Usually, those who start by doing their own Airbnb management tend to leave out some costs that, although not always obvious, make a lot of difference in the final accounts. These costs are valid both for those who already have a property and want to rent it at the short renting market, and for those who are still thinking of investing in a short-term rental house – so you can calculate the expected return on investment.

You should then consider several factors to make these calculations, and we will focus on the costs associated with managing Airbnb accommodation (if you are thinking of investing in a property you should also take into account acquisition costs and annual taxes, such as IMI, for example).

Taking into account an occupancy rate of 50% (a rate that can vary a lot from area to area, with more touristic areas having a slightly higher value and more residential areas having a much lower value), we will consider that the average value of the night will be 100€.

Occupancy rate – 50%.
Price per night (average) – 100€
Annual gross value: 18 250€
Gross monthly amount: 1520€

Related article: How to choose a Airbnb management company in Portugal

Starting from this annual gross amount, you should consider the following associated expenses:

1. House bills

The first obvious expense is the house bills. These bills can vary greatly from house to house, mainly according to size, maximum guest capacity and occupancy rate. You should consider the costs of electricity, water, gas, television service, internet and condominium.

2. Tax

As in any service provision, throughout the year you will have to pay VAT – 6% (if it exceeds 10,000€ of gross income) and IRS on all amounts received. The IRS rate will vary according to the annual income.

Related article: Short renting in Portugal: what taxes do you have to pay?

3. Site commissions

To rent your house and reach a largest number of potential guests, you should list it on the main booking platforms. These platforms are usually free, i.e. they do not cost anything to place the ad online, but they do have commissions associated with each booking ranging from 3% to 20%.

Related article: AirBnB, Booking ou Homeaway? Find out the differences.

4. Logistics

In this field arise all the hidden costs associated with Airbnb management, usually more difficult to calculate, such as kilometers travelled to manage the house (every kilometer should be counted each time you visit the house), hours spent on check-ins and check-outs, booking management, management of all communication with guests (telephone contacts abroad), cleaning and laundry costs – changing sheets and towels and cleaning the whole house. These costs can vary from reservation to reservation and depend on the type of service you provide to your guests (welcome kit, maps, city information, etc.).

Now you can calculate the net income of your property and know exactly how much you can earn with your Airbnb. Check the Feels Like Home pricing and discover all the services included in our commission.


Guide short-term rental Portugal