A short-term rental apartment earns from the nights it sells, minus what it costs to run.
The platforms, cleaning, utilities and the operator each take a share of every night. What's left depends above all on how many nights you sell and at what price.
What a short-term rental (STR) isWhere the income comes from
Three figures explain all of a short-term rental's income. Read them together: a high rate with low occupancy can leave less than an average rate with the apartment full.
- 1
Occupancy: how many nights you sell
Nights sold over nights available. In the example, 60% of 30 nights: 18 nights sold in the month.
What monthly occupancy is - 2
ADR: what price you sell them at
The average rate per night sold. It changes with the season, the city's events and the day of the week. In the example: 280,000 pesos a night.
What ADR is - 3
RevPAR: what each available night brings in
ADR times occupancy. It joins both figures into one, so it compares apartments or months. In the example: 168,000 pesos per available night.
What RevPAR is
One month, peso by peso
A made-up apartment in Medellín: it sells 18 nights at 280,000 pesos, with stays of 3 nights on average. Bookings come through platforms like Airbnb or Booking, and an operator runs it.
| Item | In the month |
|---|---|
| Income from nights sold | 5,040,000 |
| Platform commission (15%) | − 756,000 |
| Housekeeping (6 checkouts at 90,000 pesos) | − 540,000 |
| Utilities, internet and supplies | − 450,000 |
| Maintenance and replacements | − 200,000 |
| Gross operating profit (GOP) | 3,094,000 |
| Operator fee (20% of income) | − 1,008,000 |
| Building fee, property tax and insurance | − 550,000 |
| What the owner keeps | 1,536,000 |
Of every 100 pesos the guest pays, the owner keeps about 30. The GOP shows how well the apartment is run; what comes after it are the costs of owning it.
If every month were like this one, the year would leave 18,432,000 pesos. On an apartment worth 450,000,000 pesos, that's 4.1% a year, before income tax and without counting whether the apartment gains value.
Each line, in the glossary:OTAsHousekeepingGOPOperator feeBuilding fee
What moves the result
Almost every cost stays the same when you sell fewer nights. That's why occupancy moves what the owner keeps far more than it moves income.
| Occupancy | Income | Owner keeps |
|---|---|---|
| 50% | 4,200,000 | 1,080,000 |
| 60% | 5,040,000 | 1,536,000 |
| 80% | 6,720,000 | 2,448,000 |
The same apartment at 280,000 pesos a night. Going from 50% to 80% occupancy raises income 60% and what the owner keeps 127%.
Longer stays
Housekeeping is paid per checkout, not per night. A week-long stay costs the same to clean as a two-night one.
Lock-off units
An apartment that splits into two independent units sells whole to a family or in parts to two guests, depending on what each season asks for.
What a lock-off unit isSeasonal pricing
Raise the price in high season and during events, and lower it a little in low season so nights don't sit empty.
Less reliance on platforms
Guests who come back or book direct don't carry the platform's commission. Platforms still bring most new bookings.
What to check
Before looking at what an apartment can earn, look at what can leave it without guests.
That the building allows it
Law 2068 of 2020 requires the building's co-ownership rules to expressly authorize tourist housing. Without that, the building can ban it.
The National Tourism Registry
To rent by the night the apartment needs an RNT, renewed every year. Platforms ask for it to publish a listing.
What the RNT isLow season
No two months are alike. Do the math with the occupancy of the slow months, not the best one.
Costs that rise
Utilities, cleaning wages, the building fee and commissions change. An example with today's costs isn't the result of the coming years.
Frequently asked questions
How much does an Airbnb apartment make in Medellín?
It depends on occupancy, rate and costs, so no single figure works for everyone. In this guide's example, an apartment that sells 60% of its nights at 280,000 pesos leaves the owner about 30 of every 100 pesos the guest pays.
How much does a short-term rental operator charge?
Usually a percentage of income, generally between 15% and 30%, depending on what it covers: photos and listing, pricing, guest service, cleaning or maintenance. Check which costs fall outside that percentage.
Are short-term rentals legal in Medellín?
Yes, with two conditions: the apartment needs a National Tourism Registry (RNT), and the building's co-ownership rules must expressly allow tourist housing, as Law 2068 of 2020 requires.
What earns more, a short-term rental or a traditional lease?
A short-term rental can bring in more per month, but it has more costs and its income changes with the season. A traditional lease brings in less and is steadier. Compare what the owner keeps in each case, not the income.
What is GOP in a short-term rental?
Gross operating profit: income minus the costs of running the apartment, such as commissions, cleaning, utilities and maintenance. It measures how well it's run, before the operator's fee and the fixed costs of owning the apartment.
Short-term rental projects
Private projects of apartments rented by the night, which you join with a share instead of buying a whole one. Each project page shows its projected figures and its risks.
Project in Construction
Project in Operation
Project in ExplorationCasa Lago
La Pintada, Colombia
This project is currently under study. We will notify you when it becomes available for participation.
Keep going
- How to invest in short-term rentals without buying an apartmentThe short lesson: what options there are and how they differ from buying.
- Co-Houses PalmasA private short-term rental apartment project in Las Palmas, Medellín. See how it's structured and what risks it carries.
- Circular HousesWhat the apartments look like inside: photos, reviews and online booking.
Educational content. It is not financial, legal or tax advice, nor a public offering of securities. The example apartment is made up and its figures don't belong to any project. Every stake in a private project carries risk, and its results depend on how the project performs.