How To Calculate Airbnb Setup Costs
Are you thinking of becoming an Airbnb host but unsure about the setup costs involved ?
Starting your journey as an Airbnb host can be exciting, but it's important to understand the financial implications. By accurately estimating the setup costs, you can plan your budget accordingly and avoid any surprises along the way.
From furnishing your space to purchasing essential amenities, there are several factors to consider when calculating the setup costs. Additionally, you'll need to factor in any taxes, insurance, and maintenance expenses that come with running an Airbnb.
In this comprehensive guide, we will break down each cost category and provide practical tips on how to minimise expenses without compromising on guest experience.
Get ready to embark on this profitable venture with confidence by learning how to calculate Airbnb setup costs. Let's dive in!
Airbnb expenses list
When it comes to setting up an Airbnb, there are a variety of expenses to consider. Understanding these costs upfront can help you create a realistic budget and avoid any financial surprises down the line. Let's take a closer look at the different expense categories you need to account for as an Airbnb host.
Furnishing & Decor
The first and most significant expense is the cost of furnishing and decorating your space.
This includes:
Furniture.
Bedding,
Artwork,
Kitchen appliances.
Towels.
Toiletries.
On going expenses
Beyond the initial setup costs, there are also ongoing expenses to consider, such as cleaning, maintenance, and any necessary upgrades to your property.
You'll also need to account for professional photography and listing fees, as well as potential taxes and insurance costs.
It's important to carefully research and budget for each of these expenses to ensure the financial viability of your Airbnb venture.
The price of these items will vary depending on how big your property is and what work needs doing to get to an Airbnb standard, at Stayful we have a free Airbnb setup guide you can access here.
Initial setup costs: furnishing and decor
When it comes to furnishing your Airbnb, it's important to strike a balance between quality and cost. While you want to provide a comfortable and visually appealing experience for your guests, you don't want to overspend on high-end furniture that may not see a significant return on investment.
Consider investing in durable, well-designed pieces that will withstand regular use and can be easily cleaned and maintained.
In addition to the furniture, you'll also need to account for the cost of decor items, such as artwork, rugs, curtains, and accent pieces.
These elements can help to personalise your space and make it feel more like a home away from home for your guests. When selecting decor, consider items that are both visually appealing and practical, such as durable, easy-to-clean fabrics and materials.
Recommended suppliers
Essential amenities and supplies for guests
Beyond the initial furnishing and decor costs, you'll also need to factor in the expense of providing essential amenities and supplies for your guests. These items are crucial for ensuring a comfortable and enjoyable stay, and they can add up quickly if you're not careful.
Some of the essential amenities and supplies you'll need to consider include:
Bedding (sheets, pillows, blankets)
Towels and bathrobes.
Kitchen appliances (stove, refrigerator, microwave.)
Cooking utensils, dishes, and glassware.
Toiletries (soap, shampoo, toilet paper.)
Cleaning supplies (vacuum, mops, sponges.)
Electronics (TV, Wi-Fi router, smart speakers.)
Furniture (TV stand, sofa beds, beds, side tables, coffee tables, lamps.)
Outdoor furniture (patio sets, grills.)
Sound sensors - this is not for guests but is important to help manage the property.
Keysafes - this is not for guests but is important to help manage the property.
When selecting these items, it's important to consider both quality and cost. While you don't want to skimp on the essentials, you also don't want to overspend on high-end items that may not see a significant return on investment.
Kitchen Essential Item List for Airbnb
This is something worth covering in a different heading just listing everything you need for your Airbnb kitchen to cover all the basic amenities you will need:
1 x Five Piece Pan Set
1 x Knife Block
1 x 16 Piece Cutlery Set
1 x 16 Piece Crockery Set
1 x 16 Piece Glassware Set
1 x Bread Bin
1 x Tea, Coffee and Sugar Jars Set
1 x Kitchen Roll Pole
1 x Mug Tree
1 x Salt & Pepper Shaker
1 x Cheese Grater
1 x Oven Glove
1 x Can Opener
1 x Colander
1 x Four Piece Utensil Set
1 x Washing Up Bowl
1 x Dish Drainer
1 x Vegetable Peeler
1 x Oven Tray
1 x Chopping Board
1 x Ironing Board
1 x Three Piece Tea Towel Set
1 x Hotpoint Microwave
1 x Kettle
1 x Toaster
1 x Numatic Vacuum Cleaner
1 x Iron
1 x Mop & Bucket
1 x Sweeping Brush
1 x Dustpan & Brush
1 x Bin
Prices
You can order this from sublime furnishings inside a pack and should cost around £800.
Airbnb Professional photography and listing fees
Professional Photo’s
When it comes to photography, it's worth hiring a skilled professional who can capture the unique features and best angles of your Airbnb.
High-quality, visually appealing photos can make a significant difference in the number of bookings you receive. Professional photographers typically charge anywhere from £200 to £300, depending on the size and complexity of your property and the level of expertise they bring to the table, Stayful provide this service in house you can get a price from us here.
Listing Fees
Airbnb charges a host service fee, which is typically between 3% and 5% of the total booking amount. While this may seem like a relatively small percentage, it can quickly add up, especially if you're hosting multiple properties or receiving a high volume of bookings.
Be sure to account for these listing fees as part of your overall setup and operating costs.
Are Airbnb Setup costs tax deductible ?
One of the key considerations when calculating your Airbnb setup costs is whether these expenses are tax-deductible.
As a host, you may be able to claim certain expenses as business deductions, which can help offset the overall cost of setting up and operating your vacation rental.
The list of tax deductions for Airbnb:
Furnishings and decor
Essential amenities and supplies
Cleaning and maintenance
Utilities (electricity, water, internet)
Insurance
Professional photography and listing fees
Depreciation on your property
it's recommended to consult with a qualified accountant or tax professional to ensure you're taking advantage of all the deductions available to you.
They can help you navigate the nuances of the tax code and ensure you're maximising your tax savings as an Airbnb host.
Recommended Accountant
We recommend using riverview portfolio for your Airbnb tax advise, this is who Stayful use and we have been happy with the service so far.
Airbnb Management
To help with these things, it might be worth while partnering with an Airbnb management company.
Stayful provide Airbnb management nationwide and will provide all of these essential things that you need to make your listing stand out including:
Finding quality cleaners
Chasing for reviews
Listing optimisation
Key management
Pricing strategy.
Assisting with setup for your Airbnb.
Professional photos.
Making your Airbnb investment passive, if you are interested then let’s have a chat!