8 Ways To Make Money On Airbnb Without Owning A Property around Texas

Published Nov 17, 21
5 min read

How To Make Money With Airbnb [Ultimate Guide] in McKinney Texas


Sneaky, I know. Please note: these numbers are all estimates. They may differ in your market but for most areas outside of large cities, I have found these numbers to be indicative of the rental market. Airbnb. Other factors you must consider before considering acquiring a rental property is your personal career mobility.

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How Does an Airbnb Rental Compare? Using the same property as an example for our short-term analysis we start by considering our market. Use tools like Air, Dna or Airbnb search listings to check for comparable properties in your area. We will list our example as a shared house with private rooms.

Look at the reviews as well as the availability of the properties you’ve selected as comps. Identify Your Comps To ensure the most accurate comps, you need to make sure the properties are actually similar in terms of amenities, cost, and location. Once you’ve determined the average nightly rate, you need to check out their calendars to see if the cost is actually representative of what is listed.

The Risks And Rewards Of Making Money With Airbnb in McKinney

Now that you have an average daily rate we can move on to the financial analysis going the short-term rental path. In the Columbus market, you can see that the average daily rate is around $50 per night. Of course, this number fluctuates significantly based on the time of reservation, but we can use it for simplicity sake.

Estimating Airbnb Operation Costs For the $300,000 property, we will average out our rooms to cost $50 per night before cleaning costs are added in. This means our property will have a total of 150 bookable nights per month. Assuming an average turnover rate of 14 (I used a rolling 3-month average on a private room in one of my listings) we can calculate our average revenue.

Multiply that by $50 per night and you will get a pre-cleaning income of $6,750. Additional Expenses of an Airbnb We now need to account for expenses of operating a short-term rental. Unlike the traditional lease, you now will have to pay for supplies, utilities, as well as cleaning turnovers.

How I Make Money On Airbnb Without Owning Or Renting An in McKinney Texas

I generally set my cleaning fees high enough to discourage short-term stays while still being able to reach max occupancy. Each turnover can be estimated to generate $12 in cleaning fees. How many times does an Airbnb listing get cleaned each month? Given this, you can assume that there will be approximately 70 turnovers for your property over the course of a month.

Our utility bill will be higher due to the sheer volume of people in the house. Internet will be $50 per month, water averages out to be $100 per month, electricity is $150 per month (this might flip-flop with gas if your house’s HVAC system is focused on one or the other), and finally gas at $100 per month. Airbnb.

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In high demand areas, you will have the next set of tenants in place before the first ones move out! You can plan aggressively throughout the year using projected cash flow from your property. – unlike short-term vacation rentals, your initial investment will be lower. You do not have to provide furniture for most traditional leases.

Rental Arbitrage: How To Make Money On Airbnb near Texas

Finding a qualified management team will not be an issue for traditional leases. Given this competitive landscape, you can also be sure that your management cost will not be exorbitant. – Most properties are approved for traditional leases. You don’t have to worry about not being able to rent out your property when it comes to the city.

I just said that short-term rentals result in LESS damage and wear on your property than traditional leases. Hear me out: short-term rentals require your property to be constantly turned over. Any damage will be immediately identified and sorted out through you and the guest. The guests do not stay long enough to inflict sustained damage (ever seen those bathrooms where people don’t turn on the vents?).

Part-Time Airbnb Listings While I would recommend most people go the short-term rental path at this moment, you can also consider a mixed approach with it comes to renting out your property. If there is a cap on the total amount of days you can rent your property out on short-term rental platforms, this may be a way to capture the best of both worlds.

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Many hosts thought this would be an end to the profitability of hosting but I’m here to tell you it’s not. If you’re in an area that has a large student population, you can offer a 9-month lease. This is a highly sought-after lease in that most students will either go home for the summer months or have internships in other parts of the country.

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