The vacation rental industry is rapidly evolving, and Airbnb has become a popular alternative to traditional hotels. For investors looking to enter the real estate market, Airbnb rental business offers a low-cost entry point. It is crucial to have a well-thought-out financial plan prepared before deciding whether to start renting out your property’s rental units.

This financial model excel template prepares a business plan for renting out units in Airbnb by implementing a bottom-up approach. It begins by determining up to 100 rental units, categorized to up to 5 rental unit types and their respective default startup costs, such as capital expenditures and debt financing, to fund those costs.

Unlike the usual rental market, investors are not required to buy a property outright to advertise it on Airbnb. Numerous first-time investors begin by renting out their residences or renting out properties intended solely for vacation rentals. Users have the option to determine as well whether they will be renting out their available property or renting a unit from others.

Investors can grow their rental business at their own pace using this flexible Airbnb business model. They can begin with one or two properties and slowly add up to 100 rental units as they acquire experience and establish their reputation on the platform.

Other key assumptions include sources of income and operating costs. By translating these assumptions into a thorough monthly 10-year financial plan, the business owners can comprehend how their business should perform financially over the following years.

Additionally, the model enables the determination of the key performance indicators such as monthly rental yield and key relevant financial metrics, including average cash-on-cash yield, minimum funding required, and the funding period.

Airbnb Rental Spreadsheet Template Structure

This Excel template has instructions and formulas that are simple and easy to follow, which allows users to run simulations by varying the input assumptions. The elements of this financial model template are enumerated below:

Instructions and Terms contain the cell color codes, instructions guiding the user on how to work around the workbook, and the terms and abbreviations used.

Executive Summary includes charts for a better understanding of the consolidated financial prospects of your Airbnb Rental Units business model and to provide answers to the following questions:

How much are the startup costs per AirBnB rental unit?
Is the Airbnb rental business profitable?
What are the different Airbnb rental units available for rent?
Among the rental units, which Airbnb rental property profits the most?

This spreadsheet includes a 10-year summary of the following:

Projected Financial Statements overview – Income Statement, Balance Sheet, and Cash Flows Statement.
Levered and Unlevered Free Cash Flows calculating key financial feasibility metrics such as the Average Cash on Cash Yield, Payback Period, Net Present Value (NPV)
Uses and Sources of Funds and Debt Financing

Detailed Summary presents in charts and tables the consolidated yearly and monthly overview of the Airbnb Rental business model.

Rental Unit Summary presents the selected Airbnb rental unit’s yearly and monthly financial projects and the key relevant financial metrics.

General Assumptions that are necessary and applicable in the business plan of an Airbnb Rental Financial Model are presented in this worksheet.

General Settings
- CurrencyIncome Tax RateDiscount RateInvestment PeriodNet Working Capital
- Cost Inflation Rate
Airbnb Rental Business Assumptions
- Airbnb Rental Units – Up to five (5)Rental Unit Option – Owned or Rented
  - Purchase Cost if OwnedMonthly Rent ExpenseRental Unit Area
  Rental Assumptions
  - Average Daily Rental FeePrice InflationPreparation Period – Number of MonthsOperation Period – Number of YearsOperating Days per Month
  Occupancy RateSeasonal Factors – Average Daily Rental Fee and Occupancy RateCleaning Fee
  - Average length of StayAverage Fee per End of Stay – Fee per Cleaning or Percentage of Rental FeeCleaning Fee Type – Fixed Fee or PercentagePayor – Operator (recognized as an expense) or Guest (recognized as income)Cleaning Fee Cost – Recognized in direct costs, regardless of the payor of Cleaning Fee
  Other Income
  - Income SourceUtilization Rate – Percentage of GuestsAverage Fee per Guest
  Direct CostsSupplies Expense
- Operating Expenses
Default Capital Expenditures Assumptions
- CAPEX ItemsDepreciation Periods
- Initial CAPEX Investment Amount and Allocation

Users have the option to determine when CAPEX will be initially invested:

First Month – In the beginning of the preparation period only
Equally Monthly – Equally throughout the preparation months
- Maintenance CAPEX – Annually or Semi-annually

Cash Reserve
Debt Financing
- Debt Amount – Percentage (%) of CAPEXDebt PeriodDrawdown Schedule – First Month, Equally Monthly or Investment of CAPEX BasisPayment Term – Annually or MonthlyInterest Rate
- Debt Repayment – Repayment starts at a specified month/s after the preparation period.
Equity Financing
- Injection Schedule – First Month, Equally Monthly or Investment of CAPEX Basis

Rental Unit Assumptions contain detailed assumptions for each of the rental units. Currently, all the assumptions are linked to the default General Assumptions sheet. Users can modify the data per Rental Unit.

List of Rental Units – Up to 100 rental units, depending on the model version
Rental Unit Type
Included in the Consolidated – Yes or No
Property Address and City Location
Rental Market – Population, Visitors, # of Airbnb, Inhabitants, and Visitors per Airbnb
Rental Unit Time Plan
- Start of Preparation – Year and MonthPreparation Period – Number of MonthsStart of Rent
- Operation Period – Number of Years
Rental Unit Option
Capital Expenditures
Cash Reserve
Debt Financing
Rental Assumptions
Cleaning Fee
- Fee Type – Fix Fee or Percentage
- Payor – Guest (Income) or Operator (Expense)
Other Income
Direct Costs
Operating Expenses

Financials worksheet contains a comprehensive and detailed monthly 10-year forecast of the selected Rental Unit:

Financial Statements – Income Statement, Balance Sheet, Cash Flow Statement
Forecasted Property Valuation
Unlevered and Levered Free Cash Flow
Funding Required
CAPEX Schedule
Debt Schedule Summary
Rental Income
Cleaning Fee
Other Income
Direct Costs
Operating Expenses
Key Performance Indicators
- Average Income StatementRental Income Drivers
- Rental Yield (Rent per sqm)
Financial Metrics

Start Renting out your Airbnb Properties now!

This Airbnb Rental worksheet template offers users features that help them decide whether renting out units is financially viable by analyzing the effects of various scenarios on the feasibility of the business plan. With the aid of financial analysis and significant KPIs, potential business owners will be able to determine whether investing in an Airbnb Rental will be profitable.

Advance your financial planning and forecasting for your Airbnb rental unit business. Get your copy today and begin making data-driven decisions with ease.

This financial model template comes pre-filled with an example forecast of an AirBnB rental business. The forecast can be easily changed by altering the assumptions indicated in blue and light blue.

The models, current version 1.2, are available in three fully editable Excel versions: