Individuals Are Turning to Airbnb Hosting to Make Ends Meet
Globally, around 35% of vacation rental hosts rent out their properties to make extra money to help combat the increasing cost of living. Many of these individuals took to hosting to avoid eviction or foreclosure.
Just like the prices of gas, groceries, and homes, the cost of running an Airbnb business has also risen. That said, there has also been an increase in the income hosts can accrue over time. In fact, in 2021, hosts in the U.S. earned roughly $1.8 billion — a 34% increase from 2019.
This is due, in part, to guests booking longer stays at vacation rentals. By Q4 2021, 22% of stays booked at Airbnb were for at least 28 nights. The same trend is true for Q1 2022. Many guests are no longer opting for short getaways but rather extended vacations.
Since guests are staying longer, cleaners’ prices are expected to rise due to the more lived-in environment they will have to clean. Many hosts are still able to make ends meet, however, with supply and demand playing heavily into this rationale. As more guests demand longer stays, hosts are able to cover the cleaning costs with the resultant increased revenue they receive.
Hosts Should Be Conscious of Rising Cleaning Costs
Both new and seasoned hosts need to be aware of the continually rising costs of professional cleaning. As a business owner, all and any costs associated with your services can have an impact on your operations.
As more people begin traveling again for business or leisure, there forms a higher demand for vacation rentals. That said, many hosts have been impacted by the pandemic, causing the supply of Airbnbs to lower by 8%. With fewer available vacation rentals, cleaners have less of an opportunity to make money. Thus, their prices rise per cleaning.
Rising cleaning costs across the nation are illustrated in the following infographics.
National Average Cleaning Costs for 1-Bedroom Vacation Rentals
Across the United States, cleaning costs for a 1-bedroom vacation rental have increased by 25.08% since Q1 2021. The national average for cleaning is $64.50.
States like Delaware, Hawaii, and New Jersey are well above the national average with their cleaning prices reaching $90 or more.
National Average Cleaning Costs for 2-Bedroom Vacation Rentals
Cleaning costs for a 2-bedroom vacation rental have increased by 24.71% since Q1 2021. The national average for cleaning is now $85.37. Rising costs could be due to higher cost of living, more tourism, and more.
States like Hawaii, the District of Columbia, and California are well above the national average with their cleaning prices ranging from $106 to nearly $163.
Many hosts are still able to make ends meet within these three states regardless of the rising cleaning costs. As tourism opens up across the nation, states that are considered destinations allow for more hosts to acquire bookings.
National Average Cleaning Costs for 3-Bedroom Vacation Rentals
A 3-bedroom vacation rental cleaning cost has increased by 19.67% since Q1 2021. The national average for a 3-bedroom cleaning is $116.14 as of Q1 2022.
Hawaii, Washington, and California are well above the national average with their cleaning prices soaring between $148 and $248.
Average Airbnb Cleaning Costs by State
Not only are National Airbnb cleaning costs steadily increasing but so are the prices across individual states. The following information will explore the average cleaning costs for 1-, 2-, and 3-bedroom vacation rentals in select states in the U.S.
The infographics have been created based on completed projects on TurnoverBnB’s cleaning platform between January 1, 2022, and March 31, 2022.
To remain competitive within your current market, it is important to understand how much your industry’s costs are growing or declining. This will allow you to know where to allocate your resources and expenses the most to maximize your guests’ satisfaction.
Based on TurnoverBnB data, we’ve found the following averages for cleaning costs in California:
- 1-bedroom: $74.74 (up 16.32% from Q1 2021)
- 2-bedroom: $106.52 (up 17.25% from Q1 2021)
- 3-bedroom: $148.15 (up 1.21% from Q1 2021)
Professional cleaners’ costs have steadily increased between Q1 2021 and Q1 2022. Based on the graph above, 2-bedroom short-term vacation rentals saw a significant jump in cleaning costs between Q4 2021 and Q1 2022, while costs for 1- and 3- bedroom short-term rentals increased gradually.
Being aware of your industry’s cost fluctuations will benefit you in the long run. Within Colorado, we have found cleaning costs to be:
- 1-bedroom: $58.77 (up 4.76% from Q1 2021)
- 2-bedroom: $77.11 (up 3.77% from Q1 2021)
- 3-bedroom: $111.21 (up 8.11% from Q1 2021)
Even though 1-bedroom short-term rental cleanings decreased between Q2 and Q3 2021, they have steadily increased. The most notable increase in cleaning costs for Colorado is that of 3-bedroom properties from Q4 2021 to Q1 2022.
Based on data from our platform, we have concluded that Florida’s cleaning costs have risen as follows:
- 1-bedroom: $72.31 (up 33.66% from Q1 2021)
- 2-bedroom: $95.89 (up 17.54% from Q1 2021)
- 3-bedroom: $120.65 (up 16.30% from Q1 2021)
1-bedroom cleaning costs have increased the most since Q1 2021. Even though 1-, 2-, and 3-bedroom properties have all consistently followed the same trend, 1-bedrooms showed the most increase.
The infographic above shows that the costs of cleaners in Kentucky are as follows:
- 1-bedroom: $42.07 (up 12.34% from Q1 2021)
- 2-bedroom: $60.33 (up 19.84% from Q1 2021)
- 3-bedroom: $84.38 (down 10.69% from Q1 2021)
1- and 2-bedroom cleaning prices may have risen between Q4 2021 and Q1 2022, but they have shown a history of bouncing back and forth between rising and falling. 3-bedroom cleaning costs have consistently been decreasing since Q2 2021. There was a small bump in prices in Q4 2021, but this average cost was still below that of Q2 2021.
Based on data shown in the infographic above, we have concluded that the costs for cleaners in North Carolina are:
- 1-bedroom: $61.84 (up 15.31% from Q1 2021)
- 2-bedroom: $79.15 (up 22.21% from Q1 2021)
- 3-bedroom: $92.63 (up 10.87% from Q1 2021)
Cleaning costs in North Carolina for 2-bedrooms have continued to grow the most since Q1 2021. Meanwhile, 3-bedroom cleaning costs have gone up and down several times from Q1 2021 to Q1 2022.
According to the infographic’s data, Texas has seen the following trends in pricing for cleaners:
- 1-bedroom: $62.22 (up 12.95% from Q1 2021)
- 2-bedroom: $87.95 (up 12.38% from Q1 2021)
- 3-bedroom: $119.14 (up 35.46% from Q1 2021)
The costs of cleaners within Texas have a notable change in 3-bedroom costs increasing between Q4 2021 and Q1 2022.
Data shown in the infographic above reveals that Virginia’s cleaning costs have increased as follows:
- 1-bedroom: $57.91 (up 20.12% from Q1 2021)
- 2-bedroom: $78.94 (up 19.45% from Q1 2021)
- 3-bedroom: $118.92 (up 6.81% from Q1 2021)
1-bedroom cleaning costs have increased significantly from Q1 2021 to Q2 2022. 2- and 3-bedroom costs have also seen their fair share of rising. 3-bedroom cleaning costs have had the most inconsistent rise, but they have significantly increased from Q3 2021 to Q1 2022.
With Increasing Costs, Is Professional Cleaning Still Worth It?
Hiring a professional cleaning service will always be worth the cost. Professional cleaners help save you time and money in the long run. If you were to clean each of your properties yourself, your costs associated with your Airbnb business would increase.
Purchasing your own cleaning supplies per property is not always feasible, especially with the price increases of household items like cleaning tools. In fact, you could be paying up to $200 per month for cleaning supplies. That’s an additional expense that can easily be replaced by a professional cleaning cost.
Not to mention, the hours of your time spent cleaning will take away time spent marketing your Airbnb, acquiring more bookings, scaling your business, and more.
With TurnoverBnB’s cleaner marketplace, you will be able to find a cleaner that fits your budget. You have the control over accepting cleaners per project based on their pricing, or bid. Find a professional cleaner and let them take care of upkeeping your properties.
4 Budgeting Tips for Airbnb Hosts
Lucrative Airbnb businesses know when and where to allocate their finances. Below, learn four top tips to save you money and time.
1. Automate What You Can
Successful Airbnb hosts aim to simplify tedious and time-consuming tasks like checking guests in and out, updating their calendar and pricing, managing the listing, messaging guests, and more. All of these host tasks can be automated to free up some of your time and allow you to be more productive.
Moreover, you can automate your cleaning schedule, cleaner invoices, and inventory checklists through TurnoverBnB. You’ll no longer have to worry about finding a new cleaner per project with our user-friendly and cost-effective platform.
2. Keep Up With Property Maintenance
Property damage or wear-and-tear can happen at any time, especially in a home that hosts dozens of people year-round.
It’s not always a guarantee that guests will abide by any house rules or regulations. With that being said, putting off maintenance, professional deep cleaning, or repairs will lead to bigger problems — and more money spent — down the road.
For example, say a pipe bursts in your bathroom. The leakage is small, and you decide to still book another guest because the damage doesn’t appear to be bad. This decision could turn into mold growth, permanent damage to your plumbing, and other problems down the road.
If you take care of the issue right away, you won’t have to worry about “closing up shop” for the time it takes to fix every issue that has accumulated.
3. Require a Minimum Stay
Through Airbnb, you can set a filter to require a minimum stay. Many hosts like to refrain from one- or two-night stays since the overall costs of running utilities, hiring cleaners, and paying to restock items are high.
Of course, you could increase the costs of a one- or two-day stay to ensure you are able to cover all operational costs. This can wind up being more of a hassle though, as you may have to explain to guests why their weekend stay costs as much as a week-long stay.
Also, the longer guests stay, the less time and money you will have to spend on turnovers. Having your guests regularly spaced out will allow you to visualize where and how much money you can place into your Airbnb.
4. Buy in Bulk
The last thing you want to do as an Airbnb host is to go back and forth between properties to refill toilet paper or provide extra towels.
Keeping properties well-stocked with basic necessities like hand and dish soap, toilet paper, and other items will help save you time — and add to guests’ satisfaction. For this reason, purchasing in bulk heavily used items that cannot be reused is the best thing to do. A sufficient amount of all bulk-bought items should be easily accessible to guests throughout their stay.
Extra linens and towels for cleaners to replace during each turnover should be stored in a locked closet. Just be sure the cleaner is able to access it with a key or access code.
Run a Successful Airbnb Business Despite Increasing Costs
Airbnb hosts can still be profitable with the increase in cleaning costs. Understanding just how much cleaning costs are rising in your area will help you be prepared financially.
A simple way of doing this is to build a budget. Once you know where you can place your money, you can invest in affordable automation tools like TurnoverBnB.
Learn more about how our platform can help you put your vacation rental on autopilot.