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Ultimate Guide to Airbnb Property Management Fees: What You Need to Know

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 holiday rental booking on your account while they manage properties on your behalf.

Their job is finding tenants for you, analyzing cleaning fees, find the best way to get more booking, making check lists, check out procedures, the initial advertising, the tenant screening, an emergency number to rely on and much more...

The agency offers services like tenant finding, cleaning fee analysis, advertising, tenant screening, and more.
Hiring a property management agency for your Airbnb or short-term rental property is a breeze! Sign up, and they handle bookings while you earn.

Well, it’s not necessarily that simple when it comes to rental management services. Each Airbnb manager 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 all the details and everything you need to know about Airbnb management service companies before choosing a building manager for the Airbnb management of your vacation rentals or long term rentals.

Keep on reading for a full guide to rental management fees for any term rental when working with a real estate property manager. This information also applies to property owners and landlords hosting on other sites similar to Airbnb.

Current outlook of Airbnb Property Management services provided by a property manager

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

Airbnb over the past few years has been increasingly popular and taking care of Airbnb rental properties has become a full-time job, from dealing with property maintenance issues to reporting Airbnb earnings and handling bookings, not to mention that some cities now require an Airbnb registration number.

Managing any term rentals is time consuming, especially with a larger Airbnb investment property, which is why some owners are turning towards Airbnb management companies for help.

The financial implications of Airbnb management fees and hidden costs.
Controversial Airbnb management fees and hidden costs have become a concern for many property owners.

Making the switch from long term traditional letting contracts to short letting

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

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

. Property managers use proptech software to enhance guest experiences, manage bookings, and control pricing
Property owners find higher revenue potential in short-term lets with Airbnb management services.

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 fee in the UK, yet in other countries, the top-end rates could be much higher. And, vary depending on where you’re located, your Airbnb management company 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.

Factors like service level and property characteristics influence the charges of management companies.
Airbnb management fees vary globally due to service levels and property-specific factors.

1. Size of the property

The bigger the property, the work it’s likely to take to keep it in prime condition. The work involved in managing your vacation rental cleaned 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 upkeep will reflect that. Agents almost always charge rates to reflect the class and affluence of the area where the properties are situated. A residential area will have a different value than a rental located in a more sought-after location close to the action. Traditional holiday destinations tend to work best.

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.

UpperKey property management blue banner

5. The desired service level for your rental

Each Airbnb management company business offers a range of different services or their levels. 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.

Airbnb revenue management services are also popular as they can control the pricing of a rental based on supply and demand, usually leading to a higher profit, even when taking into account tax, VAT and Airbnb concierge service fees.

A complete Airbnb management company service that includes marketing, screening of guests, rent collection, repairs, maintenance, accounting and more, will reflect their range of services in their rate and individual fees for different services.

Some Airbnb management companies even have local partners to offer additional perks to their guests, like restaurant discounts and exclusive tours.

The image highlights the diverse offerings of management companies
Airbnb management companies offer a variety of services with different price ranges and perks.

Different types of Airbnb management fees and their meaning

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 Airbnb 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 with more cleaning fees, more laundry, and more turnover work, and the flat 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 management service fees.

Additional or hidden service and management fees which occasionally occur with management companies and how to avoid them

What’s included in your Airbnb management services 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 fees where the work is required.

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

Some services may have hidden fees or exclusions that could impact rental income
Understanding the fine print is crucial when choosing Airbnb management services. Read carefully!

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

Representing administration, advertising, and registration fees, signifying the various costs associated with Airbnb management services
Airbnb management services may include various fees such as administration, advertising, and registration costs.

Setup fees (listing creation...)

These are likely to include administration and advertising 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. Some services offer to publish the property on multiple booking platforms and alternatives to Airbnb.

Placement fees

Although most Airbnb 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 secure booking process? 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 airbnb management companies 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 (repairs, cleaning...)

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 system, plumbing and electricity, smoke alarms and carbon monoxide detectors, air conditioning systems and any of the other regular services.

The maintenance team 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. Keep in good order all the systems. Ensure that there are no bare wires hanging around the house and get the maintenance work done.

Airbnb property management fees

According to the rental management service agreement you can choose the level of management that you want for your Airbnb property also with the help of real estate property managers. The amount of the property management fee will be choose among property owners and property management companies. They also help if there is a vacant unit or you are losing bookings.

The flexibility property owners have in selecting services. Real estate property managers can assist in handling vacancies and boosting bookings
According to the rental management service agreement you can choose the level of management that you want for your Airbnb property also with the help of real estate property managers. The amount of the property management fee will be choose among property owners and property management companies. They also help if there is a vacant unit or you are losing bookings.

Cleaning fees and laundry services

Cleaning and laundry fees vary depending 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 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 rental management fees. More vacation rental income means you can start climbing the property ladder and investing in more properties. UpperKey is here to help with owners make the most of their investment property.

Surprise and unexpected Airbnb costs

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. (Initial setup fee, specific management fees, tenant placement fees, cover advertising costs, vacancy fee, one time fee... It depends and it may need to be paid upfront)

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 a turnaround time and money when it comes to taking care of your property—but comparing contracts and management services too!

With an all-in property management services and simple single rent payment, what could be more convenient? Hiring UpperKey as your real building manager will lead to higher income at no cost for property owners.

Indicating transparency and convenience in the all-inclusive property management services provided by UpperKey
Enjoy hassle-free Airbnb management with all-inclusive services from UpperKey.

Additional time freedom for the hosts

A property management company can be a valuable asset for hosts looking to free up their time and streamline their operations. With their expertise and services, hosts can focus on other aspects of their lives while leaving the property management responsibilities in capable hands.

A property management business takes care of the day-to-day tasks associated with maintaining a property and taking care of guests. A rental management business handles guest inquiries, manages bookings and reservations, and coordinates check-ins and check-outs.

They will also advertise your holiday let on the biggest holiday letting platforms and create an online profile for your short let on multiple booking platforms to maximise returns and ensure your flat is fully booked. By entrusting these responsibilities to a manager, hosts can save significant time and energy that would otherwise be spent on administrative tasks.

A team of professionals to take care of your rental property

Additionally, the companies have a team of professionals dedicated to marketing and advertising the property. They employ strategies to maximize occupancy rates and attract guests, relieving hosts of the burden of promoting their listing. This can include optimizing online listings, managing advertising campaigns, and utilizing various channels to reach a wide audience.


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