How Airbnb Owners Increased Profits with Less Management

 

 

 

  This article is for current and prospective Airbnb owners and hosts who want to maximize their profits by integrating technology tools that accurately and completely capture all revenue & expenses with simplicity.   

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Bench assumes no liability for actions taken in reliance upon the information contained herein.

Short term active rental property can provide greater investment returns compared to long term passive rental property, however, this will increase your financial management responsibility which can be chaotic, unless you have a streamlined bookkeeping process.

There is massive potential to increase your bottom line income from using a short-term rental marketplace like Airbnb, VRBO, or HomeAway firstly because of supply and demand and secondly because of the creative and unique options you provide your guests. Both factors increase your business activity and like a business, you need to spend money to make money.

Most Airbnb owners aspire to have a superhost rating assigned to their property which is a direct result of frequent guest rentals with superior service and options provided. Management and operations are increased with more guests, examples of this include guest communications and questions, security updates, cleaning, repairs and maintenance, buying new bed sheets and necessities for guests and much much more depending on the investment and guest strategy. All of these operational and management tasks are linked into the financial management process, and because you read this article all of your bookkeeping documents and data are automatically stored and updated in real time the moment you spend and receive money from your investment property. This streamlined bookkeeping process gives you 100% confidence in the accuracy and completeness in your financial results without even spending a minute of time collecting / organizing paper receipts or inputting data and calculating numbers.  Go ahead and give yourself a pat on the back for implementing that streamlined bookkeeping process when you did. Now let’s dive into the details of how you set up your streamlined bookkeeping process.

First, second and third: You view ” The 3 Behind the Scenes Secrets to Successful Bookkeeping” then you implemented the Pura Vida Bookkeeping process into your business.

Fourth: You identified the rules and information on how to maximize deductions:

You’ll have a much easier time with taxes on your rental property if you treat it as a business from the get-go. Here are the basics: You are entitled to deduct all “necessary” expenses to operate your rental business. If you buy new towels for your guests, repaint the guest-room or put a bottle of wine on the table for incoming guests, you can deduct these expenses from your rental income.

Deductibles you need to track

You’ll find a ton of expenses related to your rental investment that can be claimed as deductibles come tax time. Just make sure you have receipts for proof — another reason to use a flawless bookkeeping service like Pura Vida. 

| Advertising your property for rent | Cleaning & maintenance supplies and services | Utilities | Property Insurance | Mortgage – Interest | Guest service fees | Merchant fees | Property management | Legal & accounting fees | Homeowners association fees | Repairs & maintenance | Registration & relevant education | Vehicle expenses |

In Summary

The tools and strategies discussed all integrate together with Pura Vida Bookkeeping. So there is no need to do any calculations and manual entries, learn new platforms or have multiple logins.

Set up an in-person meeting by clicking the Contact icon below or schedule a video meeting by clicking the Appointment icon below. 

Try us out for free

Schedule an appointment to get set up today.

See for yourself why Pura Vida is the fastest growing bookkeeping solution for entrepreneurs and small business in North America.