Time for a recap of my January cash flow for Airbnb. January was another great month from an income standpoint, but I did end up incurring one large expense! Time to dive into the numbers.
To checkout how my November Airbnb investment went, click the link here.
To checkout how my December Airbnb investment went, click the link above.
January Income Generated
In January, I was able to generate $4,413 of income. Of the income generated, here is the breakdown:
- Nightly Stays: $3,423
- Cleaning Fees: $990
Another solid month from an income perspective. My Airbnb ended up being booked all but three nights in the month!
This last month, I didn’t end up having any additional income generated from early check ins or heating the pool.
From an expense standpoint, there was one main driver behind higher expenses. I received a message from my pool guy at the end of December stating my pool pump was coming end of life. I have never owned a pool before, so this has been the first major expense I have incurred with owning one. My pool guy has always been a straight up and honest guy, so I listened to his advice on purchasing a new pump.
All in the cost of a new pump with installation and labor was $2,472. I was able to cash flow this expense with my W2 and Airbnb income generated. Moving forward, I will be tracking the amount of money saved in a CapEx fund and will take out from that fund when things like this come up.
December Guest Experiences
Now time to look at how many guests I hosted this last month. In the month of December, I hosted 51 guests across 7 different bookings. Of the 7 stays, I received a review from each of my guests! Many hosts know getting your guests to leave a review can be difficult. I am also excited to say of the 7 reviews, all were 5 stars!
Here are some of the reviews left by my guests:
“YRB was extremely helpful and quick with his responses. The neighborhood was amazing and felt really safe! Would definitely recommend to a friend and would definitely stay again!!” – 5 star review
“This place is clean and the host is quick to respond to any needs or questions. Would highly recommend anyone to stay here.” – 5 star review
“YRB was an excellent host from start to finish. His place was clean, comfortable with warming touches. YRB was very quick to respond and always made sure we felt very welcomed. Highly recommended! When we come back if this place is available, it will be our go too. Thanks so much YRB!!” – 5 star review
- Overall occupancy rates in January seem to be strong in my market. The overall price per night was also strong with a few nights be key around New Years.
- If you can’t handle a larger expense in any given month, you need to evaluate whether or not this is for you. I am fortunate to have set myself in a situation where I can cashflow a large expense or put it on a credit card if need be.
- Engaging with your guests and offering exceptional customer experience will help to get you reviews! Not only reviews, but 5 star reviews!
Don’t forget @TheYoungRetireeBy33’s 3 Core Principles:
1 – Your money should make money for you⠀⠀⠀⠀⠀⠀⠀⠀⠀
2 – Start early to realize the power of compound interest⠀⠀⠀⠀⠀⠀⠀⠀⠀
3 – Eliminate your largest expense by house hacking