Investor · Colorado Springs, CO · Member since 2011 · 322 posts · 238 votes
BLUF: Expressed as a percentage of revenue; what are your cleaning costs? please chime in if you can help with any other STR industry averages for expenses.
For the trailing 12months my cleaning expenses account for approximately 15% of my revenue which is the largest expense I have. I would love to know if my cleaning expense is within industry norms.
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
5y
@Marcello Di Gerlando, like @John Underwood, I just charge the guests a flat rate and I charge a bit more to cover the costs of cleaning supplies.
Except for this year, my new cleaner is back in Coeur d'Alene and the drive out and back makes our home a single day cleaning so she is charging us $300 to clean it. I am going to pay it as I need a cleaner with all the back to back's we have.
Not much I can do at this point. At least I can deduct it!
Plantation, FL · Member since 2009 · 329 posts · 119 votes
5y
My cleaning costs were 10% of a typical 3-night booking (my minimum) but now they are 5% since I doubled my rates. Less if they book for longer than 3 nights.
BLUF: Expressed as a percentage of revenue; what are your cleaning costs? please chime in if you can help with any other STR industry averages for expenses.
For the trailing 12months my cleaning expenses account for approximately 15% of my revenue which is the largest expense I have. I would love to know if my cleaning expense is within industry norms.
Thanks BP Family
Each of my houses rents for btwn $2000-$7000 per weekend ($2000 for a wknd in low season, $7000 for a wknd in peak season). My cleaning fee is a flat $400. So as a % of revenue that’s btwn 6%-20% depending on time of year
Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
5y
@Marcello Di Gerlando my 2020 cleaning was 15% of gross revenue on the VR we own. $10k in cleaning on $67k gross (which includes the cleaning fee; I include cleaning in my gross as my charge a little above what we pay our cleaner)
Rental Property Investor · Atlanta, GA · Member since 2019 · 26 posts · 14 votes
5y
We pass through our cleaning costs with a little mark up as well. Annualized housekeeping runs 9-10% of gross revenue with 3 night mins on all properties. Seasonality plays a part since long stays during peak travel times tend to lower the percentage which is why I always look at my numbers on a rolling 12 month or annual basis.
I don't know that you can compare these expenses as an industry, but it would be more accurate to compare numbers within your local market.
Plantation, FL · Member since 2009 · 329 posts · 119 votes
5y
I forgot to mention that I gave my cleaners a 25% raise because I was getting bookings that averaged a week or more -- tons more money for me but less than half for them since there were less turnovers. I wanted to make sure they didn't start prioritizing other homes over me since they had to start looking for other work.