Know What You Can DeductIf your Airbnb is classified as an active business, you can deduct almost every ordinary and necessary expense tied to running it.Here’s a quick list of deductions most hosts miss:Cleaning, supplies, and guest amenities Repairs and maintenance Property management feesUtilities, Wi-Fi, and streaming subscriptionsAdvertising, software, and booking platform feesTravel to and from your property (yes, mileage counts)Home security systems and smart devicesProfessional fees — CPA, attorney, consultingDepreciation on the building and furnishingsPro tip: If purchased after January 19, 2025, you can take advantage of the return of 100% bonus depreciation under the One Big Beautiful Bill.

If you’re furnishing it as a mid-term rental, that depreciation on furniture, appliances, and improvements can seriously offset your first year’s income.

Generic rentals with basic décor—think standard furniture from big-box stores and uninspired kitchens or bathrooms—are starting to phase out.

But he walked away and left EVERYTHING, from furniture to clothing, and everything else.

STR supply has pushed down revenues.

This is the post COVID world where supply frequently outpaces demand. 

The National Association of Realtors is forecasting a major rebound in 2026, with double-digit growth in home sales and home prices projected to rise another 4%.They’re also predicting the economy will add 1.3 million new jobs, keeping demand strong despite the ongoing housing supply shortage.After three years of the lowest sales volume since 1995, this would be a huge shift.

Being intentional with design — putting money to the side to pay a professional designer, buy furniture and accessories — can be all the difference in a 5 star listing or a 2 star listing.

I’d first ask CMHA locally how they’ll view the change, mock up furniture in both layouts, and only convert units where the rent bump outweighs cost and potential market shrink.

The financial viability of the strategy is maximized when a Cost Segregation Study can allocate a high percentage of the purchase price to short-life assets (like furniture and fixtures), leveraging the current 100% Bonus Depreciation to create a substantial "paper loss" in the first year.To use the 100% Bonus Depreciation against your 2025 W2 income, the STR and its eligible assets must be fully "placed in service" by December 31, 2025.