Airbnb vs. Traditional Rental: A Simple Formula to Maximize Your Profits

**Airbnb vs. Traditional Rental: Which is More Profitable?** Mexico City, June 11, 2025 – Choosing between Airbnb and traditional rentals can be a complex decision for property owners. Alonso Lozano, a real estate advisor, offers a simple formula to clarify which option is more financially advantageous. Lozano explains that while Airbnb can offer higher potential income, significant commissions and taxes often reduce profits. He states, "An Airbnb property manager will charge you between 20% and 25% of your earnings, and Airbnb itself takes another 15%. This means that from every $10,000 earned, you only keep approximately $6,000." He uses a comparative example: "If your traditional rental property earns $12,000 per month, you'd need to generate at least $18,000 through Airbnb to make it worthwhile." This highlights that a 50% increase in Airbnb income is necessary to surpass traditional rental profits. The video's clear explanation and straightforward calculations make it a valuable resource for property owners considering their rental strategies. Lozano's advice emphasizes the importance of considering all costs and potential income before making a decision.