Airbnb Business Plan

How to Write Up an Airbnb Business Plan: Free PDF Template

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Having a well-crafted Airbnb business plan is the best way to set your business up for success from the get-go. It outlines your business goals, operation plans, and the timeline for accomplishing all of this. After all, you don’t want to be flying blind when it comes to the vacation rental industry.

Try not to get too overwhelmed: it is easier to write a business plan than you may think. This article gives you a rundown of why having an Airbnb business plan is important, the tips and tricks to writing a successful one, and our free Airbnb business plan template to download.

Don’t see the form to download our Airbnb Business Plan? Click here .

Why do you need an Airbnb business plan?

Thinking it isn’t necessary to have a business plan? Well, we hope we can change your mind. A well-thought-out Airbnb business plan is like the road map you will rely on to steer your business into the future. Here are just a few reasons why you should consider writing a business plan for your short term rental property.

Helps you stay on track towards your goals

It is easy to get sidetracked and fall down unnecessary rabbit holes while trying to grow your business. Though it is good to entertain new ideas, getting clear on your goals and having them in writing will make sure you don’t deviate too far from what you truly want to achieve. It helps you continue to move forward and motivates you to think of new goals too. Plus, it’s a tangible way to celebrate your achievements… kind of like having an accountability partner but on paper.

Airbnb Business Plan Goals

Prompts you to make important decisions

When you sit down to write your Airbnb business plan, you will have to reflect on a lot of different questions about your goals, operation strategy, competition, and future guests. You may find some of the difficult decisions you’ve been putting off coming up in this process… now is the opportune time to face them head-on. Don’t sweat this too much. You can always come back to your business plan and adjust as you go, it’s an ever-evolving document!

Gives you the framework to communicate your business to others

As much as we all like to think we can do everything on our own, you will eventually arrive at a point of needing to involve someone else. It could be a business partner, an investor , an assistant, etc. When that time comes, you need to be able to clearly and confidently communicate what you’re doing and where the business is headed. It wouldn’t make any sense to order an Uber and not tell the driver where to go, right?

Not to mention that having an Airbnb business plan saves you time and money by not having to explain every nuance of the business to the person you’re bringing on board. Forward the document and let it speak for itself first before answering more in-depth questions.

Tips & tricks to write a successful Airbnb host business plan

Now you know why having an Airbnb management business plan is so important, but how do you go about writing one? Grab a cup of coffee and pull up a chair, let’s go through it together.

Brainstorm a mission statement

Contrary to popular belief, mission statements are not reserved for major corporations. Before you even start writing the plan itself, consider writing a mission statement for your Airbnb business. A mission statement is simply a concise explanation of the business.

Airbnb Business Plan Ideas

Think about how you would explain what you’re doing to a friend at a cocktail party without losing their attention. What vision do you have for the business? Why is this important to you? What value do you provide to your customers? Take some time to reflect but keep in mind it’s meant to be quick and to the point.

Recognize your audience

Who will be reading your business plan? The language you would use with one audience may not be appropriate for a different audience. You might even consider writing different versions of your Airbnb management business plan for different audiences. For example, you could have one plan geared towards investors that utilizes more formal terminology and one plan for a future business partner that takes a more casual tone.

Tap into the power of self-reflection

Starting an Airbnb business is a huge undertaking! Making sure you are ready to take it on is just as important as having a sound business plan.

Take inventory of what skills you already bring to the table and what things you will have to learn along the way. Are there things you can/should outsource to lighten your load? Do you feel prepared to take the next step with your Airbnb business?

Acknowledge any uncertainties now before you jump off the deep end of being an Airbnb host. It’s a great way to be honest with yourself and boost your confidence!

Be realistic

Should you push yourself to think big? Absolutely! Should you set unrealistic and unattainable business goals? Not so much. It’s all about striking a balance between dreaming big and keeping your feet on the ground. Take into account and prepare for what things might go wrong so you aren’t blindsided later on.

What to include in your Airbnb business plan

Let’s get to the most important step; actually writing your business plan! Take a look at our list of what things to include in your Airbnb business plan and stay tuned for our free downloadable Airbnb business plan template.

Write your executive summary

An executive summary is just a few short sentences that sum up your Airbnb business, and include all of the most important information you want to get across to your guests and others. This is so that anyone can read the first page of your plan and know, at a glance, what your business entails.

Airbnb Business Plan Template

To begin, it might be easier to start by asking yourself the famous five W’s: Who? What? When? Where? Why? This will help you get in the key information, without panicking that you’re missing something.

Ask yourself the following questions:

This will help you outline what information you would like to include in your executive summary, which you can then rewrite to make sure it sounds professional and eye-catching to the reader. When in doubt, take a look at other Airbnb business plans from other hosts for direction.

Draft an operations plan

The operations plan is an insight into how you are going to run your new business on a day-to-day basis. It will take into consideration things like whether you will be hiring any staff, what standards you will set, how you will keep track of inventory , and other administrative duties.

This is going to be one of the most straightforward parts of your business plan, as chances are, you already have all of this planned in your head.

Here are just a few helpful prompts and examples in case you get stuck:

Detail your business goals

Your executive summary is going to give you a broad overview of where your business is going, but the goals section will help to further solidify this vision. Are you satisfied with a couple of bookings a month or are you expecting a full reservation calendar by the end of the year? You’ll need to set goals to help pin this down.

It might sound elementary, but setting S.M.A.R.T. goals will help your business to achieve success. Is your business goal smart? Is it measurable? Attainable? Relevant? Time-based? Setting good goals is the basis for any successful Airbnb business plan.

Get clear on your Unique Selling Points

As with any business, you’ll need to state why customers are going to choose your business over the competition. Consider how your vacation rental will provide a guest experience that the other properties in your area simply can’t provide.

Airbnb Unique Selling Points

In this section, you should aim to explain the Unique Selling Points (USP) of your Airbnb business, outlining the unique characteristics and offerings it will bring to the existing market.

Performing a short analysis of your company and finding your USP is much easier than you think. All it takes is asking yourself a few simple questions to figure out how it is you’re different (and better) than other Airbnb properties out there. After all, once you are confident in your strengths, your guests will be, too!

Here are a few examples:

Define your ideal guest

Your guests are how you are ultimately going to make your money. That’s why it’s so important to understand them and target them properly.

In your plan, be sure to create different buyer personas based on the types of guests you want to attract. This is like a profile of your ideal customer, from their age to their income. You should try to make it as detailed as possible because this will help your business grow later on. These buyer personas will be used time and time again in all aspects of your business to help you achieve more bookings.

Here are some short, key questions you should be asking yourself about your ideal guest:

Sometimes old cliches can be true – if you fail to prepare, you prepare to fail! Through this, you’ll be able to understand things like common complaints you will face, likes and dislikes they have in a property rental, and amenities the travelers will expect to find within the property.

If your ideal guest is a young digital nomad , you’ll want to focus your attention on having fast, reliable WiFi, a designated work area, and maybe suggest the best cafes to work from in the area. Whereas if your ideal guest is a big family with little kids, you want to make sure the property is child-safe .

Understand your competition

As well as focusing on your own Airbnb business, one element of your business plan is carrying out some competitor research. Take a look at the market to find your direct competitors and analyze them to see how your business can thrive.

With competitive analysis, you want to look at all of the people who may win a booking over you and use what you find to put yourself on top.

Outline a marketing plan

Explain which strategies you have decided will be best to use when targeting your key markets to achieve bookings. Think about both offline and online marketing , as well as any campaigns or promotions you plan to run externally.

Your marketing plan is basically just how you’ll advertise your business to customers and how you’ll generate bookings. This is when your buyer persona (that you created earlier) will come in handy. If you know the people you’re trying to target, you’ll know what type of marketing will be suitable for them. This is where you begin to build your brand .

Airbnb Marketing Plan

Here are some questions that can help you sketch out your marketing plan:

Spell out your financial plan and goals

Think about how you are going to finance your new business. Of course, you’ve asked yourself this question many times, ‘How am I going to afford this Airbnb business?’ Will it be self-financed or are you planning on taking out a loan ? Do you have no plan to spend any money because you’re simply renting out a spare bedroom?

These questions form your financial plan . It is basically just writing out, ‘Well, how am I going to pay for all of this?’ As we all know, money doesn’t grow on trees. Note down your estimates of expenditure and projected income for the first five years. As with anything in life, proper budgeting and planning your finances will prevent any stress in the future, and it will mean that your business is ready to thrive.

So, what kind of information makes up a financial plan?

Define your milestones and where the business is headed

Write down explicitly what your plans and goals are for your business, plus what key milestones will help you achieve these targets. When you start any project, whether it is going back to university, losing weight, or starting a business, it is really important to track your project and also to track your progress. This section will be useful to refer back to and to ensure you’re on the right track.

For your Airbnb business, here are some good milestones to use:

Mistakes to avoid when writing an Airbnb business plan

We’ve talked about things you should include in your plan, but what mistakes should you avoid? Thankfully, your business plan is an ever-evolving document so you don’t have to stress too much about making it perfect on the first try. It’s important just to get your thoughts down on paper first before refining and adjusting as necessary. That said, here are a few mistakes you should avoid when writing your Airbnb business plan.

Don’t be too vague

After all, the point of an Airbnb business plan is to give your business a sense of direction. Avoid making big, vague claims that don’t have quantifiable ways to measure success. It will make it harder to keep the forward trajectory of your business and identify in which areas you are succeeding and where you can improve. Your future self will thank you for being specific about your goals and plans.

Airbnb Business Plan Mistakes

Also, don’t be too specific

We know, we just told you the exact opposite, but hear us out. If you get too specific in your plan (whether that’s in how you want to operate, who your ideal guest is, etc) you don’t leave yourself very much wiggle room. Yes, you want to have a clear direction to launch your business into the future, but you don’t want to close yourself off to other possibilities.

We all know just how much life can ebb and flow over time. Be firm about the destination (your business goals) but flexible about the journey (how you will achieve those goals). As you can see, there is a sweet spot somewhere in there.

Download our free Airbnb business plan in PDF

To help you get started, we’ve created an Airbnb business plan example in PDF that you can download and customize for free. The Airbnb business plan sample was designed with three specific pain points in mind:

Fill in the form below to download our Airbnb business plan template in PDF and get your vacation rental business off to a good start!

Disclaimer: Lodgify is an Airbnb Preferred Software Partner. This post, including any claims or statements within, is solely from Lodgify and is not endorsed by, directly affiliated with, authorized, or sponsored by Airbnb in any way.

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rental arbitrage business plan template

Airbnb Business Plan Template

Airbnb business plan.

You’ve come to the right place to create your own Airbnb business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Airbnb businesses.

Airbnb Business Plan Example & Template

Below is an Airbnb business plan template and sample to help you create each section of your own business plan.

Business Overview

Fun Family Vacation Rentals (FFVR) is a startup AirBnB business based in Kissimmee, Florida. The company is founded by Mark Martinez, an experienced AirBnB manager who has amassed millions of dollars for other rental owners over ten years while working at Sunny City Rentals in Orlando, Florida. Now that Mark has garnered a positive reputation for securing high net profits for other rental owners, he is ready to start his AirBnB business renting out properties of his own. Mark is confident that his ability to effectively manage properties and customer relationships will help him to quickly acquire new customers who are looking for a fun AirBnB option for their family vacations. Mark plans on recruiting a team of highly qualified professionals, with experience in the hospitality industry, to help manage the day-to-day complexities of AirBnB business rentals – marketing, renting, financial reporting, maintenance, and fee collection.

FFVR will provide a comprehensive array of services and amenities for all guests at each of its properties. Fun Family will be an AirBnB business offering a home away from home for families vacationing in the Kissimmee area, with each property being fully equipped with household essentials to ensure every guest’s needs are being met. FFVR will be the ultimate AirBnB business choice in Kissimmee for being family and pet friendly, providing top notch customer service, and having management nearby at all times to efficiently handle any issues that come up.

Product Offering

The following are the amenities and services that Fun Family Vacation Rentals will provide for each of its AirBnB properties:

Customer Focus

FFVR will target all vacationers in Kissimmee, Florida as one of its key markets. Fun Family will target vacationers looking for comfortable and affordable AirBnB options near all of Florida’s best theme parks and tourist attractions. The company will target families with children and people with pets. No matter the guest, FFVR will deliver the best communication, customer service, and amenities as part of its full-service business.

Management Team

FFVR will be owned and operated by Mark Martinez. He recruited an experienced office administrator, Anthony Miller, to be the Office Manager and help run the day-to-day operations of the AirBnB business, while aiding in the writing of a winning AirBnB business plan.

Mark Martinez is a graduate of the University of Florida with a Bachelor’s degree in Business Administration. He has been working at a local AirBnB business for over a decade as a property manager.

Anthony Miller has been an office administrator at a local AirBnB business management company for over eight years. Mark relies strongly on Anthony’s diligence, attention to detail, and focus when organizing the logistics of properties, schedules, and guests’ requirements. Anthony has worked in the industry for so long, he understands all aspects required to manage a successful AirBnB business.

Success Factors

FFVR will be able to achieve success by offering the following competitive advantages and unique selling points:

Financial Highlights

FFVR is seeking $800,000 in debt financing to launch its AirBnB business. The funding will be dedicated towards purchasing a third rental property (the owner already owns two other AirBnB properties that will be used for the business). Funding will also be dedicated towards renovating, cleaning, and stocking each unit with essentials and supplies. Additional funding will go towards insurance, marketing expenses, and three months of overhead costs to include payroll of the staff and rent for the main office. The breakout of the funding is below:

The following graph below outlines the pro forma financial projections for FFVR.

rental arbitrage business plan template

Who is FFVR?

FFVR is a newly established AirBnB business in Kissimmee, Florida. FFVR will be the most reliable, cost-effective, and efficient choice for guests in Kissimmee and the surrounding areas. Fun Family will provide a comprehensive menu of rental services and amenities geared towards families and people with pets. The company’s full-service approach includes daily housekeeping and on-call maintenance, personalized amenities and accommodations, and family and pet friendly premises.

FFVR will be able to manage all guest requests and requirements to ensure each customer’s stay is memorable, fun, and free of any hassle. The team of professionals are highly qualified and experienced in customer service, concierge accomodations, and guest relations. FFVR removes all headaches and issues of the guest and ensures all issues are taken care off expeditiously while delivering the best customer service.

FFVR History

Fun Family is owned and operated by Mark Martinez, a former vacation homes rental manager who has a Business Administration degree from the University of Florida. Mark has worked for a large vacation company and managed a large portfolio of AirBnB rentals in Florida. Mark’s tenure with the vacation company has given him the skills and knowledge required to start his own AirBnB management company. Mark has begun readying his two owned rental properties for the first guests and looking for a third property to purchase.

Since incorporation, FFVR has achieved the following milestones:

FFVR Services

The following are the services and amenities that FFVR will provide for each of its AirBnB properties:

The market for vacation and AirBnB rentals is forecasted to grow at a compound annual growth rate (CAGR) of 15.5% from 2021-2016, reaching an estimated USD $168B over the next five years. The rebound in tourism after the pandemic combined with the growing popularity of short term rental homes versus hotels or other vacation accommodation options is a driving factor for overall market growth in the United States.

Market trends in the vacation and AirBnB rental industry include business/leisure tourists, longer stays, and an increase in families vacationing together over the holidays. The average number of stays that are between 21-30 days long have increased significantly last year with families staying an average of 68% longer than in previous years. A growing number of families are also looking for pet-friendly options, with 70% being pet owners and 68% traveling with their pets. Industry operators can maintain an advantage by equipping their properties with the latest technology, unique amenities, and family/pet-friendly environments.

Demographic Profile of Target Market

FFVR will target all vacationers in Kissimmee, Florida. Fun Family will target vacationers looking for comfortable and affordable AirBnB options near all of Florida’s best theme parks and tourist attractions. The company will target families with children and people with pets.

Customer Segmentation

FFVR will primarily target the following customer profiles:

Direct and Indirect Competitors

FFVR will face competition from other companies with similar business profiles. A description of each competitor company is below.  

Rent Kissimmee

Rent Kissimmee is an AirBnB business with multiple properties available in Kissimmee, Florida. Located near key tourist attractions and resorts, Rent Kissimmee offers the most conveniently located properties in the area. The company provides transportation to and from the airport, theme parks, water parks, and resorts. The extensive list of services includes concierge, transportation, event tickets, contactless check-in, and daily housekeeping. Their professional approach appeals to both families and business travelers alike

Rent Kissimmee’s promise is to deliver the best customer service with honesty and integrity, and 24/7 availability of the team. Rent Kissimmee’s team of experienced professionals assures the properties are in perfect condition, ensuring each guest’s stay is perfect.  

Florida’s Best AirBnB

Florida’s Best AirBnB is a Kissimmee-based vacation rental company that provides outstanding customer service for all of its guests. Florida’s Best AirBnB takes the risk out of renting a vacation home by providing the best properties at the lowest prices. The company provides a full suite of amenities and add-ons like WiFi, housekeeping, swimming pool, board games, full-stocked kitchen and bathrooms, and washer/dryer combos in all homes. The owners of Florida’s Best AirBnB are property management professionals so they understand how they should be maintained and managed. Guests can depend on personalized services and knowledgeable concierge staff that can provide expert advice on local attractions, restaurants, and events. By choosing Florida’s Best AirBnB for your next vacation, you can rest assured you will have a fun and relaxing stay without the hassle of dealing with the issues that can come with substandard property management.  

Best For Pets Rentals

Best For Pets Rentals is a trusted Kissimmee AirBnB business that provides superior service to tourists and vacationers in Kissimmee and the surrounding areas. Best For Pets Rentals is the number one choice for families looking to bring their pets with them on vacation. Most types of pets are welcome at all of the company’s properties including dogs, cats, rabbits, other small mammals, and birds. Best for Pets Rentals has staff experienced in pet care who can pet-sit for you while you and your family are out at the theme parks.

Competitive Advantage

FFVR will be able to offer the following advantages over their competition:

Brand & Value Proposition

FFVR will offer the unique selling points to its guests:

Promotions Strategy

The promotions strategy for FFVR is as follows:

Social Media Marketing

The company will maintain an active presence on social media platforms including LinkedIn, YouTube, Twitter, Facebook, TikTok, and Instagram. The goal of the social media strategy will be to grow the company’s customer base through low-cost user engagement.

Professional Associations and Networking

FFVR will become a member of professional associations in the vacation rental industry such as theVacation Rental Management Association (VRMA), Florida Vacation Rental Managers Association, and VRM Intel. The company will focus networking efforts on expanding its customer network.

Print Advertising

FFVR will invest in professionally designed print ads to display in programs or flyers at industry networking events, and tourism publications.

Website/SEO Marketing

FFVR will create and maintain an attractive website that will be well organized, informative, and list all services and amenities available at each property.

The company’s in-house marketing director will manage Fun Family’s website presence with SEO marketing tactics so that when someone searches for “Kissimmee vacation homes” or “vacation homes near me”, Fun Family Vacation Rentals will be listed at the top of the search results.

The pricing strategy ofFFVR will be moderate and on par with competitors so customers feel they receive value when choosing the company for their vacation.

The following will be the operations plan for FFVR.

Operation Functions:


FFVR will have the following milestones complete in the next six months.

9/1/2022 – Finalize contract to lease office space

9/15/2022 – Finalize personnel and staff employment contracts for the team

10/1/2022 – Purchase third property to add to the small inventory of homes

10/15/2022 – Begin networking at industry events and implement the marketing plan

10/22/2022 – Begin moving into the office

11/1/2022 – FFVR opens for business

FFVR will be owned and operated by Mark Martinez. He has recruited an experienced office administrator, Anthony Miller, to be the Office Manager and help run the day-to-day operations of the business.

Mark Martinez is a graduate of the University of Florida with a Bachelor’s degree in Business Administration. He has been working at a local vacation home rental company for over a decade as a property manager.

Anthony Miller has been an office administrator at a local AirBnB management company for over eight years. Mark relies strongly on Anthony’s diligence, attention to detail, and focus when organizing the logistics of properties, schedules, and guests’ requirements. Anthony has worked in the vacation home rental industry for so long, he understands all aspects required in managing a successful business.

Key Revenue & Costs

The revenue drivers for FFVR are the vacation home rental fees they will charge to the guests for their AirBnB rentals and fees for additional services and add-ons. Fun Family will charge an average of $150 per night for each of its units. This price will vary depending on the season, increasing during high demand periods and decreasing during slow periods.

The cost drivers will be the overhead costs required in order to staff a vacation rental office. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

FFVR is seeking $800,000 in debt financing to launch its AirBnB business. The funding will be dedicated towards purchasing a third rental property (the owner already owns two properties that will be used for the business). Funding will also be dedicated towards renovating, cleaning, and stocking each unit with essentials and supplies. Additional funding will go towards insurance, marketing expenses, and three months of overhead costs to include payroll of the staff and rent for the main office. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan and write our financial statements.

Financial Projections

Income statement, balance sheet, cash flow statement, airbnb business plan faqs, what is an airbnb business plan.

An Airbnb business plan is a plan to start and/or grow your Airbnb business. Among other things, it outlines your business concept, identifies your target audience, presents your marketing plan and details your financial projections.

You can  easily complete your Airbnb business plan using our Airbnb Business Plan Template here .

What Should I Include in my Winning AirBnB Business Plan Template?

Your winning Airbnb business plan template should include 

What is the Main Types of an Airbnb Business?

There are a number of different kinds of Airbnb businesses, some examples include: Home Rentals, Shared Rooms, and Attached Properties.

How to Start an AirBnB Business?

Learn more about how to start a successful Airbnb business:

How Do You Get Funding for Your Airbnb Business?

There are a few different ways to get funding for your Airbnb business plan. You can seek out investors who are interested in the industry, or you can apply for a loan from a bank or other lending institution. Additionally, you may be able to receive funding for your AirBnB business plan from family and friends who believe in your business idea, from your own personal savings, or on rare occasions angel investors. No matter which route you choose, be sure to have a well-developed, winning AirBnB business plan and present it in a professional manner to increase your chances of securing funding.

© 2023 - The World's Leading Business Plan Template Directory

The World's Leading Business Plan Template Directory


Airbnb Business Plan Template

Airbnb business plan.

If you want to start a successful Airbnb business or expand your current Airbnb business, you need a business plan.

The following Airbnb business plan template gives you the key elements to include in a winning Airbnb business plan.

You can download our Airbnb Business Plan Template (including a full, customizable financial model) to your computer here.

Airbnb Business Plan Example

Below are links to a sample of each of the key sections that should be included in your own Airbnb business plan:

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Airbnb Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan logo

Airbnb Business Plan Template

Written by Dave Lavinsky

Airbnb Business Plan

Airbnb Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their Airbnb businesses. On this page, we will first give you some background information with regard to the importance of business planning. We will then go through an Airbnb business plan template step-by-step so you can create your own plan today.

Download our Ultimate Airbnb Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your Airbnb business as it stands today, and lays out your growth plan for the next five years. It explains your goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to purchase a property or add more to your existing Airbnb business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your Airbnb business in order to improve your chances of success. Your Airbnb business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Airbnb Businesses

With regards to funding, the main sources of funding for an Airbnb business are personal savings, credit cards, mortgages, and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

How To Write a Business Plan for Your Own Airbnb Business

Your Airbnb business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your Airbnb business plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of Airbnb business you are operating and the status; for example, are you a startup, or do you have a portfolio of existing Airbnb properties that you would like to add to?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the Airbnb industry. Discuss the type of Airbnb you are offering. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of Airbnb business you are offering.

For example, you might offer the following options:

In addition to explaining the type of Airbnb business you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to questions such as:

Industry Analysis

In your industry analysis, you need to provide an overview of the Airbnb industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the Airbnb industry educates you. It helps you understand the key markets in which you are operating.

Secondly, this research can improve your strategy, particularly if your research identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your Airbnb business plan:

Customer Analysis

The customer analysis section of your Airbnb business plan must detail the guests you serve and/or expect to serve.

The following are examples of customer segments: households, tourists, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of Airbnb you offer. Clearly, vacationers would want different amenities and services and would respond to different marketing promotions than long-term tenants.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations, and income levels of the ideal guests you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

In this section, you should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other Airbnb properties.

Indirect competitors are other options customers may use that aren’t direct competitors. This includes the housing market or hotels. You need to mention such competition to show you understand that not everyone who needs housing or accommodations will seek out an Airbnb.

With regards to direct competition, you want to detail the other rentals with which you compete. Most likely, your direct competitors will be other Airbnbs and rentals in the vicinity.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

With regard to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of this section is to document your areas of competitive advantage or your unique selling points. For example:

Think about ways you will outperform your competition and document these unique selling points in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an Airbnb business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of Airbnb business that you documented in your Company Analysis. Then, detail the specific options you will be offering. For example, in addition to short-term rental, are you offering month-to-month or long-term rental?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the properties and term options you offer and their prices.

Place : Place refers to the location of your Airbnb. Document your location and mention how the location will impact your success. For example, is your Airbnb located in a tourist destination, or in an urban area, etc? Discuss how your location might draw customer interest.

Promotions : the final part of your Airbnb marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your Airbnb business, such as customer service, maintenance, processing applications, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect 80% annual occupancy, or when you hope to reach $X in sales. It could also be when you expect to acquire a new property.

Management Team

To demonstrate your Airbnb business’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in Airbnb management. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in real estate, and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you have 1 rental unit or 10? And will revenue grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $250,000 on purchasing and renovating your Airbnb, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $200,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an Airbnb business:

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your property blueprint or map.

Putting together a winning Airbnb business plan is a worthwhile endeavor. If you follow the Airbnb business plan template above, by the time you are done, you will truly be an expert. You will really understand the Airbnb industry, your competition, and your ideal guest. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful Airbnb business.

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Where Can I Find an Airbnb Business Plan Example?

The following sample Airbnb business plan can be used as a template to help you create your own winning Airbnb business plan.

Sunny Beach Vacations is a vacation rental and Airbnb business that specializes in providing accommodations for families and groups. The vacation rental business offers a variety of rental properties, including beach houses, condos, and villas. Sunny Beach Vacations is a privately-owned company with a team of experienced professionals. The company has been operational for over 10 years and has a proven track record of success.

The goal of Sunny Beach Vacations is to increase annual occupancy to 80%. In order to achieve this goal, the company plans to expand its marketing efforts and improve its customer service. Additionally, Sunny Beach Vacations plans to acquire new properties in desirable locations.

The management team of Sunny Beach Vacations is highly experienced and dedicated to the success of the business. The company has a strong financial foundation and does not plan to seek outside financing at this time.

Sunny Beach Vacations is poised for growth and profitability. The company is well-positioned to achieve its goals and continue providing exceptional services to its customers.

Sunny Beach Vacations is a startup business that offers fully furnished properties for rent on a weekly basis to clients who are looking for a house rental for their vacation. The company is based in Orlando, FL area, and operates exclusively within the city limits.

The business was founded in 2017 by John and Jane Doe, who both have extensive experience in the hospitality industry. Its mission is to provide high-quality rentals at an affordable price. To date, they have acquired 3 properties and have plans to expand their portfolio in the coming year.

Business goals include:

Sunny Beach Vacations has achieved the following milestones to date:

Sunny Beach Vacations is a Limited Liability Company (LLC).

The vacation rental industry has seen immense growth in recent years as travelers are increasingly looking for alternative lodging options to traditional hotels.

This can be attributed to a number of factors, such as the rise of the sharing economy, the increased affordability of rentals, and the growing popularity of home-sharing platforms like Airbnb.

In 20XX, the vacation rental industry was valued at $100 billion and is expected to grow to $169 billion by 20XX, at a compound annual growth rate (CAGR) of 11%.

The United States is the largest market for vacation rentals, accounting for 42% of the global market. Europe is the second-largest market, accounting for 30% of the global market.

Airbnb is the largest player in the vacation rental industry, with a valuation of $31 billion as of 20XX. Other major players in the industry include HomeAway, VRBO, and

Sunny Beach Vacations is up against some stiff competition in the vacation rental industry. Direct competition includes other vacation rental companies that operate in the United States, such as HomeAway and VRBO.

The business also faces indirect competition from hotels and resorts, as well as other lodging options such as hostels and bed & breakfast establishments.

However, Sunny Beach Vacations has a few key competitive advantages that will help it to succeed in this market.

Some of these advantages include:

These advantages give Sunny Beach Vacations a strong position in the market and will help it to achieve its business goals.

Sunny Beach Vacations offers a variety of rental options to meet the needs of different types of customers. We have short-term rentals for those who are looking for a place to stay for a few days or weeks, month-to-month rentals for those who need a longer-term solution, and long-term rentals for those who are looking for a more permanent residence. We also offer a variety of property types to meet the needs of different customers, including apartments, condos, houses, and villas.

Sunny Beach Vacations offers competitive prices on all of our rental options. Our short-term rentals start at $50 per night, our month-to-month rentals start at $1,500 per month, and our long-term rentals start at $2,500 per month. We also offer discounts for customers who book multiple properties or stay for longer periods of time.

Sunny Beach Vacations is located in the heart of the Sunshine State, making it the perfect place to enjoy the sun and the sand. We are centrally located near all of the state’s major attractions, including Disney World, Universal Studios, and Sea World. We are also within driving distance of the state’s beautiful beaches.

Sunny Beach Vacations offers a variety of promotional discounts and deals to help customers save money on their rentals. We also offer a referral program for customers who recommend our business to their friends and family. In addition, we regularly advertise in local papers and magazines, and we are active on social media platforms, such as Facebook, Twitter, and Instagram.

Sunny Beach Vacations is a house rental & Airbnb business that is headquartered in Orlando, Florida. The business was founded in 2019 by John and Jane Doe.

The company currently has 3 properties in its portfolio, all located in Orlando. The business plans to acquire more properties in the future.

The company employs a small staff of 4 people, who are responsible for the day-to-day operations of the business.

Everyday Short-term Processes:

Long-term Goals:

John Doe – Founder and CEO

John is the founder and CEO of Sunny Beach Vacations. He has over 20 years of experience in the rental industry. Prior to starting Sunny Beach Vacations, he was the owner and operator of a successful condo rental business in the Caribbean. John has a bachelor’s degree in business administration from the University of Florida.

Jane Doe – COO

Jane is the COO of Sunny Beach Vacations. She has over 10 years of experience in the rental industry. Jane oversees all day-to-day operations of the business, including customer service, maintenance, and processing applications. Jane has a bachelor’s degree in business administration from the University of Florida.

John Smith – Vice President of Operations

John is the Vice President of Operations for Sunny Beach Vacations. He has over 15 years of experience in the rental industry. John is responsible for overseeing all property operations, including check-in/check-out, housekeeping, and maintenance. John has a bachelor’s degree in business administration from the University of Central Florida.

Mary Jane – Director of Sales and Marketing

Mary Jane is the Director of Sales and Marketing for Sunny Beach Vacations. She has over 10 years of experience in the rental industry. Mary Jane is responsible for generating leads, converting sales, and overseeing marketing efforts. Mary Jane has a bachelor’s degree in business administration from the University of Florida.

Sunny Beach Vacations is a privately-owned business. The company’s founders have invested $XXX,XXX of their own money into the business. The company is currently profitable and does not plan to seek outside financing at this time.

The income statement for Sunny Beach Vacations shows that the company has generated $XXX,XXX in revenue over the past year. The company’s expenses total $XXX,XXX, resulting in a net profit of $XXX,XXX.

Balance Sheet

The balance sheet for Sunny Beach Vacations shows that the company has a total of $XXX,XXX in assets. The company’s liabilities total $XXX,XXX, resulting in a net worth of $XXX,XXX.

The cash flow statement for Sunny Beach Vacations shows that the company has generated $XXX,XXX in cash flow over the past year. The company’s expenses total $XXX,XXX, resulting in an operating cash flow of $XXX,XXX. The company’s capital expenditures total $XXX,XXX, resulting in a net decrease in cash flow of $XXX,XXX.

Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide For Small Businesses

How to Write an Airbnb Business Plan + Free PDF Template

rental arbitrage business plan template

The pandemic has upended our perception of remote work. More professionals than ever before are spending time working from home and even working while traveling. This creates a unique opportunity for entrepreneurs looking to start an Airbnb. 

Before you jump into starting your own vacation rental business, you’ll need a business plan. This article will cover the steps to create your Airbnb business plan, along with some tips to run it successfully. 

Need more guidance? Download our free Airbnb business plan pdf for a full business plan outline that you can use to jumpstart your own plan.

How to write an Airbnb business plan

Starting an Airbnb business plan might seem daunting, but keeping it light is the trick. You don’t need a plan that is hundreds of pages long. Instead, start with a one-page plan that you can update as your short-term rental property business grows. 

Noting key factors surrounding your business like the market, financials, and more will help you in the planning process—and keeping things brief and viable will help you better manage your new Airbnb business.

Here is what to include when writing your Airbnb business plan.

1. Why are you starting your Airbnb business?

What motivates you to start a vacation rental? Are you passionate about travel and cultivating a rich and inviting experience for others? Do you just have a nice spare room you’re looking to rent out? Looking to take your first step into full-fledged property management?

Whatever the reason, make note of why this business matters to you and wrap in your value proposition (how you promise to deliver value to others out of this business). What is it about the property or surrounding area that sets you apart? 

The entrepreneur inside of you might see this new shift to work-from-home as an opportunity to create an enticing oasis for professionals. Maybe there are several large events or seasonal sports in your area and you see this as an opportunity to provide a rental space for visitors. Or perhaps you find yourself wanting to travel for extended periods of time and would like to recoup some of your expenses by renting out your house.

You don’t need all the details right away, but you should have an idea of your value. It will point you in the right direction with actual research. Remember, passion will help fuel your Airbnb— strategic planning will ensure progress and growth. 

2. Research the market

The research phase should not be skipped. You need to know what the competition looks like and how you can position your rental within the current real estate market. While there are plenty of ways to take this on, we recommend you focus on the following:

When planning your home rental business, consider your location and the demographics in the area. 

Understanding what you and your location can offer is the first step in identifying who will want to stay at your Airbnb. Or in other words, who your ideal customer will be .

With research in hand, it’s time to get to know your target customers and understand what attracts them. The type of people in the market will determine what amenities you should provide such as free parking, Wifi, air conditioning and heating, a washer and dryer, etc. Remember, you need to consider people living in the area along with those that are traveling to your market.

Accessibility and amenities

Beyond the basics, it’s important to think of the accessibility of your location and what you can do to optimize it– are there ramp options as well as staircases? Can you install grab-bars in restrooms, avoid cluttering spaces for better wheelchair accessibility, etc.? 

With the increase in people working remotely, you should also consider how work-friendly your Airbnb stay is. Is there a laptop-friendly station, a strong Wifi connection, good lighting for video calls, etc.? For travelers with kids, are there coloring books, games, and other fun activities or items to keep them entertained? 

Thinking about the different kinds of people staying in your area and what accommodations they might like to see will really help your Airbnb business stand out from the others in your area. 

Research competitors

When researching the market, you need to explore your competitors. This can be other Airbnb listings, hotels, motels, month-to-month leases, etc. What do these competitors offer that your stay might not, and what can you offer travelers that the other locations might not be able to? 

When considering competitors, you should broadly identify the number of customers in the market at large. From there, refine that into the segment of customers you are choosing to focus on (and who you believe you could reasonably book). You will need to also consider the amount of available time in the year you would like your rental space to be available. In many ways, that will ultimately dictate how many customers you can realistically service.

Get feedback

Still unsure how to best accommodate your guests? Consider having a family member or friend stay in your Airbnb for a night or two and give their honest review. They may provide a fresh perspective and give you some pointers on how to elevate your Airbnb business from a good stay to a great experience!

Get your free Airbnb business plan. Everything you need to create your own business plan and start a successful Airbnb. Download Now

3. Promotional strategies

A big part of finding success with your Airbnb is how well you advertise it.

When promoting your Airbnb business, you should outline your sales channels and marketing activities that will attract customers to book with you. Consider how you will position the property—what are the benefits, little perks, and specialties of your stay that you’ll showcase? Highlight what is worth visiting in your area, and really illustrate the unique kind of stay that your customers will have. 

You can also consider partnering with local businesses to elevate your customers’ experience. Think about incorporating towels and blankets from a local boutique, a few fresh fruits from the farmer’s market, or discounts from a local restaurant or museum. 

Remember to think like a guest—keep things simple, intuitive, and friendly. Utilize features like automated booking or reminder apps, timed locks with personalized codes, and more to help make the experience easy, comfortable, and memorable.

4. Financials and pricing

When setting up your Airbnb, you should expect some upfront costs to get your stay ready for guests. To start, you will need to consider a fresh coat of paint, furniture, lighting, internet, air conditioning, appliances, decor, etc. 

From there, consider what ongoing expenses will look like. How much do you expect to spend on cleaning, maintenance, Wifi, towels, and other amenities? Bucket these items in categories to keep track of. 

You should also review what your revenue streams will be. Consider the difference in revenue from short-term vs long-term rentals. Will you charge more for special occasions or attractions, or will you create promotional bundles surrounding certain events? 

With these things in mind, you have the start of your sales , expense, and cash flow forecasts. These provide an idea of how you’ll need to price things in order to be profitable and tell you whether or not your business is viable.

5. Looking ahead

It’s important to set milestones for the next year of your business. These can be related to revenue, total bookings, additions to your home, easing your stay with automation, or anything else that makes your Airbnb business successful.

You should also outline who will be involved (or who you may want to partner with in the future). If it’s just you, add yourself and call it a day. Milestones are important because they tell you if you are on track to build a successful business. If you are not reaching your milestones, then it is time to revisit them and potentially revise them. 

Tips to run a successful Airbnb business

Writing your business plan is only the first step in setting up your vacation rental. There are many other important aspects to the business process that will help you grow and succeed . Below are a few tips to help raise awareness, simplify processes, and better your vacation rental business.

Host on multiple services

With the increased popularity of Airbnb, prices and demand have also been largely on the rise. This can cause customers to look across different booking platforms to find their desired rental space. That’s why hosting your stay on multiple services will allow your rental space to reach a broader range of potential customers. 

Sites like Vrbo , , The Plum Guide , Agoda Homes , Homestay , and Sonder are just a few examples of Airbnb alternatives. Hosting on multiple services ensures that you are not solely attaching your business to a single platform. This provides you with multiple options, when a platform increases its fees, makes poor updates, or even goes under–potentially sinking your business in the process.

Automate scheduling and security

There are several factors to keeping an Airbnb business running that can now be scheduled through apps and other technology. Things like responding to messages from guests, adjusting pricing and calendar booking, writing guest reviews, scheduling cleanings, and other daily tasks can be automated as an Airbnb host . 

You may also consider utilizing technology like smart locks which allow your guests to check in and out of their Airbnb on their own. This contact-free check-in allows for guests to enter their space with ease upon arrival, and gives you the extra freedom of not having to track them down to hand over a key. 

You will want to include this investment in your startup costs and forecasts. This will help you determine how much to invest in, weigh what scheduling and security tools are important, and tie other investments in your business to specific milestones or revenue totals. 

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Encourage feedback and reviews

It’s important to be present with your guests (even just virtually) and remind them that you are there if they need anything while also respecting their privacy throughout the duration of their stay. Don’t be afraid to ask for feedback and honest reviews from your guests during and after their stay. 

This can be as simple as sending a quick questionnaire virtually or leaving a little notepad and pen in the Airbnb rental for them to handwrite themselves. Receiving honest feedback and reviews will help you learn as you go and ultimately create the best possible Airbnb experience for your guests.

Quick responses 

Lastly, it’s important to always respond to your guests’ questions in a timely manner. In order to keep your guests comfortable and satisfied, you should stay on top of your messaging with them. 

Set notifications on your phone or device and always be ready to answer questions or potential problems your guests may run into. The quicker you can respond to your guests, the more satisfied they will be with the experience that you offer.

Download your free Airbnb business plan template

If you’re ready to start your own Airbnb business, you can download our free Airbnb business plan template from our library of over 500 sample business plans . Get started today, and see first-hand why businesses that plan grow 30% faster than those that don’t.

AvatarMakenna Crocker

Makenna Crocker

Makenna Crocker is the Social Brand Manager at Palo Alto Software. Her work focuses on market and social trends, educational content creation, and providing entrepreneurs with small business tips and tools. With a master’s degree in Advertising and Brand Responsibility from the University of Oregon, she specializes in generating a strong and responsible brand presence through social media and sharable content.

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How to Write a Recession-Proof Vacation Rental Business Plan

Running a vacation rental has been around for years.

Airbnb may have taken up the urban market – and is now in deep water with the coronavirus crisis – but vacation rentals in destination locations have been through every crisis – the great depression, 9/11, 2008. They always make it through.

And now more than ever we see that it's important to plan ahead.

Lots of us were riding the wave of the growing Airbnb industry, loving the cash flow but not planning or preparing.

A lot of hosts are still planning to build and scale a short-term rental business . 

Setting up the foundations and systems and plan for your business is the key to success. Especially now – the operators that are going to come out alive (and thriving) are those who have a solid, profit-based plan.

Just like you most likely wouldn’t try to build a house without an idea or even a small drawing of the house, a business plan will help you make sound business decisions toward building your short-term rental empire.

A short-term rental business plan is the blueprint to your business — but unlike a home’s blueprint, it’s dynamic and changes with time. Good reasons to write a business plan are to:

If that’s convinced you enough, here’s my guide to writing a vacation rental business plan.

I wrote vacation rental business plan PDF you can have for free

Analyze the market.

airbnb business plan

Your first step in your Airbnb business plan will be to analyze the market where you want to operate. Namely, the market where your property will be. How does your vacation rental business fit within the short-term rental market?

If you already have a property, consider whether a short-term rental business would be viable there. You can use tools like Airdna or Mashvisor to determine this.*

Is there demand? If you’re getting into rental arbitrage , you can choose a property in an optimal location. Generally, you want to look for a place that has a combination of high travel demand, low seasonality, loose or no regulations, and where the return is high.

Same goes for if you decide to go with the property management model.

*Read my detailed Mashvisor review

*Read my detailed Airdna review

I wrote an Airbnb business plan template you can have for free

Identify your niche.

airbnb business plan

You may know the adage “if you market to everyone, you market to no-one”.

This also applies to the short-term rental business. As a part of your Airbnb business plan, take some time to consider what kind of guests you’re targeting. You can target couples, digital nomads, families, business travelers, bachelors, hikers, cyclists, or anyone. As long as you know who it is.

The benefit to niching down is that you can target your property by providing amenities for that specific audience and creating a message that’s specific to that audience. 

When your target audience sees your listing is specific to their needs, they’re much more likely to book.

Customer avatar

Once you’ve defined your niche, you should create different avatars for your potential guests. Here you’ll put all the information about your ideal guest: how they like to travel, what their likes and dislikes are, what the main thing they look for in a property, and more.

This will help you figure out what they need from a vacation rental property. 

Give them the following:

Keep asking these kinds of questions (you can also ask current guests if you feel comfortable with them!) until you feel like you are talking to a specific person.

Competitor Analysis

airbnb business plan

This is where you’re going to check out what your competitors in the same niche are doing. This could be either other Airbnb properties or hotels or B&Bs. Check out the following about them:

This will help you make sure your unit stays on top of the competition.

Legal requirements

You should know by now what the legal requirements are in your jurisdiction. That's because you've done your due diligence in the initial market research step. The next step is to plan how you’re going to make sure you’re fully legal.

If the area you chose doesn't allow the short-term rental business model you've chosen, find another. Check on the Airbnb website and at City Hall for the local short-term rental regulations.

Check with your local authorities whether you need a business license. Unfortunately, there are no shortcuts to getting this information.

Property analysis

One important part of your Airbnb business plan is to analyze your property to predict its business potential. You can measure what goes out: rent if you’re doing rental arbitrage, team members, marketing, licenses, etc. and measure what goes out. 

You may have to do some work on the property — fix things up or throw on an extra layer of paint.

Basically, you want to make sure you’ll be making a good enough profit from your business. You can use Mashvisor’s Airbnb profit calculator to do this.

Short-term rental business model

There are a few different business models you can choose from, all with their pros and cons. Before you start your business, you can choose from:

These all have different levels of risk, speed to scale and profit potential. Choose the one that works best for you. Traditional real estate investment will generally have the greatest profit, slowest time to scale and greatest risk. Managing other people’s properties, on the other hand, is generally the fastest to scale, least risk but also least profit potential. 

It depends on what you’re looking for and what you have access to.

Financial plan

airbnb business plan

Now that you’ve chosen what business model to go with, the next step on the Airbnb business plan is your finances.

How are you going to finance your short-term property? How are you going to plan to scale to your next property? This is especially important if you’re going with a more investment-heavy business model like arbitrage or traditional investment. 

There are also other costs involved beyond the rent or mortgage. Startup costs can include towels, household goods, grocery items, and maintaining the property.

Your Airbnb business plan should also account for expenses to accurately estimate cash flow and net income.

Vacation rental property management structure

Now you’ll have to choose how you’re going to manage the property.

If you’re taking the property management model, this is pretty clear from the start. (You're the one managing the property).

If not, you could take a few approaches. For one, you could be a DIY host and not outsource anything. That’s not very scalable, though. 

You can also have a company manage your property from A-Z even including marketing. If you don’t like that, you can hire out an individual, freelance property manager who is growing their property management business.

You can also use automation tools to automate the management as far as possible, including guest communication and pricing. Read my ultimate guide to short-term rental automation here .

Related Post:  iGMS Review: Manage Multiple Listings Across Several Channels

Unique selling point

This is part niche, part offer. What makes you stand out from all the other apartments in your niche? 

It takes a bit of deep thought and creativity to figure out your Unique Selling Point (USP). Things that aren’t unique selling points:

Those are generally basic requirements that guests expect from their vacation rentals. They don't make you special, they make you standard.

You have to think deeper than that. What makes your property stand out among the other ones in your niche? Examples of unique selling points are:

Marketing strategy

You’re almost done with your Airbnb business plan. The next — and a very important part — of your plan is to determine how you will market your property.

For a lot of hosts, it’s fine to just upload it on Airbnb and wait. But if you’re trying to scale your short-term rental business , you probably want to think of more unique ways to promote your listing .

For one, make sure to put it on more platforms than just Airbnb., VRBO, HomeAway, Tripadvisor, Expedia and more are all platforms that will help you get more occupancy. Then you can use automated property management software to sync your calendars and pricing.

You could also create a website for your listing and use SEO and paid advertising to get even further reach.

Airbnb rankings

The last step is to plan how you’re going to work the Airbnb SEO to get your listing to rank on some of the first pages. Airbnb has over 100 ranking factors, including:

There are far more than this, but there are many of these you can control by doing the following:

Next steps for your Airbnb business plan

Now you have your plan ready, it’s time to implement it! It should feel much less overwhelming now that you have documented everything you need to do. Follow it step by step and trust it. But don’t be afraid to change it if you notice something doesn’t work!

If you need more help, you can read my ultimate guide on how to build and scale an Airbnb business .

I wrote an vacation rental business plan template you can have for free

rental arbitrage business plan template

Home » Business Plans » Real Estate Sector

A Sample AirBnB Arbitrage Business Plan Template

Airbnb rental arbitrage is a business that focuses on subleasing other people’s properties in order to rent them out on websites like Airbnb, VRBO, or HomeAway. The rental arbitrage aims at renting out houses on the long-term rental market, and then resale them on the short-term market.

This business has existed for ages, and it is applicable to all global industries. The market share of the vacation rental business is dominated by Airbnb. With a market share of around 20 percent of the whole vacation rental, Airbnb is projected to be worth about $93 billion.

Steps to Write an Airbnb Arbitrage Business Plan

Executive summary.

Olive Habor® Airbnb Arbitrage Company, Inc. is a standard and registered Airbnb arbitrage business that will be located in Hempstead Town, New York with an active presence and network across major cities in the United States. We have secured all the necessary permits and licenses required for us to participate in the Airbnb line of business across the United States of America.

Olive Habor® Airbnb Arbitrage Company, Inc. is positioned to service the niche – Airbnb market in the United States. Jordan Winston is the founder of Olive Habor® Airbnb Arbitrage Company, Inc.

Company Profile

A. our services.

Olive Habor® Airbnb Arbitrage Company, Inc. will rent out a furnished apartment, house, and professionally managed resort-condominium complex on a temporary basis to tourists as an alternative to a hotel. We will also offer our guests services such as; front desk check-in, 24-hour maintenance, in-house housekeeping, and concierge service.

Our services are designed to give people accommodation options, security and the opportunity to enjoy the funs that comes with traveling to different destinations.

b. Nature of the Business

Olive Habor® Airbnb Arbitrage Company, Inc. will be formed as an independent limited liability company (LLC) with the idea of subleasing other people’s properties under the Airbnb real estate business model.

c. The Industry

Olive Habor® Airbnb Arbitrage Company, Inc. will operate in the real estate and vacation rental industry.

d. Mission Statement

Our mission is to make available comfortable, safe, and affordable short let rental properties available to tourists, visitors, and travelers under the Airbnb rental model.

c. Vision Statement

Our vision is to be listed among the top five Airbnb arbitrage companies in the States.

d. Our Tagline (Slogan)

Olive Habor® Airbnb Arbitrage Company, Inc. – Your Sure Plug, When It Comes To Airbnb Properties!

e. Legal Structure of the Business

Olive Habor® Airbnb Arbitrage Company, Inc. will be formed as an LLC. According to this agreement, each member (partnership) is responsible for the profits and losses the company incurs.

f. Our Organizational Structure

g. Ownership/Shareholder Structure and Board Members

SWOT Analysis

A. strength.

b. Weakness

c. Opportunities

i. How Big is the Industry?

Airbnb arbitrage is one of the largest industries in the United States of America, and it is the market size of the real estate sector, of which it is a component estimated to be $156.2 billion in 2021.

ii. Is the Industry Growing or Declining?

The Airbnb arbitrage industry is fast growing, as a matter of fact, if you are persistent and prepared to put up the effort to get renters and maintain their satisfaction, short-term rental services like Airbnb and others can be very profitable.

iii. What are the Future Trends in the Industry?

Traditional methods of service delivery have been overtaken by SaaS (software as a service) and cloud computing integrated services. Subscription-based SaaS applications can be advantageous for businesses of all kinds. The solutions are used by businesses to automate operations and get rid of manual input, making them run efficiently.

Therefore, businesses could lower the sophistication and cost of on-premises deployment by combining SaaS solutions. In addition, SaaS systems let consumers examine information using any internet-connected device and from any location.

Multi-vendor technologies are simpler to integrate into existing applications due to the SaaS approach. Property managers could use a SaaS platform to combine their services with cutting-edge payment technologies in order to promote convenient and easy transactions.

iv. Are There Existing Niches in the Industry?

No, there is no existing niche when it comes to the Airbnb arbitrage business. This is because the Airbnb arbitrage line of business is a subset or a niche idea in the real estate industry.

v. Can You Sell a Franchise of your Business in the Future?

Olive Habor® Airbnb Arbitrage Company, Inc. has no plans to sell franchises in the nearest future but will open its doors to accommodate more partners and investors in the subsequent years.

i. Who are the Major Competitors?

ii. Is There a Franchise for Airbnb Arbitrage Business?

Presently, there are no franchise opportunities for the Airbnb arbitrage business.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Airbnb Arbitrage Business?

Yes, there are county or state regulations and zoning laws for Airbnb arbitrage business, and players in this industry are expected to work with the regulations governing such business in the state where their business is domiciled.

Marketing Plan

A. who is your target audience, i. age range.

Adults above the age of 18 having the financial means to do business with us are our target audience.

ii. Level of Educational

There are no restrictions on the degree of education of those who are willing to engage with us as landlords or renters.

iii. Income Level

The people we are aiming to conduct business with will have an annual income between $40,000 and above $100,000.

iv. Ethnicity

There are no restrictions on the people we want to work with, rent their properties, or rent our Airbnb rentals to when it comes to their ethnicity.

v. Language

There are no restrictions on the languages individuals can speak, and we are eager to collaborate with them, create homes for them, or lease our Airbnb properties to them.

vi. Geographical Location

Everyone is welcome to associate with us or conduct business with our organization, regardless of their location.

vii. Lifestyle

No investor or client will be restricted from working with us or conducting business with us by Olive Habor® Airbnb Arbitrage Company, Inc. because of their race, culture, or way of life.

b. Advertising and Promotion Strategies

i. Traditional Marketing Strategies

ii. Digital Marketing Strategies

iii. Social Media Marketing Plan

c. Pricing Strategy

Olive Habor® Airbnb Arbitrage Company, Inc. will be careful to account for profits, insurance, premiums, licenses, economies of scale, and the total package for each property when developing our pricing plan.

In all our pricing strategy will reflect;

Sales and Distribution Plan

A. sales channels.

Utilizing partners and third parties, such as referral partners, affiliate partners, strategic alliances in the real estate and brokerage industries, tourism, and freelancers to help direct clients to us, is a key component of our channel sales strategy.

b. Inventory Strategy

Olive Habor® Airbnb Arbitrage Company, Inc. will operate in an inventory strategy based on a day-to-day approach to follow for ordering, maintaining, and processing products in our warehouse because we will need the necessary toiletries, bedding, and other supplies on a regular basis.

We will approach the development of our strategy with the same level of care and diligence as we would if we were formulating an overarching corporate strategy.

We will make sure to deal with “Just-in-time (JIT) inventory,” says Olive Habor® Airbnb Arbitrage Company, Inc. (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)

c. Payment Options for Customers

d. Return Policy, Incentives, and Guarantees

Guests have the liberty to cancel their reservation a maximum of five days before their arrival. They will obtain a complete refund, and the landlord would not charge them for the reservation. In the event of a late cancellation, guests would be billed for one night and would be reimbursed 50 percent of the leftover nights.

If somehow the guest cancels the reservation after arriving at the lodging, they would be billed for the length of time stayed, one extra night, and they will be reimbursed 50 percent of the rest nights not used.

e. Customer Support Strategy

We will solicit input from customers as part of our customer service approach. With their wants, experiences, and pain, we will be better to serve all of our clients and investors, and also provide them with exceptional Airbnb properties, returns on investment (ROI), and customer service. To accomplish this, we will work using a powerful CRM program.

Regularly, as part of our customer support plan, we will seek to improve our customer service team, and also leverage multi-channel servicing.

Operational Plan

Capacity, location, layout, quality, and method planning are all included in our operating plan. The plan will have a marketing, sales, and operations component, and overall, we want to increase our revenue by 25% in the second year.

Attracting investors (landlords who are interested in Airbnb arbitrage business model) would be part of the plan’s operations section and would allow the company to expand its assets and service offerings and support revenue development.

a. What Happens During a Typical Day at an Airbnb arbitrage Business?

b. Production Process

There is no production process when it comes to the Airbnb arbitrage business.

c. Service Procedure

No, there is no defined service procedure for an Airbnb arbitrage business.

d. The Supply Chain

Key figures in the real estate and brokerage industries will be relied upon by Olive Habor® Airbnb Arbitrage Company, Inc. to refer business deals to us. In addition, we have been able to forge business ties with wholesale suppliers of building materials and other items.

e. Sources of Income

Basically, Olive Habor® Airbnb Arbitrage Company, Inc. makes money from renting out a furnished apartment, house, and professionally managed resort-condominium complex on a temporary basis to tourists as an alternative to a hotel.

Financial Plan

A. what amount is needed to start your airbnb arbitrage business.

To launch our Airbnb arbitrage business in the United States, an estimate of $3.5 million is required. Note that this sum covers all of our staff’s salary for the first month of operation.

b. What are the Costs Involved?

c. Do You Need to Build a Facility?

Olive Habor® Airbnb Arbitrage Company, Inc. will not build a new facility for our Airbnb arbitrage business, but rather we will work with landlords who are interested in making money from the Airbnb arbitrage business model.

d. What are the Ongoing Expenses for Running an Airbnb arbitrage Business?

e. What is the Average Salary of your Staff?

f. How Do You Get Funding to Start an Airbnb Arbitrage Business?

Financial Projection

A. how much should you charge for your service.

At Olive Habor® Airbnb Arbitrage Company, Inc. our charge would be based on the location and type of property we want to put out for short-let.

b. Sales Forecast?

c. Estimated Profit You Will Make a Year?

The profit margin we hope to make at Olive Habor® Airbnb Arbitrage Company, Inc. will be between 16 and 20 percent on development costs. This refers to our profit as a percentage of our total cost.

d. Profit Margin of an Airbnb arbitrage Business Service

Profit margins in this sector frequently fluctuate, particularly because enterprises in the business sector are interested in sustaining their space and growing their society. At the end of each month, there are several factors and fixed expenditures for an operation. Even as the company grows, it will face associated costs and considerations that will reduce the potential profit.

Growth Plan

A. how do you intend to grow and expand, by opening more retail outlets/offices or selling a franchise.

Within the first five years of starting the company, Olive Habor® Airbnb Arbitrage Company, Inc. will expand its Airbnb arbitrage business by first creating more offices in major American cities, and then by enlisting more partners (landlords who are interested in the Airbnb arbitrage business model).

b. Where do you intend to expand to and why? (Geographical locations)

The reason we intend to expand to this geographic location is that available statistics show that the cities listed above have the highest and most thriving real estate market in the United States. As a matter of fact, the median listing price of a home in Savannah, Georgia as of January 2022 was $274.5K, which was unchanged from the previous year.

The average listing home cost $165 per square foot. The average cost of a home sold was $259,000. There are more buyers than there are homes available in Savannah, Georgia, signaling a seller’s market.

Olive Habor® Airbnb Arbitrage Company, Inc. desire to merge with a global real estate firm so that, after the founders retire, the operation of the business can be in the capable hands of a reputable party.

The objective of merging two or more Airbnb arbitrage firms on a global scale is to attempt to achieve synergy, where the new company’s management team and board of trustees are well-organized and the total is bigger than the sum of its parts (the former two distinct entities).

More on Real Estate Sector

The Complete Vacation Rental Business Plan (+ Template)

The Complete Vacation Rental Business Plan (+Template)

No spam. Only valuable tips on how to grow your business. We promise.

What’s in this article?

Vacation rental business plan template.

What is a vacation rental business plan?

Why do you need a vacation rental business plan, 1. secure financing, 2. plan for the long term, 3. set clear goals, 4. budget with confidence, what to consider before creating a business plan for your short-term rental business, 1. do your research, review local laws, regulations, or restrictions before buying a second property or turning your home into a short-term rental business . , type of unit.

Furnishing and renovations

2. choose your business model.

3. Consider financing options

4. determine profitability.

Even Rob Abasolo from Robuilt who has various successful STR properties doesn’t run estimates assuming a perfect year. “I wouldn’t calculate my numbers based on a 100% occupancy rate ,” Abasolo shared. “When I’m running the numbers to see if a deal works, I’m typically running my calculations at an 80% occupancy rate .”

What to include in your short-term rental business plan?

Click to download (it’s free), 1. executive summary.

2. Company description

3. business goals .

4. Guests personas

5. Value proposition  

6. competitive analysis .

7. Operations and teams  

8. Expenses

9. Pricing and revenue management

10. Financial plan for growth and scaling

11. Marketing and distribution

12. Appendix 

Common mistakes to avoid when creating a short-term rental business plan, under budgeting.

Targeting everyone

Underestimating competition, unattainable financial goals, do you need a vacation rental business plan .

Frequently asked questions about vacation rental business plans

Do i need a vacation rental business plan, what does a vacation rental business plan include.

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