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You are here: Home / EARNING EXTRA / Hosting on Airbnb / Cost of Setting Up Our Airbnb Rental

Cost of Setting Up Our Airbnb Rental

March 22, 2019 by Stephanie 36 Comments

We make our finances public, so of course we're sharing what we spent to set up our Airbnb. If you're wondering the cost of starting a short-term rental, then this will give you an idea.

We already share exactly what we earn and spend in every category of our family budget.  Now we’re also sharing details for our Airbnb rental.  You only see the net income from Airbnb in our monthly budget updates, and if you’re thinking about hosting with Airbnb (or have no plans to ever host, but are just curious), that’s not the whole story.  Today we’re sharing exact costs for setting up our Airbnb.

If you’re thinking of renting out your place as a short-term rental you’ll want to think about the start-up costs.

So far we are having a great experience (and earning a nice side income) as Airbnb hosts!

When we bought our house, we looked for a property that had a separate unit that we could rent out as an additional source of income.  We’ve stayed in Airbnbs many times and thought it would be a fun way to earn some income on the side.

We were already looking for a property that had at least 5 acres and it’s not uncommon for properties like this to have a mother-in-law suite or an additional small home on the property.  We were excited that the property we fell in love with had an additional 1-bedroom unit.  We didn’t plan to rent it out right away, but a friend connected us with someone who was looking for a place and before we knew it we were landlords, just a few months after becoming homeowners again.

When our renters moved out at the end of July 2018, we decided that it would be a great time to give Airbnb hosting a try.

When we first started renting, we set aside the first $2000 in income as a “rental emergency fund” so we could handle most repairs or maintenance without dipping into the family budget.  When we decided to go from long-term rentals to short-term rentals on Airbnb, we planned to just use that $2,000 to spruce up and furnish our Airbnb rental.  We already had some furniture and planned to buy the rest used, so we thought we could do it all for relatively cheap.

Spoiler: It cost us about twice as much.

Looking back there are only a few things I would have done differently.  I’ll tell you what those were in a minute.

First, let me go through all of the things we purchased and what we paid for them.

If you are thinking of renting your place out through Airbnb, you’ll definitely want to look through the list to get an idea of what you might need to get started.  Of course it will depend on what your space is like before you start getting it ready.

Furniture $1,255

  • $25– Queen bed frame/headboard (used)
  • $493– Natural fiber mattress (bought new from a local dealer)
  • $70– Loveseat (used)
  • $297– Dresser, desk, 2 nightstands (used, but refinished from a local botique)
  • $35– Table, chairs, end table, comfy chair (used)
  • $335– TV and wall-mount (new)

Basics $1,179

  • $202– Handrail, moulding, screen kit, paint, painters tape, keys
  • $168– Bathroom window reglaze
  • $30– More screen things, outdoor pest control spray
  • $20– Aspen bark pads for evaporative cooler
  • $24– Curtain brackets, command hooks
  • $286– Blackout window shades
  • $78– Bedroom wall paint
  • $22– Closet door replacement
  • $20– Fire extinguisher
  • $30– Outdoor lights for road
  • $20– Luggage rack
  • $65– Oil-filled heater
  • $78– Vacuum
  • $22– Smart bulbs for outside (love the convenience of these!)
  • $114– furnace repair call, parts

Linens $662

  • $60– Cotton sheets (queen) x 2
  • $20– Microfiber sheets (queen)
  • $26– Mattress encasement
  • $12– Pillow protectors
  • $17– Pillow set
  • $165– Quilt (x 3), matching pillow shams (2 sets)
  • $98– Mattress pad, fleece blankets x 2, slipcover for sofa
  • $84– 3 air mattresses, 2 twin blankets, fleece blankets
  • $100– 8 pillow protectors, 2 twin fleece, 2 twin sheets
  • $65– Fleece blanket, iron, ironing board cover
  • $15– Extra set twin sheets

Bathroom $109

  • $20– Towel set
  • $44– 4 Bath towels, hand towel, shower liner, shower rings
  • $15– Bath mat set
  • $25– Ruffled shower curtain (my family teased me about this one, but I think it’s adorable!)
  • $5– Trash can

Kitchen $265

  • $17– Silverware tray, various large utensils
  • $8– Cookie sheet, 2 pyrex baking dishes (thrift store)
  • $23– Salt shakers, cutting boards, can opener, knives
  • $10– Mugs, plates, kettle (thrift)
  • $10– Glasses
  • $8– Hot pads, dish towel set
  • $115– Coffee maker, dishes, silverware, wine glasses, toaster, slow cooker
  • $29– Pitcher, dish mat, wooden spoons, peeler
  • $35– Wine opener, decorative utensil holder, paper towel holder
  • $10– Griddle

Decor $313

  • $30– Wire baskets
  • $49– Fabric for kitchen curtains, throw pillows
  • $8– Welcome door mat
  • $30–Curtain rods
  • $12– Plants for porch
  • $7– Guest book, welcome binder
  • $80– Bedroom curtains, bathroom curtains,
  • $43– Welcome sign, wall shelf, shelf decor
  • $22– Frames
  • $9– Mirrors
  • $23– Local history book

Consumables $149

  • $13– Coffee filters, spices, tea
  • $45– Dish soap, hand soap, handsoap refill, toilet paper, paper towels, trash bags
  • $25– Instant oatmeal
  • $66– Shampoo, conditioner, body wash, coffee

TOTAL= $3,932

Yeah. That’s a lot of stuff.  When we first thought about furnishing and decorating, we were mostly thinking about the big purchases, but there are a whole bunch of smaller things too, and they certainly add up.

What we would have done differently

Microfiber sheets instead of cotton sheets

I wish I had gone straight for microfiber sheets instead of messing with fancy cotton sheets that cost twice as much and are ten times the headache.  The cotton ones come out of the dryer so wrinkled, and don’t smooth easily!  I don’t want our guests pulling down the covers to find wrinkly sheets.

I’ve tried taking them out still slightly damp and putting them straight on the bed, which works a little better, but they still don’t look as good as microfiber.  I don’t also don’t want to have to get the timing perfect with getting them out of the dryer at the right time and putting them right on the bed.

Our place is nice, but it’s not high end (well, we don’t charge high-end prices).  People are cool with microfiber.  That’s what we’ll be getting from now on.

Shop smarter for furniture

We bought our desk, dresser, and night stands at a cute boutique where consignors sell shabby chic furniture and decor, so we spent more than we normally would have.  We didn’t want to spend the time looking at all the thrift stores and Facebook groups to find furniture that went together.  We were in a hurry to just be done, so we overpaid.

If I were to do it again, I would have saved money by being a little more patient.  When I’m buying used, my normal rule of thumb is that I won’t pay more than I could get if I were to turn around and resell the item.  Actually, I usually figure on making a profit if I wanted to (or had to) turn around and resell the item.

Related article: How we essentailly furnished our first house for free (and even made money)

For what it’s worth, my husband says the time and hassle saved by just buying everything in one trip to the botique was worth the higher prices.  He was just glad to have it done!

Just paint once

First we color matched the paint that was already in the bedroom so we could do some touch up work.  Then we repainted the accent wall that was oddly colored when we bought the house.  After choosing to make it a different accent color we decided that we didn’t like it, so we repainted the entire room a color that we already knew that we loved.  It was extra work and extra expense, but we are both happy with how it turned out!

I had forgotten all that we went through with painting, but Mike didn’t (can you tell who did most of the work?).  When I asked him what he would change, this was his first response!

Was it worth it?

Oh, yes!  The place looks beautiful.  One day, our own house might even look as good.  We really had no idea how an hosting an Airbnb short-term rental would go in our area, but the apartment has been nearly completely booked since we opened it up.  We covered our initial outlay in the first three months.

As for prices, this first year, we are just gauging the demand and keeping our prices on the low end.  As we see the ebbs and flows in all seasons of the year, we will likely be able to raise our prices and still hopefully fill the place.

Are you thinking about doing a short-term rental?  Whether it’s renting out a spare room in your house, or occasionally renting out your house or apartment when you’re out of town, Airbnb has really made the process seamless.

I’m happy to answer any Airbnb-related questions in the comments (and perhaps write future posts on the topic, if it’s something our community is interested in hearing about)! Let me know!

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Filed Under: EARNING EXTRA, Hosting on Airbnb

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Comments

  1. Deanna says

    May 8, 2021 at 9:15 am

    Thank you for the article. I’m buying my first rental this summer, and appreciate all the info you shared. I would like to offer my opinion in one area – microfiber sheets. I cringe at the thought of anything synthetic on my bed, so ditching the cotton sheets would not make me a happy guest. Again… just my opinion. 🙂

    Reply
  2. Janette Strachan says

    October 11, 2020 at 10:40 am

    Hello!
    How do I see all the photos of your Airbnb?
    Thank you,
    Janette

    Reply
  3. neil robertson says

    January 9, 2020 at 6:38 am

    Hi
    Sir,
    I want to publish my articles on your site(www.sixfiguresunder.com)
    please tell me your per post price ?

    Thanks & Regards.
    Email:[email protected]

    An urgent reply awaited, I need post at your site.

    Reply
  4. Ann says

    November 24, 2019 at 8:45 pm

    Yes, I would love to hear everything about your AirBnB experience. Are you listed on any other hosting platforms? Or Just AirBnB?

    Reply
    • Stephanie says

      December 2, 2019 at 1:27 pm

      Hi Ann! Yes we are just on Airbnnb. In the beginning we thought about listing on other platforms too, but honestly we’ve been almost constantly booked just using Airbnb, so we’re happy just using that platform. I will have some more Airbnb posts coming up in the future. Let me know if you have any specific questions so I can be sure to address them.

      Reply
  5. Shelly says

    March 31, 2019 at 8:01 pm

    Wow! I love the ruffle curtain too. I want details on the extra work. Do you have a night minimum? I know when we traveled it was 2. So do you have to clean and do sheets every other day?

    Is there ever a noise issue? What if you leave town, do you still rent it?

    Not planning on doing this, just curious as always.

    Reply
  6. Nicole says

    March 26, 2019 at 6:51 am

    I have been waiting for this!! Thank you! Details on increased expenses and how you are calculating that into your rental cost and how you are YNAB budgeting it all. Also, how do you keep curious kids from not invading their privacy and safe from the strangers you are bringing to your property? We have a basement apartment that we are close to listing (looking at your numbers though there are things I didn’t even consider so we may be further than I thought). And photos too!

    Reply
    • Stephanie says

      March 26, 2019 at 11:08 pm

      Hi Nicole! That’s exciting that you are close to listing! I will plan to do a post about the expenses and how we handle the budgeting aspect.

      The issues you mention with kids have actually been less of an issue than I thought they would be. In the beginning the kids were excited to peek out the window to “see the guests” but now it’s old hat and doesn’t phase them. They know to not be super loud when guests are around and to leave them alone, but mostly it doesn’t interrupt our normal life. Most of our guests aren’t just hanging out in the apartment–it’s not a honeymoon suite. Instead, they’re usually off doing fun/work/vacation-y things most of the time, or they’re just passing through and need a place to sleep. The spaces are completely separate, so it’s rare that our kids have any interaction with our guests.

      We also make it a point to not say anything in our profile or listing about our kids. I am one who tends to think through all of the crazy possibilities of things and I have yet to be worried about my kids’ safety with our Airbnb venture. That would be a different story if we were actually sharing any living space. I hope that helps! Feel free to email me if you have other questions about having kids with an Airbnb rental.

      Reply
  7. Brooke says

    March 23, 2019 at 1:15 pm

    I also would love to see photos!!!! And more info about the nuts and bolts of renting out the AirBnB would be helpful! Also, I agree that the ruffled shower curtain is a beauty!

    Reply
    • Stephanie says

      March 26, 2019 at 10:44 pm

      Thanks Brooke. I’ll share more of the nuts and bolts of having a short-term rental in the future. It’s killing me not to share pictures (because I think it all turned out so cute!), but as a privacy concern we’ve decided not to. We share a lot on here, but sharing the pictures would make it too easy to find where we live.

      Reply
  8. liz says

    March 22, 2019 at 9:24 pm

    so fun! love the ruffle shower curtain. we need to see photos!

    Reply
    • Stephanie says

      March 26, 2019 at 10:43 pm

      I’m glad you love the shower curtain too! It’s killing me not to share pictures (because I think it all turned out so cute!), but as a privacy concern we’ve decided not to. We share a lot on here, but sharing the pictures would make it too easy to find where we live.

      Reply
  9. Amy P says

    March 22, 2019 at 9:56 am

    Thank you for the info. I hope the process continues to be profitable for you!

    If you do any additional posts, I would like your take on the mortgage and insurance ends of things. Our old mortgage actually said we were not allowed to do any renters. Did you have to negotiate something about rentals in your refinance? Did you get additional or different insurance from your home owners insurance to cover tenants and their activities? Do you have an “indemnity” type of additional coverage? Or is insurance covered by Airbnb?

    Reply
    • Stephanie says

      March 26, 2019 at 10:37 pm

      Those are some great questions! I’ll have my husband do a post to answer them. The short answer is we didn’t have any problems with our mortgage, but we did get different home owners insurance. I’ll let him share all the details.

      Reply
  10. Shelley says

    March 22, 2019 at 6:20 am

    PLEASE do a ton more posts on this with tons of details. I have been waiting on this one. We are building a house with a separate entrance basement with airbnb in mind. Our family has used them for years and seen some well done ones and some not so well done ones 🙂 I would also love pictures and any other tips. Thanks so much!

    Reply
    • Stephanie says

      March 26, 2019 at 10:34 pm

      That’s exciting Shelley! I agree that taking note of dos and don’ts from visiting other Airbnbs is so helpful! I’ll try to share what I can to help! 🙂

      Reply

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