Why Expense Tracking Is the Most Valuable Thing You Can Do
A short-term rental generating $40,000 in annual revenue with $18,000 in tracked expenses has a very different tax bill than the same rental with only $8,000 in documented expenses. The difference — $10,000 in missed deductions — could cost you $2,500–$3,700 in taxes at typical marginal rates.
Most STR hosts undertrack their expenses for three reasons: they don't know what's deductible, they lose receipts, or they don't start tracking until tax season. This guide solves all three.
Rule of thumb: If you spent money because of the rental, it's probably deductible. The key is documentation. See our full guide to Airbnb tax deductions for the complete breakdown of rules and limits.
Complete STR Expense Categories
Platform & Service Fees
Fees charged by Airbnb, VRBO, Booking.com, or any property management software are 100% deductible as business expenses.
| Expense | Notes |
|---|---|
| Airbnb host service fee (3%) | Deducted directly from your payout — track from your Airbnb earnings report |
| VRBO listing fee | Annual subscription or per-booking commission |
| Channel manager subscription | Guesty, Hostfully, Lodgify, etc. |
| Dynamic pricing tools | PriceLabs, Wheelhouse, Beyond |
Cleaning & Turnover
All cleaning costs are deductible — whether you pay a service or buy supplies yourself.
- ✓ Professional cleaning service fees (get invoices for each visit)
- ✓ Cleaning supplies: mops, vacuums, disinfectants, paper towels
- ✓ Laundry costs: laundromat fees, detergent, dryer sheets
- ✓ Linen service subscriptions
- ✓ Replacement linens, towels, or pillowcases (smaller items expensed immediately)
Guest Supplies & Amenities
Everything you provide for guests is deductible. Track these purchases separately from your household shopping — even if you buy them at the same store.
- ✓ Toiletries: shampoo, conditioner, body wash, soap
- ✓ Toilet paper, paper towels, tissues
- ✓ Coffee, tea, sugar, creamer
- ✓ Trash bags and liners
- ✓ Dish soap and dishwasher pods
- ✓ Cooking oil, salt, pepper, basic condiments
- ✓ Welcome gifts or local snacks
- ✓ Replacement small items: light bulbs, batteries, hangers
Repairs & Maintenance
Repairs that restore the property to working condition are immediately deductible. Keep every invoice from every contractor, handyman, and service call.
- ✓ Plumbing repairs
- ✓ Appliance repair or service calls
- ✓ HVAC tune-ups and filter replacements
- ✓ Electrical repairs
- ✓ Locksmith services
- ✓ Pest control
- ✓ Gutter cleaning
- ✓ Touch-up painting
- ✓ Dryer vent cleaning
- ✓ Window cleaning
Furnishings & Equipment
Items under $2,500 per invoice can typically be expensed immediately under the IRS de minimis safe harbor rule. Items above that threshold are depreciated. Section 179 and bonus depreciation may allow you to deduct larger items immediately in the year purchased.
Usually immediately expensed
- • Kitchen cookware and utensils
- • Lamps and light fixtures
- • Area rugs
- • Small electronics (Roku, Chromecast)
- • Throw pillows, curtains, décor
- • Mattress protectors
May require depreciation
- • TVs and large electronics
- • Sofas and sectionals
- • Bedroom furniture sets
- • Washer and dryer
- • Refrigerator or dishwasher
- • Hot tub or outdoor furniture sets
Utilities
For a dedicated rental property (100% rental use), all utilities are fully deductible. For mixed-use, apply your rental-use percentage.
- ✓ Electricity
- ✓ Gas and heating oil
- ✓ Water and sewer
- ✓ Internet (often 100% deductible as a rental requirement)
- ✓ Cable or streaming subscriptions provided to guests
- ✓ Trash and recycling
- ✓ Propane for grill or fireplace
Insurance
- ✓ STR insurance or landlord policy (100% for dedicated rentals)
- ✓ Homeowners insurance (rental-use percentage for mixed-use)
- ✓ Umbrella liability insurance (rental-use portion)
- ✓ Flood or earthquake insurance
Professional Services
- ✓ CPA and tax preparation fees (rental portion)
- ✓ Bookkeeping services
- ✓ Attorney fees (lease templates, disputes)
- ✓ Property management fees
- ✓ Real estate agent commissions if applicable
- ✓ Cost segregation study fees
- ✓ STR permit and license fees
- ✓ HOA fees (rental-use portion)
Mileage & Travel
The IRS standard mileage rate for 2025 is 70 cents per mile. Every rental-related trip — from supply runs to property checks — is deductible. At 200 miles per month, that's $1,680 per year that most hosts never claim.
- ✓ Driving to the property for inspections or check-ins
- ✓ Supply runs to hardware stores, grocery stores, home goods stores
- ✓ Meeting contractors or vendors at the property
- ✓ Picking up keys or dropping off supplies
- ✓ Trips to the bank, post office, or accountant for rental business
Track every trip. You need a log with the date, destination, purpose, and miles for each deductible trip. Apps that auto-track make this easy. Keen Owner's built-in mileage tracker logs each trip and applies the current IRS rate automatically.
Marketing & Advertising
- ✓ Professional photography for listing
- ✓ Paid advertising on Google, Facebook, Instagram
- ✓ Website hosting and domain registration
- ✓ Email marketing tools
- ✓ Printed materials (business cards, welcome booklets)
Technology & Software
- ✓ Smart lock hardware and subscription
- ✓ Smart thermostat
- ✓ Security cameras (exterior only; must be disclosed)
- ✓ Noise monitoring devices
- ✓ Property management software subscriptions
- ✓ Accounting or expense tracking apps
Depreciation (The Silent Deduction)
Depreciation doesn't require spending any money in the current year — it's a write-off for the gradual wear and obsolescence of the property and its contents. It's the largest deduction most rental hosts aren't taking.
The building
Depreciated over 27.5 years. Based on building value (purchase price minus land value).
Appliances & furnishings
Depreciated over 5 years. Section 179 or bonus depreciation may allow full deduction in year 1.
Land improvements
Fencing, landscaping, driveway — depreciated over 15 years.
How to Track Expenses Without Losing Your Mind
The system you use matters less than the discipline. Here's what actually works:
Use a dedicated credit card
One card for rental expenses only. Your statement becomes an automatic expense log. Never use the same card for personal purchases.
Photograph receipts immediately
Thermal receipts fade within months. Snap a photo the moment you get one — in the parking lot, at the register, wherever. Procrastination is how receipts disappear.
Categorize as you go
Tag each expense to a tax category when you log it. Doing this at year-end from a pile of receipts takes days. Doing it weekly takes minutes.
Track mileage every trip
Set a phone reminder before every rental-related drive. Even manual logs work — just note the date, purpose, and miles. At 70 cents per mile, every unlogged trip is money left behind.
Generate a report for your CPA
At tax time, your CPA needs totals by expense category matching Schedule E line items. If you've been tracking by category all year, this takes 10 minutes. If you haven't, it takes days and costs CPA fees.
Track Every Expense. Miss Nothing at Tax Time.
Keen Owner categorizes every expense to the correct Schedule E line item, logs mileage automatically, and generates a tax report your CPA can use directly. Free to try.
See Keen Owner for STR Hosts