What cleaning fee should you charge? A simple way to work it out

Charge a $83 cleaning fee on Airbnb and you keep about $70. To keep $83, charge $98.22.

The short answer: Add up what one turnover costs: the cleaner, laundry, supplies and your own time. Then divide by one minus the booking site's fee, because the site takes its share of the cleaning fee too. At a 15.5% fee, $83 of costs needs a cleaning fee of about $98.22 for you to keep the full $83.

A cleaning fee that is too low makes every stay lose a little money. One that is too high puts guests off. The way out is to know your real turnover cost first, then decide.

How do you work out what one turnover costs?

List everything that happens between two guests:

• The cleaner: what you pay per turnover. Example: $60.
• Laundry and linens: $15.
• Supplies: soap, paper, coffee, welcome items. $8.
• Anything else: restocking, trash, small repairs. $0 in this example.
• Your own time: if you clean yourself, count the hours. 2 hours at $20 an hour is $40. It is real money even if you do not pay it.

Without your own time, the example comes to $83. Add a margin on top if you like, for wear and tear.

Why is the fee higher than your cost?

Because Airbnb takes its fee from the whole subtotal, and the subtotal includes the cleaning fee. Most hosts pay about 15.5% (Airbnb). If you charge $83, you keep only about $70. To keep the full $83, divide by what is left after the fee:

$83 ÷ (1 − 0.155) = $98.22. Charge $98.22 and, after the fee, you keep $83.

Clean it yourself? Laundry $15, supplies $8 and 2 hours at $20 ($40) make $63, which means a fee of about $74.56.

Cleaning fee or a higher nightly rate?

You can leave the cleaning fee out and build it into the nightly rate. For a 3-night stay, $98.22 is about $32.74 more a night. Both give you the same money on that stay. They feel different to a guest:

• A separate fee weighs more on short stays. At $150 a night, the $98.22 fee is about 40% of a 1-night price ($248.22), 18% of a 3-night price ($548.22) and 9% of a 7-night price ($1,148.22).
• A fee built into the rate is fairer to one-night guests, but a higher nightly rate can look expensive in a search list, and it adds more to long stays than the cleaning really costs.

Either way, show the guest the total price up front. In the US the FTC's rule on unfair or deceptive fees covers short-term lodging, and it is aimed at pricing that hides mandatory fees until late in a booking. A cleaning fee should be in the total the guest sees. Check the rules where you operate.

How do you check you are in the right range?

• Look at comparable listings near you, for the same number of bedrooms.
• Compare your fee with one night's rate. A fee that is more than a night or two is worth a second look.
• Check your cleaner's invoices every few months, because costs creep up.

On your own website you set the cleaning fee, and you can show the full price on one screen. A card payment costs about 2.9% plus 30 cents (Stripe), so you need a smaller fee to keep the same $83. See how much Airbnb really takes from you.

Want to set your own fees and show guests the full price? Your own booking website is ready in 7 working days or it is free, and you pay half to start and the other half only when you go live. Pay your first installment, or compare every plan on the pricing page.

Common questions

How much should I charge for a cleaning fee?

Add up one turnover: cleaner, laundry, supplies, anything else, and your own time if you clean. Then divide by one minus the booking site's fee. With $83 of costs and a 15.5% fee, charge about $98.22.

Does Airbnb take a fee from the cleaning fee?

Yes. Airbnb's fee is worked out on the booking subtotal, which includes the cleaning fee. At 15.5%, a $98.22 cleaning fee leaves you $83.

Is it better to build the cleaning fee into the nightly rate?

Both give you the same money on a stay. A separate fee weighs more on short stays. A built-in cost spreads evenly but can make the nightly rate look high. Show the full price up front either way.

Should I count my own time when I clean myself?

Yes. Your hours have a value, and counting them shows what the fee really covers and what you would pay a cleaner.

Sources and helpful links

• Airbnb: how host fees work — the fee applies to the subtotal, cleaning fee included
• FTC: rule on unfair or deceptive fees — showing the total price up front
• Stripe pricing — card fees on your own site
• Launch VRO cleaning fee calculator — try your own numbers