One thing that every vacation rental owner wants is an idea of how much they can expect to make. So to help you escape the unknown — and crunch the numbers — we created a rental income calculator that will give you an estimate.
FIRST, CALCULATE YOUR MONTHLY INCOME
This is approximately what you’ll make before you pull out extra expenses. Income can vary based on seasonality and other factors, so be sure to use averages for your calculation.
NIGHTLY RATE: Here’s where you enter what you expect to charge on average, per night. Get an overview of the local market by checking out our Vacation Rental Performance Reports, or browse listing sites to see how much other owners in your area charge.
NIGHTS BOOKED: Use the average number of nights you think you’ll book per month.
MONTHLY REVENUE: This number is your extra income before things like taxes, utilities, and property management fees.
NEXT, SUBTRACT YOUR EXPENSES
Just like any other income, the lower you can keep your expenses, the more money you’ll have in your pocket.
INSURANCE AND PROPERTY TAXES: Enter what you’ll spend on insurance, property taxes, and short-term insurance (optional, but highly recommended for peace of mind).
MORTGAGE PAYMENT: This is how much you pay for your vacation rental every month.
UTILITIES: Estimate how much you might pay for electricity, wifi, cable, AC, and heating every month. Be generous with the number.
LASTLY, FACTOR IN YOUR MANAGEMENT AND MARKETING COSTS
Property managers take up to half of everything you earn (30-50% on every booking). Slide the property management fee bar to the right to estimate these fees if you plan to use a manager.
Even if you choose to manage your own property, it still costs a separate fee to list on every single online marketplace. Find your marketing cost by adding together the percentages of marketplaces you think you’ll use.
- Airbnb – 3%
- HomeAway/Vrbo pay per booking – 5%
- HomeAway/Vrbo subscription – NA
- TripAdvisor/FlipKey – 3%
- Booking.com – 15%
If you’re like most homeowners, this section will take the most money out of your vacation rental income potential. It will probably also seem a little overwhelming — but it doesn’t have to. Because Evolve handles the hardest parts of property management for you, including listing your home on all of the sites for free.
So go ahead: try crunching the numbers again with 10% in the property management slider, and zero marketing costs. That’s the Evolve difference.
You may not be able to change your mortgage payments or HOA fees, but you can make sure you’re earning as much rental income as possible with your vacation home when you choose Evolve.