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Know How Much Revenue Your Airbnb Rental Can Generate

Before even considering seasonal rental on the Airbnb.com platform, it is completely normal to ask questions and estimate the potential income. This will not only allow you to visualize the performance of your future investment, but also to continue in this direction if the objectives are achieved.


But be aware that there is no magic formula, because many characteristics must be taken into consideration such as the type of property you are renting, the geographical area and the various equipment present on it. But you will be able to maximize your profit by playing on the elements that will naturally attract temporary tenants.



The Airbnb estimate for how much you can expect to earn

Certainly, it is not easy to get into seasonal rental, because you have many doubts about its management. But before you even pick up your paper and pencil, you need to do an accurate analysis of the real estate market.


To do this, all you have to do is identify the locations near your property and determine the average rental amount. As you will quickly see, the disparities are particularly significant from one district to another.


If you have not yet acquired your property to rent on Airbnb, then your search should focus on the most attractive areas. You must therefore maximize your return on investment by also acting on the capitalization rate and cash flow.


How does cash flow work in an Airbnb estimate?

To estimate Airbnb revenue, it's important to look at cash flow. This is your source of income from your Airbnb.fr rental, obviously deducting monthly expenses.


Let's imagine that the rental of your property earns you €2000 per month on Airbnb. On your side, you have a monthly expense of €1000 for the mortgage and an additional €100 for insurance and maintenance.


By deducting the €2000 of income less the €1000 of the mortgage and the €100 of insurance, you benefit from a positive cash flow of €900.


How does the cap rate work in calculating Airbnb income?

For this step, you will use the previous elements that you obtained in the cash flow calculation. This will allow you to determine the capitalization rate. So to estimate your Airbnb income, you will need to use the following formula:


- The capitalization rate = net operating income / price of the property.

- The price of the property simply represents the purchase price of your property. Regarding the net operating income, it simply corresponds to the annual cash flow that you calculated previously.


Returning to our previous example, multiply the net operating income by 12 to obtain the sum of 13,200 euros.


If you acquired the Airbnb property for €200,000, you obtain a capitalization rate of 6.6% in our example.


Make your life easier with an Airbnb profitability simulator

The Airbnb simulation is a great way to estimate your income. This time, you don't need to dive into calculations that seem tedious to you, just fill in the various appropriate information and the simulator takes care of everything.


There are several on the Internet and you will then have to define the type of accommodation, the number of travelers you are hosting and the city in which the property is located.


British pound notes with keys
Running simulations on your Airbnb renvue can help with planning and pricing strategies

Airbnb price simulation thanks to the platform

An Airbnb price estimate can be done directly on the platform using the default estimates.


The data you will obtain is based on bookings that have been made in the last 12 months. Of course, the geographical area is a criterion to be taken into consideration.


Then, the average price of the reservation is multiplied by the price of the night and by the occupancy rate. However, the price of the night must be weighted, as this does not take into account fees and taxes.


Thanks to your potential ad, you will be able to obtain an estimate of your Airbnb income and check if your investment is profitable.


But under no circumstances does the information you have been able to obtain constitute a guarantee. As its name suggests, the simulator only provides an estimate. Regarding your real income, they will depend on the characteristics of the property, the equipment you have made available, the pricing for the night and of course your availability.


Add to that the legal restrictions applicable in relation to the country of the property, your acceptance rate, the more or less strong demand depending on your geographical area as well as the comments of travelers.


As you can see, the parameters are particularly numerous, but this will absolutely not prevent you from having a reliable estimate.


What are the most important factors in determining your Airbnb earnings?

The importance of location

The first thing you can do is benchmark against the competition. You determine the Airbnb properties near you by taking into consideration the differences and the commonalities. Also ask yourself about the dynamism of the location and the size of your property. How many bathrooms can you provide and how many bedrooms?


By considering the many benefits of your vacation rental, you could have a competitive edge. For example, you have built an outdoor space or a swimming pool.


Likewise, the geographical location remains a determining factor in estimating your income. If the property is located in a neighborhood with a strong tourist appeal, you can expect to ask for a higher price for the night. Same observation if you are located near a tourist place.


In any case, if your property is capable of producing a competitive advantage, do not hesitate to mention it in your advertisement. This will allow you to capture the attention of your visitors more easily.


What is seasonality?

Depending on the time of year, your Airbnb earnings will not be the same. This is why it is important to integrate the low season and the high season. Let's imagine that you have an Airbnb property not far from the Cannes Film Festival, it is a major event during this period and you can expect much higher profitability than at other times of the year.


This situation can also be true for an apartment or a house in Strasbourg, as this type of property will be in high demand during the Christmas market period.


Develop the capacity of the good

By maximizing your occupancy rate, you will develop a much higher return. Example, for an apartment with two bedrooms, it is perfectly possible and reasonable to invest in a sofa bed to have an additional bed. This way you charge more for an overnight stay. This is due to the fact that you welcome more people.


Never neglect outdoor spaces

Many tourists are looking for a property with outdoor space. It's a way for them to feel much better for simply relaxing, having a barbecue or enjoying the pool.


So if you are lucky enough to have an outdoor space, it is wise to invest in it and transform it into a convivial space. For example, you could add a hammock, a barbecue or why not a swimming pool. The objective is to identify the different factors that will allow you to develop additional income.


private garden with a table and chairs in the backyard
Special features like a private garden or balcony will boost your Airbnb income.

What is the right way to optimize your income on Airbnb.fr?

As you have just seen, there are different possibilities to optimize your income on the Airbnb platform. You certainly need a good SEO, but also an attractive ad in order to stand out from the competition.


In this regard, why not consider delegating the management of your property to a concierge. This is exactly what the UpperKey Concierge offers you . Thanks to his experience and his attention to detail, you will be able to increase your Airbnb income.

Not only do you have the certainty of earning more money, but you do not have to dwell on the administrative procedures concerning the rental, nor to manage the arrival and departure of the tenant.



Start earning more rental income today by contacting UpperKey

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