For those of us who rarely enjoy a proper vacation, the lingering fear is always of what will or won't occur once we've escaped from the grind for a few days. Will it be possible to completely relax and recharge? Or will we slip into deep state of lethargic bliss, making it nearly impossible to return to work as we know it?
I spent this past weekend slowly savoring all that is the coast of Massachusetts and it was exceptionally lovely. I explored a quiet beach trail on a wildlife refuge, devoured lobster rolls at a roadside picnic table, visited a petting zoo at a local farm, had a barbecue with family, and escaped to the tip of Cape Cod for a debaucherous couple of nights with my best friends.
We found a last minute Airbnb rental located within
walking stumbling distance of all the attractions, housed in the lower level of five bedroom cottage. I felt a twinge of jealousy when I met the seemingly care-free owner, just about to bike a couple of blocks to his summer bartending job. He explained that he rented the house out by the week for most of the summer, but filled in nights with Airbnb from time to time. The individual rooms ranged from $150-200 per night. Without knowing this guy's full financial picture, I was almost certain that he was making bank during the tourist season.
I didn't think much more of it until I was nursing a slight hangover on Monday morning over a mason jar of cold pressed coffee and Portuguese sweet bread French toast. Mmmmmmmm. And I began re-thinking my backyard airstream trailer Airbnb rental idea. Was I overlooking a blaringly obvious opportunity within my own house?
She's a brick…house
Want to know a little bit more about my place? A single level 1,400 square foot 1950s renovated ranch home, it was built into a hill making the first floor at the ground level outside of the front door. The unfinished basement is also a full 1,400 square feet with a single car garage and private back entrance. There are two large windows in the basement that allow for a unique amount of natural light.
I've always known that finishing the basement was an option, but now I had added motivation: using Airbnb revenue to fund the addition of a basement suite and generating side income.
+ House is located in a very trendy and popular neighborhood that is already highly sought-after on Airbnb.
+ Basement suite would have a private entrance.
+ Basement suite would include a decent-sized bedroom and bathroom.
+ Ample off-street parking.
+ Large amount of natural light.
+ Ability to provide parents (or other friends and family) a more private place to stay.
+ Ability to generate revenue once renovation has been paid off.
– Need to purchase a more compact washer and dryer.
– Moving the cat's litter box and food into the main part of the house – Eeeeeeek!
– Working around / with the single car garage in basement.
– Potential to be costly.
Revised (conservative) projections
Gross revenue: 10 days x $125 per night = $1,250.00
Less: 3% Airbnb host service fee = $37.50
Net revenue: $1,212.50
Note: A one-time $20 cleaning fee is built into this reservation. Airbnb also offers the option to add a security deposit.
Estimated monthly expenses:
$25 per month: utilities (including electricity, gas, water)
$40 per month: consumer disposables (refilling the coffee, local treat, soap, shampoo, etc.)
$160 per month: management* (8 hours per month at $20 per hour)
$200 per month: sales and occupancy tax (9.25% sales tax, 6% percent occupancy tax, and $2.50 room tax.)
*Tracking and paying yourself for the time it takes to run the business.
Estimated monthly profit: $787.50
To clarify, I'm definitely not giving up on my airstream trailer idea. I've just decided that I'd rather focus on this one first.
Readers: What do you think of my revised Airbnb rental plan? Have you had any experience renovating a basement?