The size of your short-term rental can affect the profitability and overall success of your Airbnb business model in several ways:
1. Occupancy rate: Larger properties can often accommodate more guests and thus have a higher occupancy rate, which can lead to higher revenue. However, larger properties also have more space to clean and maintain, so this higher revenue may be offset by increased cleaning and maintenance costs.
2. Seasonal demand: The demand for short-term rentals can vary depending on the season, location, and type of property. A larger property may have more room to adjust prices to reflect seasonal demand, which can help maintain profitability.
3. Location: The location of the property also plays a big role, smaller properties may be more in demand in high-density urban areas, while larger properties may be more in demand in areas with more space such as suburban or rural areas.
4. Property type: A property type can also affect the demand and profitability. For example, a smaller studio or 1-bedroom apartment may be more in demand among solo travelers or couples, while a larger property with multiple bedrooms can accommodate larger groups, families, or groups of friends.
5. Cost: The cost of running and maintaining a larger property will typically be higher, as it requires more utilities, cleaning, and maintenance. This can affect profitability and return on investment.
6. Guest’s preferences: Some guests may prefer larger properties for events or gatherings, while others prefer more intimate spaces. This can affect the demand and the competitiveness of your listing.
It’s important to keep in mind that there is no one-size-fits-all solution, the size of your short-term rental can affect the profitability, but it’s not the only factor, it’s important to also consider the location, demand, property type, and overall expenses. It’s best to consult local real estate professionals or conduct market research to get a better understanding of what properties are in demand in your area.