Hey everyone let me know if you have any questions down here! These are my expenses and I’m curious to know what other hosts are having to pay for out there!
This video is very vague? How much is your liability insurance? How much is your air bnb fee? Do you supply soaps etc how much are they? You do the cleaning yourself but have you worked out how much it cost to do it? I.e cost to clean towels etc, do you have security cameras? Keypad entry?How much to set up? Tv license? Council tax? Gas or electric ? So much more to cover you covered basic costs what about everything else?
also, to add--- cleaning service is usually separate from their monthly booking fee. example: nightly fee (A ) x (B) nights stayed = C subtotal pay + D government taxes = E + F cleaning fee= Total Payment
Yeah this is the kind of info folks out there want! The breakdown of numbers! If you keep giving out great helpful info like this your subscriber numbers are going to sky rocket! All info is great but most people want to see the numbers! Not just all talk!
Thanks Robert for your breakdown costs video, like you said, it varies big time depends on location, for example where I live is TX, average Rent is almost $1500 for a nice single bedroom apartment in Downtown ,when I ran the math I can barely see $400 in net monthly profit. That made me think many times before starting this business model. Wishing you best of luck and success....
You can price your STR so that you profit every month. If rent is $1500 you can price the nightly rate accordingly so that you are able to profit regardless of where you are from! Thank you for your kind words!
I know! He isn't stopping! His method of using apartments that accommodate corporate housing is brilliant! There is no such market where I am from but it is definitely something I am very interested in.
Thanks Robert, looking to do an airbnb in the Fort Leonard-Wood area in Missouri. This video was very informative....Ie Maybe you should support your mother inlaw by promoting her cleaning services on your listing and actually pay her. (Don't know if you are ...just a suggestion) thanks again
I was hoping you'd breakdown Airbnb fees, VAT and any other of these types of expenses, it seems like they can add up. My town requires annual fees like Alarm Permit ($150), Business License ($40 min.) and Short-term Housing Permit fee.
I personally don’t have to pay VAT being from the US. Where are you from? I can make a much more detailed video if you’d like! All things considered, they might seem to add up. It’s important to know that with rental arbitrage you’ll clear enough monthly income to cover them regardless of how costly they are.
@@robert_iacob I live in Pacifica, California, we don't have VAT either. I'm planning to turn the home I own into a short-term rental. I wasn't sure if when calculating all the expenses, in addition to the 3% Airbnb fee, if there were any other types of short-term-rental specific taxes or fees you pay for. I'm still a couple months out from 'D Day'. Thanks again your videos, they are really insightful.
The 3% fee aribnb charges per booking but I never see that anyway, they automatically reduce that from the payout. i can definitely make a more elaborate video of my balance sheet
Bro you’re very inspirational! I am currently an Airbnb host and know the power of rental arbitrage. I did a private room listing while in anesthesia residency. I just turned thirty and finally own property. If I could rewind the clock back 9 years I would tell myself to buy a house and start building equity at a young age. Hit me up man if ur interested. I’m not trying to sale anything I just think I can help you grow faster.
Thanks for the breakdown Robert. You are doing awesome! I have much greater expenses than you do so it's taking me longer to get things going. The one thing I can say about rental arbitrage that would be great is not having the expense of of paying property taxes. I also have cable tv on top of the internet bill. I pay for trash but it's included in my property taxes. Now I'm looking for a 2nd property to Airbnb where the costs aren't so high. How are you doing with Homeaway? I haven't listed on there yet. I need to do that. It just seems more complicated than Airbnb. Did you accept the 30 day booking? Curious on that!!
Thank you Tracy!! I am very fortunate to have my expenses so low, it gives me all the wiggle room I need to test pricing and mess with the calendar a bit more. You are absolutely right, not paying property tax has its advantages with rental arbitrage. Homeaway is doing well, the majority of our booking come from Airbnb so wherever there is a gap in our calendar we occasionally get a home away or vrbo guest. I did approve them! The guest started a business here and needs a place to stay while she gets everything situated in the first month!
How many rooms are u renting or the whole house are u living in the house these metrics are important for your viewers to see the full picture just saying
Good job Robert on turning it into a profitable business. I have tried airbnb histing and definitely think it is a good stream for cfeating income. It is not necessarily easy as it requires planning and discipline but it can be a good investment. 😊👍
Very informative video! From the UK, and I have a question. As an entrepreneur, it’s pretty hard to prove to a Landlord that you have ‘consistent’ income. How did you overcome this obstacle?
Hello! I can see that being an issue, you could try incentivizing the landlord by offering him a percentage of the revenue. Ultimately you need to have proof of income if you want to get started with something like this.
Thank you!! In the heart of the city, when I started there were no regulations. They voted to get the business model regulated and I had to get licensed. It took me about 3 months of dealing with city hall 🤦🏻♂️ I talk about it here on the channel!
Awesome 🔥, been watching your videos for a few month now, great content keep it up. I'm based in the UK and just launched my first property last week. Bookings are a bit slow at the moment, do you do any marketing other than just having it on the travel sites like calling local businesses to see if their employees need anywhere to stay?
Thanks for the positive feedback! The fact that you have your first listing is really exciting! I currently do not at the time, that is certainly something I should look into!
Patrick I just listed my STR with the local convention center across the street. It was $325 for the year. That includes putting me on their website and also in their area directory catalog. People coming to the area go to them to find lodging so I'm excited to see what it will do for me! Being super close to the convention center is only going to help me out!
Hi I"m planning to start my own airbnb. My question is when you rent your first airbnb do you rent the place with fully furnished or do you buy all the furniture, TV, plates and dining table?
I day trade stocks, and have a really passive salaried position for my earned income. Bringing me to a total of three income streams, not including my long term stock portfolio!
Very cool, in guessing your long term portfolio are divided stocks? And could you do a future video on day trading I think that would be a cool video to make. Also are you a superhost through Airbnb?
Yes, dividend income is very underrated. You make money for having money. I can do that! I decided to focus this channel on Airbnb because there is so much growth potential in this niche. I was a superhost until this happened...ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-fxjIAZ2Zsaw.html Now I am at 4.7 working my way back up.
I agree it's a great idea for a channel that focuses on Airbnb arbitrage it's something not a lot people are doing or at least not documenting on so kudos to you. That sucks on the bad review. did the person ever contact you about their experience or were they sneaky and just wrote the bad review? Also I noticed you reached over 1000 subs congrats man! I was watching you when you were at 200subs but just recently subed, It's my goal to reach 1000 subs so I can start monetizing my videos through youtube. Brings me to my next question, how much money are you making on youtube as a fairly new youtuber that just reached the 1000 subs mark?
Thank you, that really means a lot to me! I was never able to resolved the bad review issue. I reported it and never heard anything back form Airbnb. You got this! Your channel has a lot of potential, great channel art. Just focus on making those long videos and getting them out there you will reach 4k hours in no time. I woke up today and I had 4,060 hours. About time lol
We have only had one guest bring up the no cable. Most people traveling don't have time to watch TV and we have many different streaming services they can pick and choose from. It is in our listing description, if they were to actually look they could pick and choose that for themselves. When the cleaning service is being outsourced it isn't uncommon to charge that high in order to cover cleaning costs. If you are asking what you should price your cleaning fee I suggest you look into properties in your area and see what they are charging a night. I have seen them go from $15-$90 depending on the host!
Your landlord is allowing you to sublet??? is that what this is?? You're making money off someone else's house?? Cleaning costs should be included even if you do it yourself, labor is labor and you should get paid for it.
Great videos! I found a place. My question is I’m kind of nervous about how soon it will get booked to be able to cover the rent. Since I am a brand new host, would it be a good idea for me to offer the room heavily discounted to get it booked? And to get my ratings to be a super host quickly? The reason why I am so concerned is Jan-March is known as the slow season here.
Thank you! If you do everything right from the beginning and build a great business solid foundation you should have this concern. It is slow season and I’m launching 6 properties. Trust the process.
@@robert_iacob Thanks for the response. I liked, subscribed, and watched many of your videos. As a follow up, in your video with the bad tenants, did you cover the damage to the door? Where would items like replacing light bulbs, clearing clogged drains, appliance repairs, air condition/heater filter replacement/repairs, pet stains, fix electrical outlets, and a stuck garbage disposal fall in the minor/major repair or did you sign a lease specifying such items. I've been looking at perhaps running a AirBnb in the Southern Cal. region and am looking for a more passive business I can run and have a bit more income. I liked your video of you being able to go on a week+ long vacation and have the business run. Thanks again for the response.
If you have multiple properties doing this, how will your utility company allow you to have utilities at multiple locations in your name/business name? Is that possible?
Wait did he break it down? Said the profit but we need the numbers man!! All expenses; maids, damage, insurance..etc!!?!? Did I miss it? Well what a huge waste of a video thanks for nothing! We need to know what every single expense that you’re gonna have and I’m sure there’s a lot of hidden ones that no one even considers until their in it! Please do a #2
Robert Iacob Midwest seems like a great market, especially the amount of people that aren’t privy to STR’s via AirBnB. I’m in California searching for a market to get into for the first time. Considering Hawaii but I think there’s too much regulation happening.
It is, that’s a major part of why I’ve been able to see these results. Hawai’i is a good one, I heard of cases where a shed in the back heard was pulling $7k/mo
Robert Iacob Wow 🤩 that’s insane. Looking on AirBnB recently and yeah, a tent outside is $2k per month lol 😂 recently Hawaii underwent a major Bill that is cracking down on the amount of homes up for STR
