Having spoken with a management company, they predict we could bring in 225+/night with an average occupancy closer to 60%. To be safe, we’re going to use 50% occupancy and an average nightly stay of 175/night. With an average nightly rate of $175 and an estimated occupancy rate of 50%, each unit is expected to be booked for approximately 182 nights per year (50% of 365 days).
Cleaning costs are additional expenses that are paid by guests – which would be an additional $75/guest.
Annual Gross Revenue would be:
$225 at 50% occupancy = $40.5k per year
If you used a management company, like I talked to, they’d take 10% of the gross revenue.
Year 1 fixes – 30-40k
– Level house
– Redo Floors – 5k
– Paint interior walls – 5k
– Paint exterior – 4k
– Create outdoor shower 2k (Unique amenties like this are the key)
– Clean up the trees – 3k
– redo the front porch – 1300
– Do the foundation work 2000
– Add porch with on side near kitchen – 5k
– Landscaping upon entry 2k
Year 2 – Cabin Rental Revenue Projection Net
List as a premium tiny-house with extras, including a farm tour. Average nightly rate: $130
Occupancy rate: 50%
Gross Revenue – $23,400/year
Year 1 Price to build – 21k
– Tent – 1400 (here)
– Bed, linens, side tables, linens. (1200)
Platform for the tent (300 sq/ft) – 6500 for materials. and 3.5k for build. 10k.
– Wood fired hot-tub – 6k
– Landscaping the area to remove sticks, etc – 2k
Year 2 – Glamping Revenue Projection Net
List as a budget canvas tent but might upgrade to a “hideaway” in the future (which would bring in about 10k more a year). Occupancy rate: 50%
Cleaning costs and landscaping per year are about 4,500.
Annual Net Revenue: $7,800 per year
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