The average fees charged by full-service Airbnb property management companies are 25-40% of revenue, while the costs of half-service management average 10-15% of income. But how exactly are Airbnb management fees determined? What are the factors that affect them? How are they charged and what do they cover?
In this article, we’ll cover everything that you need to know about the costs that Airbnb managers charge, from how they are established and calculated, all the way to how they vary and whether they are worth it for different types of short-term rental property investors and hosts. The fees implemented by professional Airbnb managers in the US market are strikingly different, and savvy hosts need to be familiar with them before deciding whether to hire a certain company.
Meanwhile, Checkmate Rentals charges industry-low fees for end-to-end vacation rental management, starting at only 15% of rental income. In exchange, owners get access to highly personalized, flexible, quality services that help boost performance and get ahead of the competition.
Overview of Airbnb Property Management Fees
Professional Airbnb managers take care of vacation rentals and other types of short-term rentals in exchange for a monthly fee. The exact fees are as diverse as are the services that property managers provide, the properties that they work with, and the markets that they cover.
Many STR hosts are willing to pay property managers - sometimes very hefty fees - in order to make passive real estate income and optimize the performance of their investment property via access to professional hospitality services. Ideally, when switching from self-management to professional management, owners should experience an increase in annual income that more than makes up for the costs that the Airbnb manager charges.
But what exactly do property management fees cover?
Services Covered by Airbnb Management Fees
Before getting into the details of the Airbnb manager’s charges structure and breakdown, it’s important to understand what exactly these costs cover.
For the fees that they are paid, vacation rental managers can provide some or all of the following services to hosts:
- Interior design and furnishing tailored to the needs of the hospitality industry
- Short-term rental licenses and permits guidance and assistance
- Smart home installation, preparation, and management
- Linen provision and regular replacement
- Listing the property on the best booking channels
- Listing on the company website for direct bookings
- Vacation rental property website
- Optimizing the listing for Airbnb SEO including professional photography, custom listing title and description, and guest review collection
- Guestbooks creation and customization
- Digital marketing and paid advertising for additional exposure and extra bookings
- Dynamic Airbnb pricing taking into account local market supply and demand trends
- Revenue management and optimization
- 24/7 guest communication and support
- Concierge guest services for luxury rentals
- Check-in and check-out coordination
- Collecting guest reviews to improve rankings on short-term rental websites
- Owner support
- Housekeeping between stays including professional cleaning, linen changing, laundry, and supply restocking
- Inspections
- Amenities maintenance and management
- Preventive maintenance
- Emergency repairs arrangement
- Tax support
- Legal assistance
- Ongoing reporting
- Short-term rental insurance including property damage protection and general liability
- Quarterly/annual performance evaluation and strategy adjustment
The exact services that an owner gets in exchange for the fee that they pay depends on the company they work with, the package they choose, their property needs, and the size of the fee.
Meanwhile, there are two main types of Airbnb property management fee models in the US market:
Commission-Based Airbnb Management Fees
The most popular pricing model for Airbnb managers is commission-based. This means that the majority of individual managers and property management companies charge a percentage of the monthly booking revenue (without or without cleaning fees and other extra fees) generated by the property. The cost is usually calculated on the pre-tax income.
This model is beneficial for property owners because they pay their managers only when their STR makes money and the total cost of management is proportionate to the amount of money earned by the property. This incentivizes Airbnb property managers to put all the necessary effort into optimizing the performance and the revenue of the rental in both the short term and the long run in order to maximize their own earnings.
As a result, vacation rental property managers who charge a commission-based fee typically provide superior listing optimization, dynamic pricing, and guest services to bring as much income as possible in the local market. However, they might limit the number of days for which an owner can book their property for personal use in a given year to generate enough revenue for strong management fees.
Some popular Airbnb management companies that apply this fee model include Checkmate Rentals, Vacasa, Evolve, Awning, and others.
Flat Airbnb Management Costs
Another structure for Airbnb management fees sometimes applied by service providers is flat fees. In other words, the property manager is paid a fixed dollar amount each and every month, regardless of the performance of the short-term rental. This model is rarely used in the vacation rental management space, but there are some companies that apply it, such as AvantStay Master Lease.
The exact fee level depends on the market, the property type and size, the available amenities, and the services included in the package.
On the positive side, owners know exactly how much they will need to pay to their manager each month and can use this number in their Airbnb rental property analysis. Having said that, flat fees disincentivize property managers to optimize the performance of the investment property as their own income does not depend on it. Thus, management might be suboptimal and not lead to the best possible results for hosts.
Generally speaking, it’s usually better to look for an Airbnb manager who charges a commission rather than a flat fee as they are more likely to work hard to meet all your rental’s needs and outperform competition.
Average Airbnb Managers Fees and Costs
The typical range of professional Airbnb property management fees in the US market is between 10% and 45% of booking revenue. One of the main factors that determines the level of cost is the type of management: Full-service Airbnb managers charge significantly more than half-service managers as they provide more services, allowing owners to benefit from passive income.
Range of Full-Service Airbnb Management Fees
The standard fees for end-to-end Airbnb property management services stretch between 25% and 40% of monthly revenue, but the range can extend as far as 10% and 45%, in some cases.
For beginner investors, full-service Airbnb management refers to the provision of comprehensive services that completely replace the host and free them up to enjoy their passive income from real estate investing without the need to be involved in the day-to-day vacation rental operations. Of course, the best property managers allow owners to participate in major business decisions, such as target guests, house rules, pet policy, and others, because they need to feel comfortable with everything that happens to and at their investment property.
In terms of specific services, end-to-end Airbnb managers perform the majority of tasks listed above. Their main responsibilities can be summarized as follows:
- Getting the property ready for listing and welcoming guests
- Supporting guests and owners
- Preparing the rental for future guests
- Applying strategies to maximize revenue and minimize costs without compromising services to guests
- Upkeep the property in top shape
- Reporting to the owner to keep them in the know
Nevertheless, there are plenty of nuances in the exact services that each full-service STR management company offers. Owners need to understand precisely what they can expect from a company and the fees it will charge before deciding if it’s worth working with a particular property manager.
To give you an even better understanding of the typical Airbnb manager charges in the US, here are the fees that some of the major companies request:
- Checkmate Rentals: Starting at only 15% of revenue for personalized end-to-end management
- Vacasa: Exceeding 35-40% in some cases (according to Vacasa reviews by hosts)
- Awning: Starting at 10% of revenue and reaching more for comprehensive services
- AvantStay: Undisclosed commission
- Casago: Undisclosed commission
- Air Concierge: Undisclosed commission
- SkyRun Vacation Rentals: Undisclosed commission
As you can see, most large Airbnb property managers choose to not provide pricing information on their website as costs depend on multiple factors. Thus, in most cases, owners interested in professional management need to get in touch with a few companies to get quotes custom to their specific situation to choose the best value for money.
Range of Half-Service Airbnb Management Fees
Typical half-service Airbnb managers charge between 10% and 15% of monthly rental income. This is significantly less than the cost of full-service property management because of the fewer activities covered by these professionals.
In general, half-service Airbnb management focuses on the automation of the most time-consuming tasks that hosts need to repeatedly perform via technology and some limited human support. That’s why they can afford to charge less than property managers who take care of everything and virtually replace the host.
The main categories of services associated with half-service property management include:
- Listing optimization and distribution
- Marketing
- Dynamic pricing
- Online guest support
- Booking calendar and reservation management
- Financial and performance reporting
Basically, these services are enough to take a significant load off the shoulders of the host, but owners still need to remain personally involved in the management of the property and potentially build a local team of contractors (if investing remotely).
Following is a list of the fees charged by the most popular half-service Airbnb property managers in the US:
- Evolve: 10% of revenue for Evolve Core and 15% for Evolve Plus
- RedAwning: 10% of income
While 10-15% of booking revenue sounds very affordable, keep in mind that this is only a partial solution to your needs as an Airbnb host.
Additional Costs That Airbnb Property Managers Might Charge
Besides the standard monthly property management fee, many professionals and companies charge a number of other fees to deliver additional services that are not included in the core packages. While this is common in the field, it’s not best practices in the vacation rental management space as it complicates the fee structure, preventing owners from knowing exactly how much they would be expected to pay each month. Instead, transplant and simple fees are preferred in the industry.
Still, it’s important to understand the additional costs that your Airbnb manager might charge. In most cases, these include services such as:
- Interior design: Professional interior designers typically charge between $2,000 and $12,000 for design services only, but most Airbnb furnishing companies provide design as part of their comprehensive furnishing services.
- Furnishing: Furnishing a short-term rental usually costs between $10,000 and $50,000 or more when working with a dedicated company specializing in this service. The fee typically includes design, furniture procurement, and installation.
- Installation of amenities: The cost of adding amenities can be anything from a few hundred dollars to multiple thousands of dollars. It depends on the exact amenities and their quality.
- Installation of smart home devices such as Airbnb smart locks, smart thermostats, routers, and others: The average cost of smart home automation charged by professional property manager ranges between $2,000 and $7,000.
- Professional photography services: Property managers charge between $100 and $500 for professional photoshoots.
- Maintenance and management of amenities such as swimming pools and hot tubs: This usually costs a couple of hundred dollars per month, depending on the size and the needs of the pool or hot tub.
- Insurance covering property damage and liability: Many Airbnb property management companies charge a small fee per booked night for this. It’s usually up to $10/booked night.
- Inspections: The cost of regular inspections, when charged separately, is about $100-$200/inspection, on a quarterly or annual basis.
- Maintenance coordination: Some property managers charge a commission to coordinate maintenance works, which can be performed by their in-house team or vetted contractors. This means that the maintenance management fee is a percentage of the cost of the project.
- Repairs and fixes: The cost of maintenance work varies from a few dollars to thousands of dollars, depending on the problem. Usually property managers have the freedom to commission repairs of up to $500 without informing the host, but they have to get their approval for larger maintenance projects.
- Tax filing: Some Airbnb managers charge a small fee to help with tax document preparation and filing on behalf of the host.
In addition, some - albeit not the best - Airbnb property management companies charge extra, one-time fees on top of their monthly costs, such as:
- Onboarding fee: There are property managers who charge a few hundred dollars for onboarding, while most companies include the associated cost in their monthly fees.
- Early termination fee: Some property managers try to retain owners, sometimes against their will, by charging hefty fees for canceling the property management agreement before the deadline. These fees can reach a few thousand dollars.
We recommend looking for professionals who don’t ask for these two fees as they are generally an indication of scammy practices that rely on long-term contractual commitment instead of retaining owner clients because of their happiness with the quality of provided services.
Airbnb Manager Fees Charged to Guests
Some short-term rental property management companies charge various fees not only to hosts but also to guests. While this is not always the case, you have to gain a clear understanding of what your property manager plans to charge to hosts as these extra fees might affect the number of reservations that your property gets, your Airbnb occupancy rate, and your total profit.
Some guest fees imposed by Airbnb managers include:
- Cleaning fee: Similar to hosts, property managers charge a cleaning fee per booking that’s usually $50-$120. Additional cleanings for longer-term stays are charged separately.
- Pet fee: Pet fees sometimes get charged to cover the deeper cleaning involved in managing pet-friendly rentals. The typical range is $20-$120, but the exact rate depends on the type of animal, the size of the pet, and the number of pets.
- Extra guest fee: Sometimes managers ask for an extra fee to accommodate guests that go beyond the standard guest capacity.
- Cancellation fee: Many vacation rental management companies charge a fee when guests cancel reservations, unless special circumstances are involved. These fees frequently become the basis for guest complaints when reviewing property managers on third-party websites.
Furthermore, property managers might charge guest deposits to cover excessive wear and tear that get returned in case of no incidents.
In sum, owners need to understand all fees that they will need to pay to a property manager, as well as the costs that their guests will need to cover, and the services that they will receive in return before signing with any specific company.
14 Factors That Impact Airbnb Management Fees
As already mentioned, the rate of Airbnb property management fees depends on a multitude of factors to strike the right level for both property managers and owners. That’s the reason why costs can range from as little as 10% of revenue to as much as 45% or even more.
The main factors that affect the fees charged by Airbnb managers include:
- Vacation rental management model: First and foremost, full-service management costs more than half-service management, whether delivered by the same property manager or different ones.
- Service provider: Different short-term rental property management companies charge different rates. For instance, hosts frequently report Vacasa to charge above-average fees despite its nationwide presence and economies of scale.
- Property management team: Property managers that do most of the work on their own charge less than those who rely on working with a range of external contractors.
- Covered services: The Airbnb management services that the company covers is another major factor that determines the total cost. Typically, the more services included in the manager’s portfolio, the higher their fees.
- Rental duration: Property managers charge less for Airbnb properties that are rented out on a longer-basis, like weekly or monthly basis, than for those rented out on a nightly basis. That’s because of the less work that goes into marketing them, cleaning them between guests, and maintaining them.
- Market: Managers in remote locations with little competition can afford to charge higher Airbnb management costs than those in top tourist destinations with dozens of potential options for hosts.
- Property type and number of bedrooms: The short-term rental type and design also plays a role in determining the management fee. Houses with more complex designs and outdoor spaces require more work and effort than simple apartments or condos.
- Condition of the property: Older, less well-maintained properties demand more frequent maintenance, which results in higher management costs.
- Available amenities: Some Airbnb managers include the cost of amenity maintenance in the monthly fee, while others charge for it separately. In any case, the Airbnb amenities that your property offers get reflected in the management fee as they require extra work to keep in top shape.
- Estimated monthly earnings: Some companies charge lower rates (percentages) for vacation rentals that generate more revenue as their fees are still high enough.
- Expected occupancy: When quoting their rate, property managers take into consideration the occupancy that a property is expected to bring in the market as that directly affects the amount of money they will be able to make off it.
- Owner property use: Most property managers limit the number of days per year for which an owner can block their rental for personal use, while others charge higher fees to allow unrestricted personal use.
- Property management contract duration: Some managers offer discounted rates for annual property management agreements, instead of monthly ones.
- Property management terms and conditions: A number of Airbnb managers charge extra fees for early termination of property management agreements.
Because of the complexity of Airbnb management fees, it’s important to study different options available in your market and choose the one that brings the highest value for you and your short-term rental.
How Airbnb Property Management Fees Are Calculated
In the majority of cases, Airbnb managers calculate their fees based on the pre-tax total booking revenue generated by a rental over the course of one month. This booking revenue includes the daily rates and all the extra income that the property brought such as cleaning fees, pet fees, extra guest fees, and everything else.
To make things clearer for beginner Airbnb hosts, let’s take a look at a real-life example.
A property was rented out for 20 nights over 10 separate bookings with pets, with a daily rate of $150. The cleaning fee is $100/booking, and the pet fee is $60/booking. The Airbnb manager charges 25%.
Let’s see how much the owner paid to the property manager:
Total Booking Revenue = 20 x $150 + 10 x $100 + 10 x $60 = $4,600
Airbnb Management Fee = 25% of $4,600 = $1,150
So, in this case, the property management company takes $1,150, while the remaining $3,450 is left for the owner.
Let’s see what Checkmate Rentals fee would be in this case, at 15% of monthly revenue.
Checkmate Rentals Management Fee = 15% of $4,600 = $690
Meanwhile, with Checkmate Rentals, the host pockets $3,910, or $460/month more than in case of the standard fee of 25%. This example shows the importance of finding a property manager who charges competitive fees while providing end-to-end services as that helps you make more money from your vacation rental, month after month.
How Airbnb Managers Charge Fees
Typically, financial transactions and payment processing are handled by the Airbnb management company. This means that throughout the month, the property manager collects nightly rates and all other relevant fees from guests on behalf of the host. Onced the month is over and all transactions have been finalized, the Airbnb manager takes their monthly fee as a share of the total booking revenue before deducting any additional expenses such as maintenance. Finally, they transfer the rest of the revenue - the owner payout - to the host.
This process is very convenient for short-term rental property investors as they don’t have to worry about collecting money from guests and paying Airbnb management fees. Moreover, the best property managers provide access to an online owner portal where the owner can easily track all financials in real time for transparency and accountability.
How to Save on Your Airbnb Property Management Costs and Fees: 10 Proven Tips
While professional property management can bring important benefits to different types of short-term rental owners, the costs can be significant. Luckily, there are ways to bring down the cost without compromising the quality of services that you get and the performance of your vacation rental.
Following are top 10 tips and tricks on how to lower the cost of Airbnb management:
- Get quotes from multiple Airbnb managers: Most importantly, when choosing who to manage your vacation rental, you should shop around, talk to a few companies available in your market, and get custom quotes from them. Going with the first property manager that comes your way is a grave mistake that can lead to unnecessarily high fees. Actually, when talking to different managers, mention that you are considering various options; this will make them offer you the best possible deal.
- Look for smaller, newer companies: Large short-term rental management companies with national coverage, such as Vacasa, charge notoriously high fees, just because they are well-known in the market, but these costs don’t necessarily correspond to the quality and level of services that they offer. Thus, it’s worth considering a smaller-scale company that’s still establishing its name and reputation. In addition to charging less, they’ll put extra effort in the management of your property to build their brand.
- Consider a local Airbnb property manager: Another way to save on your Airbnb property management fee is to look into local companies that specialize in your area. Local managers don’t have massive corporate teams in addition to establishing strong partnerships with local vendors and businesses, which allows them to charge more affordable fees. Meanwhile, due to their expertise in the local market, they have the capacity to deliver top-notch services.
- Give half-service management a try: If you invest locally and have a couple of free hours per week, you can try a half-service Airbnb manager, such as Evolve or RedAwning. They charge only a fraction of the fees imposed by full-service management companies. Moreover, you retain more control over the operations of your Airbnb business, so you can drive it in the direction that you prefer.
- Work with a co-host: You can lower the cost of professional management if you find an Airbnb co-host to take over some of the responsibilities so that there’s less work left for the manager. However, you need to find someone who is willing to get paid less than the property manager themselves.
- Assign your entire portfolio to the same firm: If you own multiple vacation rental properties, you can save on their management costs by handing them over to the same vacation rental management company. Airbnb managers charge lower percentages for a portfolio rather than a single property.
- Ask local investors for advice: In your search for affordable options, enlist the help of other hosts in the area. You can get in touch with other second home owners in online real estate investing forums and ask them for recommendations and referrals. It’s likely that they have already done extensive research on available property managers and the fees that they charge, so they can help you save time and effort while choosing an affordable option.
- Don’t shy away from negotiations: Once you’ve short-listed a few Airbnb managers that provide good value for their fees, try negotiating down the costs. In most cases, companies work with a range of fees and they might be willing to move towards the lower end of the range to get you on board.
- Get all fees and responsibilities in writing: When you have reached an agreement with your selected manager, sign a written contract that clearly outlines the exact tasks of the Airbnb manager and the fees that they will charge for them, leaving no space for interpretation. Some property managers try to charge hidden fees, leading to significantly higher costs than initially planned. Thus, you should have everything in writing to avoid unexpected fees down the road.
- Switch to a longer-term contract: After you have worked with a certain Airbnb management company for a few months, you can ask them whether they would lower the fee if you sign an annual agreement. Some managers charge lower rates with annual rather than monthly contracts. However, it’s important to know that you want to stay with this manager for this extended period before committing to it.
With these 10 strategies, you can hire a top-ranked Airbnb property manager without wasting unnecessary money.
Are Airbnb Management Costs Worth It for Hosts?
As you can see from the list of tasks associated with the owning and managing of successful Airbnb rentals, being a short-term rental investor and host can easily turn into a full-time job, especially for beginners with no previous experience and industry competence. This means that Airbnb property management fees might be well worth it, especially for beginner hosts, busy owners, and remote investors.
Importantly, professional Airbnb managers have the potential to not only bring you passive income but also boost your income and profits from vacation rental investing. However, for this to happen, you have to make sure that you choose a professional with proven track record, strong skills, and affordable rates.
In other words, Airbnb management costs are worth it only when they come in exchange for high-quality services that enhance the performance of the property, address all the needs of guests, and take good care of the rental.
Bottom Line
The standard range of Airbnb management fees in the US market is 10-15% for half-service and 25-40% for full-service. However, both lower and higher costs are possible. The main factors that affect how much an Airbnb manager charges include the company, the location, the property type, and the provided services. Many vacation rental investors find the professional management cost to be worth it as it gives them access to passive income and better overall results than being DIY hosts.
Looking for a top-ranked, yet affordable end-to-end short-term rental property management company? Check out Checkmate Rentals. We provide personalized, full-service Airbnb management across the US, starting at only 15% of revenue.
