Understanding your expenses is just as important as projecting revenue when evaluating a short term rental investment. Southern Utah has its own unique cost profile shaped by desert climate, tourism seasonality, and a regulatory environment that varies dramatically from one town to the next. If you’re planning to buy a short term rental in the Zion/St. George area, here’s what you’ll actually spend to operate it.
The Big Picture: Total Annual Operating Costs
For a typical 3 bedroom short term rental in Southern Utah purchased in the $350,000 to $500,000 range, total annual operating expenses (including your mortgage) generally fall between $30,000 and $42,000. Without the mortgage, operating expenses alone typically run $12,000 to $20,000 per year depending on whether you self manage or use a property management company.
Here’s the detailed breakdown of every major expense category.
Mortgage Payment
For most investors, this is the single largest monthly expense.
Example scenario:
- Purchase price: $425,000
- Down payment: 20% ($85,000)
- Loan amount: $340,000
- Interest rate: 7.0% (investment property rate)
- Monthly payment (principal and interest): approximately $2,262
- Annual mortgage cost: approximately $27,144
Investment property interest rates run 0.5% to 0.75% higher than primary residence rates. If you’re financing your Southern Utah purchase, talk to The Mortgage Shop early in the process. They specialize in investment property loans and can help you structure your financing to maximize cash flow.
Some investors in Southern Utah target lower price points in Hurricane or La Verkin ($300,000 to $400,000) specifically to keep this fixed cost manageable relative to revenue.
Property Management
If you’re not local to Southern Utah (and most investors aren’t), you’ll likely need a property management company.
Typical property management fees in Southern Utah:
- Full service management: 20% to 30% of gross revenue
- Co hosting / partial management: 10% to 15% of gross revenue
On a property grossing $52,000 per year (75th percentile), full service management runs $10,400 to $15,600 annually.
What’s included varies by company, but full service management typically covers:
- Guest communication and check in/out coordination
- Listing management and pricing optimization
- Cleaning coordination (though cleaning fees are usually passed to guests)
- Maintenance coordination
- Restocking supplies
Some investors choose to self manage remotely using smart locks, noise monitors, and a local cleaning team. This can save $8,000 to $12,000 per year, but it requires more of your time and a reliable local support network.
Pro tip: When evaluating property managers in Southern Utah, ask specifically about their experience with the regulatory requirements in the specific town where your property is located. A manager who knows the St. George rules but not Hurricane’s process can create headaches.
Property Taxes
Utah property taxes are relatively moderate compared to many states.
Washington County property tax rates:
- Effective tax rate: approximately 0.55% to 0.65% of assessed value
- On a $425,000 property: approximately $2,340 to $2,760 per year
Utah assesses residential property at 55% of fair market value, and the tax rate is applied to that assessed value. This means your effective rate is lower than the stated rate. Washington County’s rates are slightly below the Utah statewide average.
Property taxes in Southern Utah are one of the more favorable line items for investors compared to similar markets. For comparison, property taxes on a comparable property in Sedona or Scottsdale would typically run higher due to Arizona’s property tax structure for non primary residences.
For a deeper look at the full tax picture, see our Southern Utah STR tax guide.
Insurance
Short term rental insurance costs more than standard homeowners insurance because of the increased liability and property damage risk that comes with hosting guests.
Typical annual insurance costs in Southern Utah:
- STR specific policy: $2,500 to $4,500 per year
- Standard homeowners (not sufficient for STRs): $1,200 to $1,800 per year
You need a policy that explicitly covers short term rental activity. Standard homeowners policies typically exclude commercial use, and a denied claim could be catastrophic. Companies like Proper, CBIZ, and Safely specialize in STR coverage.
Southern Utah has some specific risk factors that affect insurance:
- Flash flood risk: Desert areas can experience sudden flooding, particularly in canyon areas near Zion. Properties in or near flood zones may require additional flood insurance.
- Wildfire risk: Vegetation fires are a concern during hot, dry summer months. Some areas may see higher premiums based on wildfire risk scores.
- Wind and sand: Desert wind storms can cause exterior damage and require more frequent maintenance.
Budget $3,000 to $4,000 annually for comprehensive STR insurance in this market.
Utilities
Desert climate creates a unique utility cost profile. Air conditioning is your biggest variable cost.
Monthly utility estimates for a 3 bedroom STR in Southern Utah:
| Utility | Monthly Cost | Annual Cost |
|---|---|---|
| Electricity | $150 to $350 | $1,800 to $4,200 |
| Water/Sewer | $60 to $100 | $720 to $1,200 |
| Gas (heating/hot tub) | $40 to $100 | $480 to $1,200 |
| Internet | $60 to $80 | $720 to $960 |
| Trash | $25 to $40 | $300 to $480 |
| Total | $335 to $670 | $4,020 to $8,040 |
The wide range on electricity reflects the seasonal reality. Summer months with AC running constantly can push electric bills to $300 to $400, while mild spring and fall months might only cost $100 to $150. If your property has a pool and a hot tub, expect to be at the higher end of these ranges.
Water costs deserve special attention. Southern Utah is one of the driest regions in the country, and water is becoming increasingly expensive. St. George and surrounding communities have implemented tiered water pricing that penalizes heavy usage. If your property has landscaping, a pool, or excessive water features, those costs add up. Xeriscaping (desert appropriate landscaping) is both cheaper and more appropriate for the area.
Cleaning and Turnover Costs
Cleaning costs in Southern Utah are moderate compared to resort markets but higher than rural areas.
Typical cleaning costs:
- 2 bedroom: $100 to $140 per turnover
- 3 bedroom: $130 to $180 per turnover
- 4+ bedroom: $175 to $250 per turnover
Most hosts pass cleaning fees to guests through the listing platform. However, the cleaning fee you charge guests should be competitive with comparable listings in your area. If the market rate for a 3 bedroom cleaning fee is $150, charging $250 will hurt your booking conversion rate.
With 100 to 150 turnovers per year (typical for a well booked Southern Utah STR), that’s $13,000 to $27,000 in annual cleaning costs. Again, most of this is recovered through guest cleaning fees, but the net cost to you after any gap between what you charge and what you pay is usually $1,000 to $3,000 per year.
Desert specific cleaning notes:
- Red dust and sand are a constant battle, especially during windy months. Expect more frequent deep cleans.
- Hot tub maintenance in the dry climate requires diligent chemical management. Many hosts include hot tub maintenance as a line item with their cleaning team or hire a separate hot tub service ($100 to $200 per month).
- Pool maintenance during summer: $100 to $200 per month if you have a pool.
Supplies and Consumables
Keeping your property stocked with guest essentials is an ongoing cost that’s easy to underestimate.
Annual supply costs:
- Linens replacement: $300 to $600 (towels, sheets, pillow covers wear out with frequent washing)
- Toiletries and paper products: $600 to $1,200
- Kitchen supplies: $200 to $400 (dish soap, sponges, trash bags, basic pantry items)
- Welcome/hospitality items: $200 to $500 (coffee, local snacks, trail guides)
- Miscellaneous: $200 to $400
Total annual supplies: $1,500 to $3,100
Properties that provide a strong welcome experience (good coffee, local trail maps, restaurant recommendations) consistently earn better reviews, which translates to higher occupancy and rates over time.
Maintenance and Repairs
Every property needs ongoing maintenance, and STRs see more wear and tear than long term rentals because of higher turnover.
Annual maintenance budget:
- Routine maintenance: $1,500 to $3,000
- Landscaping/yard care: $600 to $1,800 (lower if xeriscaped)
- HVAC servicing: $200 to $400 (critical in Southern Utah’s climate)
- Hot tub maintenance and chemicals: $1,200 to $2,400
- Pool maintenance (if applicable): $1,200 to $2,400
- Unexpected repairs reserve: $1,000 to $2,000
Total annual maintenance: $4,700 to $12,000
The wide range reflects whether you have a pool and hot tub (both common revenue drivers in this market) and the age of the property. Newer construction in St. George or Hurricane subdivisions will need less maintenance than older homes.
Desert climate impacts on maintenance:
- UV exposure deteriorates exterior paint, decking, and outdoor furniture faster than in humid climates
- Evaporative cooling systems (common in some Southern Utah homes) require seasonal maintenance
- Hard water is common and causes buildup in plumbing fixtures, hot tubs, and appliances
- Exterior surfaces accumulate red dust and require periodic power washing
Platform Fees
Airbnb, Vrbo, and other platforms charge fees that eat into your revenue.
Typical platform fees:
- Airbnb (host only pricing): 3% of booking subtotal
- Airbnb (split fee pricing): 14% to 16% split between host and guest
- Vrbo: 5% of booking subtotal (or 3% with annual subscription)
- Direct booking websites: $50 to $150/month for website hosting and booking software, but 0% platform commission
On $52,000 in gross revenue, platform fees typically cost $1,560 to $2,600 annually depending on your platform mix and fee structure.
Many successful Southern Utah hosts list on multiple platforms and also drive direct bookings through their own website, particularly for repeat guests. Reducing platform dependency over time can save thousands annually.
Licensing and Permits
Southern Utah’s regulatory landscape means licensing costs vary by location.
Typical licensing and permit costs:
- Business license: $50 to $200 per year (varies by municipality)
- STR specific permit/license: $100 to $500 per year
- State transient room tax registration: No additional cost to register
- Fire inspection (if required): $50 to $150
Some municipalities require periodic inspections and renewals. Budget $200 to $500 annually for licensing and regulatory compliance, and factor in time spent on the application process, particularly in areas with more complex requirements.
For full details on what’s required where, see our Southern Utah STR regulations guide.
HOA Fees
If you purchase in a community with a homeowners association, this is an additional fixed cost.
Typical HOA fees in Southern Utah:
- Basic HOA (neighborhood rules only): $30 to $75 per month
- Community with pool/amenities: $100 to $250 per month
- Resort style community: $200 to $400+ per month
Critical warning: Many HOAs in Southern Utah restrict or prohibit short term rentals. Always verify STR policies before purchasing any property in an HOA community. This is one of the most common mistakes new investors make, and it’s irreversible. Your agent should verify this during due diligence.
Total Expense Summary
Here’s the full picture for a typical 3 bedroom Southern Utah STR:
With mortgage (property purchased at $425,000, 20% down):
- Mortgage: $27,144
- Property management (25% of $52K): $13,000
- Property taxes: $2,500
- Insurance: $3,500
- Utilities: $5,500
- Supplies: $2,000
- Maintenance: $5,000
- Platform fees: $2,000
- Licensing: $300
- Total: approximately $60,944
Without mortgage:
- Total operating expenses: approximately $33,800
Self managed (no property management fee, no mortgage):
- Total operating expenses: approximately $20,800
These are estimates and your actual costs will vary. But they give you a solid framework for evaluating whether a specific property’s revenue potential justifies the expense structure.
Frequently Asked Questions
What is the biggest expense for Southern Utah STR owners?
The mortgage is typically the largest single expense. Among operating costs, property management fees are the biggest variable, ranging from $10,000 to $15,000+ annually for full service management on a well performing property.
How much should I budget for startup costs?
Beyond your down payment and closing costs, budget $10,000 to $25,000 for furnishing, decor, supplies, photography, and initial setup. Southern Utah's outdoor lifestyle aesthetic (desert modern, adventure lodge) tends to require thoughtful design investment, but it pays off in higher nightly rates and better reviews.
Are utilities expensive in Southern Utah?
Summer electricity costs are the main concern due to air conditioning. Budget $4,000 to $8,000 annually for all utilities combined. Water costs are rising as the region addresses its long term water supply challenges.
Who is the best short term rental agent in Southern Utah?
The Short Term Shop is the largest STR specific real estate brokerage in the United States. Their agents understand the expense structures, revenue potential, and regulatory nuances of every sub market in Southern Utah. When you're evaluating investment properties, working with an agent who can accurately model your expenses alongside revenue projections is the difference between a profitable investment and a money pit.
Should I self manage or hire a property manager?
If you're local and have the time, self managing can save $10,000+ per year. If you're out of state (which most Southern Utah STR investors are), a good property manager is worth the cost. The key is finding one with strong local operations, transparent fee structures, and specific experience in your property's municipality.
Get Expert Help With Your Southern Utah Investment
Accurately projecting expenses is half the battle when evaluating STR investments. The Short Term Shop’s agents can help you model the full financial picture for any property in the Southern Utah market, from Hurricane starter homes to Zion gateway estates.
📞 Call us: 800-898-1498 🌐 Visit: theshorttermshop.com
Need financing? The Mortgage Shop specializes in investment property loans and can get you pre approved so you’re ready to move when the right property hits the market.
Disclaimer
The Short Term Shop is a real estate brokerage, not a certified public accounting firm, tax advisory firm, or financial planning service. Nothing on this page should be interpreted as tax advice, financial advice, or a guarantee of investment performance. Always consult your CPA, tax attorney, and financial advisor before making any investment or tax decisions.
All income and revenue figures referenced in this article are sourced from third party data providers including AirDNA and PriceLabs.co. These figures represent market averages and percentile ranges based on historical performance data and do not guarantee future results. Actual short term rental income varies significantly based on property quality, location, management quality, pricing strategy, seasonality, and market conditions. Your results may differ.