Property Management fee

[Ruben Helo]

What is the typical range for short term rental property managers? Are there any Airbnb managers on here I can connect with? 

[Andrew Steffens]

This really depends on your market.  I would reach out to local established managers in your market to see.  Typically nowadays I see 15-30% but it also depends on the property.

[Michael Baum]

Hey @Ruben Helo. It is all over the map. If you mean full service PM's, then @Andrew Steffens knows a ton.

I will say that no one will manage our lake house due to the distance from town. 36 miles down lake. That is about an hour drive one way.

Vacasa said they would do it. They will manage someone who hollows out a TaunTuan as a studio. They wanted 40%.

[Collin Hays]

We typically charge 20 to 30 percent, with high volume properties on the low end of that range.

[Conrad Legé]

15-30% in my market. I recently started my own STR co-hosting business and charge 20% which includes everything from advertising unit on multiple platforms, turning over the unit, guest communication, dynamic pricing, etc. A few value-adds as well such as photography & interior design.

[James Carlson]

Quote from @Ruben Helo:

What is the typical range for short term rental property managers? Are there any Airbnb managers on here I can connect with? 

I see 25-30% for STR management in Denver and Colorado Springs and a lot of mountain town areas. If your vacation rental is in a resort hotel (condotel), often it's more.

But I try to convince my clients to self-manage their first one. If you're on your fourth, I get it. 

[Bob Lett]

We typically see 20-30% in MI and in VT. Some will tick higher 30-35% with offering more services "in house" such as handymen, lawn care, snow removal etc

[Sarah Kensinger]

We charge 25% with no other additional fees. You do have to watch out for the "we charge ---, but there is also this fee and that fee". Many of the lower percentage companies and even some that charge the same as us, add on extra fees.

If you have any questions feel free to reach out! 

[Bob Lett]

Quote from @Sarah Kensinger:

We charge 25% with no other additional fees. You do have to watch out for the "we charge ---, but there is also this fee and that fee". Many of the lower percentage companies and even some that charge the same as us, add on extra fees.

If you have any questions feel free to reach out! 

 do you have a tech fee or setup fee at all or just straight 25%?

[Sarah Kensinger]

Quote from @Bob Lett:

Quote from @Sarah Kensinger:

We charge 25% with no other additional fees. You do have to watch out for the "we charge ---, but there is also this fee and that fee". Many of the lower percentage companies and even some that charge the same as us, add on extra fees.

If you have any questions feel free to reach out! 

 do you have a tech fee or setup fee at all or just straight 25%?

Of course, a start-up fee for our time to get everything done on the back end, but no tech fee. 

[Ruben Helo]

Thank you all, very insightful. Going with someone local at 25% for now!

[Shaun Mcdonald]

Hey all, this may be a dumb question, but we're talking 20-30% of rental revenue, correct?

[Leon Lee]

This question, though seemingly straightforward, actually requires careful consideration: When a management company charges a 20% fee, what exactly does this percentage apply to? Does it refer to the gross income alone, or does it include additional components like cleaning fees? Is it calculated on the gross income inclusive of varying sales taxes which vary from different counties and cities? And does it factor in both guest and host service fees? It's important to note that the definition of gross income can include all different things across different booking platforms such as Airbnb, VRBO, Booking.com, and direct bookings.

[Collin Hays]

Quote from @Leon Lee:

This question, though seemingly straightforward, actually requires careful consideration: When a management company charges a 20% fee, what exactly does this percentage apply to? 

Strictly rental revenue.

And beware of PMs out there that offer you a cheap % management fee, only to charges guests $ hundreds in extra fees (booking, damage, cancellation, etc.) that they pocket and don't share with you.  That is called "rent shifting":  To offset all of the egregious fees they charge the guests, the PM pushes down the nightly rental amount to make the total palatable to the guest.  It happens all the time.  Go to Vacasa or Evolve and pretend like you are booking one their places.  You will see the fees.

[Leon Lee]

Quote from @Collin Hays:

Quote from @Leon Lee:

This question, though seemingly straightforward, actually requires careful consideration: When a management company charges a 20% fee, what exactly does this percentage apply to? 

Strictly rental revenue.

And beware of PMs out there that offer you a cheap % management fee, only to charges guests $ hundreds in extra fees (booking, damage, cancellation, etc.) that they pocket and don't share with you.  That is called "rent shifting":  To offset all of the egregious fees they charge the guests, the PM pushes down the nightly rental amount to make the total palatable to the guest.  It happens all the time.  Go to Vacasa or Evolve and pretend like you are booking one their places.  You will see the fees.

 If it is strictly rental revenue, make sure that the total revenue from a booking from the direct booking website or VRBO has cleaning fee, guest service fees, sales tax all removed before multiplying 20% for commissions. 

[James Carlson]

Quote from @Michael Baum:

They will manage someone who hollows out a TaunTuan as a studio. 

LOL. You've probably been sitting on that line for awhile. When should I bust it out? What's the best time? I think you buried it too deep in a thread. This should shine up top of a post.

[Jake Baker]

@Ruben Helo

You could consider a hybrid approach if you are worried about margins. Pay someone local 10% to be the boots on the ground. You manage the listing, repairs, and ording of supplies. They can check on the property between every guest as needed or respond when there are immediate issues.