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Airbnb ExpensesLet's talk money!

Expenditure: Recording Your Airbnb Income & Expenses

There are several expenses to keep in mind to be a successful Airbnb host. To be rental-ready, it’s time to progress from the fundamental, basic stages to the actual business side of managing holiday lets. And seeing as expenses affect your profit and income, it’s essential to have adequate knowledge of the financials, whether you’re an experienced host or a newbie.

As your dedicated short-let partners, we take on the responsibility of your property portfolio to increase your profitability across the entire short-let market. But first, let’s cover the operating cost you’re likely to incur each year so that together, we can detail a roadmap to achieve bigger turnovers for your business.

short stay management photos

Understanding your Airbnb expenses

There are several associated costs with running an Airbnb business. For example, successful Airbnb businesses consider not only their set-up and maintenance costs but their advertising and marketing costs to ensure growth.

Now, we don’t want to overwhelm newbies or even experienced hosts with marketing expenses, as you can employ Airbnb management companies like HelloGuest, who, for one inclusive fee, take care of the maintenance, management and marketing of your business.

Before beginning, we always like to make our clients aware of any upcoming costs or expenses so that they can be more financially prepared and understand the details of their investment.

Rent Out Your Home on Airbnb

Tips for managing your financials

1. Open a separate business banking account
2. Save your receipts and details of your ingoings and outgoings
3. Enlist the services of an accountant
5. Consider using only one payment processing vendor
6. Automate filing income and expenses
Sultana Rabiya
Sultana Rabiya
30. March, 2023.
Great company with great people. Always responds on time.
5. March, 2023.
Highly reputable company, trustworthy and professional. Excellent management team, would definitely recommend to friends and family.
Christine James
Christine James
27. February, 2023.
Great service!! Really helpful with any queries we have, nothing too much trouble. Highly recommend!
Jack Beattie
Jack Beattie
22. February, 2023.
Thank you to everyone at Helloguest, appreciate all the help getting my property listed and booked out for the periods when I'm away. Veronica and Emily helped me get things set up and gave good advice on how to best furnish the flat including getting a sofa bed for extra guests. Customer service have always responded quickly and blocked dates for my stays. Would recommend to anyone looking for an Airbnb or short term rental management service.
Mariann Komar
Mariann Komar
24. January, 2023.
As a property owner it took a lot of time and work to manage bookings. Now that I found Helloguest I don't have to worry about anything while I'm abroad. They organize cleaning, take care of the guests and solve the maintenance issues. They also manage and advertise my place on many platforms. I can honestly recommend them because I'm very happy with their service. I know my place is in good hands.
Peter Hudson
Peter Hudson
24. January, 2023.
Helloguest have been managing my property for a number of years and I have found them to be honest, efficient and helpful. I would recommend them.
B Sykes
B Sykes
14. December, 2022.
I switched to HelloGuest after using another agency, which almost put me off Airbnb for good. Toby and Veronica however, have been incredible in turning things around. Property was managed well, cleaning all taken care of and looks like guests couldn't be happier. Would 100% recommend their services to anyone in need of Airbnb management in London or beyond.
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Complete list of Airbnb host expenses you must know (in short)

When setting your budgets, it’s essential to understand the types of outgoings to expect and how this will affect your monthly turnover.

For example, here are the typical costs of one of our successful holiday rentals as a rough guide to follow:

  1. 12% management fees
  2. 33.2% mortgages & rent
  3. 10.1% Electricity
  4. 14.2% Maintenance
  5. 13.9% Insurance
  6. 6% Water
  7. 5.3% Internet
  8. 5.1% Heating

Tax advice for Airbnb hosts

When renting out your Airbnb for more than 14 days, you’ll be considered legally by HMRC as a landlord and thus will need to report your rental income on your tax return. Owners must understand the rules to keep clean and good records when paying their taxes. 2023 Tax tip guide.

Some, but not all, of your Airbnb income may be taxable. For example, your deductible items might include rent, mortgage, insurance and other fees associated with cleaning, marketing and management. See all fees.

Whilst we are not accountants and cannot advise on managing your taxes, we can pair you with accounting companies who can further help you make the most of your Airbnb hosting income and maximise your profits as a landlord.

Happy Customer at HG

What expenses are deductible from my Airbnb income?

1. Daily property turnover, cleaning services and supplies
2. Property repairs and maintenance
3. Insurance, property taxes, and mortgage
4. Utility bills part of your service
5. Appliances, furniture, and household supplies purchased
6. Marketing and advertisements to boost the rental
7. Professional third-party services (like ours)!
8. Vacation rental software and equipment

Airbnb Management Costs

Other Airbnb management services in the capital and beyond usually take a commission fee between 13-20%. HelloGuest only charges 12%. Is now a good time to switch? Learn more about our management fees.

    Photo of Toby France CEO

    Toby France

    Wealth Manager

    Toby’s main role is managing clients with large holiday-let portfolios, ensuring they hit KPIs and maximise their monthly turnover.

    Photo of Veronica Tribolati Co Founder

    Veronica Tribolati

    Airbnb Manager

    Being a natural extrovert and a go-getter, Veronica is a great communicator and is the face behind HelloGuest, which means she’ll be there to help you onboard or switch.