Starting a short-term rental business is one of the most exciting new endeavors to take on. However, like any new adventure, there are costs you need to be aware of. While there are many obvious Airbnb startup costs, there are quite a few that might slip your mind if not for this article. This post will go through the Airbnb startup costs you want to have on your radar.

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1. The basics

Let’s start at the very beginning (it’s a very good place to start!).

Furnishing

Your Airbnb needs to be fully furnished with all the essentials to attract guests:

• Bedroom furniture (bed frame, mattress, dresser, nightstands): $1,000–$3,000 per bedroom
• Living room furniture (sofa, coffee table, chairs, decor): $1,500–$3,000
• Dining area (table and chairs): $500–$1,000

Decor

Investing in the interior design of your rental is well-worth the cost. Plan to allocate around $500–$1,000 for items such as wall art, rugs, lighting, and small decorative touches. These details draw guests in when browsing photos of your listing online.

Appliances and kitchenware

You need to have the basics. Nobody likes trying to ear their leftovers and there isn’t a plate to put it on or a coffee maker on an early morning.

• Kitchen appliances (microwave, toaster, coffee maker): $100–$500
• Dishes, utensils, and cookware (plates, pans, cups): $200–$500

2. Cleaning

A clean space is the backbone of any 5-star review.

• Vacuum and mop: $100–$300
• Cleaning supplies (detergents, sprays, gloves): $50–$100
• Basics and toiletries (toilet paper, soap, shampoos): $50–$100

3. Technology and utilities

Tech is one of those details that can really make a guest’s stay feel special. For example, being able to stream their favorite Netflix show is something that’s going to make their stay just that much more positive and memorable.

• Smart lock: $100–$300
• Internet: $50–$100 per month
• TV and streaming services: $400–$800 for TV and $10–$20/month for streaming services.

4. Listing and registration fees

Pay attention to local laws and regulations to ensure you’re up-to-date and legal.

• Service fees: Usually 3%–5% of your rental income
• Registration and licensing fees: $50–$200
• Insurance: $100–$500 per year

5. Getting your listing up and running

Eye-catching photos and an appealing Airbnb listing description are vital to drawing in guests. Hiring a professional photographer can lead to a higher booking rate. A great option is to utilize the Airbnb Pro Photography program.

• Professional photos: $150–$500
• Any professional staging you need done to make the space shine: $50–$200

6. Miscellaneous costs

Add a buffer. Things always come up. Whether it’s a random repair or an idea you add for a cool amenity, you want to allow room for those random, unexpected expenses.

Estimated total Airbnb startup costs

Below is an estimate of what to expect, in total, for a single-bedroom short-term rental.

• Furniture and decorations: $3,000–$6,500
• Cleaning supplies: $200–$500
• Tech and utilities: $500–$1,200
• Applying for licenses and paying fees: $150–$700
• Getting your listing set-up: $150–$500
• Other (10% buffer): $400–$1,000

Total: $4,400–$10,400

How Host Tools can help

If this all seems like a lot, don’t worry, we’ve got a solution. Enter Host Tools. Host Tools is an all-encompassing property management software designed to make running your business easier than ever. We help automate tasks like guest communications, managing your cleaners, and syncing your calendar. Host Tools can save you up to 80% of your time, and at a fraction of the cost of other providers.

Final thoughts

As you can see, there are a lot of Airbnb startup costs associated with beginning your journey. That said, these are all worthwhile investments that will set your business up for success. Make your way down this list, and add Host Tools to your repertoire, and you’ll be ready to deliver the best experience possible to guests.

Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!