Once you decide to actually start a minpaku business, questions like “How much money will this really cost?” and “What are the fixed and variable costs involved?” naturally come to mind. Every business needs a solid grasp of its costs, and minpaku operations are no exception.

In this article, we’ll break down the typical expenses—that is, the running costs—involved in operating a minpaku property, and provide an easy-to-understand overview of each cost item and how to think about it. Running some rough calculations upfront can significantly improve your chances of success in the minpaku business, so please read through to the end.

The Basic Structure of “Revenue and Expenses” in Minpaku Operations

Minpaku refers to providing lodging services using vacant rooms or properties. The business model is built around earning revenue by hosting guests—whether for one night or several—and collecting payment for their stay. However, even when revenue comes in, if the expenses required to generate that revenue are substantial, your final profit won’t grow as much as you might expect.

For example, using booking platforms (such as Airbnb or Booking.com) incurs commission fees, and no matter how few guests you have, you’ll still need to keep paying the fixed costs required to maintain the property (utilities, Wi-Fi fees, waste disposal costs, etc.). Understanding these running costs correctly and figuring out how to optimize them is a crucial key to putting your minpaku operation on solid footing.

A List of Major Running Costs

Broadly speaking, costs fall into two categories: “expenses incurred each time you get a booking” and “monthly fixed costs.” What they have in common is that they can ultimately have a direct impact on guest satisfaction and how your property is rated. Since cheaper isn’t always better, achieving a well-balanced optimization is essential.

1. Booking Platform Fees (3%–15%)

The most common way to attract guests for a minpaku business is through major booking platforms like Airbnb and Booking.com. Listing your property on these sites allows travelers from around the world to search for and book your space—but doing so comes with “booking platform fees.”

• Typical fee range: About 3%–15% of the accommodation fee

The exact rate varies depending on the platform and plan, so there’s no single standard figure. Some sites charge as little as around 3%, while others can charge as much as 15% or more.

This fee is typically deducted each time a booking is made through the platform. While higher fees mean higher costs, platforms with higher fees may also offer more robust services (multilingual support, payment systems, compensation in case of trouble, etc.).

Therefore, rather than simply assuming “a platform with lower fees is better,” it’s important to weigh the platform’s customer-attracting power and brand strength, and make a comprehensive judgment based on how many bookings it can actually bring you.

2. Cleaning Costs (¥5,000–¥30,000 per Visit)

Cleaning is an extremely important task in minpaku operations. Keeping the room clean so guests can enjoy a comfortable stay directly affects your review ratings.

• Typical cleaning cost: ¥5,000–¥30,000 per visit
  (varies depending on room size, number of beds, and scope of cleaning)

For example, some cleaning companies can handle a studio-sized property for around ¥5,000, but costs tend to rise for larger properties designed for families or bigger groups. Some hosts handle cleaning with their own staff, while others outsource it to external cleaning companies—some of which also handle linen changes and amenity restocking as part of a package.

It’s understandable to want to keep cleaning costs low, but “cleaning quality” is what matters most. Even small issues like leftover dust, hair, or grease around the kitchen can cause guest satisfaction to plummet. If you’re too lenient about cleaning standards, it can come back to bite you in the form of poor reviews, which ultimately hurts your ability to attract future guests.

3. Property Management Fees (10%–30% of Monthly Revenue, Varying by Company and Scope)

If a property owner has a full-time job elsewhere and finds it difficult to handle every aspect of minpaku operations alone, outsourcing to a property management company is an option worth considering. Property management services typically include handling guest communication, managing reservations, supporting check-in/check-out, arranging cleaning, and in some cases, even comprehensive marketing strategies to attract guests.

• Typical management fee: 10%–30% of monthly accommodation revenue (varies by company and scope of service)

Plans and offerings vary from company to company. While this may seem like a fairly high cost, when you factor in the time and effort it would take to handle everything yourself, outsourcing can often turn out to be the more efficient choice. Especially for first-time minpaku hosts, having a company handle everything from troubleshooting to legal procedures can be a major advantage.

That said, when signing a contract with a management company, it’s essential to clearly understand their fee structure and scope of support—for example, whether cleaning costs are included, and how much they’ll actually contribute to attracting guests. Signing a vague contract can lead to unexpected additional charges down the line, so be sure to clarify these details in advance.

4. Waste Disposal Costs (¥8,000–¥15,000 per Month)

At minpaku properties, figuring out how to handle the trash guests leave behind can be a challenge. Short-term stays tend to generate a lot of waste—paper cups, food packaging, plastic bottles, and the like—which can make it difficult for owners to regularly sort and dispose of it themselves.

• Typical waste disposal cost: ¥8,000–¥15,000 per month

In some areas, specialized waste collection services or cleaning companies offer plans that handle pickup on your behalf. If the owner lives far from the property, using such a service is often essential for smooth operations. Improper waste disposal can lead to conflicts with neighbors, so it’s important to have waste handled in accordance with local municipal rules.

5. Utility Costs

Electricity, gas, water, and other utility costs used by guests during their stay are naturally borne by the owner. This is an area that tends to fluctuate more as guest numbers increase, but conversely, it also carries the risk that you’ll keep paying these as fixed costs even when there are no guests at all.

How much this costs varies greatly depending on the size and facilities of the property. Heating and cooling costs also fluctuate by season, so it’s wise to expect some variation in your monthly expenses. Particularly for larger properties designed for bigger groups, where guests might run the air conditioning heavily in summer and heating heavily in winter, utility costs can add up significantly.

Recently, more hosts are adopting energy-efficient appliances and installing sensor-equipped LED lighting to help reduce utility costs. By incorporating measures to cut wasteful consumption while still ensuring guests can stay comfortably, you can reduce long-term expenses.

6. Wi-Fi Costs

In today’s world, a property without proper internet access is extremely inconvenient for guests. Providing Wi-Fi should be considered an absolute must.

Many minpaku properties provide a fixed-line connection or pocket Wi-Fi router for guests to use freely. The monthly fee depends on the plan and carrier, but a good benchmark is around ¥3,000–¥6,000 per month. For properties that expect many guests or heavy video streaming use, it’s essential to choose a plan without speed restrictions to ensure a stable connection.

7. Consumable Supply Costs

Beyond room cleaning, restocking everyday consumables like towels, shampoo, and toilet paper is essential. Since a certain amount of these items gets used up with each short-term stay, owners need to keep them stocked.

• Examples of consumable supplies
  • Shampoo, conditioner, and body soap
  • Toilet paper and tissues
  • Hand soap and dish detergent
  • Trash bags and kitchen paper towels
  • Sheets and towels (depending on how often linens are changed)

Buying these items in bulk and keeping them in stock can sometimes reduce your monthly costs. Consider using online subscription services or bulk/wholesale packaging to help cut costs. That said, be careful not to cut quality too aggressively, as this can risk lowering guest satisfaction—it’s important to strike the right balance between affordability and quality.

Key Points for Optimizing Running Costs

All of the running costs listed above are expenses that are unavoidable as long as you continue operating. However, the actual amounts can vary significantly depending on the property’s location, characteristics, and the owner’s approach. Below are some key points to keep in mind when optimizing your running costs.

1. Balancing Standardization and Flexibility

For example, standardizing your cleaning procedures with a manual, or establishing a routine for purchasing consumables, can help you maintain a consistent level of quality while minimizing expenses. That said, guest requests and issues often require individualized responses, so it’s true that fully standardizing everything doesn’t always work well.

Finding the balance between “reducing costs through standardization” and “remaining flexible enough to respond to each guest’s needs” is what today’s minpaku operators need to strive for.

2. Invest in Cleaning Quality

As mentioned above, cleaning costs are far from cheap. However, cutting corners here can result in devastating “the room was dirty” reviews, and the resulting long-term losses could far outweigh any short-term savings. The first impression a guest gets the moment they step into the room is irreplaceable. We recommend investing generously in cleaning quality.

3. Consider Using a Management Company When Needed

Some hosts hesitate when they see the fees charged by management companies (10%–30% of revenue, varying by company and scope of service). However, if outsourcing frees up your time to focus on other income-generating activities, it can’t necessarily be called expensive. By clarifying how much “control” you personally want to retain over your minpaku operations, and which tasks you’d rather delegate, you can build a more efficient operation.

4. Regularly Review Your Pricing Strategy

Demand for minpaku accommodations fluctuates depending on the season, events, and broader social conditions. In the hotel and inn industry, dynamic pricing—adjusting rates between peak and off-peak seasons—is widely practiced, and applying the same approach to minpaku can help boost profitability.

If occupancy drops during the off-season, utility and Wi-Fi costs remain unchanged even as revenue declines, which hurts profitability. To counter this, it’s worth exploring strategies such as discount plans and promotional campaigns to keep vacancy rates as low as possible, or considering long-term stay plans (similar to weekly rental apartments).

Conversely, setting slightly higher rates during peak season can increase revenue even with the same number of rooms. This kind of ongoing, attentive pricing adjustment is somewhat like a farmer’s approach—monitoring how crops are growing and adjusting fertilizer and watering accordingly.

Understanding Your Expenses and Staying Flexible Is the Path to Maximizing Profit

Here’s a summary of the expenses involved in operating a minpaku business:

• Booking platform fees: 3%–15%
• Cleaning costs: ¥5,000–¥30,000 per visit (depending on room size and number of beds)
• Property management fees: 10%–30% of monthly revenue (varies by company and scope of service)
• Waste disposal costs: ¥8,000–¥15,000 per month
• Utility costs: Variable (depends on the property and season)
• Wi-Fi costs: Approximately ¥3,000–¥6,000 per month (depending on plan)
• Consumable supply costs: Varies depending on purchasing habits and usage frequency for items like shampoo and paper products

What matters most is continuing to pursue guest satisfaction while striking the right balance between expenses and effort. No matter how spacious or beautifully designed a property is, guests will be put off if it’s not properly cleaned and feels unsanitary. Conversely, even a small, modest property can build a loyal base of repeat guests if the owner or management company communicates attentively and thoughtfully. Ultimately, what minpaku operations really need is motivation, flexibility, and a deep understanding of costs—these are the keys to success.

Feel Free to Reach Out to Stay Buddy Inc.

If you’re looking to manage your minpaku expenses more effectively or optimize your running costs, please don’t hesitate to contact Stay Buddy Inc.

We offer comprehensive support, from helping you launch your minpaku business to handling day-to-day guest communication and cleaning management, as well as proposing marketing strategies designed to maximize your revenue. Let’s work together to build the operating model that best suits your property and lifestyle.