Calculating the "Cleaning Fee"

[Jeremy H.]

How do you personally calculate the cleaning fees?

I've been running into this lately in my STR analysis. I have talked to PMs in the area and am told the "cleaning fee is a pass through cost" - I understand that the guest "pays" the cleaning cost but this is still worked into the ADR from Air DNA - AirDNA's gross revenue is calculated as (Nightly Rate + Cleaning Fee)/# of Nights booked. So we can see the cleaning fee is added into the ADR and thus the gross revenue. So when you run analysis, the cleaning fee must come back out to calculate your total monthly expenses - if I'm understanding this right?

The other thing I've heard is that the cleaning fee can be incorporated into CapEx, Repairs/Maintenance, Booking Fees (I typically run these all at 3%). If you do incorporate the cleaning fee this way, it makes sense that you would need to increase those percentages to equate to what an additional cleaning cost would be.

The thing I'm running into is cleaning is a significant expense - I'd estimate at ~700 month for a reasonably sized place, on average, annually. This is 7-8k/year in cleaning. I can have pretty good numbers then add that in and boom - out the window that one goes. 

I've attached a picture of a basic STR spreadsheet, that may describe what I'm talking about better than I can describe it in words lol.

Please let me know your thoughts and how you personally like to do it! I am always open to learning and listening

[Jeremy H.]

Quote from @Paul Sandhu:

I don't have any cleaning fees.  This lady does it for free and I get to sleep with her.

 Are you looking to expand that business?