Being a vacation rental host is a tried and true way to earn more money. However, the frequent turnover means a lot more time-consuming work is involved. Considering how much work running a profitable Airbnb business can be, you might consider hiring a property manager. This leaves many hosts asking how much Airbnb property managers charge.
If this is you, it’s important you know the associated costs. Read on, and we’ll answer just that. We cover property manager commissions, Airbnb’s take, and more to help you decide whether or not to hire an Airbnb property manager.
As many Airbnb hosts have discovered, managing an Airbnb can be arduous, time-consuming work.
Keeping an Airbnb running and profitable requires constant management. There are many facets of upkeep for guests and to remain aligned with Airbnb’s policies.
Some of the many jobs involved as an Airbnb host include:
With these many necessities, it’s easy to see why many hosts opt for Airbnb property management.
A professional Airbnb property management service can take care of every aspect. On top of these, some offer more specialized services marketing and optimization services. This helps hosts improve their profiles, get more guests, and earn more money.
There are two short-term rental property management fee models Airbnb management services use.
Some Airbnb property managers charge a fixed-rate fee, a flat fee. This fee covers running your Airbnb business. Unless stated otherwise, the fee remains the same each month, regardless of the number of bookings.
This fixed-rate fee depends on several factors, such as property size and the services provided. Generally, this fee type covers the basics, such as guest management, restocking, and inspection. However, it doesn’t usually cover maintenance and repairs. These could be charged separately or left to the host to fulfill.
The benefit of this model is that you know exactly how much you’ll pay throughout the year. This means you can avoid nasty surprises such as rapidly increasing charges. Furthermore, it means you’ll pay the same rate even during high seasons.
However, if you make no money or only have a few reservations during low season, you’d pay the same fee. This is the case even if there are no reservations.
Using this model, Airbnb hosts can expect to pay $300-500 per month on average.
The commission-based model is attractive to many hosts. This method involves the vacation rental management service charging a percentage of your monthly rental earnings. Commission fee variances will depend on the company and factors such as location and services included. Like the flat-fee model, extras such as repairs are usually excluded.
With this model, there are opportunities to save money. Since it’s commission-based, there’s a greater incentive for Airbnb property managers to go the extra mile to book guests. This incentive can also result in a better service provided to your guests overall.
In contrast to fixed models charging on NET rental income, the going rates for this model are based on gross income. Consequently, you may benefit from paying less, especially when charged on the lower.
Generally, the commission fee percentage is between 20-30%. However, commission fees can vary and be anywhere from 15-50%.
As a host on Airbnb, you’ll also need to pay the platform’s fees.
On Airbnb, most hosts pay a flat service fee of 3% of booking subtotals. The subtotal is the nightly rate plus optional fees charged as extras such as cleaning fees. Furthermore, guests pay a service fee. This is usually around 14% of the booking subtotal.
Here’s an example of the amount you can expect to pay to Airbnb.
If you charge $100 per night for 3 nights and $60 for cleaning, the booking subtotal is $360. The 3% host service fee would be $10.80. This is deducted from your earnings.
As we’ve mentioned before, certain factors determine a host’s vacation rental management fees.
Depending on the company, numerous factors can go into determining the amount you’ll need to pay in fees. Understanding these factors is essential for hosts to make the most informed decision about outsourcing hosting responsibilities.
The size of your property is a significant factor for Airbnb property management services. The larger the property, the more work will be involved. More time and effort will be allocated to services such as cleaning, restocking, and maintenance. This means that larger properties can expect higher fees.
Location is another significant factor that plays into how much you’ll pay in fees. It’s normal for vacation rental properties in more popular areas where they receive more traction and bookings to cost more in fees.
Like in any industry, market conditions will influence costs. In the case of Airbnb, more competitive markets will incur fewer hikes in fee costs. Conversely, markets with fewer available properties will cost hosts more as their services may be in higher demand.
Some short-term rental management companies provide adaptable service options. Modifying services can mean more work on their part. This can result in higher fee costs.
Some professional vacation rental management services offer extra, highly valuable services. These can include unique guest experiences, interior design services, and complete channel management. These premium-level services will often incur extra fees.
Knowing how much you can expect to be charged for vacation rental management services is essential.
Now that you know about Airbnb property management fees, you can make the right decision for yourself. Compare and contrast the differences between fee models. Also, consider the different factors that can influence your fee costs.
Keybee keeps things simple. Our complete, transparent vacation rental management comes at a flat fee of just 14% of NET rental income. Click the button below to learn more about Keybee’s hassle-free vacation rental management services.
In-house developed channel manager that prevents double bookings when hosting on multiple platforms (Airbnb, VRBO, HomeAway, Booking.com)
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