Define the two numbers
Occupancy is the share of available nights that were booked. Net per night is what you keep from each booked night after costs that come with the stay. Occupancy tells you about demand. Net per night tells you about the price you accepted and what it cost to serve the guest.
Both matter, and they pull against each other. Lowering the price can raise occupancy and lower net per night, sometimes to a loss.
A worked example
A property is available for 30 nights and booked for 21, which is 70 percent occupancy. Booking revenue is $4,200, or $200 a booked night. The platform fee takes $126, cleaning and laundry cost $420, and supplies add $84. Net before fixed costs is $3,570, which is $170 a booked night.
Fixed costs for the month, such as mortgage interest, utilities, insurance, internet and property tax, total $2,900. Profit is $670 for the month. If occupancy fell to 55 percent at the same price, net before fixed costs would drop and the profit would be near zero. Fixed costs do not shrink when the calendar does.
Track costs by stay
Record each stay once: dates, nights, payout, cleaning and any extra expense. Per-stay records show which bookings earn money. A one night stay with a full cleaning cost can be less profitable than a three night stay at a lower rate.
Keep payouts and bookings separate. Platforms pay out after check-in and net out their fees, so a payout rarely equals a booking.
Watch the minimum stay and the cleaning fee
Short stays multiply cleaning costs. If your cleaning cost is the same for one night as for a week, a minimum stay can improve net per night even though it lowers occupancy.
A cleaning fee charged to guests is revenue and the cleaner is a cost. Record both, so you can see how much of the cost you recover.
Pricing questions to test
Before you change a rate, run two cases. If you drop the nightly price by ten percent and expect occupancy to rise, how many extra nights do you need to match last month's profit? Often the answer is more nights than the calendar has.
Run the other case too. If you raise the price and occupancy falls a little, profit can rise because you serve fewer stays and pay for fewer cleanings. The only way to know is to calculate both.
Taxes and records
Lodging taxes, income tax treatment and any limits on deducting costs depend on your location and how you use the property. Check with your CPA and the relevant tax agencies.
A tracker that holds stays in one table and shows occupancy, net per night and monthly profit lets you test a price change before you make it. The Airbnb Host Profit Tracker on this site is built for that.
Common questions
What is a good occupancy rate?
It depends on the market and the season. Compare your own months to each other and to nearby listings.
Should I count my own stays?
Count them as unavailable nights, and keep personal use apart from rental use. Your CPA can explain the tax treatment.
Do platform fees count against revenue?
Record them as an expense, so gross revenue and fees are both visible.
This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation.