8 Steps to Breakeven on Your Airbnb Investment Property

Let’s face it - nothing fuels late-night Google rabbit holes like a newly minted Airbnb property. You’ve done the deal, ordered the linen, and binge-watched every episode of Stay Here. Now comes the not-so-glamorous question: How do I actually break even on this thing?

Whether you’ve bought into the Byron Bay dream, or snagged a sleek studio in Casuarina, it’s easy to underestimate the true cost of short-term rental life. But breaking even isn't just about covering your mortgage. It’s about smart choices, long-game thinking, and occasionally resisting the urge to buy another eucalyptus-scented candle “for the vibe.”

Here’s how you get from spreadsheet panic to profit potential - with your sanity (and scented candle budget) intact.

1. Understand What ‘Break Even’ Actually Means

Break-even isn’t just covering your monthly mortgage payment. It’s a more layered beast. At a minimum, here’s what you should be factoring into your monthly break-even line:

• Mortgage repayments (principal + interest)

• Council rates and strata fees

• Utilities (electricity, water, internet)

• Cleaning and laundry costs

• Insurance (short-term rental-specific)

• Repairs and maintenance (that tap will drip eventually)

• Platform commissions (Airbnb, VRBO, Booking.com)

• Management fees (if you outsource)

Once you have all that tallied up, you’ll know what your property needs to earn each month to keep the financial sharks from circling.

2. Set Realistic Revenue Expectations

Now that you know what you’re aiming to cover, it’s time to crunch what your property could actually earn.

And here’s where it gets interesting. Revenue on Airbnb isn't just a flat rate- it fluctuates with:

• Seasonality (hello, school holidays and Splendour weekends)

• Mid-week vs weekend bookings

• Minimum night stays

• Cancellations and vacancy gaps

• Local events (Surf comps, food festivals, yoga retreats)

Let’s say you need to pull in $6,000 per month to cover everything. If your average nightly rate is $300, that’s 20 bookings per month- a tall order if you’re in a quieter part of Kingscliff in the middle of winter. This is where dynamic pricing tools (Wheelhouse or PriceLabs) become your best friend.

3. Know the Value of Time (and Your Limits)

Running an Airbnb can feel like juggling flaming pineapples. Messaging guests, managing cleaners, checking on linen, updating calendars—it adds up.

This is why many owners eventually ask themselves the all-important question:

How much should I pay someone to manage my Airbnb in Northern Rivers NSW?

It’s not just about avoiding burnout. It’s about investing in expertise. A good manager can increase your occupancy rate, handle maintenance before it becomes a crisis, and know exactly what to charge during that obscure but lucrative festival you forgot existed.

Management fees in Northern Rivers usually range from 15% to 25% of your monthly earnings, depending on the service level. Full-service agencies might cost more, but they also tend to increase revenue enough to offset their cut. It’s less a cost and more of a performance partner. So if paying a manager frees up your time, keeps guests happy, and avoids a bad review spiral, it might be the very thing that gets you to break-even- and beyond- faster.

4. Furnish Smart, Not Fancy

Tempting as it is to channel your inner interior designer, your break-even date won’t appreciate a $1,500 designer lamp.

Furnishing your Airbnb should be a strategic balance of:

• Durability: Can it survive sandy feet and sticky fingers?

• Style: Will it look good in photos?

• Functionality: Is there enough storage? Hooks for towels?

Stick to mid-range brands and keep receipts- furnishings are depreciable, and your accountant will thank you. Go for neutral palettes, layered textures, and pops of local art or greenery (bonus: they hide dust better than white surfaces).

5. Market Like You Mean It

Getting bookings isn’t just about listing it and crossing fingers. It’s about actively courting the algorithm gods.

Here’s what boosts your chances of getting booked:

• High-quality photos (use a pro - it’s worth it)

• A keyword-savvy listing description

• Quick response times (instant booking helps)

• Five-star reviews (especially for cleanliness and communication)

• Multi-platform listings (Airbnb, VRBO, Booking.com)

And don’t underestimate the power of a catchy title. “Coastal retreat near beach” won’t do much. “Sunset Deck | 200m to Beach | Netflix & Naps” might just catch a scroller’s eye at midnight.

6. Think Beyond Nightly Rates

Yes, most income will come from guests staying the night. But there are creative ways to stretch that dollar:

• Offer early check-in or late check-out for a small fee

• Add a pet fee (everyone’s travelling with a cavoodle these days)

• Charge for extra linen or extra guests

• Partner with local businesses (surfboard hire, yoga classes)

Even adding $20 per booking in extras across 20 bookings means $400 per month in found money.

7. Seasonal Strategy = Survival

You can’t charge Byron prices in June if your property’s in sleepy Pottsville. Plan for:

• Peak Season Profits: Raise your rates when demand spikes.

• Off-Season Offers: Discounted longer stays to digital nomads or remote workers.

• Local Events: Update your rates and minimum nights around known festivals.

Use your channel manager or pricing app to automate these changes and avoid leaving money on the table- or worse, chasing discounts unnecessarily.

8. Keep Score (and Stay Flexible)

The best hosts are spreadsheet-savvy. Review your RevPAR (Revenue per Available Rental Night) monthly. Track guest feedback trends.

Adjust your cleaning or welcome process if your reviews start dipping.

Also, stay nimble. Algorithms change. Platforms tweak policies. What worked last year might need a revamp this year. Maybe VRBO is suddenly pulling in better guests for your suburb. Or maybe Booking.com fills weekday gaps better than expected. Monitor, pivot, repeat.

Break-Even Is a Milestone, Not the Finish Line

Getting to break-even isn’t about crossing a finish line - it’s about building a foundation. Once you’re consistently covering costs, you can breathe easier and start aiming for profit, reinvestment, or scaling up.

And remember, this is a long game. First years often have more upfront costs - furnishing, professional photos, small upgrades, but smart decisions now set you up for smoother returns later.

So pour yourself a glass (from a guest-free wine glass), pull out that spreadsheet, and know this: breaking even is absolutely doable. With strategy, a little help, and just enough flair, your Airbnb can go from “how do I cover this mortgage?” to “wait, should I buy another one?”

You’ve got this. And yes—you can still buy the candle. Just keep the receipt.

….And if you need a property manager to assist in helping you break even, Coastal Luxe Property Hosting is your go to. Get in touch, don’t be shy!

So, there you have it - we've given you 8 steps to breakeven on your Airbnb investment property. Happy calculating!