This article is for educational purposes only and is not tax advice. Consult a licensed CPA or tax attorney before filing.
Short-term rental (STR) operators — Airbnb, Vrbo, direct booking — face a different cost structure than long-term landlords. The good news: many of those costs are ordinary and necessary business expenses deductible against STR income, subject to IRS rules, material participation tests, and local registration requirements.
If you finance STR acquisitions with DSCR or hard money bridge capital, accurate expense tracking also supports your refi underwriting when lenders stress NOI.
1. Platform, marketing, and guest-acquisition costs
Fees paid to Airbnb, Vrbo, booking engines, and payment processors are deductible business expenses. So are:
- Professional photography and listing setup
- Dynamic pricing software subscriptions
- Paid social ads driving direct bookings
- Website hosting for a direct-booking site
Keep monthly platform statements — they reconcile gross booking revenue to net deposits and document the deduction cleanly at year-end.
2. Cleaning, turnover, and guest supplies
STR economics live or die on turnover cost. Deductible items typically include:
- Professional cleaning between guests
- Laundry and linen services
- Toiletries, coffee, welcome baskets (reasonable and ordinary)
- Restocking consumables
If you self-clean, you generally cannot deduct your own labor — but supplies and outsourced turnover labor qualify when documented.
3. Repairs, maintenance, and STR-specific upkeep
Repairs (fixing what broke) are generally expensed in the year incurred. Examples:
- HVAC service calls
- Appliance replacement of like-kind items
- Plumbing and lock repairs
- Pool and hot tub maintenance
Distinguish repairs from improvements (capitalized and depreciated). A new roof is usually not a same-year repair write-off; patching a leak might be.
Investors scaling STR portfolios should separate CapEx reserves from operating deductions in their pro forma — lenders look at sustainable NOI, not one-year tax optimization.
4. Insurance, licenses, and local compliance
STR operators often carry higher insurance loads than long-term rentals. Potentially deductible costs:
- Landlord or STR-specific property insurance
- Liability and umbrella policies
- Business licenses and local STR registration fees
- Security monitoring and smart-lock subscriptions tied to guest access
Florida and other coastal markets may require wind mitigation and flood coverage — premiums are real hold costs even when deductible. Model them before you finance in Florida.
5. Mortgage interest, depreciation, and utilities
For properties rented more than 14 days per year (and personal use limits met), you may deduct:
- Mortgage interest on acquisition and improvement debt
- Property taxes
- Utilities you pay as the host (wifi, power, water, trash)
- Depreciation on the building (not land) over 27.5 years for residential rental property
Depreciation is a non-cash deduction that can shelter STR income — but it accumulates recapture on sale. Your CPA should map depreciation strategy to your hold period and exit (flip vs. long-term rental vs. 1031 exchange).
Bonus: home office and professional services
If you manage STRs as a business, you may deduct a home office (simplified or regular method), bookkeeping software, CPA fees, and legal fees for lease templates or local compliance — when properly substantiated.
STR tax traps investors miss
- Personal use days — too many owner nights can reclassify deductions
- Material participation — passive loss rules may limit write-offs against W-2 income
- Sales and tourist taxes — occupancy tax is not the same as income tax; remit locally
- Mixed-use properties — allocate expenses between personal and rental portions
Tie deductions to your financing story
Lenders underwriting STR DSCR loans want trailing revenue and expense history, not just projected Airbnb comp sets. Clean books make refi after a BRRRR bridge faster and cheaper.
Work with a CPA who understands STR — not only a general preparer. Then run your next acquisition numbers at getloanterms.com with realistic insurance, turnover, and platform fees baked in.
Deductions reward operators who treat STR as a business, not a hobby.