Factoring Utility Bills into AirBnB listing price

Hello,

I'm new to AirBnB.

I have a 4 bedroom, 1 Study, 2 bathroom house 20 mins out from Adelaide CBD that I'm thinking of AirBnB'ing out. Other than the last 9 months, I've only lived in 1 or 2 bed apartments in Sydney for the last 15 years. Although I've been in the house for a while now, it's only been myself and my partner and living very frugal with keeping usage low which isn't something I would guess AirBnB guest consider. Since being here, our bills have been roughly the same (a touch more) as in the 1 bed apartment in Sydney!

My question is how much should be factored for bills (Gas, Electricity, Water, Internet) when deciding how much to list an AirBnB property for. What I'm after is for people to offer their experience, wisdom or just educated guesses.

I know setting a price is about looking at the market and deciding using what I find. There really aren't many 4 bedroom places on AirBnB available to compare to, and I would like to decide if I can afford to AirBnB the house over the winter period as opposed to doing a 4 or 5 month furnished let. I do plan to AirBnB it come the Summer as I'm sure it'll be more popular.

I very much appreciate your time.

Thanks
Sam

 

Just make sure your listing price is within the normal range for the area.

If you are audited (as my son was), that is the first thing the ATO looked at. They look for people who deliberately overprice the property to maximise vacancies and deductions. They also checked for how widely they property was advertised, I.e., more than one platform.

 

Like you said, pricing is about what the market will accept, so it sounded like you answered your own question.

I don't factor my bills into my airbnb pricing. I factor my bills into whether I do it at all.

 

Thanks for your responses, I would like to decide if I can afford to AirBnB the house over the winter period as opposed to doing a 4 or 5 month furnished let where the tenant pays the bills.

Once I have an idea of how much bills are, I can deduct it from the market rate and then see if what's left is enough and therefore if it's better to just do a furnished let. So as @thatbum said, I'm trying to factor it in as to whether I do it at all.

 

Supply demand factors for the specific property location will drive its price, not owner costs. Most owners target the highest possible competitive rate that keeps it in constant use. We have several and occupancy was 75% plus but got up to 99% when covid struck & now its largely back. Commonly small gaps occur when people book stays they dont leave it continually occupied. Also consider where else they may stay - who are you really competing with ? You arent competing with hotels since none offer 4 bed facilities. Or serviced apartments. Strategies around listing these gaps or short notice availability on other platforms can help drive higher occupancy. Yes you find costs of linen and clean are higher but its a bit like Qantas letting seats go vacant its better you offer a cheap seat than a unused seat. Also consider all in pricing so its not plus fee plus clean.

Consider where a property is. Airbnb is a destination use product and isnt a rental platform as such. If the place in beachside etc its very different to suburban nowhere. People use maps to find proximity. eg They wont search Gold Coast beaches and stay in suburban Robina. Not too many tourists etc seek 4 bed unless its a big group party. Frown. eg a whole of house near wineries etc is more appealing than a suburb house. Fewer groups will travel in winter and groups may be limited to school times.

Its rare to find a whole house as suitable for Airbnb and in constant demand. Places like ski areas, wineries, beach areas are more likely.
I would be hesitant it could even be a party problem.