Is Airbnb lucrative?

[Anonymous]

Anonymous wrote:Parents has about a dozen airbnbs in a major tourist destination all high end spots. When factoring in all the costs it was 100% NOT worth it.

They had a team come and do a deep dive on their operations and the conclusion was that it'd make more financial sense to take the money and put it in the market.

Mind you, this was WITH early entry into the tourist town, appreciation on the properties, continuous booking, and paid off properties.

The issue was the guests, management costs eating into the margin, effort to maintain a high rating to justify the higher cost amongst a number of other things.

As you could probably tell, they're pretty well off and have investments in the market which outperformed every Airbnb and then they sold their properties I think 2 years ago now and put the money in the market and they made more in the past 2 years (which we know is unprecedented levels of returns) than they've ever made with Airbnb.

Do your math and see if it makes sense for you!

Agree 1000%!

There are so many risks with vacation rentals. Good management costs you, and guests (even in higher end places) rarely treat your place nicely, so you will have damages and repairs. Then if you go very long without guests, you stand to loose $$$. Much easier process to invest and most likely earn more.

[Anonymous]

Anonymous wrote:If you do all the management and bullshtt yourself and don't count all that labor then it looks okay. It works for people who don't count the cost of their time in the evenings and weekends. Cleaning, booking, laundry, restocking, repairs, on and on...

But who wants to do ALL of that for "free" when you could come out farther ahead fiscally with the money invested (and have your time back)

[Anonymous]

Anonymous wrote:

Anonymous wrote:We rent our place in Rehoboth. We bought in 2020, when prices had dipped during the pandemic, right before they started to rise.

If we agressively marketed and focused entirely on renting, I don't think we'd break even on an annual basis. (mortgage, HOA, repairs, etc compared to rental income).

We bought knowing we did not have to rent, but that renting would free up some cash so we could do other vacations.

So it depends on your defintion of lucrative. For us, renting 5 weeks a summer and making about 10K does feel lucrative, but it's less than half of a break even point.

These are the people who seem to have the best experience- who rent it out part time or just some years and see it as “minimizing the cost of something we would want no matter what” rather than “turning an actual profit.”

But then you are trying to live in a space (use a space) that others have been using. So do you still have top quality kitchen goods, towels, etc, and where do you store your personal belonging when it's rented out?

[Anonymous]

Running an unlicensed hotel is illegal in many areas. Check your local laws.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have a very small beach cottage (Under 1K sqft) and did a 1031x and have no mortage. The place is booked solid all summer and I have about 30% occupancy the rest of the year. This place is NOT at a beach like OBX, it has visitors year round. Since it is in a "real" town I am not held captive so some sort of management monoply. I have 2 people on call for small things that arise.

Gross Income in 2025 was 77K. Property taxes were 5K, insurance was 1800, utilities and internet was 6400, Shoulder season refresh and updates was 2800. Cleaning fees was 3640 (including some special cleanings). Service calls were $485. However the house got a full gut remodel when we purchased it so we built for durability and low maintenance. We went higher for durable materials.

It works for us, but probably not as well for people who have a mortgage. it also works for us beucase we love the house and would probably be fine if we didnt rent it at all.

Where is a "real" town with beach cottages that's busy around the year, if you don't mind me asking?

It's in the North End of Virginia Beach (not the Hotel Zone). I'm wall to wall in summer and get people in year round for all kinds of reasons. Believe it or not there are a ton of random events in VB. Also with it being near the worlds largest Naval Base, we have so many people in and out. We are oceanside and people often combine whatever they are in town for for some beach time. Oddly this February I was fully booked. That is a new one!

VB….I’ll pass. Redneck Riviera

[Anonymous]

Anonymous wrote:I have a very small beach cottage (Under 1K sqft) and did a 1031x and have no mortage. The place is booked solid all summer and I have about 30% occupancy the rest of the year. This place is NOT at a beach like OBX, it has visitors year round. Since it is in a "real" town I am not held captive so some sort of management monoply. I have 2 people on call for small things that arise.

Gross Income in 2025 was 77K. Property taxes were 5K, insurance was 1800, utilities and internet was 6400, Shoulder season refresh and updates was 2800. Cleaning fees was 3640 (including some special cleanings). Service calls were $485. However the house got a full gut remodel when we purchased it so we built for durability and low maintenance. We went higher for durable materials.

It works for us, but probably not as well for people who have a mortgage. it also works for us beucase we love the house and would probably be fine if we didnt rent it at all.

Someone I know has a similar result but it is rented most of the summer. About 3.5 weeks
Of summer rent covers most of the home’s expenses. No mortgage but they did do extensive improvements over the years (new pool deck, new cabana, etc). Renting all from repeat families so no listing fees. Does not live local but has local people who she trusts to deal w/cleaning, maintenance, etc. large money maker for her…

[Anonymous]

Anonymous wrote:If anyone has tried and tested, please let me know if your experiences good or bad.

If you’ve many and in good locations and are handy enough to manage them yourself.

[Anonymous]

I own 2 AirBNBs and we potentially make less this year and last than if we had a long term renter. AirBNB is flooded with properties keeping the pricing low.

[Anonymous]

My parents have a vacation rental. Worth at least $900k. One of the busiest properties on the lake due to its small size and amenities.

The turn over the property themselves to avoid paying a management fee. Just VRBO and the sometimes help from an outside cleaner. They clear about $80k a year. Not worth it really financially in my opinion even though they are one of the most successful properties but they are retired and love doing it! Keeps them busy in retirement and they love entertaining friends. It is definitely more stable than investing but a ton more work.

[Anonymous]

I think it depends. If you use Airbnb as a wealth building strategy then it will work. Unlike the market, you have an assert that - worst case scenario- you could rent long term or sell . Most people don’t run Airbnb well- so yes, management will cost you- but it’s like everything else - you get what you pay for.

The difference between Airbnb and the market is cash flow. You would need lots of dividend stock or GE back in the 80s cost - to get the level of cash flow you get from an Airbnb . Also- stocks are taxed as well - and the risk of losing most of the value is high - for example- Citigroup in 2008- less we forget .

Bottom line, Airbnb does take work and effort versus buying stock that you click the buy button and forget it. This is more active investing . It’s not for everyone but for those that want to do things a little different and with some effort- it’s worth it.
You could get a nice retirement home out of it for me the cash flow and improvements you can make from the cash flow money.

Which over time will appreciate and cost more if you invested and then bought a remodeled home during retirement

[Anonymous]

Anonymous wrote:We rent our place in Rehoboth. We bought in 2020, when prices had dipped during the pandemic, right before they started to rise.

If we agressively marketed and focused entirely on renting, I don't think we'd break even on an annual basis. (mortgage, HOA, repairs, etc compared to rental income).

We bought knowing we did not have to rent, but that renting would free up some cash so we could do other vacations.

So it depends on your defintion of lucrative. For us, renting 5 weeks a summer and making about 10K does feel lucrative, but it's less than half of a break even point.

Don't forget about depreciation, which you have to take and generally can't deduct and have to add back to income when you sell.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We rent our place in Rehoboth. We bought in 2020, when prices had dipped during the pandemic, right before they started to rise.

If we agressively marketed and focused entirely on renting, I don't think we'd break even on an annual basis. (mortgage, HOA, repairs, etc compared to rental income).

We bought knowing we did not have to rent, but that renting would free up some cash so we could do other vacations.

So it depends on your defintion of lucrative. For us, renting 5 weeks a summer and making about 10K does feel lucrative, but it's less than half of a break even point.

These are the people who seem to have the best experience- who rent it out part time or just some years and see it as “minimizing the cost of something we would want no matter what” rather than “turning an actual profit.”

+1 This is us. We rent 9-12 weeks in the summer and then use the house A LOT in the shoulder seasons and some in the winter. It’s very difficult to turn an operating profit on a short term rental. Renters are really hard on properties and even harder on vacation properties. Your maintenance and turn costs are high as well as management and/or platform like Airbnb fees.

Us too, and it works great for us. But if you have a different model in mind - especially with interest rates as high as they are now - it makes no financial sense.

[Anonymous]

Anonymous wrote:My parents have a vacation rental. Worth at least $900k. One of the busiest properties on the lake due to its small size and amenities.

The turn over the property themselves to avoid paying a management fee. Just VRBO and the sometimes help from an outside cleaner. They clear about $80k a year. Not worth it really financially in my opinion even though they are one of the most successful properties but they are retired and love doing it! Keeps them busy in retirement and they love entertaining friends. It is definitely more stable than investing but a ton more work.

What do they do if they want to travel? They could net way more than $80K/year with the 900K invested.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have a very small beach cottage (Under 1K sqft) and did a 1031x and have no mortage. The place is booked solid all summer and I have about 30% occupancy the rest of the year. This place is NOT at a beach like OBX, it has visitors year round. Since it is in a "real" town I am not held captive so some sort of management monoply. I have 2 people on call for small things that arise.

Gross Income in 2025 was 77K. Property taxes were 5K, insurance was 1800, utilities and internet was 6400, Shoulder season refresh and updates was 2800. Cleaning fees was 3640 (including some special cleanings). Service calls were $485. However the house got a full gut remodel when we purchased it so we built for durability and low maintenance. We went higher for durable materials.

It works for us, but probably not as well for people who have a mortgage. it also works for us beucase we love the house and would probably be fine if we didnt rent it at all.

Where is a "real" town with beach cottages that's busy around the year, if you don't mind me asking?

It's in the North End of Virginia Beach (not the Hotel Zone). I'm wall to wall in summer and get people in year round for all kinds of reasons. Believe it or not there are a ton of random events in VB. Also with it being near the worlds largest Naval Base, we have so many people in and out. We are oceanside and people often combine whatever they are in town for for some beach time. Oddly this February I was fully booked. That is a new one!

VB….I’ll pass. Redneck Riviera

I guess i'm not emotional like you. Its a business and it is quite profitable (56,000 Net profit a year and a zillion tax breaks), rednecks pay with green so it is all good to me. It has also gone up 100% since purchase.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have a very small beach cottage (Under 1K sqft) and did a 1031x and have no mortage. The place is booked solid all summer and I have about 30% occupancy the rest of the year. This place is NOT at a beach like OBX, it has visitors year round. Since it is in a "real" town I am not held captive so some sort of management monoply. I have 2 people on call for small things that arise.

Gross Income in 2025 was 77K. Property taxes were 5K, insurance was 1800, utilities and internet was 6400, Shoulder season refresh and updates was 2800. Cleaning fees was 3640 (including some special cleanings). Service calls were $485. However the house got a full gut remodel when we purchased it so we built for durability and low maintenance. We went higher for durable materials.

It works for us, but probably not as well for people who have a mortgage. it also works for us beucase we love the house and would probably be fine if we didnt rent it at all.

Someone I know has a similar result but it is rented most of the summer. About 3.5 weeks
Of summer rent covers most of the home’s expenses. No mortgage but they did do extensive improvements over the years (new pool deck, new cabana, etc). Renting all from repeat families so no listing fees. Does not live local but has local people who she trusts to deal w/cleaning, maintenance, etc. large money maker for her…

Yea this is why I love VB so much for investment, the year round markt is a huge money maker. If you are somewhere like the OBX, a bad summer can break you. I took 2 other properties and rolled them into this beach house in order to have no mortage and the profits from VB have been piling up (we've invested that into the stock market) and are just waiting for another property to open up in the area we target in VB. Hope to end up with 6 figures annual net profit. Will be a nice little retirement stream of income.