Back to: Essential Beginners Guide To Airbnb
When thinking about the potential profits, make sure you take into account all of the possible expenses that will come your way. Taxes are essential to keep in mind, and you may wish to hire a tax advisor to help in the beginning. Some of the other common losses include:
- Additional insurance
- Cleaning services
- Household items like toilet paper
- New plates and silverware
- Coffee machines
- Utility bills
- Third party services
- Urgent repairs
If possible, start an emergency fund where you can have money ready for those times when the unexpected happen. If you get a call about a leaking pipe in the middle of the night, you’ll have to pay immediately to fix the problem. These urgent problems are also the most expensive since you’re paying a premium for fast assistance at a late hour. Have money saved up, keep receipts for your taxes and insurance, and remember to subtract any losses from your expected profit margins. By doing so, you’ll have a more realistic expectation as to what a profitable year looks like.
