Projected Operating Income and Expenses for Short-Term Rentals (STRs)

In regards to Operating Expenses, the current software is fully customizable to accommodate short-term rental properties. You can remove the default line items and add new ones as needed to reflect your specific expense categories.

To access and edit the Projected Operating Expenses, simply click the grey box next to line #43 on the Rent/BRRRR tab within the software.

As you can see in the screenshot below, this is an example of how your Operating Expenses section might look when tailored for a short-term rental. All line items have been customized specifically to reflect the typical expenses associated with operating an STR.

Keep in mind that Operating Expenses for short-term rentals are typically higher than for long-term rentals, and they can vary depending on your specific property and the level of amenities you choose to offer.

In regards to Projected Operating Income, you'll want to start by doing your own market research to determine a realistic nightly rate for your short-term rental. Tools like AirDNA or Vrbo can be helpful resources for this.

Once you've identified your nightly rate, you can enter your numbers into the software and adjust for vacancy loss accordingly.

To access and edit the Projected Operating Income, simply click the grey box next to line #42 on the Rent/BRRRR tab within the software.

Now you’ll want to multiply your nightly rate by 365 days to calculate your annual gross income.

In the software, switch the input type to “Annual”, then enter that amount into line 1 under the "Annual Rent" column.

Finally, adjust the Vacancy Loss (%) to reflect the expected vacancy rate for your property.

Please see the screenshot below for a visual reference of each step.

For a short-term rental (STR), vacancy loss is tied directly to your occupancy rate—the number of nights per month the property is booked. To be safe, Daniil suggests modeling a 50% vacancy loss when analyzing your deal.

Additional Resources:

-Airbnb bonus training masterclass is in the Premium software bonuses: https://class.rehabvaluator.com/bonuses/airbnb/

-A Property Owner's Guide to Short-Term Rental Expenses - this is an informative article that I found interesting on AirDNA that I thought I would share: https://www.airdna.co/blog/guide-to-short-term-rental-expenses