2-bedroom luxury condo or townhouse, $450/night (estimate based on Vrbo and Airbnb listings).
You block off 15 days each year for your own vacation time, leaving a possible 350 nights for rent. If your property is booked for half of that time (a moderate assumption, and below the 71% occupancy rate) you would make $78,750 gross annual revenue.
Full villa, 4+ bedrooms, $1,500/night (modest estimate based on Vrbo and Airbnb listings). You block off 45 days for personal use, and your property is booked for 175 nights per year, earning you $262,500 in gross annual revenue.
When exploring how to make money on a vacation rental property, you’ll need to calculate more than just gross income minus expenses. Your own time, energy, and mental load should factor into your plans, and this is where the comfort and security of rental property management can make sense financially and overall.
The Bay Area is a complex market due to varying local regulatory restrictions. Some cities blocked short-term rentals altogether while others only allow it to take place in your primary residence. Then again, certain parts of the Bay Area are open to tourists and allow homeowners to make their house available full time as long as strict rules are followed, noise is monitored, and proper controls are put in place.
With the right management firm helping you navigate the local requirements, making your home or house available to short-term renters can be a very attractive proposition and a great way to finance an extended stay abroad or to split your time between two residences.
Contact us to talk about your specific situation and options to rent out your Bay Area home.
