Airbnb expenses: what it really costs to run a short-term rental
Updated October 1, 2026 · 7 min read · By STRROI Research
Short-term rentals earn more per night than long-term rentals, and they cost a lot more to run. Investors who skip line items routinely overestimate profit by thousands a year. Here is every expense, with a worked example on a $450,000, 3-bedroom, 1,800 sq ft house grossing $53,144.
The full list, with a worked example
| Expense | Per year | % of revenue | How it is estimated |
|---|---|---|---|
| Property management | $10,629 | 20.0% | 20% of gross (0% if you self-manage) |
| Platform fees | $1,594 | 3.0% | 3% host fee |
| Supplies and consumables | $1,594 | 3.0% | 3% of gross: linens, toiletries, coffee |
| Cleaning (net) | $1,328 | 2.5% | $150 per turnover, 59 turnovers, about 85% covered by guest cleaning fees |
| Maintenance reserve | $2,657 | 5.0% | 5% of gross (more for older homes) |
| Capital reserve | $2,657 | 5.0% | 5% of gross for roofs, HVAC, appliances |
| Property tax | $4,500 | 8.5% | From the listing or county records |
| Insurance | $2,025 | 3.8% | STR policy, about 0.45% of price, at least $2,000 |
| Utilities | $3,600 | 6.8% | Electric, gas, water, trash, internet; scales with square footage |
| Total operating expenses | $30,584 | 58% |
That leaves $22,560 of net operating income, a 5.0% cap rate. After a 20%-down mortgage at 7.5%, cash flow is -$637 a month.
The costs people forget
- Furnishing and setup. Often $15,000 to $30,000+ for a 3-bedroom, paid up front. It belongs in your cash invested, not your operating budget.
- Lodging and occupancy taxes. Usually collected from guests (Airbnb remits them in many places), but you must register and file where it does not.
- Licenses and permits. Many cities charge annual STR registration fees and require inspections.
- Software and subscriptions. Dynamic pricing, smart locks, noise monitoring and streaming services add up.
- HOA dues. And check the HOA allows short-term rentals at all.
- Vacancy between seasons. Occupancy is an annual average; the slow months still have full fixed costs.
How costs change by market
- Beach towns: salt air shortens the life of HVAC, decks and appliances, flood or wind coverage raises insurance, and summer turnovers are frequent.
- Mountain and ski towns: snow removal, higher heating bills, hot tub upkeep and four-wheel-drive access issues; longer winter stays mean fewer, larger cleanings.
- Cities: higher property taxes, permit and registration fees, occupancy taxes you may have to remit yourself, and shorter average stays that mean more turnovers.
- Older homes: bigger maintenance and capital reserves. STRROI scales both with the age of the home.
Self-managing vs. hiring a manager
Management is usually the biggest single line. In the example it is $10,629 a year. Self-managing keeps that money but costs real time: guest messages, pricing, cleaner scheduling and repairs. If you plan to use the short-term rental tax strategy, self-managing can also help you meet the material participation hours.
Run the numbers on your own deal
Plug in a price, nightly rate and occupancy. The free STR ROI calculator uses the same itemized model as this guide.
Questions
What percentage of Airbnb revenue goes to expenses?
In STRROI’s default model, operating expenses are about 58% of gross revenue with professional management, before the mortgage. Self-managing brings that down by roughly 20% of revenue.
How much does Airbnb insurance cost?
Short-term rental policies commonly run $2,000 to $3,000 a year and rise with the value of the home. STRROI estimates 0.45% of the purchase price, with a minimum of $2,000, until you have a real quote.
Who pays for cleaning on Airbnb?
Guests usually pay a cleaning fee that covers most of each turnover. The owner still carries the difference plus deep cleans and supplies, which is why STRROI counts about 15% of cleaning cost as a net owner expense.
See every listing in a market, rated
STRROI underwrites every home for sale in a ZIP code as a short-term rental and ranks them 1 to 10. Try it on a sample market, no sign-up needed.