The Real Costs of Managing a Short-Term Rental

Short-term rentals can be a fantastic source of income, especially in high-demand markets like Florida. With the right strategy, many owners see returns that far exceed long-term leases. But behind the bookings and 5-star reviews, there’s a side of short-term rental management that’s often overlooked: the real costs.

Whether you're managing a property on Airbnb, Vrbo, or another platform, it's important to understand the true expenses involved—so you can plan wisely, price accurately, and avoid unpleasant surprises.

Here’s a breakdown of the most common and critical costs associated with managing a short-term rental.

🧹 1. Cleaning and Turnover Costs

Every guest expects a spotless home—and delivering that standard after every stay comes at a price.

• Professional cleaning services are essential and often charged per turnover

• Extra fees may apply for deep cleans, laundry, or larger homes

• Some owners offer mid-stay cleanings for long bookings (optional but appreciated)

💡 Tip: You can charge a cleaning fee to guests, but make sure it’s fair and reflects the real cost.

🛠️ 2. Maintenance and Repairs

Things break. Light bulbs burn out. Toilets clog. Short-term rentals experience more wear and tear than traditional rentals, simply because of the frequency of use.

Common maintenance costs include:

• HVAC servicing

• Plumbing and electrical repairs

• Appliance replacement

• Furniture and décor touch-ups

• Regular restocking of essentials (batteries, toiletries, light bulbs)

Having a reliable local handyman on call can save both time and money.

📦 3. Furnishing and Setup

If you're starting from scratch, furnishing your property for short-term guests can be a significant upfront cost. But even well-furnished homes require regular upgrades.

You’ll need to invest in:

• Beds, sofas, tables, and chairs

• Kitchenware, utensils, cookware

• Smart TVs, Wi-Fi routers, lighting

• Themed décor or small luxuries that stand out

Don’t forget essentials like linens, towels, pillows, and mattresses—guests will notice the difference.

💡 4. Utilities and Subscriptions

Short-term rentals must be fully equipped and operational, meaning the owner covers all utilities:

• Electricity and water

• High-speed internet (non-negotiable in 2025)

• Streaming services or cable (optional, but appreciated)

• Trash collection

• Lawn and pool care (if applicable)

These ongoing monthly expenses can quickly add up, especially in larger homes or peak seasons.

💻 5. Platform and Management Fees

Listing your property on platforms like Airbnb and Vrbo usually comes with a service fee ranging from 3% to 15%. If you're working with a property management company, you'll also pay a commission or flat fee for their services.

Typical management fees cover:

• Guest communication

• Booking and calendar management

• Check-ins and check-outs

• Marketing and dynamic pricing

• Emergency support

At Dreams N Fun, for example, we offer full-service management to help owners maximize income while reducing stress—without hidden costs or surprises.

🏡 6. Insurance and Local Permits

Standard homeowner insurance may not cover short-term rentals. Specialized short-term rental insurance is recommended (and often required by platforms).

You may also need:

• Business licenses or permits

• Short-term rental registration

• Safety inspections or fire code compliance

Local laws vary by city and county—especially in Florida, where regulations change often. Staying compliant helps avoid fines or restrictions.

🧾 7. Taxes

Yes, there are taxes. Depending on your property's location, you may owe:

• State and local occupancy taxes (sometimes called lodging or tourist taxes)

• Sales tax on rental income

• Federal income tax on your rental profits

• Platform-reported earnings (Airbnb issues 1099s in the U.S.)

A good accountant or tax advisor is a smart investment for staying organized and maximizing deductions.

💬 Final Thoughts

Managing a short-term rental can be incredibly rewarding—but only when you fully understand the costs behind the scenes. From cleanings to compliance, it takes time, money, and attention to detail to succeed.

The key? Treat your property like a business—and don’t try to do everything yourself if it’s not sustainable.

At Dreams N Fun, we partner with property owners across Florida to take care of the details—from guest communication and maintenance to pricing, marketing, and legal compliance—so you can enjoy the income and peace of mind.

📩 Want to see how much your property could earn—with the right support? Contact us today and let’s talk numbers.