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