🏖️ Vacation rental / Airbnb business — investment, profit & project report
Plan a vacation-rental portfolio: properties, average daily rate (ADR), nights booked, OTA commission, cleaning, break-even and 5-year profit. Currency-aware (₹/$/€/£/¥ — pick from the header dropdown). Includes downloadable project report in Word & PDF for loan applications.
📸Gallery
📋Eligibility — by region
🇮🇳India
- State Tourism Department registration where active (Maharashtra / Goa most active). GST > ₹20L turnover (Airbnb stays are NOT exempt above 7-day blocks).
- Municipal Trade Licence + Police verification of guests. Fire NOC.
🇺🇸USA
- State + city short-term rental licence (San Francisco / NYC strict). TOT (Transient Occupancy Tax) collection. ADA accessibility for new builds.
🇬🇧UK
- 90-day-per-year limit in Greater London (Section 25 Greater London Council (General Powers) Act 1973). Council STR licence + sleep / capacity rules.
🇪🇺EU
- Country STR licence — e.g. France Mairie + Numéro d'enregistrement + EU DAC7 reporting by platforms.
🌏Australia / Canada / others
- AU: State STRA / NSW STRA Register + Council DA.
- CA: Provincial + Municipal STR bylaws (Toronto / Vancouver strict).
🏗️Setup requirements (capex breakdown)
Edit any value to match your local prices — totals update live and flow into the calculator below.
| Item | Specification | Cost (₹) |
|---|---|---|
| Property fitout (3 units) | Furniture + linen + appliances + Smart TV + WiFi (₹6L × 3) | |
| Lease deposit | 6-month rent on 3 properties | |
| Branding + photography + Superhost listing fees | Professional shoots + Airbnb / Booking.com setup | |
| Property-management software | Hostaway / Guesty annual | |
| Initial supplies | Consumables + welcome amenities | |
| Working capital | 2 months running | |
| Total capex | ₹28,20,000 | |
| Year | Revenue | Cost | Profit | Cumulative |
|---|
⚠️Risks & mitigation
- Regulatory crackdown (Mumbai BMC / Paris Mairie / NYC): Diversify across multiple cities; keep a corporate-stay segment as fallback.
- Seasonal occupancy volatility: Use dynamic-pricing tools (Beyond / PriceLabs) + 60-day discount windows during shoulder season.
- OTA commission hikes: Airbnb has crept from 14% → 18% globally; balance with direct-booking funnel (own website + Google Vacation Rentals).
- Guest damage / chargebacks / RWA disputes: Mandatory ID + security deposit + Airbnb AirCover insurance; engage RWAs early.
💰Funding & support programs
🇮🇳India
- MUDRA Tarun: up to ₹10L for hospitality micro-enterprises.
- NABARD Tourism Promotion: for rural / heritage-property STRs.
- Stand-Up India: ₹10L–1Cr for women / SC-ST hosts.
- Ministry of Tourism NIDHI (Niche Tourism): for new tourism SMEs.
🇺🇸USA
- SBA 7(a): up to $5M for STR fitout + working capital.
- State Tourism grants: e.g. Visit California / Travel Texas.
🇬🇧UK
- Visit Britain Tourism + Start Up Loans for new hosts.
🇪🇺EU
- EU Tourism Recovery + country STR grants: e.g. Italy "Bonus Affitti" / Portugal Turismo de Portugal lines.
🌏Australia / Canada
- AU Tourism Australia regional development grants.
- CA Destination Canada tourism SME programs.
📄Generate project report (Word + PDF)
Fill in your details — defaults are pre-populated. Click Print as PDF for a browser-printable PDF or Download Word for an editable .docx file usable in bank loan applications.
❓FAQ
Should I own or rent the properties?
Most modern STR operators run a "rental arbitrage" model — sign a 3+3-year lease with the landlord at a premium rent and re-list nightly. Lower capex per property, faster scale, but eliminated in some jurisdictions (e.g. NYC).
What's a healthy nightly occupancy?
50–65% blended across the year is healthy. Tourist destinations swing 80% peak / 20% off-season; business-hub cities run a steadier 55–70%. Plan capex on 45% to stay safe.
How much does property-management software cost?
Hostaway / Guesty / Lodgify run ~$40–80/property/month and pay back via multi-OTA syncing, dynamic pricing and guest-messaging automation. Below 3 properties, an Airbnb-only spreadsheet works.
What's the OTA commission to budget?
Airbnb 14–18%, Booking.com 15–25%, MakeMyTrip 18–22%. Layer dynamic pricing + direct-booking website + Google Vacation Rentals to claw back 5–10 points of margin.
Is Airbnb legal in my city?
Check before scaling. NYC (Local Law 18) and Barcelona effectively bar non-primary-residence Airbnbs. Paris caps at 120 nights/year. Mumbai BMC has issued show-cause notices in 2024. Goa, Lisbon, Dubai are permissive.