Optimizing Cleaning Costs in Short Term Rentals for 2025: Protecting Profit Without Lowering Occupancy

2025.12.4

INDEX

1. Core structure of cleaning costs

Cleaning accounts for 15% to 25% of monthly revenue in many short term rentals. Even a studio unit may incur around ¥30,000 per month in effective cleaning expenses. When the average stay is under two nights, turnover frequency increases and directly impacts profitability.

2. Pricing and turnover optimization

Typical outsourced cleaning rates in major cities range from ¥4,000 to ¥6,000 per turnover. Increasing the average stay to three nights or more reduces turnover and helps keep cleaning cost ratios near 15%. If one night stays dominate, additional linen stock can shorten cleaning time and maintain cost stability.

3. Practical example

Assume a cleaning cost of ¥5,000 per turnover with 10 turnovers per month. Total cleaning cost is ¥50,000. With revenue of ¥250,000, the cleaning ratio is 20%. By setting a three night minimum and reducing turnovers to 7, cleaning cost falls to ¥35,000, significantly improving net margin.

Takeaway

Managing cleaning costs means optimizing the relationship between turnover frequency and cleaning unit price, not merely adding up expenses. Adjusting minimum stay rules and maintaining adequate linen stock naturally reduces the cleaning ratio and preserves profitability without lowering occupancy.

CONTACT US