This illustrative plan is for someone renting out one to three furnished units to short-stay guests. Accommodation establishments, including homestays, are primary tourism enterprises under the Tourism Act, so DOT accreditation applies and LGUs should issue the permit to operate after it. Lodging units also need a sanitary permit. Occupancy and nightly rates are blanks.[4,3,6,1,2]
The plan in one page
[Business name] Stays will rent [number] furnished [studio / one-bedroom / house] unit(s) at [building or street], [city], to short-stay guests booking through [platforms] and direct messages. Guests: [tourists, business travellers, families visiting relatives, medical visitors near (hospital)]. Owner and host: [name]. Cleaning by [cleaner or service].
Set-up cost: ₱____ per unit (furniture ₱____, appliances ₱____, linens and towels ₱____, kitchenware ₱____, smart lock and Wi-Fi ₱____, photos ₱____) plus permits ₱____ and a reserve of ₱____. If you are buying the unit, show the purchase or amortisation separately.
Is short-term rental allowed in your building?
Check this before anything else. Many condominium corporations and homeowners' associations have house rules on short-term leases, guest registration and key handover. Get the rules in writing and attach them to your plan. If the building does not allow stays under [number] days, your plan must be for monthly rentals instead.
What to write. Building name, the rule on short stays, guest registration process at the lobby, parking for guests, and any fees the building charges hosts.
Guests and competing listings
Use the booking platforms as your research tool:
Example fill-in. "We reviewed [number] listings within [distance] with similar size. Nightly prices ranged from ₱____ to ₱____ on [dates checked]. Calendars showed about [number] of the next 30 nights booked for the busiest listings. Reviews praised [fast Wi-Fi / parking / workspace] and complained about [noise / slow check-in]. Our unit will offer [a desk and fast Wi-Fi for remote workers / family set-up with two beds / walking distance to (hospital or venue)]."
- Who visits your area: tourists, conference guests, hospital visitors, balikbayan families?
- What do similar listings within 1 km charge per night on weekdays and weekends?
- How full do their calendars look over the next 30 days?
- What do guests praise and complain about in their reviews?
- What will make guests pick your unit over the next one?
How the unit will run
Write down the guest experience you will deliver, then the routine behind it.
- BookingRespond within [minutes]. Confirm guest names for building registration.
- Check-inSelf check-in with smart lock code or a meet-up; house rules sent in advance.
- During the stayWi-Fi details and a short guide posted in the unit; emergency contact numbers.
- Check-out and turnoverCleaner arrives at [time]; linens changed; supplies restocked; damage photographed.
- MonthlyDeep clean, aircon cleaning every [months], inventory of linens and kitchenware.
Accreditation and permits
Start with the general registration steps. DTI charges ₱200 to ₱2,000 for a business name depending on scope, plus ₱30 documentary stamp tax. BIR stopped collecting the ₱500 Annual Registration Fee from 22 January 2024.[1,2]
The Tourism Act lists accommodation establishments among primary tourism enterprises and requires them to obtain DOT accreditation periodically. DILG has told LGUs to issue a permit to operate to these enterprises, homestays among them, only after DOT accreditation. Applications go through DOT's Online Accreditation System. The Inquirer reported in February 2023 that DOT extended free accreditation. Ask your DOT regional office for the current fee, and ask it and city hall how they treat a single unit listed online.[4,3,5]
The Sanitation Code requires a sanitary permit before hotels, lodging houses, apartments and similar establishments open to the public. The fee is set by local ordinance.[6]
Financial plan
DTI ₱500 plus ₱30 and BIR ₱0 are published. DOT, sanitary and local fees are left to confirm.[1,2]
Revenue per unit. Nights booked per month [number] × average nightly rate ₱____ − platform fees ____% = ₱____. Write a low, middle and high month, based on the calendars you checked.
Break-even. Monthly fixed costs per unit (amortisation or rent ₱____, association dues ₱____, internet ₱____, electricity baseline ₱____) ÷ net rate per night ₱____ = [number] nights per month.
- Furniture and appliances ₱____ per unit
- Linens, towels and kitchenware (two full sets) ₱____
- Smart lock, Wi-Fi router, photos ₱____
- DTI ₱500 + ₱30; BIR ₱0
- DOT accreditation ₱____ (confirm with DOT)
- Sanitary permit, barangay clearance, mayor's permit ₱____ (assessed by the city)
- Monthly: rent or amortisation ₱____, dues ₱____, electricity ₱____, water ₱____, internet ₱____, cleaning per turnover ₱____, supplies ₱____
Risks
Short-term rentals depend on building rules and reviews. Plan for both.
- Building bans short stays. Get the rules in writing before you buy or furnish.
- Bad review after a cleaning miss. Turnover checklist and photos after each clean.
- Guest damage or parties. Security deposit, house rules, guest ID checks, noise rules.
- Low season. Offer weekly and monthly discounts to fill gaps.
Short-term rental permits and fees
| Registration or permit | Where | Fee | Source |
|---|---|---|---|
| DOT accreditation (accommodation establishments, including homestays) | DOT Online Accreditation System | Not published; free accreditation extended in 2023; confirm with DOT | RA 9593; DILG; Inquirer, Feb 2023 |
| Mayor's permit to operate (after DOT accreditation) | City or municipal hall | Assessed by the city | DILG Region IV-A |
| Sanitary permit, lodging or apartment establishment | Local health office | Set by local ordinance | PD 856 Sec. 64 |
| DTI business name, City or municipality scope (most single-location businesses) | DTI BNRS (online) | ₱500 (₱200 barangay, ₱1,000 regional, ₱2,000 national scope) | DTI BNRS FAQ |
| Documentary stamp tax on the DTI fee | DTI BNRS | ₱30 | DTI BNRS FAQ |
| Barangay business clearance | Barangay hall | Set by the barangay | Not published nationally |
| BIR registration (Certificate of Registration) | BIR RDO or ORUS | ₱0 | BIR RMC 14-2024 |
Questions people ask
- Do Airbnb hosts in the Philippines need DOT accreditation?
- Accommodation establishments, including homestays, are primary tourism enterprises that must be DOT-accredited, and LGUs should issue a permit to operate only after accreditation. Ask your DOT regional office how it applies to one unit.
- Is a sanitary permit needed for a short-term rental?
- The Sanitation Code requires one before lodging houses, apartments and similar establishments open to the public. Ask your city health office.
- How much can an Airbnb unit earn?
- We do not publish earnings. Use the prices and calendars of similar listings near you to fill in your own revenue lines.
Sources
Checked 14 November 2026. We link the agency's own page for every requirement. Rules change; confirm with the office before you pay.
- Frequently Asked Questions · DTI Business Name Registration System
- Digest of Revenue Memorandum Circular No. 14-2024 · Bureau of Internal Revenue · 24 January 2024
- DILG to LGUs: Issue permit to operate to tourism enterprises with DOT accreditation only · DILG Region IV-A · 15 January 2024
- Republic Act No. 9593 (The Tourism Act of 2009) · Congress of the Philippines (via Lawphil) · 12 May 2009
- Free accreditation for tourism businesses extended: DOT · Inquirer.net · 23 February 2023
- Presidential Decree No. 856 (Code on Sanitation of the Philippines) · Office of the President (via Lawphil) · 23 December 1975