Buying Property to Rent on Airbnb in Torres: Return Calculation

In an increasingly dynamic real estate landscape, the search for investments that generate income and steady appreciation is constant. For many, the idea of owning a property in a renowned tourist city and turning it into a source of income through short-term rentals emerges as a golden opportunity. And when we talk about top-tier destinations in Southern Brazil, Torres, with its stunning natural beauty and ever-developing infrastructure, stands out as a privileged setting for this type of investment. If you dream of buying a property to rent on Airbnb in Torres and want to understand the ins and outs of calculating returns, this complete guide is for you. Let’s demystify the process, present the keys to making a confident decision, and show how Torres is establishing itself as one of the most promising markets.

Torres: The Perfect Destination for Investing in Short-Term Rentals

Torres is not just a postcard of the Rio Grande do Sul coast; it is a tourism hub that attracts visitors year-round, with peaks that significantly boost lodging demand. The city has successfully combined its natural vocation with planned urban development, and that is directly reflected in property appreciation. For those considering buying a property to rent on Airbnb in Torres, this combination is the ideal scenario.

Why Is Torres a Smart Investment?

• Consistent Property Appreciation: In recent years, Torres’ real estate market has shown impressive growth. Demand for properties in the area, both for living and for investment, has been strong, driving values up in a sustainable way.
• Tourism Demand That Supports Income: Torres attracts visitors from across Brazil and even from abroad, especially during the summer high season, long holidays, and events. This steady influx ensures high occupancy for well-located properties with the features travelers are looking for.
• Liquidity in Strategic Neighborhoods: Neighborhoods with good infrastructure, close to beaches and commercial centers, and with easy access to tourist attractions tend to have greater liquidity and more consistent demand, making both the purchase and, later on, the sale of the property easier.
• Quality of Life That Attracts: Beyond its investment potential, Torres offers an exceptional quality of life, with breathtaking scenery, safety, and a welcoming atmosphere. This attracts not only tourists but also potential long-term buyers for the property.

Calculating the Return on Your Airbnb Investment in Torres

The decision to buy a property to rent on Airbnb in Torres should be based on a careful financial analysis. It is not enough to simply acquire the property; it is essential to know how it will perform as an income-generating asset. Calculating return on investment (ROI) involves several factors that, when properly assessed, can indicate the expected profitability.

The Pillars of the Return Calculation

To get a clear view of profit potential, it is essential to consider the following elements:

1. The Total Property Cost

This is the starting point. Include not only the purchase price of the property, but also all associated costs:

• Property purchase price.
• Documentation and tax costs (ITBI, registration).
• Notary fees.
• Costs for minor renovations or adjustments for short-term rentals.
• Contingencies and initial maintenance costs.

2. The Estimated Gross Revenue

This is where you project how much the property may generate:

• Average Daily Rate: Research the nightly rates of similar properties in Torres, considering location, size, number of bedrooms, amenities offered (pool, barbecue grill, air conditioning, etc.), and time of year.
• Occupancy Rate: This is one of the most crucial factors. Analyze Torres’ seasonality. What percentage of the year do you expect the property to be occupied? In Torres, the summer high season, holidays, and long weekends usually have high occupancy rates, but it is important to consider slower periods as well. A realistic occupancy rate is essential so you do not overestimate revenue.
• Estimated Annual Gross Revenue: (Average Daily Rate x Estimated Occupied Days per Year).

3. Fixed and Variable Operating Costs

No property generates revenue without expenses. It is vital to map out all costs:

• Platform Fees (Airbnb): The percentage charged by Airbnb on each booking.
• HOA Fees and Property Tax: Monthly and annual costs, even when the property is vacant.
• Utility Bills: Electricity, water, gas, internet.
• Cleaning and Laundry Services: Essential between each guest. Calculate the cost per cleaning.
• Maintenance and Repairs: Unexpected issues happen, and preventive maintenance is necessary. A percentage of gross revenue is a good benchmark.
• Property Insurance: Protection against damage.
• Property Management (if outsourced): If you choose to delegate management, include this fee.

4. Net Profit Calculation

With the estimates of gross revenue and operating costs, we can arrive at net profit:

Annual Net Profit = Annual Gross Revenue - Annual Operating Costs

5. Return on Investment (ROI) Calculation

This is the final indicator that shows how efficient your investment is:

ROI (%) = (Annual Net Profit / Total Property Cost) x 100

A healthy ROI can vary, but in short-term real estate investments like Airbnb, the goal is to achieve returns that outperform inflation and other lower-risk investments. It is common to target gross annual returns ranging from 6% to 12%, but this may be higher or lower depending on the factors analyzed.

What Should You Consider When Choosing the Ideal Property in Torres?

Location is the mantra of the real estate market, and for short-term rentals, it becomes even more important. In Torres, some points are crucial:

Proximity to Beaches and Attractions

Properties within walking distance of Torres’ famous beaches, such as Praia da Guarita, Prainha, Praia Grande, and close to tourist spots like the hang gliding platform and natural parks, tend to have stronger and more consistent demand.

Property Profile

For Airbnb, properties with specific features usually attract more guests:

• Compact apartments (studios and 1-bedroom units): Ideal for couples or small families, usually offering good value and high occupancy rates.
• Properties with more bedrooms: Attract larger groups and families.
• Extra amenities: Pool, barbecue area, parking space, ocean or nature views, and air conditioning in every room are major differentiators.
• Decor and Furnishings: A well-decorated, functional property with basic comfort items (kitchen utensils, quality bed and bath linens) makes all the difference in the guest experience and reviews.

Torres’ Seasonality

Torres has a well-defined seasonality. Summer is the peak period, but the city also attracts visitors during long holidays, events, and even in slower months for those seeking peace and contact with nature. A realistic projection of the occupancy rate throughout the year is essential so you do not create unrealistic expectations about profitability.

Simplified Practical Example

Let’s imagine an apartment in Torres:

• Total Property Cost: R$ 400.000
• Estimated Average Daily Rate: R$ 300
• Estimated Annual Occupancy Rate: 60% (approx. 219 days/year)
• Estimated Annual Gross Revenue: R$ 300 x 219 = R$ 65.700
• Estimated Annual Operating Costs (HOA fees, property tax, bills, cleaning, maintenance, Airbnb fees): R$ 25.000
• Estimated Annual Net Profit: R$ 65.700 - R$ 25.000 = R$ 40.700
• Estimated Annual ROI: (R$ 40.700 / R$ 400.000) x 100 = 10,17%

This is a simplified calculation. In practice, each item should be detailed further, and variables such as annual rate increases and costs should also be considered.

Frequently Asked Questions About Buying a Property to Rent on Airbnb in Torres

Why invest in Torres for short-term rentals?

Torres offers a unique combination of natural beauty, strong tourism appeal, and a real estate market that is appreciating. The city attracts a large flow of visitors throughout the year, ensuring consistent lodging demand. In addition, the quality of life and local infrastructure make the area desirable for both tourists and investors.

What are the risks of investing in short-term rentals?

The main risks include seasonality, which can affect occupancy rates during certain periods; competition, with a growing number of owners targeting the same market; the need for constant maintenance and unexpected issues; and the possibility of changes in local regulations or rental platform policies. Efficient management and in-depth market analysis are essential to mitigate these risks.

How can Haute Imobiliária help with my investment in Torres?

Haute Imobiliária has in-depth knowledge of the Torres market and surrounding area. Our specialized team can assist you at every stage: from identifying properties with high return potential for short-term rentals, to financial feasibility analysis, and full support throughout the purchase process. With personalized, local service, we aim to ensure your investment is safe and profitable.

Is it better to buy a new or used property to rent on Airbnb in Torres?

Both options can be advantageous, depending on your goal and budget. New properties generally require less initial maintenance and may have broader appeal for some guests, but the purchase cost tends to be higher. Used properties may have a lower purchase price and offer opportunities for customization and renovation, adding value. It is crucial to analyze the location, condition, and appreciation potential of both property types in the context of Torres.

Buying a property to rent on Airbnb in Torres is an investment strategy with great profitability potential, as long as it is based on planning and detailed analysis. The city offers the ideal setting, and with the right support, you can turn this dream into a prosperous and rewarding business. Haute Imobiliária is ready to be your partner on this successful journey in Torres.

Read also: see also this related content and a featured property in Torres.

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