In this post, I will share how to keep track of vacation rental expenses or AirBnb expenses and income in the simplest way possible. As a new AirBnb host, I have done the research for you! Keeping track of your vacation rental or Airbnb expenses and income does not have to be daunting! Use these tips to get started in tracking and managing your vacation rental expenses.
Starting a vacation rental or AirBnb can be super exciting and a dream! But with that excitement comes the reality of having to keep up with the money you spend and money you earn while renting it out. So, what is the best way to keep track of vacation rental expenses??
I started my own vacation rental last year and did a lot of research trying to figure out the best way to keep track of expenses.
It can be a little over whelming but following a process and being consistent will help so much!
Your Investment Should Be Treated Like A Business
Treat your short term rental like a business. There are going to be expenses, repairs, income, etc that you’ll need to report on your taxes every year.
NOTE: I am not a tax professional and this is just my own experience. Please consult your own tax pro for questions.
Keep A Separate Bank Accounts For All Expenses And Income
Open a completely separate bank account. This will segregate all of your expenses for your rental property and make it so much easier to keep track of. Get an account that has the ability to have a credit or debit card associated with it (like a checking account). You can use this debit card for online or in store purchases you need to make that are specifically for your rental.
I’ve used this same method with my first long term rental.
At the end of the month or year, you’ll have everything in one spot. Keep up with your expenses and it will make doing your yearly taxes that much easier!
Use A Free Tool To Categorize Expenses
Stessa is a free online tool that you can use to track your vacation rental expenses.
They are geared towards rental properties and structure the reporting for property investors. I have found it easy to use and has everything you need to track income and spending.
Stessa allow you to import information from bank accounts and credit cards on an ongoing basis so that you can start categorizing things as they come in!
Be Diligent About Keeping Up With Spending
Make sure not to passively spend, spend, spend without being cognizant of WHAT you’re spending the money on. We too often do this in our personal lives (I’m just as guilty of this!) but make sure not to do this with your vacation rental, like any business or company would do.
Keep Things Simple
- Treat your vacation rental like a business
- Use a completely separate bank account for all money going in and out
- Stay on top of categorizing your spending
Thanks so much for reading my thoughts on how to keep track of your vacation rental expenses from my AirBnb hosting experience! I hope you found this information helpful. If you have any questions, please leave a comment below!
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