COSTS TO CONSIDER WHEN ESTIMATING SHORT TERM RENTAL PROPERTIES

[Sofia Sharkey]

Hi all, 

I see many people asking in these forums what costs to keep in mind when estimating a property that will be turned into a STR. I compiled the list below with the most relevant items in my experience. What costs are not listed here that you've found to be vital? Let me know in the comments.

1. Purchase of furniture and setup (really depends on the size of the property. The bigger, the more $$$)  
2. Short term rental insurance (Travelers is budget friendly and Proper offers more coverage)
3. STR property management, if applicable. (Typically between 15% to 30% depending on needs and area) 
4. Utilities (including WIFI)  
5. Maintenance and repairs
6. HOA fees (if applicable)
7. Furniture replacement.(There will be things that need replacement after year 1)  
8. Consumable supplies (coffee, toilet paper, soap, trash bags, etc.) (These depends on how much you want to provide) 
9. Linens (people generally underestimate linens big time, depending on your type of STR there can be high turn over of linens) 
10. Software (smart pricing, video monitoring, automatic messaging, PMS, noise monitoring). (Most software requires a monthly or annual subscription)  
11. Cleaning fee and laundry. (Most of the time the guest pays for this so it doesn't come out of pocket for the investor/host. However it's worth noting because depends on your model)
    

I hope you find this helpful and happy investing! 

Tags: STRs, short term rentals, Kansas City, vacation rentals, airbnb