On the surface, Airbnb hosting sounds like easy money: buy a property, furnish it nicely, and watch the bookings roll in.
But the truth is, there are a lot of hidden costs that can catch first-time hosts (and even experienced ones) off guard — and quietly eat into your profits.

If you’re thinking about starting an Airbnb — or wondering why your rental isn’t as profitable as you hoped — here’s what you need to know.

1. Higher Utility Bills

Short-term guests use utilities very differently than long-term tenants.
Leaving lights on, blasting the A/C, running laundry for tiny loads — it all adds up fast.

Typical hidden costs:

• Higher electricity and water bills (especially in hot or tourist-heavy months)
• Extra wear and tear on HVAC systems
• Faster need for appliance replacements

Tip: Budget at least 20–30% higher utilities than you would for a traditional rental.

2. Constant Repairs and Replacements

Even with the best guests, things break.
And when you want 5-star reviews, you can’t afford to leave them broken.

Common unexpected costs:

• Replacing furniture, decor, and linens far more often
• Frequent small repairs (door handles, faucets, kitchen gadgets)
• Emergency handyman visits

Tip: Set aside 10–15% of your monthly income for property maintenance.
Small issues snowball fast if you don’t fix them immediately.

3. Deep Cleaning Expenses

Airbnb guests expect spotless homes — cleaner than most people live in themselves.
Standard cleanings aren’t enough between every guest.

Extra cleaning costs to expect:

• Professional deep cleaning (carpets, grout, upholstery) multiple times per year
• Heavy turnover cleanings during busy seasons
• Restocking supplies constantly (paper towels, soap, coffee pods)

Tip: Build professional deep cleans into your calendar (and your budget) every few months to keep your place fresh and guest-ready.

4. License, Permit, and Tax Fees

Many cities (and even HOAs) require short-term rental permits now.
Some also require annual inspections, licensing fees, and registration taxes.

Typical hidden costs:

• Short-term rental license ($50–$500/year depending on location)
• Business tax receipt or local operating fees
• Annual tourist tax filings (even if you use Airbnb’s tax collection service)

Tip: Always check city, county, and HOA rules before you list your property — fines for non-compliance can be steep.

5. Insurance Gaps

Standard homeowners insurance doesn’t usually cover short-term rental activity.
And Airbnb’s “Host Guarantee” isn’t a replacement for real insurance.

Hidden insurance costs:

• STR-specific insurance policies ($800–$2,000/year)
• Higher liability coverage requirements
• Loss of income coverage (optional, but smart)

Tip: Get a policy designed for vacation rentals — not just a regular landlord policy — to avoid nasty surprises if something goes wrong.

6. Guest Damage That’s Hard to Claim

While Airbnb offers some coverage for guest damage, it’s not automatic — and it can be a headache to get reimbursed.

Hidden costs hosts face:

• Minor damages that aren’t worth filing
• Lost revenue during repairs
• Deductibles or denied claims

Tip: Keep a detailed inventory, require security deposits (where allowed), and document your property thoroughly with photos.

7. The Value of Your Time

Your time has real value — and hosting eats up a lot of it.

Time you’ll spend (even with great guests):

• Messaging guests pre- and post-stay
• Coordinating cleanings and maintenance
• Restocking supplies
• Handling last-minute emergencies

Tip: If you don’t want to be on-call 24/7, professional management can handle everything for you — and often more efficiently.

Final Thoughts

Owning an Airbnb can still be incredibly profitable — but only if you plan for the real costs, not just the best-case scenario.

At JaxBNB, we help hosts maximize their profits by managing the hidden details —
so you can enjoy the income without drowning in the stress.

👉 Contact us today at info@jaxbnb.com or 904-242-6988 to find out how full-service Airbnb management can actually save you money in the long run.