Airbnb Business Plan
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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.
Executive Summary
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:
- Guest communication and support
- Cleaning and maintenance
- Advice on local attractions
- Swimming pool
- WiFi
- Washer and dryer
- Basic household essentials:
- Soap
- Toilet paper
- Waste baskets/bags
- Towels
- Linens and pillows
- Kitchen stocked with cookware and utensils
- Bowls for pet food
- Extra cleaning supplies
- Crib and high chair for small children and babies
- Smart Technology security system
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:
- Friendly, knowledgeable, and highly qualified team of property managers and guest relations associates who are able to handle all customer requests with care and efficiency.
- Comprehensive menu of services and amenities that allow for each guest to enjoy their stay without having to worry about whether they’ve packed everything they need or the hassle of searching for family-friendly accommodations.
- FFVR offers the best pricing for the value. All of the company’s AirBnB rentals are rented at competitive prices.
Download the airbnb business plan template (including a customizable financial model) to your computer here
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:
- Property purchase: $600,000
- Renovations, cleaning, furnishing, and supplies for three units: $90,000
- Three months of overhead expenses (payroll, rent, utilities): $90,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for FFVR.
Company Overview
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:
- Registered FFVR, LLC to transact business in the state of Florida.
- Has a contract in place to lease an office space in a centrally located business park that is walking distance to both of Mark’s rentals.
- Began recruiting a staff of accountants, maintenance workers, guest relations associates, and office personnel to work at FFVR.
- Has reached out to local cleaning companies to compare rates for ongoing cleaning services for the properties.
FFVR Services
The following are the services and amenities that FFVR will provide for each of its AirBnB properties:
- Guest communication and support
- Cleaning and maintenance
- Advice on local attractions
- Swimming pool
- WiFi
- Washer and dryer
- Basic household essentials:
- Soap
- Toilet paper
- Waste baskets/bags
- Towels
- Linens and pillows
- Kitchen stocked with cookware and utensils
- Bowls for pet food
- Extra cleaning supplies
- Crib and high chair for small children and babies
- Smart Technology security system
Industry Analysis
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.
Download the airbnb business plan template (including a customizable financial model) to your computer here
Customer Analysis
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.
The precise demographics for Kissimmee, Florida are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
FFVR will primarily target the following customer profiles:
- Families with children
- People looking for pet-friendly destinations
- People looking for affordable rentals close to Florida theme parks and attractions
- People looking for an Airbnb experience with all of the comforts and conveniences of home
Competitive Analysis
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.
Download the airbnb business plan template (including a customizable financial model) to your computer here
Competitive Advantage
FFVR will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly qualified team of guest relations managers who will be able to guarantee all properties are in exceptional condition and all guest requests are met with care and efficiency.
- Comprehensive menu of services and family-friendly amenities so each guest can enjoy a comfortable and memorable experience without all the hassle associated with planning a vacation.
- FFVR offers the best prices for the value compared to similar companies in the area.
Marketing Plan
Brand & Value Proposition
FFVR will offer the unique selling points to its guests:
- Highly-qualified team of skilled employees that is able to provide a comprehensive set of services (housekeeping, advice on local attractions, fully stocked kitchen, family and pet accommodations).
- Family and pet-friendly vacation homes and amenities (swimming pools, dog park nearby, WiFi, household essentials).
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.
Pricing
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.
Operations Plan
The following will be the operations plan for FFVR.
Operation Functions:
- Mark Martinez will be the Owner and President of the company. He will oversee all staff and manage client relations. Mark has spent the past year recruiting the following staff:
- Anthony Miller – Office Manager who will manage the office administration, guest files, and accounts payable.
- Sandra Smith – Staff Accountant will provide all accounting, tax payments, and monthly financial reporting for the company.
- Christopher Rodriguez – Marketing Director who will carry out all marketing and sales activities.
- Michaela Williams – Maintenance Director who will oversee all maintenance and housekeeping at the properties.
Download the airbnb business plan template (including a customizable financial model) to your computer here
Milestones:
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
Management Team
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.
Financial Plan
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:
- Property purchase: $600,000
- Renovations, cleaning, furnishing, and supplies for three units: $90,000
- Three months of overhead expenses (payroll, rent, utilities): $90,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the airbnb business plan template (including a customizable financial model) to your computer here
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.
- Average occupancy rate of each unit per month: 62%
- Average fees per month: $9,000
- Office lease per year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
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
- Executive Summary
- Company Overview
- Industry Analysis
- Customer Analysis
- Competitive Analysis
- Marketing Plan
- Operations Plan
- Management Team
- Financial Plan
- Appendix
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?
- Create a business entity. To start an AirBnB business, you will need to create a business entity. This can be done by filing articles of incorporation with your state's secretary of state.
- Register your business with the IRS. Depending on your chosen business entity, you may also need to register your business with the IRS by filing for an EIN. This will establish your business as a tax-paying entity.
- Obtain liability insurance. AirBnB businesses are at risk for liability claims, so it is important to obtain liability insurance. This will protect your business in the event that someone is injured while staying in your rental property.
- Register your rental property with the city. In order to rent out your property on AirBnB, you will need to register it with the city. This typically entails obtaining a business license and paying any applicable taxes or fees.
- Write your AirBnB Business plan. You can easily complete your Airbnb business plan using our Airbnb Business Plan Template here.
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 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 business plan for an Airbnb and present it in a professional manner to increase your chances of securing funding.
Where Can I Get an Airbnb Business Plan PDF?
You can download our free airbnb business plan template PDF here. This is an airbnb business plan template you can use in PDF format.
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