Short-term rental (STR) bookkeeping can get messy fast - especially when it comes to cleaning revenue and costs. In this guide, we’ll break down the smartest way to handle cleaning income and expenses so your owner statements stay clean, your books stay compliant, and your time isn't wasted on unnecessary admin. Over 80% of our clients keep cleaning off the owner statements, let’s dive into why.

What Is Cleaning Income vs. Cleaning Expense?

When a guest books a stay, they usually pay a cleaning fee. That cleaning fee is cleaning income. It can either:

• Stay with your property management company as revenue
• Be passed on to the property owner along with the rest of the booking revenue

Cleaning expenses are what you pay housekeepers to clean the property. These typically follow the revenue:

• If you keep the cleaning revenue, you (the property manager) cover the cleaning cost
• If the owner gets the cleaning revenue, the expense shows on their statement

Our Recommendation: Keep It Off Owner Statements

At Keystone Bookkeepers, we recommend keeping cleaning income and expenses off owner statements in most cases. Here’s why:

• Cleaner financials: Fewer line items make for easier-to-read statements
• Fewer questions from owners: Less clutter means less confusion
• Minimal financial impact: Cleaning fees rarely change owner payouts significantly
• Simplifies timing issues: Avoids mismatches when revenue comes in one month and expenses go out the next
• Scales better: When you bring cleaning in-house or use variable pricing, reporting stays consistent

If you collect $250 from a guest and pay your cleaner $225, you earn a $25 margin. That margin helps cover your admin time and keeps operations smooth. This is an easier pitch to homeowners as well – your commission is only charged on rent and you handle all cleaning expenses.

When to Include Cleaning Fees on Owner Statements

There are exceptions. If you charge a commission on cleaning fees, it makes sense to show them on owner statements. In that case, you have two options:

1. List Actual Cleaning Costs

• Most accurate
• Creates timing issues if income/expense fall in different months
• More administrative work

2. Use a Standard Cleaning Charge

• Simpler and more predictable
• Easier to scale
• May not reflect true cleaner costs, which could cause overpayment

For example, you might charge the owner a flat $450 per clean, even if your cleaner charges you $420. That $30 difference helps buffer admin time, but you need to track it to avoid undercharging or overpaying over time.

Final Takeaway: Prioritize Simplicity and Scalability

Unless you’re charging a commission on cleaning revenue, keep cleaning fees off owner statements. It’s cleaner, faster, and easier to scale.

If you want help setting up a system that keeps your STR books clean and consistent, Keystone Bookkeepers is here to help. We specialize in short-term rental bookkeeping, trust accounting, and owner statement clarity.

TL;DR

• Cleaning fees = income from guests; cleaning costs = payments to cleaners
• If you keep the fee, you pay the cost. If the owner gets the fee, show the expense
• Best practice: don’t include cleaning income/expenses on owner statements unless you charge a commission
• Simpler books = fewer owner questions and easier scaling

FAQs

Should I include cleaning fees on my owner statements?
Usually not. Unless you're charging a commission, it's cleaner to exclude them and keep the margin.

What if I bring cleaning in-house?
Still best to exclude from statements. In-house operations benefit from consistent, simplified accounting.

How do I account for the margin I keep from cleaning fees?
Treat it as management income. Record cleaning revenue and expense in your operating account, and keep the difference as gross profit. Review this monthly to ensure costs don’t surpass revenue.

What happens if revenue and expenses fall in different months?
This causes timing mismatches. Another reason to keep cleaning off owner statements unless you have a very clear tracking process.

Want to streamline your STR finances? Schedule a free consult with Keystone Bookkeepers.