Gross booking revenue is not what lands in your account. Expect to account for:
– Platform fees. These vary by channel: see our Airbnb management fees blog for the current Airbnb breakdown. Booking.com sets commission per property rather than publishing one NZ rate: expect the 10 to 25% range, roughly 15% typical, plus 15% GST added under NZ’s marketplace rules. Vrbo/Bookabach charges 8% (5% via channel-management software) plus a 3% payment-processing fee, also plus GST.
– Cleaning and linen between stays
– Consumables, utilities, internet
– Maintenance and repairs, including keeping the property secure and monitored when nobody is there between stays
– Management fee, if the property is managed. It covers full management: guest management, listing and channel management, dynamic pricing, owner reporting, and the coordination and supply of cleaning and linen.
– Insurance appropriate to short-term letting
– Tax. Short-term rental income is taxable and GST may apply depending on turnover. Talk to your accountant.