A $159 appliance diagnostic appointment can become a $600 repair on a Saturday. When the oven stops working with guests in the house, waiting until Monday may not be an option.
That is one of the realities of vacation rental ownership that a revenue projection rarely captures.
At COHO Collective, we manage homes across Southwest Montana, and we see the expenses that come with keeping them comfortable, well maintained, and ready for guests. Some are routine, like restocking coffee and scheduling lawn care. Others arrive unexpectedly, and require immediate attention.
Understanding both is essential to knowing what your vacation rental actually earns.
What Should Owners Budget For?
Beyond the mortgage, property taxes, and any HOA dues, owners need to account for utilities, insurance, management fees, cleaning, supplies, maintenance, and long-term upkeep.
Some of these expenses arrive monthly. Others are seasonal or unpredictable, which makes them easier to overlook when estimating profitability.
Montana’s Seasons Bring Different Bills
Summer and winter each come with their own expenses.
During summer, lawns need mowing, irrigation systems need attention, and water bills can climb. Weed treatments and pest control help keep the property ready for guests. In winter, heating bills and snow removal become more significant.
Rural homes can bring additional responsibilities. A well needs servicing. A propane tank needs monitoring and refilling. A long driveway also needs a snow-removal plan before guests are trying to reach the house during a storm; emergency service can be expensive.
Internet is another ongoing expense worth evaluating carefully. Reliable service and responsive support matter when a connection fails during a stay.
Guest-Paid Cleaning Fees Don’t Cover Everything
Guests pay a cleaning fee for their reservation. Owners should still budget for the cleaning needed beyond a standard turnover.
Depending on usage and condition, we recommend deep cleaning one to three times per year. These visits allow time for detailed work that goes beyond preparing the home between reservations.
Deep cleans can take a full day or longer, with cleaning rates ranging from approximately $50–$100 per hour. Window washing commonly runs $300–$700, and carpets may need professional cleaning annually for another few hundred dollars.
A home can be cleaned consistently between guests and still need this additional attention. Keeping up with it helps the property feel cared for throughout the year.
Stocking the Home Is an Ongoing Job
Coffee, toilet paper, tissues, and paper towels need replenishing. Towels and sheets become stained. Mugs break, cutlery disappears, and kitchen supplies need replacing.
These are ordinary costs of operating a furnished rental.
We typically deliver inventory monthly during our busiest months, May through September, and less frequently in the off-season. We also recommend an end-of-season inventory to identify anything missing, damaged, or ready for replacement.
Those checks help keep a property consistent. A home advertised for eight guests should still have enough matching place settings and usable towels for eight guests at the end of August.
We recommend a locked housekeeping closet with organized backup supplies. Having replacements on-site helps the team address needs between reservations without a last-minute shopping trip.
Repairs Cost More When They Cannot Wait
An oven failure, plumbing leak, broken grill, or heating problem can interrupt a stay and require a quick response.
The bill may include diagnostic charges, parts, labor, travel fees, and after-hours rates. Weekends and holidays can make both availability and cost more challenging.
That is how a $159 diagnostic appointment can quickly become a $600 bill.
Preventative maintenance can help identify some issues earlier, but unexpected failures still happen. Owners need room in their budgets to respond promptly.
Larger replacements deserve attention, too. Appliances, furniture, flooring, and building systems eventually need work. Planning for those expenses makes it easier to replace an aging appliance or refresh worn furnishings before they affect the guest experience.
Insurance Can Be a Significant Adjustment
Do not assume the home’s existing insurance is appropriate for vacation rental use. The City of Bozeman specifically notes that standard homeowners insurance may not cover short-term rentals and encourages owners to check their coverage.
Our clients use Proper Insurance, and we have seen short-term rental coverage cost as much as three times a conventional homeowners policy. That is an observation from our experience, rather than a rule for every property.
Confirm your intended rental use with your insurer and obtain a property-specific quote early. It is an important expense to understand before making assumptions about profitability.
Revenue After Management Fees Is Still Not Profit
At COHO Collective, our management fee is 25% of the nightly rental rate.
The amount remaining after that fee still needs to cover the owner’s operating expenses: utilities, insurance, supplies, maintenance, periodic cleaning, and other property costs.
This is why a strong revenue figure does not tell the whole story. Two properties with similar bookings can leave their owners with different amounts after expenses.
Evaluate performance across the full year, including quieter months, seasonal services, and funds set aside for future repairs and replacements.
Someone Needs to Keep an Eye on the Whole Property
Guests notice some things. Housekeepers notice others. Neither perspective, on its own, will provide a complete picture of the home.
Keeping a vacation rental looking good and performing well requires regular oversight. Someone needs to notice that the towel supply is dwindling, the windows need attention, or the living room furniture is starting to look tired.
Our advice is to stay involved, either personally or through a trusted co-host or property manager. Budget for the ongoing care the property needs, and address small issues while they are still manageable.
That attention helps protect the home and the experience guests are paying for.
