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Everything You Need to Know About Airbnb Property Management Fees

Getting an outside agency in to manage your Airbnb property or short-term let property is simple right? You sign on the dotted line, and they charge you a percentage for each vacation rental booking on your account.

Well, it’s not necessarily that simple when it comes to property management. Each Airbnb service will have their own idea of what’s a fair rate for the different types of services they offer, and how they’re going to charge you for the work they carry out.

Below, we will explain everything you need to know about Airbnb property management companies before choosing a property manager for the Airbnb management of your short term rentals or long term rentals.

Keep on reading for a full guide to Airbnb property management fees for short term rentals when working with a property manager.

Current outlook of Airbnb Property Management

One of the biggest areas of contention when it comes to an Airbnb management service relates to the additional fee or hidden fees that crop up to surprise many owners, taking big chunks of profit from the figures originally forecast and affecting their vacation rental income.

With the increasing popularity of Airbnb over the past few years, managing a rental property has become a full-time job, from dealing with maintenance issues to reporting Airbnb earnings and handling bookings, not to mention that some cities now require an Airbnb registration number.

Managing short term rentals is time consuming, especially with larger properties, which is why some hosts are turning towards a management company for help.

Many property owners are moving away from long term rentals to short term rentals to make more money. Airbnb management companies can guarantee a high occupancy rate for a big house in the countryside to chic flats in urban areas.

Property managers do all this while offering a superb guest experience from check in to offering regular cleaning, all for a nominal management fee. Through proptech (property technology) software, property managers can offer their clients a better service and more benefits, like having more control over prices, ensuring bookings are paid for by guests, managing turnover, deciding when to hire, dealing with guest communication and more.


What are the typical rates for Airbnb Property Management?

The industry average rates range from as little as 10% up to around 25%. Those are quite typical for an Airbnb service fee in the UK, 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.

Why such variation and not a flat rate? Well, the level of service changes from provider to provider, and there are factors due to the property itself that affect the charges of management companies.

1. Size of the property

The bigger the property, the more work it’s likely to take to keep it in prime condition. The more work involved in managing your vacation rental property, the more a management agency will charge.

2. Type of property

Similarly to size, the type of property—an apartment, big house, houseboat, terraced, detached, with or without grounds and gardens—all take varying amounts of effort and resources. Once again, the more work, the higher the rate

3. Location of property

You can guarantee that if your property is in a high-rental area, the fees for its management will reflect that. Agents almost always charge rates to reflect the class and affluence of the area where the property is situated.

4. A property’s condition

Suppose a property isn’t in prime condition, and agents foresee regular work to maintain its upkeep. In that case, once again, the rate will include any extras required to compensate for the additional effort.

5. The service level

Each Airbnb service company offers a range of different services or levels of service. The most basic will charge the lowest rates. These usually manage checking in and out, and possibly the turn-round of laundry and necessary cleaning service.

A complete management service that includes marketing, guest screening, rent collection, repairs, maintenance, accounting and more, will reflect their range of services in their rate and service fees.


Airbnb property management fee types

Commission-based fees

We’ve suggested some typical commission rates, and they’ll be charged on a monthly basis by the property manager, or with each booking that the agency handles.

Fixed-rate fees

Some agencies offer a fixed monthly fee to manage your property (or properties) for as many or as few bookings as you need. It can work out great for a landlord whose property is in high demand, with continuous bookings and occupation. This type of property will require a bigger cleaning service, more laundry, and more turnover work, and the rate will appear quite fair over the course of the year.

For a property that is only busy during peak periods, then it might or might not offer quite the same economy when you take into consideration Airbnb property management fees.

Additional or hidden service and management fees

What’s included in your management service can be a minefield. Every landlord should scrutinize the terms and conditions of each service before making a decision. What features in one contract could be excluded from another, carrying additional management fees where the work is required.

Some of the lower rate services, especially, will find ways to bump up their income, many of which are hidden in the fine print.

Here are a few typical areas to be wary of when it comes to Airbnb management fees:

Setup fees

These are likely to include administration costs, creating paperwork and contracts, and an initial registration fee. There may be fees to create advertising accounts and possible initial property visits and inspections.

Placement fees

Although most management services include advertising and bookings, it could be one of the areas to fall between the cracks. Will they consider guest screening as part of the booking service? How about the physical checking in and out of guests? You would assume these elements to be included, but make sure you’ve got confirmation before signing on the dotted line.

Vacancy fees

How can your management service make an income if the property is vacant? To cover themselves—if bookings aren’t their responsibility—they may charge you for each empty unit, or a one-off fee to cover the possibility.

Maintenance fees

Who’s in charge of what is a major concern. If all maintenance fees are included, then you can expect your agency to manage the WiFi in the building, heating, water, plumbing and electricity, smoke and carbon monoxide detectors, air conditioning and any of the other regular services.

They should also handle repairs, décor and upkeep of the property. If they don’t, you can expect to receive some generous invoices for the additional work.


Cleaning fees and laundry services

Cleaning and laundry fees vary due to the size of each property and how often they are required. Many cleaning services will have a set rate for cleaning and laundry services for each stay, able to offer a fixed rate, but some will outsource, and that could mean an hourly charge instead. By adding an Airbnb cleaning fee to your listing, these costs can be covered by guests.

When you choose UpperKey Management Company there are no hidden fees—ever.

You can forget all about being charged any hidden or Airbnb service fee ever with the property management company UpperKey. Our guaranteed rent means precisely that.

We agree on a set rate for your monthly rent payment for your vacation rental, and that’s what you’ll receive, without any management fees.

There won’t be any surprises or sneaky added costs anywhere. Our management services take care of every aspect of running your property—and it’s all included in your payment.

So, when you’re thinking of signing up for a management service, you shouldn’t have to think too hard. We won’t only save you time and money when it comes to managing your property—but comparing contracts and services too!

With an all-in management service and simple single rent payment, what could be more convenient?