You don't need lakhs to start hosting — but you do need to know where the money goes, or the "extra income" quietly disappears into it. Here's a realistic view of the costs, and how to price so the effort is worth it.

One-time setup costs

  • Furnishing the essentials — a good mattress and linen, curtains, hot water, strong wifi. This is where skimping shows up directly in reviews.
  • Safety — locks, a fire extinguisher, a first-aid kit.
  • Photos — a half-day shoot in natural light. If you spend on only one "marketing" thing, spend here.
  • Registration — state homestay scheme fees are usually modest; see what licences you need.

The recurring costs hosts forget

  • Cleaning and laundry per turnaround — the biggest per-stay cost.
  • Utilities running higher than home use (guests are generous with the AC and geyser).
  • OTA commission on every Airbnb booking — one reason direct Instagram/WhatsApp bookings are worth building.
  • Repairs, replacements and the occasional broken kettle.

Pricing: a simple method that works

  1. List 5–8 comparable listings near you (same room type, similar rating) and note their weekday and weekend rates.
  2. Start ~10–15% below the median to win your first reviews fast.
  3. Once you're above ~4.7 with 10+ reviews, move to the median, then test above it in peak season.
  4. Track your occupancy and average rate monthly — high occupancy with a low rate means you're underpriced; raise it.

That last step is the one most hosts skip, because they don't have the numbers. If your bookings, payments and extras are recorded as they happen, revenue and occupancy fall out automatically — no spreadsheet.

Bedlo shows your revenue, occupancy and average rate for any date range, and splits UPI vs cash automatically. Know your numbers, price with confidence.

Starting from zero? The full How to Start an Airbnb in India guide covers setup end to end.