Owning an Airbnb or vacation rental comes with plenty of expenses. Cleaning, utilities, repairs, booking fees, insurance, supplies, and property management costs can quickly reduce what you actually earn from the property. Fortunately, many ordinary and necessary costs associated with operating a rental may qualify as short-term rental tax deductions.
Knowing which expenses to track can make tax preparation easier and give you a more accurate picture of your property’s financial performance. However, not everything you purchase for an Airbnb is automatically deductible in the year you buy it. Furniture, major improvements, appliances, and other assets may have different tax treatment.
Here are 25 common expenses short-term rental owners should consider when organizing their records.
How Do Short-Term Rental Tax Deductions Work?
Rental property owners can generally deduct ordinary and necessary expenses associated with managing and maintaining a rental activity. The treatment of an expense depends on what was purchased, how it was used, and whether the property also had personal use.
There is also an important difference between a repair and an improvement. Fixing an existing faucet may be treated differently from remodeling an entire bathroom. Larger improvements may need to be capitalized and recovered over time rather than deducted as a normal operating expense.
For a broader overview of Airbnb taxation, see our Airbnb Tax Guide.
25 Common Short-Term Rental Tax Deductions
1. Mortgage Interest
The interest portion of a mortgage associated with a qualifying rental property may generally be deductible. Mortgage principal is not treated as a rental expense.
2. Property Taxes
Real estate taxes paid on a short-term rental may generally be included among rental expenses, subject to the property’s use and applicable tax rules.
3. Rental Property Insurance
Premiums for landlord, property, liability, and qualifying short-term rental insurance coverage may be deductible when related to the rental activity.
4. Cleaning Services
Professional cleaning and turnover services are common Airbnb deductible expenses. Keep invoices from cleaners and turnover companies throughout the year.
5. Cleaning Supplies
Detergent, disinfectant, trash bags, dishwasher tablets, paper towels, and other supplies used to prepare the property for guests may also qualify as operating expenses.
6. Repairs
Expenses for keeping the property in ordinary operating condition, such as repairing a lock, faucet, drywall, or existing appliance, may qualify as repairs. Significant improvements can require different treatment.
7. Property Maintenance
Landscaping, pest control, pool maintenance, HVAC servicing, snow removal, and other recurring maintenance costs may generally be considered rental expenses.
8. Electricity
If you pay the property’s electric bill while operating it as a short-term rental, the rental-related cost may generally be deductible.
9. Water and Sewer
Water, sewer, and similar municipal utility charges associated with operating the property should also be tracked.
10. Natural Gas
Natural gas used for heating, cooking, fireplaces, or other rental-related purposes may be another operating expense.
11. Internet and Wi-Fi
Internet access is expected at many vacation rentals. Service provided to guests or used to manage the property may qualify as a rental expense. Personal use may require an allocation.
12. Airbnb and Vrbo Fees
Booking platforms may charge host service fees, commissions, or processing fees. Owners should record gross booking income and the related platform expenses rather than relying only on net bank deposits.
13. Property Management Fees
Fees paid to a professional property manager or co-host for managing the rental may generally qualify as operating expenses.
If you use a property manager but are also considering the tax treatment of losses, review our guide to short-term rental material participation rules.
14. Guest Supplies
Toiletries, soap, coffee, tea, toilet paper, bottled water, and similar consumable products purchased specifically for guests can add up over the course of a year.
15. Linens and Towels
Sheets, towels, blankets, pillowcases, and other frequently replaced items should be recorded as part of your rental bookkeeping. Their exact tax treatment can depend on the circumstances.
16. Furniture
Beds, sofas, tables, chairs, desks, and outdoor furniture used in the rental may be recoverable through depreciation or other applicable tax provisions rather than simply being treated as routine operating expenses.
17. Appliances
Refrigerators, washers, dryers, televisions, microwaves, and other appliances purchased for the property should be properly recorded, including their purchase cost and placed-in-service date.
18. Smart-Home Equipment
Smart locks, thermostats, security devices, noise monitors, and similar technology used to operate the rental may qualify for appropriate business tax treatment.
19. HOA Fees
Regular homeowners association fees related to a rental property may generally be deductible. Special assessments for major improvements may require different treatment.
20. Short-Term Rental Licenses and Permits
Some cities and counties require licenses, registrations, or permits before a property can legally operate as a short-term rental. Qualifying fees related to the rental business should be tracked.
21. Accounting and CPA Fees
Bookkeeping, accounting, tax preparation, and tax planning expenses related to the rental activity may generally qualify as professional expenses.
22. Legal and Professional Services
Legal services connected to qualifying rental operations may also be deductible, although some professional costs associated with acquisitions, entities, or capital transactions can require different treatment.
23. Advertising and Photography
Professional listing photography, website costs, online advertising, and other expenses incurred to market a vacation rental may generally be considered business expenses.
24. Rental Management Software
Property management systems, dynamic pricing tools, bookkeeping software, channel managers, and guest communication platforms are common expenses for modern Airbnb operators.
25. Depreciation
Depreciation can be one of the more significant deductions associated with rental real estate. Instead of immediately deducting the entire cost of certain property and assets, owners generally recover qualifying costs over applicable recovery periods.
Furniture, appliances, equipment, improvements, and components of the building may have different depreciation treatment. Some owners also consider cost segregation to identify property components with shorter recovery periods. Learn more in our short-term rental cost segregation guide.
Repairs vs. Improvements: Know the Difference
Not every expense associated with your Airbnb should be recorded as an immediate deduction. This distinction is particularly important when renovating or upgrading a property.
A routine repair generally keeps an existing component working, while an improvement may add significant value, restore the property, or adapt it to a different use. A new roof, major kitchen remodel, room addition, or substantial property renovation may need to be capitalized.
Keeping contractor invoices and descriptions of the work performed makes it easier to classify these expenses correctly at tax time.
What If You Use the Short-Term Rental Personally?
Personal use can affect vacation rental tax deductions. When a property is used for both rental and personal purposes, certain expenses may need to be divided between those uses.
Owners should therefore maintain records of both rental days and personal-use days instead of assuming that every property expense is entirely attributable to the rental.
The IRS Publication 527 provides additional information about residential rental property expenses, depreciation, and vacation-home use.
Why Bookkeeping Matters for Airbnb Write-Offs
One of the easiest ways to miss legitimate Airbnb tax deductions is to wait until tax season to reconstruct an entire year of expenses.
Short-term rental owners should consistently track booking revenue, platform fees, utilities, cleaning, maintenance, supplies, professional services, improvements, and asset purchases. Owners with multiple properties should also consider tracking income and expenses separately for each property.
Good bookkeeping does more than support a tax return. It allows you to see what each property actually earns after operating costs.
Can Short-Term Rental Deductions Create a Tax Loss?
Yes, it is possible for operating expenses and depreciation to result in a rental showing a loss for tax purposes. That does not automatically mean the loss can offset wages or other income.
The treatment of a short-term rental loss can depend on the nature of the activity, material participation, passive activity rules, basis, at-risk limitations, and other circumstances.
This becomes especially important when significant depreciation is involved. Read our guide on how Airbnb income is taxed for additional context.
Keep Better Records Throughout the Year
Receipts and supporting records matter just as much as identifying possible deductions. Consider maintaining bank statements, credit card records, platform statements, invoices, property tax bills, insurance documents, mortgage statements, contractor invoices, and records for furniture and equipment.
For owners with substantial renovations or multiple short-term rentals, maintaining a fixed-asset schedule can also help keep depreciation records organized from year to year.
Final Thoughts on Short-Term Rental Tax Deductions
Short-term rental owners can incur a wide range of legitimate operating expenses. Cleaning, utilities, management fees, repairs, insurance, supplies, professional services, platform fees, and depreciation are among the costs that may affect taxable rental income.
The goal should not be to label every purchase as a write-off. Accurate tax reporting requires understanding what the expense was for, whether there was personal use, and whether the cost should be currently deducted, capitalized, or depreciated.
Keeping organized records throughout the year makes that process considerably easier and gives Airbnb owners a clearer understanding of how their properties are performing.