How Much We Made on Airbnb: In-Law Apartment Renovation
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- เผยแพร่เมื่อ 6 ก.พ. 2025
- Could we turn our outdated in-law unit into a successful Airbnb? Three years ago we purchased a cottage with an in-law unit in need of renovation. We decided to give the in-law unit a makeover and list it on Airbnb. We were Airbnb beginners with a lot to learn. In this video, we share our Airbnb renovation costs, before and after renovation photos of our Airbnb transformation, and how much we earned on Airbnb each year since we launched.
If you’ve ever considered launching an Airbnb in-law apartment, or creating a short-term rentals retirement strategy, we hope you find this information useful.
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⏰ TIME STAMPS
02:03 Finding a Property
05:07 Renovation
08:43 Listing the Property
10:57 Year One (Whoo-hoo 🎉)
16:25 Year Two (Big Changes Ahead)
21:37 Year Three (We Did Not See That Coming)
👋🏻 ABOUT US
Hi, we’re Matt and Dawn, The Unretirees. As we approached the traditional retirement age, we realized we had no desire to retire. But we didn’t want to put off our dreams of living abroad and traveling the world, either. We decided to unretire abroad. We live on the Silver Coast of Portugal and work remotely. Subscribe to our channel for more content about expat life, remote work, and travel and adventure over 50.
Great video as someone who runs an AirBnB myself. Revenue is great, would love to hear more on the cost side 🌼
Costs are not much more here than we experience in the US, but taxes here are different. In Portugal, non-residents pay 25% of revenue for short-term rental income and residents pay just short of 10% of revenue for short-term rental income....regardless of costs. So you can lose money, and then pay a chunk of taxes here. It IS possible to manage an AirBNB here under a corporation, which allows you dollar-for-dollar cost deductions, however, with the licensing restrictions on short-term rentals, we fear that if we gave up our license personally, there is no guarantee we'd get it for a company...and then we couldn't do short-term rental. So taxes are the biggest cost difference. Otherwise, very similar.
This is a really awesome video. We have a house that we don't want to sell when we start to travel because we want to keep a nest in the US and have a place to come back to whenever we choose. After watching this, I feel much less nervous about possibly listing it on Airbnb. Thanks so much. I personally would love more videos on this topic. Make them...viewers will come.
Thanks @mylittleocchio and we’ve been pleased with airBNB (and also booking.com)
Very informative. Please share expenses and expenses with the property management company. Congrats on your success. Thanks
Thanks for watching @Ehender007 and property management is a range depending on who and exactly what they do, but here in PT it’s 20-30% of revenue it seems
Great video! Very interesting to hear your AirBnB experience!
Thanks and we feel like this has been such a great investment for us! Thanks for watching!
Thank you for the content 😊 I'm looking forward to hearing about the Airbnb in Portugal too. 🤗
Thanks for watching @eischa and we’ll be showing our Portugal AirBNB soon.
spot on - great video
Thanks so much!
I agree. My same day bookings have always been the most challenging stays. I also turned off instant booking, it helps if you can ask some prescreening questions before accepting bookings.
Thanks for watching @NVH83 and we set instant booking requirements where we'll take them if they have more than X number of good reviews. But someone who is new to the platform we'll want to have a conversation :)
Very Interesting information! Great investment in your Conn property. Congratulations! Looking forward to your videos on the Portugal property. Including more numbers on starting costs: mortgage or down pmt. And how you narrowed down the area to live & buy property in Portugal.
Thanks for watching @mindfulmidlifetravel. We put down 25% (some banks require 30% for non-residents). In terms of other closing costs, there are modest costs relating to the contract (hundreds of euros but not thousands) but the big one is there is a transfer tax that is challenging called the IMT. If you buy a €250,000 property, for example, the IMT is €10,400 and it needs to fully paid before the purchase is completed. So, 25-30% down plus this IMT are the real cash requirements.
I discovered you with your minimalism video. I'm planning to watch all your channel.😃
Thanks for watching @eischa !
I would’ve guessed $50k to do all that work. It looks like you did a beautiful job.
Thanks! Definitely a lot of DIY involved. Thanks for watching!
I'm super interested in all your income producing property content. Our goal is to fund most of our living abroad expenses this way.
Thanks for watching @MirandaHorger , and we have three units that we rent (one in Portugal and the house with two units in the US mentioned in this video). I wish I could say that the $$$ was all profit but sadly no….expenses and taxes eat up well more than half the revenues. However each one adds a little to the bank most months. It isn’t our sole source of income though.
Not sure why this one did not do well. I think it was informative. I did watch on faster speed and felt it was still long, so maybe that (the length of the video) is the reason?
Thanks for watching and for your observation. You could be right.
I’m looking forward to the video you will be posting about AirBnb in Portugal. Please could you mention the taxation on this activity.
Thanks for watching @RushmoorFizzbomb and on taxation - I assume the question is about AirBNB income taxation in Portugal. First, we’re not tax professionals. You can own an AirBNB personally or you can own it in a Portuguese business. We own ours personally, so you don’t get to deduct expenses directly. Instead, the government assumption is that your expenses are 65% of revenues and you are taxed at 28% of the remaining 35% (or just under 10% on gross revenues).
Very intereseting!
Thanks for watching @cristobar
Interesting video. I’d be curious what your annual profit margin is. Not looking for personal tax info but just overall revenue to expenses. Thanks for sharing your perspective!
Thanks for watching @susanaskew1 and I wish I had a great answer but there is so much that depends….Other than mortgage expense, the next two biggest ongoing costs are cleaning costs and, if you use one, a fee for property management. Some people clean and manage themselves but we can’t do that so that eats into our margin substantially…but for us it is worth it. Then there are smaller ongoing expenses for supplies (paper towels, toilet paper, snack bars, etc) and repairs or replacement (we’ve had to replace a refrigerator and air conditioning the last few months). There is a really useful TH-cam guy named Robuilt who has a spreadsheet you can download to help you figure out if a property makes sense given your specific situation. Thanks!
@@TheUnretirees Understand. Thank you. I was just curious what profit margin you decided was worth the work/headaches (10%, 20% or?). I realize that, too, is a personal decision. Was just curious, given how thoughtful you are about these decisions, what margin you think is worthwhile.
@@susanaskew1 The way that we look at it (and the way that Robuilt and others in the short-term rental space seem to look at it) is to determine your time to payback -- all the money you put in downpayment, renovation, furnishings, etc. We looked for payback in the 3-5 year range -- payback meaning revenue minus expenses. So with that in mind, I'd guess the margin is in the 20% range.
@@TheUnretirees Good info. Thanks again for your willingness to share.
I'm confused where is this property? Hard to understand the point of the video without knowing the cost of the property. Looks like a beautiful area by the beach.
Thanks for watching @mikesmith1702 This house is in Connecticut.