Boost Profitability and Minimize Expenses in Your Short-Term Rental
🡐 Back to Resources | August, 2025 | Written by Nick Sheveland
Running a short-term rental (STR) is more than just collecting nightly rates. True success comes from balancing revenue growth with expense management. By cutting unnecessary costs and optimizing operations, hosts can significantly increase net profits without sacrificing guest experience.
This guide explores proven strategies to reduce costs, increase profitability, and maximize your STR’s long-term success.
Why Expense Management Matters
Many hosts focus only on revenue — raising nightly rates or adding more bookings — but profitability depends just as much on what you keep after expenses. Efficient systems allow you to:
Protect cash flow during slow seasons
Avoid surprise costs from maintenance or utilities
Reinvest savings into upgrades that boost rates and reviews
Want to see the revenue side too? Read our guide on 10 ways to increase Airbnb occupancy.
1) Automate Guest Communication
Time is money. Use property management software (PMS) or automation tools to handle routine tasks like booking confirmations, check-in details, and review requests.
Explore the top tools in our best STR software solutions guide.
2) Optimize Utility Costs
Utilities are one of the largest recurring expenses for STR owners. Reduce waste and protect margins by:
Installing smart thermostats to regulate heating and cooling
Switching to LED lighting
Providing clear instructions for appliance use
Learn more in our guide on smart home integration for STRs.
3) Streamline Cleaning and Maintenance
Cleaning is critical for reviews, but overspending on turnovers hurts profits. Create a system that balances quality and efficiency:
Use standardized checklists for consistency
Bundle cleaning and maintenance tasks
Schedule periodic deep cleans to avoid costly repairs later
For a framework, see our guide to building reliable STR cleaning systems.
4) Choose the Right Financing Options
If you’re renovating or expanding your STR portfolio, financing costs can cut into profits. Explore low-cost financing options tailored to STR investors, including DSCR loans, HELOCs, or specialized rental loans.
See our financing guide for STRs.
5) Reduce Platform Fees with Direct Bookings
Airbnb and Vrbo fees add up. By creating a direct booking website, you can:
Eliminate third-party commissions
Build direct guest relationships for repeat bookings
Maintain more control over your policies
Explore top platforms in our direct booking software comparison.
6) Protect Your Investment with Insurance
Unexpected accidents, damage, or liability claims can be costly. STR-specific insurance ensures you don’t lose profits to unplanned risks.
Read our insurance guide for STRs.
7) Invest in High-ROI Upgrades
Not all upgrades are created equal. Focus on improvements that reduce long-term expenses or justify higher nightly rates:
Durable flooring and furniture
Energy-efficient appliances
Guest-loved amenities like hot tubs or outdoor spaces
For more on upgrades, see our guide to property modifications for STRs.
The Clear Stay Advantage
At Clear Stay Properties, we help investors balance profitability and efficiency by:
Implementing automation tools that save hours weekly
Managing cleaning and maintenance teams for consistency
Overseeing expense tracking and financial reporting
Combining cost control with dynamic pricing strategies to maximize revenue
With Clear Stay, you get a management partner focused not just on bookings, but on bottom-line results.
The Takeaway
Profitability in STRs isn’t about cutting corners — it’s about running smarter. By automating processes, controlling utilities, streamlining cleaning, and reducing fees, you can increase your margins while still delighting guests.
👉 Want to maximize your property’s profitability? Fill out the form below to schedule your free consultation with Clear Stay Properties and let us show you how to reduce costs while growing returns.