How the numbers work
Cash flow = Booked nights × Rate + Cleaning fees − Fees − Cleaning − Fixed costs
Booked nights are the days in a month multiplied by occupancy. The number of stays depends on the average length of stay, and every stay brings a cleaning fee from the guest and a cleaning bill for you.
Example
At $180 a night and 65% occupancy, a home books about 20 nights a month. With 3-night stays and a $90 cleaning fee, revenue is about $4,150. After a 3% platform fee, $527 of cleaning and $2,700 of fixed costs, monthly cash flow is roughly $800.
Check local rules first
Many cities restrict or license short-term rentals, and some ban them outright in certain zones. Confirm the rules for the exact address before you buy.
Common questions
Where do I get nightly rate and occupancy?
Look at comparable listings nearby on the booking platforms, or use a market data service. Seasonality matters, so think in annual averages.
Why are fixed costs higher than for a long-term rental?
You pay utilities, internet, supplies and furnishing upkeep yourself, and insurance for short-term rentals usually costs more.