Calculating cleaning fee for budgetinga STR?

Question

Hi everyone! I'm creating an excel sheet to help calculate whether properties are more or less likely to be profitable for STR. I hit a wall for cleaning services, how can i calculate the monthly service fee when budgeting because in my area it depends on the size and i dont have any property yet to use as a reference. My market as a cleaning fee average of 150 per booking so i have that from my research.

Thanks in advance!

Nathan Gesner · Answer

Cleaning fee is paid by the renter and will typically create additional profit. I base my cleaning fee on one hour of cleaning per bedroom and bathroom. A 3bed/2bath home at $30 an hour is $150.

Erik Stenbakken · Answer

You an also simply look on the booking platform of your choice. Pick 10 two-bedroom properties and see what the average is for cleaning fee. Do the same for three-bedroom, four-bedroom, etc. That should give you a reasonable average of what cleaning fees cost in your area based on size of property. You can adjust up or down depending on how you choose to underwrite your numbers.

Lawrence Fraher · Answer

Mr. Underwood nailed it.  I add $3.00 to it to compensate for those times you need an extra cleaning or a visit for any number of reasons.  I was advised to not let the cleaning fee be larger than your nightly rental.  Seemed like sound advise so I adhere to that as well.

John Underwood · Answer

Not important. Cleaning fee is a passthrough paid by renter.

Michael Trueba · Answer

Excellent! Thank you for the feedback!

Paul Sandhu · Answer

I've got a lady that cleans my places for free.

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I also get to sleep with her.

Michael Trueba · Answer

Got it! Thank you for the advice you two!!

Michael Trueba · Answer

Since it's covered per booking, you could break even or even profit a bit. Is it typical to have cleaning services charge per cleaning or a monthly service. I see that here and there. Just want to make sure I'm anticipating expenses

Calculating cleaning fee for budgetinga STR?

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