted our home to an AirBnB in September.  I've had no problems at all getting bookings, but rates need to be higher.  When I went live I offered super low rates and a 20% discount to the first three bookings.  One of those bookings was for 28 days in October.  The guest paid a super low rate (less than what I would have earned if it was a long-term rental).  This of course impacted my income.

My business plan for now continues to be to maximize bookings, even if that means the nightly rate is lower than it needs to be.  In October I was going to have one night vacant, so I adjusted the rate by 5% to get it booked.  I want to generate more guest reviews, get a good system in place for turning the property over, and stay high on AirBnB's search results.  The strategy I'm going with now is to offer a competitive rate (but higher than when I started in September) and then make adjustments on vacant days if it looks like no one is going to book for that day.

Expenses should start to go down.  In October, I had to remove a very large oak tree that was hit by lightning.  I also stocked up on extra linens and other supplies.

Financial Performance

My 28 day booking took up most of the month, which lowered my income considerably due to it being heavily discounted.

Occupancy Rate:  100% (31 of 31 days booked)
Payments Received:  $1,489
Expenses:  $2,731
Net Loss:  $1,242

1 comment:

  1. The 100% occupancy rate is good. Once you get the expenses down and the nightly rate up it should be a good money maker. I'm interested to see how this works out.