6 Creative Ways to Cut Airbnb Expenses and Boost Your Profit Margin
Tags: Airbnb Expenses, Airbnb Management, Airbnb Tips, Airbnb Host, Airbnb

6 Creative Ways to Cut Airbnb Expenses and Boost Your Profit Margin iGMS Jun 17, 2019·4 min read

Airbnb expenses can quickly eat away at your profits. Whether it is a once-off amount for a business license, a monthly subscription or everyday consumables, there are many common expenses that you cannot avoid. In fact, some of your expenses like insurance and electricity will most likely also be higher once you turn your property into a short-term rental.

So, to help prevent you from feeling as if you just want to throw in the towel when you need to replace towels yet again, here are six simple strategies.

Buy in Bulk

Although Airbnb listings are different from hotel accommodation, there are some tips that hosts can learn from the hotel industry. One such tip is to buy in bulk (and, if possible, from one supplier only).

For example, many hosts like to welcome their guests with a delectable basket or leave free toiletries. While this is a wonderful idea (and recommended if you want to be successful in this industry), gestures like these can quickly add up.

Toiletries you can definitely buy in bulk! By opting for non-perishable items, such as home-made preserves, for your welcome basket, you could add the items for your welcome basket to the toiletries in your checkout basket. Not only could you get a better price when you buy in bulk, but it will help you to work more efficiently too by saving you extra trips to the store.

Purchase Multi-Purpose Cleaning Products

Many hosts forget that they can use one multi-purpose cleaning product for their everyday cleaning. What makes this so great is that multi-purpose cleaning products are many times sold undiluted in a large bottle at a much better price. So, by mixing the solution yourself, you could get a better deal.

Besides, you won’t need to buy separate products for cleaning floors, countertops, and sinks, as multi-purpose cleaning products can be used for multiple areas of your home.

Remove Cable

Thanks to a wide range of streaming services available, you can pull the plug on offering cable. For example, by paying a monthly fee of about $20, you can get Netflix or Hulu that offers more than enough variety.

After all, your guests will most likely be spending most of their time exploring your area. If you do decide not to offer cable, just make sure that you mention clearly in your listing description what you will be offering to avoid any confusion that could lead to bad reviews.

Opt for Motion Sensors

When you start using your place as a short-term rental, you can expect to see an increase in your utility bills. Therefore, it will definitely be a smart move to invest in smart solutions that can help you to manage your electricity consumption, such as motion sensors. In short, a motion sensor will switch on the lights whenever movement has been noticed within the field of view of the sensor. This means that lights will not switch on when there is still sufficient natural lighting.

Use a Smart Thermostat

In addition to motion sensors, a smart thermostat is another cost-effective investment. With the help of this smart tool, your heating system will no longer run for hours on end without anyone even being present to enjoy the warmth. Plus, you do not have to worry about a guest possibly getting injured while trying to adjust the temperature as you can maintain the temperature remotely.

Save on Key Retrieval Services

If you do not have to be present at check-in just to hand over the keys to your guests, you can spend that time more productively on other money-generating tasks like selling additional services to your guests.

The good news is that you don’t necessarily need to pay for key handover services, as there are cheaper and no less effective alternatives. For instance, you can opt for a key lock-box or electronic lock enabling guests to access your property without your presence. Looking for more innovative solutions? Consider installing a smart lock, that will allow you to authorize access for your guests just using your smartphone.

Keep Calm and Control Your Expenses

Just like with any other industry, expenses are unavoidable. The secret is to find ways to save money whenever the opportunity presents itself, but without offering less value to your guests. All things considered, it is key that you draw up a budget so that you are never caught off guard (or worse, your guests without an essential amenity).