Airbnb Guide: Make money from rental without moving a finger
A little book that teaches you how to use Airbnb in order to earn a high monthly income, without having to work for it. And how to invest in real estate that returns good profit from short-term rental.
The spreadsheet is organised in four sheets
#1 – Info. To be more convenient, I have added the information from below in the spreadsheet as well.
#2 – Template. This is a template that calculates the property’s overall performance by inserting income and expenses for one or several properties.
#3 – Yearly metrics. This spreadsheet provides us with a great amount of information for the property’s performance and a calculation for the return of investment.
#4 – Charts. A visualisation of the sheet’s data, for even better understanding.
Follows more information for every sheet, skipping the first and the last ones.
#2 – Template
In column “A”, in rows from 1 to 6, we insert the names or nicknames of our properties. At Instahost we have always worked with nicknames to make our communication easier and faster for all of us.
In the cells on the right of the properties, we insert the monthly revenue and the table automatically considers the total revenue for the month and for the year.
The same could be observed below in the spreadsheet as well, but this time the main expenses for every apartment are distributed. Management and maintenance are displayed as a total cost for all of the apartments. If wanted, it could be added for every single apartment separately.
When all of the costs are inserted, the spreadsheet will calculate the monthly and annual profit.
#3 – Over the years and overall account
This spreadsheet could be used either as a calculator for future investment, or an information spreadsheet about the current situation of our present investment.
In our example, those are real data of a property and its performance in 2017 and 2018, while December is submitted based on the reservation until this moment (30.11.2018).
In this spreadsheets we see:
– Performance of the property during the current year, compared to last year’s performance. The comparison is made based on incomes, expenses, and profit. Some cells have conditions applied to change their colour either in red, or green, based on our balance – whether it is a negative or a positive one.
– Incomes and profit change their colour to green when we have a positive balance.
– It is the opposite with the expenses – they light up in green when we have a negative balance, i.e. this year we have fewer expenses than the previous one and this is positive.
– We see those comparisons on a monthly and an annual basis.
Then, on the 20th row in the spreadsheet, we have an information dashboard. We can see:
– Our investment in the property. This is the final amount of all of the initial expenses as purchase, bank fees, notary fees, taxes, furnishing, making photos, etc., needed to list the apartment in Airbnb.
– The property’s profit for 2017 and 2018. This percent could be considered as an interest rate on our investment. It is as if we have submitted the invested in the property sum in a bank deposit – this is the interest rate we obtain. This percent is given when we divide the profit to the invested sum.
– Return of investment (profit). This is our total profit.
– Amount until break-even point. The difference between our total investment and our total profit
– Return on investment percent. The same difference, but reflected in percentage.
– Return of investment. In how many years would we return our investment with this profit rate. After this time we will still be the owners of the property (most likely with a higher value), but we will have returned the invested sum.
I recommend downloading the table from File => Download as => Excel and playing with it.