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Updated about 4 years ago on . Most recent reply

User Stats

8
Posts
4
Votes
Jason Reece
  • Rental Property Investor
  • Nashville, TN
4
Votes |
8
Posts

Fair STR cleaning fee?

Jason Reece
  • Rental Property Investor
  • Nashville, TN
Posted

Hi, all. I have a nice 3br/2ba condo in Nashville, TN. The unit is 1130sf. Our cleaners charge $175 per cleaning - this includes linen service so they can flip the place pretty quickly without needing to do much laundry. My property manager has our cleaning fee set to $260 per stay. 

This appears to be high in my local research of comparable properties, so I'm considering addressing the need to reduce this price to guests, and cost to us. I'm ok not making a profit on the cleaning fee, which would put us charging $175 to the guests. Rates are currently $200-500/night with a 2 night minimum. 

Thoughts on these costs from anyone with experience comparable market? 

Most Popular Reply

User Stats

8
Posts
4
Votes
Jason Reece
  • Rental Property Investor
  • Nashville, TN
4
Votes |
8
Posts
Jason Reece
  • Rental Property Investor
  • Nashville, TN
Replied

Thanks everyone for your replies. I got this back from my property manager when I told him I wanted to lower the charge to $175. I appreciate that he's structuring the costs in a way that avoid inflating his commissions. However, I'm not sure if this $175 is expensive considering the inclusions mentioned at the of his reply. I welcome any comments:

"The cleaning fee is $175. That includes towel & linen rental, off site laundry and basic consumables.
AirBnB also lumps in the Limited Damage Waiver ($59) and Hotel Occupancy Tax (5%) and AirBnB listing fee (3%) to the total "cleaning" cost paid by guests.

175 + 59 = 234 x .05 = 245.70 x .03 = 253.07 (Rounded to $255)

The good news for you - These are all expenses that must be paid. We just charge them to the guest, rather than deduct from the owner's take. Plus, if we raised daily rental rates by that amount to offset - You would lose another 20%, because we base our commission on daily rental rate (which doesn't include cleaning). This is why we pull as much expense out as possible before the daily rate is calculated. This allows you to pay commission on the lowest amount.
I understand that $255 can look off-putting. Ideally, AirBnB would be more transparent on what all that covers. But - At the end of the day - We want the guests to pay those costs, not you."

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