This post may contain affiliate links, meaning if you decide to make a purchase via my links, I may earn a commission at no additional cost to you. See my disclaimer for more info.
Are you starting to look into becoming an Airbnb host but want any all tips on putting together an Airbnb budget? I’ve got you covered! Whether you’re an aspiring, first time or long time host, this article is going to give you all kinds of tips for creating your Airbnb budget.
We will go over how much hosts make on average, Airbnb expenses, decorating an Airbnb and much more! Read through the entire article and I have a couple awesome downloadable tools for you to use when creating your own Airbnb budget.
This post is all about Airbnb budget.
Best Airbnb Budget Tools And Tips
Talking budgets is always interesting because there can be such a wide range of what’s normal. In this article I’ll break down some helpful tools that will work for MOST Airbnb/short term rental properties.
Speaking of budgets, use my referral link here to get an extra $40 from Airbnb for hosting!
How much do Airbnb hosts make on average per month?
If you’re just thinking of getting started on Airbnb, this is probably one of the first things you Google’d. Now, this one is tricky because it varies so widely and can be largely dependent on your location. Bottom line, any house and any location works you just need to manage your expectations when it comes to revenue.
According to Airbnb, the average host makes around $1,150 per month. Now, this can vary so widely depending on the unit you’re listing, the destination, pricing strategy and occupancy rates. But this is a great starting point for most hosts.
How much can I make on Airbnb calculator?
The Airbnb website has a calculator that will calculate your homes earnings. You can find that calculator here. It’s a great free tool that can quickly estimate your earnings based on a few factors like bed/bath count and location. The tool pools all the listings in that area together and spits out an average nightly rate based on other like properties.
There are other really great paid tools out there for an in-depth property analysis. These tools are Airdna and Price Labs. Airdna has a free option for a snapshot of revenue by address.
For an in-depth look at these tools, check out this article!
Airbnb Budget Template
Now that your know how much to make, it’s time to budget! Once you’ve identified that money making property, you need to nail down your budget for every room.
This spreadsheet is the one I use on every single one of my properties to keep expenses organized! I input the name of the item, the link to purchase and purchase price (including tax). You can download a copy here!
Once you build this out for one property, it becomes a great tool for the subsequent properties you bring online. It depends on your overall strategy but most of these items can be duplicated per property. The exception would be the decor or theme.
The next section, we’ll dive into how to decorate an Airbnb on a budget!
How to decorate Airbnb on a budget
This is the trickiest part about sticking to a budget for me! I love the decorating part of Airbnb, it’s honestly why I got into short term rentals to begin with. On average, you should budget around $10-$15 a square foot for furnishing an Airbnb. So if you’re furnishing a 1,000 square foot house, you can budget $10,000 for the house on the low end and $15,000 on the high end. The lower end will be more of a value play while the higher end is for a more luxurious experience.
For Airbnb essentials for your property, check out this article!
I used to look at recommendations like that when first starting out and saying “I can totally do better than that!” And it’s true, you can furnish a house for cheaper than that. I have furnished a couple 800 square foot 1bed/1bath apartments for $5,000. But you know what? It’s not a stunning property. There’s blank walls and bare minimum essentials.
If you want to command a high nightly rate and be booked consistently at the average occupancy rate, you need to invest the full budget into doing up the house right!
Check out this article on the top Airbnb themes for your listing!
Airbnb Expenses Spreadsheet
Now that you have an Airbnb budget, you need to understand your ongoing expenses. Airbnb expenses are different than any other rental property because as the host, you pay for all utilities, cleaning fees, maintenance and household items. It’s so important to constantly track these so you know where you are spending the most and can always optimize your expenses. Below is a free downloadable Airbnb expenses spreadsheet!
What do you think about the spreadsheet and what would you add? Let me know in the comments below!
This post was all about Airbnb budget.
This post may contain affiliate links, meaning if you decide to make a purchase via my links, I may earn a commission at no additional cost to you. See my disclaimer for more info.
