Short Term Rentals (Airbnb) Financial Model - Dynamic 10 Year Forecast
Review: 5 - "A masterpiece of literature" by John Doe, written on May 4, 2006
I really enjoyed this book. It captures the essential challenge people face as they try make sense of their lives and grow to adulthood.
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 Booking.com, 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.
• 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
• 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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No matter if you have no experience or you are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!
If you however experience any difficulty while using this template and you are not able to find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.
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