Short Term Rentals (Airbnb) Financial Model (Excel XLSX)

A short-term rental is a furnished living space available for short periods of time, from a few days to weeks on end. Short-term rentals are also commonly known as vacation rentals and are considered an alternative to a hotel.

Short Term Rental (Airbnb) Financial Model presents a project case of the rental of several apartments with the intent of subleasing them as short term rentals through Airbnb platform (can also be used for other platforms like , etc.).

The main purpose of the model is to enable users to get into details of every step of a Short Term Rental project from the initial rent of the apartments, renovation costs, operating costs per apartment and per stay, projection of revenues and cash flows, financing options (Debt & Equity) and project valuation & Exit Assumptions.

Outputs of the template include Monthly Cash Flow Report, Annual Financial Forecast, Annual Direct Cash Flow, Project Valuation and Sensitivity Analysis, Payback & Breakeven Calculation, Project Return Metrics (IRR, MOIC, NPV), and Investors Returns Waterfall.

A variety of KPIs and Financial Ratios analyzes business performance and the project's results are presented through sophisticated charts & graphs and are summarized on a professional Executive Dashboard.

The model is dynamic and allows users to select the desired forecasted Years (1 to 10). Output Reports & Charts are dynamically updated based on the selected forecast period

The structure of the template follows Financial Modeling Best Practices principles and is fully customizable.

Inputs:
•  Apartment Portfolio & Revenue Assumptions
•  Capital Expenditures per New Apartment
•  Recurring Operating Expenses (Costs per Apartment, Costs per Stay)
•  Financing & Capital Structure ? Uses & Sources of Cash analysis (Financing through Equity & Debt)
•  Exit Year Scenario & Valuation Multiples

Outputs:
•  Monthly Operating Cash Flow Report
•  Dynamic 10 Year Forecast
•  Annual Direct Cash Flow
•  Project Valuation (incl. Enterprise & Equity Value, Terminal Value, Unlevered & Levered Cash Flow, Project Return Metrics & Sensitivity Analysis)
•  Summary of various KPIs and Financial Ratios (Revenue & Cost Metrics, ROE, ROIC, Profit Margins, etc.)
•  Investor Returns (4-tier IRR hurdle waterfall model to distribute proceeds between investors)
•  Business Performance Dashboard
•  Professional Executive Summary (can be used for investment decisions)

Instructions on the use of the model are included in the Excel file.

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