13 Hot Tips For Cutting Down Your Airbnb Expenses And Keeping More MONEY
Updated: Jan 23
One of the most important traits of every successful Airbnb host is their ability to stretch a dollar. While some people think that all you need to do is post an awesome listing and wait for the money to roll in, there are expenses that can cut into your earnings if you do not handle them properly. You should be prepared for the expenses that come along with operating an Airbnb Rental.
We have curated 13 of the best tips that have helped us to cut expenses and stuff more money into our pockets.
1. Change Those Bulbs To LED
Lightbulbs might not seem like a big deal, but the ones you choose to replace can be a major factor in the cost and effectiveness of your Airbnb rental property.
Your lightbulbs use energy, and this cost doesn’t always show up on your power bill. It makes sense, then, to look for more efficient options when you replace old lightbulbs with new ones.
LED bulbs are a good choice for saving money on your rental property electricity bills. Unlike conventional light bulbs, they consume less energy and last longer. Since your guests will be relying on lights in their rooms, it makes sense to use the more efficient LED bulbs in those spaces.
2. Motion Sensors
Lights, camera, action! When you start your short-term rental business, you can expect utility bills to go up. An easy way to save on your electricity costs is by using motion sensors. When guests are in the room, lights tap into your motion sensor to turn on; these LEDs will only switch off when everyone has left the room. These are especially great for external lighting. Such gadgets can help you cut down on your energy bills.
3. Introduce A Smart Thermostat
Even though it is more expensive than a regular thermostat, a smart one can still save you money in the long run: it will turn itself down when no one is home and save you money on heating bills and if you have the remote access feature turned on, you have even more control.
Smart thermostats also come with motion sensors to detect when you’re around and adjust the temperature accordingly. If you’re not home, it will turn the heat down automatically to save energy, which is a win-win for both your bank account and the planet.
4. Maintain Proactively
Maintaining an Airbnb can be a lot of work. You will need to do things like regularly repair plumbing, repaint walls, and replace worn-out appliances. Fortunately, there are certain little tips we can give you to make maintenance easier. For example, one of the best little tips you could follow is avoiding procrastination; it's cheaper and easier to fix something early on than it is to do so after it has caused more damage to your home.
5. Drip It Into An Emergency Fund
A good Airbnb host is one with a rainy-day fund. Put a few dollars in a separate savings account to go towards handling unforeseen Airbnb-related costs. Every time you receive Airbnb rental income, ensure you deposit a small amount in this emergency fund.
That extra you might make from the cleaning fee could be put into a separate account. You would be surprised at how quickly those extra dollars can add up. We used the extra to give as bonuses to our cleaners but there are other ways of course that you can utilize extra funds, your rainy day fund account.
6. Buy Necessities In Bulk
As an Airbnb Host, there are items that will need to be purchased frequently. Offering free toiletries and other accessories is one way for guests to appreciate your home away from home not to mention that it is an expectation. This includes items such as paper towels, toilet paper, soaps, toothbrushes, coffee filters, laundry detergent, fabric softener and more. If you're not careful with these purchases though, the costs could add up quickly.
Let’s not forget about all of the cleaning products you’re going to need. Since you will always need these items, it’s best to source them in bulk and have them on hand. Rather than buying multiple cleaning products though, you can get a mutli purpose cleaning product that can be used as your main cleaning agent.
One of the best ways to save money as a Host on Airbnb is to get deals on things you need and buying in bulk. Buying in bulk is almost always cheaper. Look around for a source that will give you good deals and buy your supplies there. This will help you save money and keep more in your pocket. For the items mentioned above, you will always have to purchase them so you might as well buy in bulk and store them.
7. Eliminate Labour Costs
One of the Airbnb host tips you can use to reduce the cost of labor is avoiding unnecessary high labor costs. Only hire professionals when you can’t do a task on your own. If you can do the minor repairs yourself instead of hiring an expert, you will be able to save a substantial amount of money. If you are not very busy and can manage your Airbnb rental properties yourself, there is no need for hiring professionals.
I always say, google is your best friend but don’t forget about how much of a pal YouTube can be. There is a wealth of DIY videos on YouTube that will help you out.
You can also choose to higher cheaper labor. For instance, you can get an Intern. Interns can work for free or offer cheaper labor. For two years we had an Intern working with us and handling all of our administrative duties such as managing inquires, processing bookings, following up with guests, sending review requests, returning deposits, you name it administratively and our Intern had it covered. This allowed us so much time to go out there and meet with property owners looking to bring their property or properties under our Management Services as well as further business development.
8. Tweak Your Marketing to Reduce Costs
When it comes to marketing your Airbnb property, sometimes the best way to save money is to stop spending it. After all, not all Airbnb investors write big checks to advertise their rental properties. There are cheaper ways to attract new customers, like taking your own pictures with a smart phone, a well written listing and producing engaging content on social media like Facebook and Instagram.
9. Incorporate A Minimum Night Stay
Short-term rentals have hidden costs, one of the biggest being cleaning and laundry services. To reduce these expenses, institute a minimum stay of three, four or five days. The number of cleaning services will drop thus cutting down on your expenses in this aspect.
10. Kick Cable To The Curb
While some people haven't cut the cable cord, others are loving streaming services like Netflix. With affordable monthly fees, you can get these service that offers more than enough variety for your guests.
If you do opt out of cable, it's best to be upfront about it in your listing description. If a guest doesn't realize you don't provide cable, they might be disappointed when they can't tune into CNN.
11. Incorporate Automation Software
A really effective money-saving tip is to automate your processes. You can use automation software to send automatic emails, structure your bookings, and perform other tasks. Automation frees up time for you to be productive elsewhere. Automation also eliminates the need to hire more staff, which saves you a fortune. Set it and forget it—most software out there is straightforward and easy to use.
12. Short Term Rental Tax Deductions
Airbnb expenses can be tax deductible! Reduce your tax bill and save money. But, remember that short-term rental tax deductions are only available for people who rent their properties for at least 14 days per year. This can differ from region to region so do your due diligence to find out what those rules are. Don’t forget to ask your accountant about all the other available Airbnb-related tax deductions.
13. Eliminate Meeting With Your Guests To Hand Over Keys
If you don't have to hand over a set of keys to your guests, you can use the time more productively. Installing a lockbox or electronic lock enables you to secure your property without you having to be present for key handover. If you have a smart lock installed, you can give guests a personalized access code.
Airbnb properties often have expenses you don’t even know about. To make the most money as an Airbnb host, using these Airbnb host tips for saving money will help. Just by using these tips, you'll be able to make your Airbnb business more profitable.