Which reservations typically require local transient occupancy tax according to the speaker?

Name: Impact of fixed expenses and variable costs on revenue #shorts #airbnb #airbnbhostingtips
Uploaded: 2024-05-12T00:15:01+00:00
Duration: 54 s
Channel: Tim Hubbard
Description: Tim Hubbard breaks down which costs matter when you're thinking about discounts on Airbnb. Fixed expenses like mortgage and insurance don't change with…

Tim HubbardShort Term Rental Expert

Impact of fixed expenses and variable costs on revenue #shorts #airbnb #airbnbhostingtips

12 May 2024 · 1 min

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0:54

Tim Hubbard breaks down which costs matter when you're thinking about discounts on Airbnb. Fixed expenses like mortgage and insurance don't change with booking length, but variable costs like utilities and housekeeping do. Stays under 30 days often trigger local taxes that longer bookings avoid.

Questions this video answers

Most reservations under 30 days.

Chapters

So we need to make sure that we're calculating our expenses, and these change based on the length of our reservation. So one easy thing we can do, just for starters, is exclude our fixed expenses. So these are things like our mortgage payment, our insurance, our property tax. Any fixed monthly payment that you have or annual payment that you have is not going to affect whether you should be offering a long term discount or not, because. Because it has no effect there. What we do need to include are the variable costs. And so these are things like utilities, these are things like housekeeping. So the longer your reservation, the less your housekeeping cost. We also have things like transient occupancy tax, and I'll touch a bit more on that here in a second. But Most reservations under 30 days, you have to pay a local transient occupancy tax. And this can really add up.