Plan for 40-50% of gross revenue going to operating expenses. This includes: property management fees (20-30% for full service, 10-15% for co-hosting), cleaning and laundry ($75-150 per turnover), utilities ($200-400/month), internet and cable ($100-150/month), maintenance reserves (5-10% of revenue), property insurance (often 2-3x standard homeowner rates), HOA fees if applicable, supplies and restocking, and platform fees (3% on Airbnb, 5-8% on Vrbo). We build detailed expense projections into every property analysis.