The Hidden Costs of Running a Short Term Let Property (And How to Reduce Them)

Short term lets can generate strong income when managed well, but many operators underestimate the true cost of running a property.

From the outside it can look simple: list the property online, accept bookings and collect the income. In reality, operating a short term let involves a number of ongoing costs that can quietly reduce profitability if they are not planned for properly.

Understanding these hidden costs — and how experienced operators manage them — can help you protect your margins and run your property more efficiently.

Platform Commission Fees

Most short term lets rely on Online Travel Agencies (OTAs) to attract guests. Platforms such as Airbnb and Booking.com provide access to a global audience, but they also charge commission on every booking.

Typical commission rates include:

• Airbnb host fees of around 3%–15% depending on the listing structure• Booking platforms often charging 15%–18% commission

This means a £150 booking could immediately lose £20–£25 in platform fees before any other expenses are considered.

How to reduce the impact

• Encourage repeat guests to book directly• Create a simple direct booking website• Offer small incentives for returning guests to book direct• Use multiple platforms to maximise occupancy while gradually building direct bookings

Over time, many successful operators shift a portion of their bookings away from high-commission platforms.

Cleaning and Changeover Costs

Cleaning is one of the largest operational expenses for short term lets. Properties must be cleaned and reset between every stay, often several times per week.

Professional changeover cleaning typically includes:

• Full property cleaning• Bed linen and towel replacement• Restocking guest supplies• Preparing the property for the next arrival

In many areas, professional cleaning costs £50–£120 per stay, depending on the size of the property.

Ways to manage cleaning costs

• Charge a dedicated cleaning fee rather than absorbing it into the nightly rate• Work with regular cleaners who understand short term let standards• Use consistent checklists to reduce repeat visits for missed items

Reliable cleaners are often one of the most valuable operational partners for short term let operators.

Maintenance and Repairs

Short term lets experience much higher wear and tear than standard residential properties because of constant guest turnover.

Common maintenance issues include:

• Loose fixtures and fittings• Broken curtain hooks or blinds• Appliance faults• Plumbing problems• Furniture damage

Small problems can quickly lead to negative guest reviews if they are not addressed quickly.

How experienced operators reduce these issues

• Carry out regular preventative maintenance checks• Fix small issues immediately before they become larger repairs• Keep spare parts for common problems (light bulbs, curtain hooks, batteries)

Preventative maintenance is often far cheaper than reactive repairs.

Safety Compliance Costs

Short term lets must meet specific safety and licensing requirements. These may include:

• Fire alarm systems• Carbon monoxide detectors• Gas safety inspections• Electrical installation reports• Legionella risk assessments

These requirements involve periodic inspections and certification renewals.

Ways to manage compliance costs

• Schedule inspections together where possible (for example combining electrical checks and appliance testing)• Keep clear compliance records to avoid repeated inspections• Carry out regular safety checks to prevent failed inspections

Being organised with compliance documentation can save both time and money.

Utilities and Operating Costs

Unlike long term rentals, utilities for short term lets are normally included in the nightly rate.

This means operators must cover:

• Electricity• Gas or heating• Water• WiFi and internet• TV services

High guest turnover can increase energy consumption significantly.

Ways to control costs

• Install smart thermostats to manage heating• Use energy efficient lighting and appliances• Provide clear heating instructions for guests to prevent excessive use

Small efficiency improvements can significantly reduce energy bills over time.

Empty Nights

One of the most overlooked costs in short term letting is vacancy.

Even strong performing properties will have nights where they are not booked. Seasonal demand, last-minute cancellations and competition can all reduce occupancy.

How experienced operators reduce vacancy

• List properties across multiple booking platforms• Use channel management software to keep availability synchronised• Adjust pricing dynamically based on demand• Encourage repeat bookings from previous guests

Increased visibility usually results in better occupancy.

Guest Supplies and Essentials

Short term lets require regular replacement of guest supplies such as:

• Toiletries• Cleaning products• Tea and coffee• Toilet paper• Replacement linens and towels

While these items are small individually, the cost adds up over time.

Ways to manage supply costs

• Purchase supplies in bulk• Standardise products across properties• Monitor usage to prevent unnecessary waste

The Key Takeaway

Short term lets can be highly profitable, but only when the real operating costs are understood and managed effectively.

Successful operators treat their property like a professional hospitality business. By controlling expenses, planning maintenance and optimising bookings, it is possible to maintain strong occupancy while protecting profitability.

Prepared by letcare, specialists in operational support, maintenance and compliance for short term let properties.