Tim and John walk you through calculating simple ROI (Return on Investment) for a vacation rental or Airbnb investment. This is simple ROI, note there are other ways to calculate ROI for an airbnb property.
Calculating simple Airbnb ROI (Return on Investment):
Monthly expenses - tally up your monthly expenses (electric, water, pool, maintenance, streaming, cable, etc.)
Divide annual fees by 12 to get the monthly number
Calculate per rental day expense by dividing monthly expense by number of days in the month
If you are charging $500 per night subtract commissions paid to OTA and to property manager
Subtract daily cost of rental (For example $238) to get net income
Annualize this number and divide by the cost of your airbnb investm ...