How much can I make renting my house on Airbnb?

Why online estimates disagree

Put the same address into three income calculators and you will often get three different answers. They usually start from listing data in your area and assume your home will perform like an average one nearby. Your home isn't average: it has its own layout, photos, reviews, rules and host.

Two more gaps make estimates look better than reality. An asking price isn't a booked price, since a listing can show a high rate for nights nobody books. And revenue isn't income: fees, cleaning, supplies, utilities, repairs, insurance and taxes all come out before you see a profit.

A short-term rental can earn more than a long-term lease or less; it also takes more work and money to run, so compare the two on what you would actually keep.

What drives revenue

• •Location and demand. Why people come to your area: beaches, mountains, a hospital, a university, a convention center, events, business travel. Each brings different guests in different months.
• •Size and sleeping layout. How many guests the home sleeps comfortably, and how many bedrooms and bathrooms it has, decide which comparable listings you compete with.
• •Season. Peak months, shoulder months and slow months can look very different. A beach town's summer tells you nothing about its winter.
• •Design, furnishing and photos. Guests choose from photos first. A well-furnished home with good photos competes with the better listings nearby, not the average ones.
• •Reviews. A new listing has none, so the first months are usually slower than the ones after.
• •Calendar rules. Minimum stay, advance notice, preparation time, discounts and the nights you block for yourself all change how many nights you can fill.
• •Local rules. A cap on nights a year, a primary-residence rule or a minimum stay set by the city can limit revenue more than anything else; check whether short-term rentals are allowed at your address before you do any math.

Research comparable listings yourself

1. 1.Define your comparable listings: same area, same number of bedrooms and guests, similar amenities such as parking, a yard, a pool or pets allowed, and similar quality. Aim for ten or so.
2. 2.Search as a guest for different dates: a weekend next month, a weekday in your slow season, a holiday and a big local event. Note the nightly price and the total each listing shows.
3. 3.Look at their calendars over the next few months. Blocked nights may be booked or may be the host's own, so read them as a rough sign, not a fact.
4. 4.Read their reviews: how many, how recent, and what guests praise or complain about. That tells you what your listing has to beat.
5. 5.Once your listing exists, use Airbnb's similar listings view in your calendar. It shows what guests paid for similar listings on the nights you select as well as what open listings ask. It isn't shown while Airbnb Smart Pricing is on.
6. 6.Cross-check with people who know the area: local hosts, cleaners who turn over rentals nearby, and host groups. Paid rental-data tools can help too; ask how they collect their data before you trust their numbers.

Build a month-by-month picture

Work in months, not one yearly figure. For each month, write down a nightly rate from booked prices of your comparable listings, the number of nights you can realistically fill, and the nights you will block for yourself or for repairs. Rate times nights gives you that month's booking revenue. Add the months up for the year.

Then do it three times: a slow year, an expected year and a good year. Use the slow year to decide whether you can afford the home. Plan for slower first months while you collect reviews, and don't multiply your best month by twelve.

The costs to subtract

• •Airbnb's service fee, deducted from your payout. Check the fee structure on your account; Airbnb is moving home hosts to a single fee that the host pays.
• •Cleaning and laundry for each turnover, unless the guest cleaning fee covers it. See what to pay your cleaner per turnover.
• •Supplies and restocking: toiletries, paper goods, coffee, linens and towels that wear out.
• •Utilities, internet and any streaming services you provide.
• •Repairs, upkeep and replacing what guests break or wear out.
• •Furnishing, photos and setup before the first booking.
• •Insurance that covers paying guests, plus permit and registration fees.
• •Taxes: occupancy tax where Airbnb doesn't collect it for you, and income tax on what you earn. Ask a tax professional what applies to you.
• •Mortgage, property tax and HOA dues if you would not pay them anyway.
• •Your time, or what you would pay a property manager or co-host to run the home for you.

Mistakes to avoid

• •Using asking prices instead of booked prices.
• •Comparing your home with nicer, bigger or better-reviewed listings.
• •Planning on your peak season all year.
• •Forgetting gap nights your minimum stay leaves empty between bookings.
• •Leaving out setup costs because they are paid once.
• •Doing the math before checking whether your city allows short stays at your address.