Airbnb Hosting by the Numbers: 2017 Update

Also see: 

Airbnb by the Numbers: An Update for 2016
How I Made an Extra $60K from Airbnb in 2015
Airbnb: Us and Them

Thought it was time to do an update on my Airbnb hosting. And the state of it. Mostly because if the numbers look good, I might get another one.

Long ago, I started my Airbnb operation in New York, which was a smashing success. Until it wasn’t. I no longer have properties in New York, as of last month.

So far it’s going well in Dallas. I have two here. They’re easy to track and manage for what they are because they’re on two separate profiles.

My downtown Dallas Airbnb

In my opinion, a side business is the best way to “manufacture spend” these days. I easily put $6,000+ of expenses on my cards each month – and the bulk of that is in bonus categories.

I recently found out some rent payments code as 3X for “travel” with the Chase Sapphire Reserve. So that’ll keep me with an extra ~20,000 Chase Ultimate Rewards points per month – a handy ransom (if they all code as 3X)!

Airbnb hosting by the numbers

Airbnb makes it dead easy to track your stats these days.

#1

So let’s look at my downtown Dallas Airbnb this year:

~$500 this month from one property

 

The numbers for January are skewed because I had two places on this profile. I’ll correct below.

The rent for this one is $1515 a month. The electric bill is ~$100. And the internet costs ~$35.

I also pay a house keeper $200 a month to clean it and keep it up. Supplies are cheap, maybe $20 a month? And I replace items here and there as needed.

So, $1515 + $100 + $35 + $200 + $20 = $1,870. That’s the breakeven point for me every month. So far in 2017, I made, in pure profit from this place:

January – $1,442
February – $695
March – $928
April – $523

The numbers are kind of all over the place, so it makes it hard to predict.

If I take the 4 months, add them up, and divide by four, I get $897 a month, on average from this place. Assuming it performs at that level all year, $897 X 12 is $10,764. Or about $11,000 a year in pure profit, after expenses.

Electricity is all over the place, too

Some months electricity is only $60ish. Other months (the summer obviously), it’s $100ish. So there’s plenty of give and take going on. Despite the weather, this place tends to stay booked.

#2

Here’s the second one, in Oak Lawn near where I live.

Nearly $700 in pocket!

Everything about this place is smaller in scale. It’s physically smaller, for one. Also cheaper. The stays tend to be longer, so it gets fewer cleanings. And overall, it’s much easier to manage – less of my time.

The rent is $950, the electricity is billed through management and so far has been only $25ish a month, the internet is $35, and the cleanings are also $50 a pop. Same cost for supplies, too ($20 a month).

$950 + $25 + $35 + $150 + $20 = $1,180. I give this one 3 cleanings a month on average (that’s where the $150 came from).

In April 2017, I made $693 in pure profit. But, I’ve only had this February (technically, for a few days in January, but I’m subtracting those). So far, I’ve made:

February – -$59
March – $607
April – $693

I’ll chop off February (the “getting started” month), and go with March and April. My Virgo-ness doesn’t like such a small sample size, but it’s all I have right now. Based on it, I get $650 a month or an extra $7,800 a year from this place. Not bad!

Risks and changes

I’m still newish to the overall Dallas market – but I like the results so far. Of course, they’re nowhere near New York-level returns. But I knew that going into it.

I risk, every month, losing money on these places if they don’t book up. It has only happened a single month so far while the places have been fully operational (see above) – and I don’t really count that.

This Q1 in Dallas is actually better than the Q1s I had in New York – I got really close to losing a lot of money those months in New York.

Airbnb will collect taxes for the City of Dallas starting next month (May 2017). So that will be new. And remains to be seen how or if that will affect business.

There’s also the possibility of being kicked out of these places. But it’s so low-risk in Dallas – all you face is eviction. It’s a chance I’m willing to take. And so far – touch wood – it’s been smooth sailing. So much so that I dare say I’m even… enjoying it!

Bottom line

This is, ashamedly, my first time taking a look at my raw numbers for 2017.

But when I look at them as an average, I like them: $10,764 + $7,800 = $18,564.

$18,000+ a year for a low-stress side hustle that nets me plenty of bonus points is worth it to me.

Again, it’s nowhere near the $60,000 I made in New York in 2015. But those days are long gone with all the new regulations there.

So, I’m making less but also doing less and don’t have as much going on overall.

If I were to get another place in Dallas, I’d probably take the average of the two I already have – and assume about another $9,000 a year in profit. That would bring me closer to $30,000 a year, which is still damn good.

Huh. I think I just convinced myself to get another one.

Thanks to the readers who love geeking out on numbers and data as much as I do!