What do Airbnb management companies charge?Most long term property management companies charge a monthly fee of between 8% – 12% of the monthly rent collected. Getting an outside agency to manage your Airbnb or short-term let property is simple right? You sign on the dotted line, and they charge you a percentage for each booking on your account. Well, it’s not necessarily that simple. Each Airbnb service will have their own idea of what’s a fair rate for the service they offer, and how they’re going to charge you for the work they carry out. One of the biggest areas of contention relates to the additional or hidden fees that crop up to surprise owners, taking big chunks of profit from the figures originally forecast. What are the typical rates for Airbnb Property Management? Rates range from as little as 15% up to around 25%. Those are quite typical for an Airbnb service fee in Australia, yet in other countries, the top-end rates could be much higher. And, depending on where you’re located, your fees will be subject to VAT/GST. Why such variation? Well, the level of service changes from provider to provider, and there are factors due to the property itself that affect their charges.
Property Management Fees: What to Expect?While the industry average is anywhere from 25 to 30% of the rental cost, the fees that are charged by the vacation rental property management companies vary. They vary based on the location of the property and the company themselves. They can go anywhere from 10% all the way up to 50%. The type of property also depends on the fee and the amount of work that you would like them to do. While this is just an idea, all fees should be negotiated with the company prior to working with them. The different types of vacation rental property managers know what fees work with them. Knowing how much property management companies charge for vacation rentals is a good thing and it gives you a heads up when hiring one.
- Size of the property
- Type of property
- Location of property
- A property’s condition
- The service level
Here is a breakdown of specific property management fees to consider before renting out on Airbnb:
- Initial setup fee
- Tenant placement fees
- Vacancy fee
- Maintenance fee
- Cleaning services
- What exactly is included in the cleaning fees?
- How long does it take?
- How good is the cleaning?
- Are there check-lists in place?
- Will you be able to get the rental cleaned between guests without losing bookings?