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High-demand periods like holidays or peak tourist seasons can significantly boost your earnings.
Hidden costs are a big factor.
However, actual profits depend on occupancy rates, which can fluctuate seasonally.
After accounting for all expenses, including a mortgage, the net profit was around AUD $40,000.
Initially, I projected a monthly profit of $2,000.
However, after accounting for all expenses, my monthly profit averaged $1,350.
This 32.5% reduction in expected earnings was eye-opening.
Hidden costs significantly impact profitability, added Yang.
Cleaning fees averaged $150 per turnover and consumed 15% of my gross income.
Additionally, utilities increased by 30%, and I spent $200 monthly onamenities and supplies.
These expenses and Airbnbs 3% host fee reduced my profit margin to 55% of the gross income.
What most hosts agreed on is that you have to understand the margins that come with your Airbnb.
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