Find Your Break Even Number | Short Term Rental Management

The Short Term ShopAug 8, 202325m 7s692 viewsScore 75
Pricing & Profitability
intermediate
break-even analysis
occupancy rate
nightly rate calculation
short-term rental math
profitability
M

Summary

AI-generated

This video explains how to calculate your short-term rental's break-even number by considering occupancy rates and monthly expenses. Hosts will learn to determine their minimum viable nightly rate to ensure profitability over a 12-month period.

Key insights

  • Pricing strategy should consider market demand and seasonality; a low price during peak season might attract undesirable guests ('riff raff'), while the same price in the off-season may attract good guests.

Mistakes to avoid

  • Setting prices too high during slow seasons can lead to empty calendars and missed revenue opportunities; it's often better to lower prices to secure bookings and reviews.

Tools & resources

  • The Short Term Shopservice

    The Short Term Shop offers resources and training for short-term rental investors, including a masterclass and a free download on finding STR properties.

Frequently Asked Questions

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial