Becoming an Airbnb host in the UK can be a rewarding way to earn passive income — but calculating Airbnb hosting costs and Airbnb setup costs correctly is key to making it profitable.

Many new hosts underestimate the costs of running an Airbnb UK, from furnishing expenses to cleaning, insurance, and platform fees. In this guide, we’ll break down every cost involved in turning a property into an Airbnb-standard short let, so you know exactly how much you’ll need to invest and how to calculate your returns confidently.

Airbnb Setup Guide

Why Understanding Airbnb Costs Matters

Before you even list your property, you need to know your Airbnb setup costs and Airbnb hosting costs.

Failing to plan your Airbnb expenses or the types of expenses can eat into your profit margins quickly — especially in cities like London, Manchester, Bristol, and Edinburgh, where competition and operational costs are higher as well as create more headache when not making the most of this opportunity.

At Stayful, we help hosts calculate, manage, and optimise their Airbnb costs across the UK.

Whether you’re a first-time host or expanding your portfolio, or looking for host tools to help create more success in your Airbnb business, knowing what to expect financially is your foundation for success.

Understanding Airbnb Setup Costs in the UK

When you’re thinking about how to set up Airbnb, the first thing to consider is what it costs to bring your property up to a professional standard.

Property Preparation & Renovation

You can’t just throw some sheets on a bed and upload photos. Airbnb guests expect quality and comfort.

Typical setup costs for property renovation:

Setup ItemAverage Cost (UK)

Deep cleaning fee & decluttering £150–£300.
Painting & touch-ups £500–£1,500.
Flooring upgrades (if needed) £1,000–£2,500.
Lighting & fixtures £200–£600.
Bathroom updates £800–£2,000.
Kitchen improvements £1,000–£3,000.

Tip: If your property needs a complete revamp, plan for at least £5,000–£10,000 before listing.

Furnishing Costs

How much does it cost to furnish an Airbnb?
On average, Airbnb setup costs for furniture and décor range from £2,000 to £8,000 depending on the size and style of your property.

Property Type Average Furnishing Cost

Studio flat £2,000–£3,000.
1-bedroom apartment £3,000–£4,500.
2-bedroom flat £4,500–£6,000.
3-bedroom house £6,000–£8,000.

What You’ll need for your Airbnb business:

Beds, mattresses, and linen.
Sofas and seating.
Dining furniture.
Kitchen utensils, crockery, and cookware.
Smart TV and Wi-Fi router.
Wardrobes and storage.
Artwork and soft furnishings.

It’s also smart to include small extras for your business such as a coffee machine, local guides, or premium toiletries — guests notice these touches and will great more great experiences and more 5 star reviews which is very important.

Compliance & Safety Costs

Your Airbnb business must comply with UK fire safety standards, gas regulations, and insurance requirements.

Compliance Items

Average CostFire risk assessment £150–£250.
Smoke & CO alarms £50–£100.
Fire blanket/extinguisher £40–£80.
PAT testing (for appliances) £100–£150.
Gas Safety Certificate £60–£100.
Electrical Safety Report (EICR) £150–£250.
Short let insurance £200–£400 per year

Photography & Listing Setup

A professional listing converts more views into bookings.

Estimated costs:

Professional photography: £150–£250.
Listing copywriting or optimisation: £100–£200.
Channel manager (if using multiple platforms): £20–£50/month.

If you’re unsure, Stayful’s Airbnb management services can handle this setup for you.

Calculating Airbnb Hosting Costs (Ongoing)

Once your Airbnb is live, there are monthly and per-stay Airbnb expenses you need to calculate to get the most profit and understand the types of costs involved to analyse and create more profit.

Here’s a breakdown of what to expect for costs of running an Airbnb UK:

Expense Type Average Monthly Cost

Cleaning fees & laundry fees £80–£200 per turnover.
Utilities (gas, electric, water, internet) £150–£300.
Maintenance & repairs £50–£150.
Consumables (toiletries, coffee, etc.) £20–£50.
Insurance £20–£40.
Council tax or business rates £80–£200.
Airbnb host service fee 3% of booking Management fee.

(if outsourced)15–20% of revenue.

It is important in order to maximise revenue, to also focus on create a great experience for guests, do not focus too much on expenses but more the value in the expense to understand if you need it or not.

Airbnb Host Fees & Calculators

Wondering about Airbnb host fees calculator UK ?
Airbnb charges:

Hosts: around 3% per booking.
Guests: 6–12% (this doesn’t affect you directly.)

You can use Stayful Airbnb income estimator or an Airbnb host fees calculator UK to estimate your deductions and profits.

At Stayful, we provide hosts with a bespoke Airbnb revenue calculator and Airbnb income analysis, showing your likely net earnings after all expenses.

Estimate your Airbnb income

Calculating Airbnb Hosting Costs & Profitability

Now that we’ve outlined every major Airbnb fees, let’s see how to calculate Airbnb profits and host income using a simple formula.

Estimate Your Revenue to service guests

Use the Airbnb calculate tool or Stayful’s market insights to find your expected nightly rate and occupancy.

Example:

Nightly rate: £150
Occupancy: 70% (255 nights)
Annual gross income: £38,250

Deduct Airbnb service fee

Expense Annual Estimate

Airbnb host fees (3%) £1,147.
Cleaning (per stay) £4,000.
Utilities £2,160.
Maintenance £1,200.
Consumables £600.
Insurance £300.

Total Costs £9,407.

Calculate Airbnb Net Profit after Airbnb fees

Gross income £38,250 – Total costs £9,407 = Net annual profit: £28,843

Of course, if you use a management company (like Stayful), you’ll pay a management fee (typically 15–20%), but in return, you’ll save time and usually gain higher occupancy through professional management.

Tip: Use a free Airbnb host fee calculator or Airbnb profit calculator to get an accurate estimate for your property.

Additional Airbnb fee & Costs UK Hosts Often Miss

Here are a few hidden Airbnb expenses to keep in mind:

Property wear and tear: More frequent repainting and furniture replacement.
Seasonal pricing changes: Income can vary significantly through the year.
Accounting or tax filing fees: Especially if you operate through a company.
Furnishings depreciation: Budget for upgrades every 2–4 years.

How to Reduce Airbnb Hosting Costs

Running an Airbnb doesn’t have to break the bank. Here are practical ways to minimise host expenses and maximise revenue for the business:

Buy furniture in bundles or second-hand (while keeping standards high).
Automate check-ins with smart locks.
Use dynamic pricing to maximise occupancy.
Outsource management to professionals like Stayful to improve efficiency.
Track expenses monthly — don’t wait until year-end to realise your margins.

Plan Your Airbnb Budget Wisely

Understanding your Airbnb setup cost and hosting expenses is essential to running a profitable short-term rental.

From initial furnishing to ongoing maintenance, every pound counts — but with the right plan, your Airbnb can become a highly rewarding business.

If you’d like professional help managing or calculating your Airbnb costs, get in touch with Stayful — the UK experts in Airbnb setup, management, and optimisation.

Interested in booking your next getaway ?

If you are interested in exploring your next getaway ? Stayful can help with our wide range of Airbnb properties from 4 bedroom city centre flats to cottages on the outskirts and everything in between, why not explore our short stay Airbnb accommodation here.

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Calculate Airbnb hosting costs & Setup

Why Understanding Airbnb Costs Matters