Short-Term Rental Financial Model (10 Year Financial Forecast)

This Short-Term Rental Financial Model Template has been built for use by anyone looking to model out their Short-Term Rental property (or multiple properties) financials over a 10 year period. This model includes all the key variables you would need to consider with specific Short-Term Rental metrics you can track (Net Property Revenue (post Short-Term Rental service fees), Occupancy Rate Per Property, # Of Nightly Bookings Made). Users will easily be able to navigate the model with all input fields highlighted in Blue font. These models are designed to be the perfect financial tool for business owners to use to make decisions for their property or multiple properties and also to provide to a snapshot of how the business is currently performing and what the forecasts look like. We have included inputs for 5 properties, with the user easily being able to add or delete properties according to their needs.

Revenue & Direct Costs Assumptions

Starts with basic model questions on Start date of the model, Number of Nights Available For Rent Per month, corporate tax rate, Short-Term Rental Service Fee %.

Revenue assumptions are the anticipated factors that drive a company’s income generation over a specific period. These assumptions form the basis for financial projections and are crucial for planning and decision-making. In our model we have included detailed inputs for 5 Short-Term Rental properties with each Properties inputs on Nightly Rate Charged $, # of Nights Booked in a month, Occupancy $, Short-Term Rental Service Fee.

Direct Costs assumptions are the costs directly attributable to a company’s Revenue and we have included inputs on the likely Short-Term Rental direct costs of Cleaning Costs as a % of Revenue, Supplies & Amenities Costs as a % of Revenue and Property Management Fees as a % of Revenue.

Operating Expenses Assumptions

Operating expense assumptions are typically based on historical data, industry benchmarks, market trends, and management’s judgment. They are crucial for estimating the total cost of running the business and for determining profitability. Like revenue assumptions, it’s important to regularly review and adjust operating expense assumptions to reflect changes in the business environment and ensure the accuracy of financial forecasts. In our model we have included detailed inputs on Staff Costs (Owner, Other), Typical Short-Term Rental related Operational Expenditure items including Utilities, Maintenance & Repairs, Insurance, Marketing & Listing Costs, Administrative Costs, however, you can add any other expenses you think may be relevant to your business in this sheet. 

Capex Assumptions

Capital expenditure (Capex) assumptions refer to the anticipated investments a company plans to make in long-term assets, such as property, equipment, and technology, over a specific period. These assumptions are crucial for financial planning, budgeting, and forecasting, as they impact the company’s cash flow, profitability, and growth prospects. We have included a Detailed list of likely Initial Costs by a user including Property Acquisition Costs Per Property, Furniture & Equipment Costs, Legal and Compliance Costs and other capex related costs; as well as a corresponding Fixed Asset Register. We have also given an assumption on Capital Structure (i.e. if Property Purchases were funded entirely through Equity or Debt). 

Monthly Projections (10 year period)

We have broken down projections on a Month by Month basis when projecting Income Statement, Balance Sheet and Cash Flow Statement items. The monthly projections are provided over a 10 year time frame. This is particularly useful for businesses looking at month-on-month trends and insights in the business, which leads to better decision making and also better budgeting should there be a need to either raise more capital, pursue growth opportunities from excess capital or pay down interest bearing debt. Monthly projections also help a business ascertain what performance may be seasonal in nature when looking at growth projections on a month-over-previous-year’s-month basis.  

Annual Projections (10 year period)

The model has Annualized Financial Projections of Income Statement, Balance Sheet and Cash Flow Statement over a 10 year time frame. Annual projections provide an excellent overview of expected revenues, expenses, profits, cash flow, and other key financial metrics for the upcoming year. Annual projections are essential for strategic planning, budgeting, fundraising, and performance evaluation for any company at any stage of their business cycle. 

Short-Term Rental Metrics & Ratios

Short-Term Rental specific metrics (Net Property Revenue (post Short-Term Rental service fees), Occupancy Rate Per Property, # Of Nightly Bookings Made), Profitability Ratios, Liquidity Ratios, Asset Turnover Ratios provided. 

Summary of Financial Statements (10 year period)

Summarized Financial Statements over a 10 year time frame helps for better snapshots of financial performance. Income Statement, Balance Sheet and Cash Flow Statement all provided. 

Charts

Charts available including Profitability Analysis and Use of Funds Chart.

Depreciation Schedule

Detailed Depreciation Schedule shows additions / disposals to the Fixed Asset Register of the business. Sections included for Furniture & Equipment, Technology & Smart Home Devices, Others. 

Debt Schedule

Debt schedule provided with interest rate assumptions and payback period assumptions included. 

Equity Schedule

Equity schedule provided with assumptions on all investments into the business by investors or owners.