.svg)
Accounting for Businesses Managing Short-Term Rentals (Airbnb, Vrbo & Beyond)
Plan your expenses and deductions strategically each year
Egestas tincidunt ipsum in leo suspendisse turpis ultrices blandit augue eu amet vitae morbi egestas sed sem cras accumsan ipsum suscipit duis molestie elit libero malesuada lorem ut netus sagittis lacus pellentesque viverra velit cursus sapien sed iaculis cras at egestas duis maecenas nibh suscipit duis litum molestie elit libero malesuada lorem curabitur diam eros.
- Morbi fringilla molestie magna sed dictum. Praesent pharetra turpis augue.
- Cras mi purus, viverra vitae felis sit amet, tincidunt fringilla lorem.
- non mattis urna ex nec sem. Donec varius diam et suscipit venenati proin tincidunt
- Quisque euismod posuere lacus sit amet volutpat. Praesent vel imperdiet
Maintain accurate and organized financial records for easy reporting
Tincidunt pharetra at nec morbi senectus ut in lorem senectus nunc felis ipsum vulputate enim gravida ipsum amet lacus habitasse eget tristique nam molestie et in risus sed fermentum neque elit eu diam donec vitae ultricies nec urna cras congue et arcu nunc aliquam at.
Talk to a tax professional for expert guidance
At mattis sit fusce mattis amet sagittis egestas ipsum nunc scelerisque id pulvinar sit viverra euismod. Metus ac elementum libero arcu pellentesque magna lacus duis viverra pharetra phasellus eget orci vitae ullamcorper viverra sed accumsan elit adipiscing dignissim nullam facilisis aenean tincidunt elit. Non rhoncus ut felis vitae massa mi ornare et elit. In dapibus.
- Morbi fringilla molestie magna sed dictum. Praesent pharetra turpis augue.
- Cras mi purus, viverra vitae felis sit amet, tincidunt fringilla lorem.
- non mattis urna ex nec sem. Donec varius diam et suscipit venenati proin tincidunt
- Quisque euismod posuere lacus sit amet volutpat. Praesent vel imperdiet
Personalized Marketing: AI helps in analyzing customer data to create personalized marketing campaigns
At mattis sit fusce mattis amet sagittis egestas ipsum nunc. Scelerisque id pulvinar sit viverra euismod. Metus ac elementum libero arcu pellentesque magna lacus duis viverra. Pharetra phasellus eget orci vitae ullamcorper viverra sed accumsan. Elit adipiscing dignissim nullam facilisis aenean tincidunt elit. Non rhoncus ut felis vitae massa. Elementum elit ipsum tellus hac mi ornare et elit. In dapibus.
“Amet pretium consectetur dui aliquam. Nisi quam facilisi consequat felis sit elit dapibus ipsum nullam est libero pulvinar purus et risus facilisis”
Use accounting and tax software to make management easier
Placerat dui faucibus non accumsan interdum auctor semper consequat vitae egestas malesuada quam aliquam est ultrices enim tristique facilisis est pellentesque lectus ac arcu bibendum urna nisl pharetra bibendum felis senectus dolor commodo quam elementum sapien suscipit qat non elit sagittis aliquam a cursus praesent diam lectus tellus mi lobortis in amet ac imperdiet feugiat tristique nulla eros mauris id aenean a sagittis et pellentesque integer ultricies sit non habitant in cras posuere dolor fames.
Accounting for Short-Term Rentals: A Financial Guide for Airbnb, Vrbo & Booking.com Hosts
Introduction
Running a short-term rental (STR) on platforms like Airbnb, Vrbo, or Booking.com can be both exciting and profitable. But unlike traditional rentals, STRs come with complex accounting needs—think fluctuating nightly rates, cleaning turnovers, service fees, and taxes across jurisdictions.
Whether you manage one unit or a portfolio of properties, understanding your numbers is key to staying compliant and maximizing profit. This guide walks you through the essentials of short-term rental accounting—from income tracking to occupancy taxes.
🧾 How to Record STR Income: Gross vs. Net
Many STR hosts mistakenly record only the amount deposited into their bank account. But to get an accurate financial picture—and claim every allowable deduction—you need to account for the gross revenue before platform fees and taxes are taken out.
You should track:
- Gross Booking Amount (what the guest actually paid)
- Minus: Platform service fees (Airbnb, Vrbo, etc.)
- Minus: Cleaning fees paid to third-party vendors
- Minus: Occupancy taxes (if collected and remitted on your behalf)
Example journal entry:
- Debit: Cash (net payout)
- Debit: Platform Service Fees (expense)
- Credit: Rental Income (gross)
- Credit: Occupancy Tax Payable (if applicable)
🎯 Pro Tip: Use your booking reports from Airbnb, Vrbo, and other platforms to reconcile each stay — not just each deposit.
🧹 Track Guest-Related Operating Costs
Short-term rentals involve higher turnover and maintenance than long-term rentals. These expenses are typically deductible but should be tracked clearly.
Examples of deductible expenses:
- Professional cleaning fees
- Maintenance and minor repairs
- Guest supplies (toiletries, snacks, linens, etc.)
- Lawn care, pest control, and seasonal services
💡 Use a label like “Turnover Costs” or “Guest-Ready Expenses” in your accounting system to separate recurring costs from one-time purchases.
🛋️ Furniture, Fixtures & Equipment (FF&E)
Did you buy a new couch or install a washer-dryer in your rental?
- High-cost items (beds, appliances, air conditioners): Record as capital assets and depreciate over their useful life.
- Low-cost items (dishes, lamps, décor): Expense immediately when purchased.
Knowing which expenses must be depreciated helps keep your books compliant and audit-ready.
🧾 Navigating Occupancy & Lodging Taxes
Many cities, counties, and states impose lodging or transient occupancy taxes on short-term rentals. These taxes often apply on a per-night basis, and responsibility for collection varies.
You’ll need to know:
- Does your jurisdiction require occupancy tax?
- Does Airbnb or Vrbo collect and remit it for you?
- Are you required to register with local tax authorities?
- How often must you file reports?
📌 Create a “Liability Account” called “Occupancy Tax Payable” to separate the taxes you collect from your actual income.
🌐 Multi-Platform Listings: Airbnb, Vrbo, Booking.com & More
Many hosts use multiple platforms to increase visibility—but each has different payout schedules, fees, and taxes.
Here’s how to manage it smoothly:
- Use property management tools (e.g., Hostaway, Lodgify) or spreadsheets to track bookings across platforms
- Break down fees and payouts per platform
- Reconcile income by stay date, not payout date, for accuracy
- Match platform reports with bank deposits each month
This approach helps prevent errors and simplifies tax filing at year-end.
💡 Final Tip: Treat Your STR Like a Real Business
Short-term rentals aren’t just passive income—they’re hospitality businesses with fluctuating revenue, active management, and tax responsibilities.
The more seriously you take your accounting:
- The more deductions you’ll unlock
- The easier compliance becomes
- The faster you’ll grow profitably
Need Help with Short-Term Rental Accounting?
From income tracking to tax filings, Peak Accounting offers tailored support for short-term rental hosts and vacation property managers. Whether you’re just starting out or scaling up, we can help you stay organized, compliant, and profitable.