Lets talk money and increasing your passive income
There are several expenses to consider when becoming a successful Airbnb host and maintaining a profitable rental.
HelloGuest was awarded "Hosting Excellence" by Airbnb at the annual Northern Europe Professional Host Summit in 2024
Expenditure
Recording Your Airbnb Income & Expenses
To be rental-ready, it’s time to progress from the fundamental, basic stages to the actual business side of managing holiday lets. Since expenses impact your profit and income, it’s essential to have a solid understanding of the financials, whether you’re an experienced host or a newcomer.
As your dedicated short-term let partners, we take on the responsibility of increasing the profitability of your property portfolio across the entire short-term let market. However, first, let’s cover the operating costs you’re likely to incur each year, so that together, we can outline a roadmap to achieve higher turnovers for your business.
Understanding Your Airbnb Expenses
Understanding your 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 also 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 your business’s maintenance, management and marketing.
Before beginning, we always like to inform our clients of any upcoming costs or expenses so that they can be better financially prepared and understand the details of their investment.
Tips For Managing Your Financials
- Open a separate business banking account
- Save your receipts and details of your ingoings and outgoings
- Enlist the services of an accountant
- Consider using only one payment processing vendor
- Automate filing income and expenses
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:
- 12% management fees
- 33.2% mortgages & rent
- 10.1% Electricity
- 14.2% Maintenance
- 13.9% Insurance
- 6% Water
- 5.3% Internet
- 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. 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. Client stories.
Complete List of Airbnb Host Expenses You Need to Know
- Daily property turnover, cleaning services and supplies
- Property repairs and maintenance
- Insurance, property taxes, and mortgage
- Utility bills are part of your service
- Appliances, furniture, and household supplies purchased
- Marketing and advertisements to boost the rental
- Professional third-party services (like ours)!
- Vacation rental software and equipment
Award-winning, high-income rentals
Keep more of your money
Other holiday management companies in the capital and beyond usually take a commission fee between 13 and 20%.
HelloGuest only charges 12%. Is now a good time to switch?
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.
Veronica Tribolati
Airbnb Manager
Being a natural extrovert and a go-getter, Veronica is a great communicator and is the face of HelloGuest.
Key Takeaways
Airbnb Expenses summary
- HelloGuest frames profitability as “income minus discipline”: you don’t really know what you’re earning until you consistently record every cost alongside revenue.
- We highlight the real cost stack of hosting: beyond setup and maintenance, successful hosts also budget for marketing/advertising, tools/software, and third-party support—because these costs directly shape your margins.
- HelloGuest shares a practical example of a typical cost split (as a rough guide): 12% management, 33.2% mortgage/rent, 14.2% maintenance, 13.9% insurance, 10.1% electricity, plus water, internet, and heating.
- We promote simple “stay organised” habits that protect profit: maintain a separate business bank account, keep receipts, use an accountant, reduce payment-processing complexity, and automate tracking where possible.
- HelloGuest flags tax and deductions at a high level: once you rent for more than 14 days, HMRC treats you as a landlord, and you’ll need to report income. Some costs (e.g., mortgage/rent, insurance, cleaning/management/marketing fees) may be deductible, but you’ll need proper records and specialist advice.
FAQs
- What expenses should Airbnb hosts expect?
Expenses include cleaning, maintenance, insurance, mortgages, utilities, supplies, marketing and professional management support. - Why is it important to track expenses?
Real (net) profit depends on understanding exactly what comes in and what goes out, so clear records are essential. - Do you have Airbnb cost examples?
Yes. We share a rough cost breakdown that includes management fees, mortgage or rent, maintenance, insurance, electricity, water, broadband and heating. - Are Airbnb expenses tax-deductible?
Some costs may be deductible, such as mortgage payments, insurance, cleaning, and management-related fees. - How can owners stay on top of finances?
HelloGuest recommends using a separate bank account, saving receipts, working with an accountant.