In sweden it’s usuall that is around 20-30% of gross income depending how long you are using the service
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Sorry you felt jumped on… but your request about what percentages to charge had everything to do with the expenses you want to split. I think the hosts here are pretty amazed anyone would want to split expenses on a property they don’t own. I don’t think we have ever heard that one before. If you are an experienced host you know how much work it is and to split expenses would be sooooooo much work for so little return.
This wasn’t meant to be snarky, but I think you should ask for 70-30 if you are going to offer to split expenses. Or even 80-20!
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I haven’t got a clue about the percentages and splitting of the costs, but I would think that whatever you do, in the end it should be beneficial to both.
For your neighbor this would mean that she gets a slightly higher yield on her property than would be the case when renting out long term. (Taking into account higher costs and extra wear.) This because in fact, if it weren’t for you (or someone else) managing the property, her only option would be to rent long term.
For you, you have to think about the time you need to invest, and you have to see if there are ways for you to make more money in that same time. Don’t ever do too much favors for family, friend and/or neighbors.
If both of your interests can be balanced there is reason to work together. If not, don’t do it.
The percentages to split the profit should also be based on the risk either one of you takes. My family has property in Portugal that we can’t manage ourselves. We contracted a managing firm (friends of ours) and they proposed a few options, and depending on who would be taking more risk, the income was split. We in the end opted for the low risk option (steady monthly income), that still gives us a very decent yield on our investment and puts all the risk (costs, lack of tourists, damages, wear and tear) but also the potential big benefits with them. Only time will tell if this was a good decision yes or no.
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@p_rose As someone who pays a property manager for our house abroad, I will tell you that there is NO way he would split expenses with me. I get a line item on my invoice for whatever the expense (shampoo, soap, laundry soap, etc) and I reimburse him. I pay him a flat fee for checking in guests and getting the flat cleaned, but I handle all the messages myself. When we were shopping around for ‘full service’ property managers, they larger companies were charging 25-30%, plus the cost of cleaning and any expenses.
Taking on ‘property management’ is a much different gig than [quote=“p_rose, post:1, topic:14122”]
- Meeting guests occasionally and troubleshooting whenever there are concerns or problems.
[/quote] You have to be available 24/7 no matter what, like @konacoconutz said even on Xmas day. I think the reason some members voiced their concern with your experience, was due to the fact your initial post seems slightly naive in what it takes to manage a successful air BnB.
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This is exactly what I was told by professional property managers here in Kona, when I was looking to unload this albatross. 
25-30 percent with specific line items noted. Not including cleaning or yard work. Any thing above that, $35/hour - with double time on holidays or after hours.
Do you know where the majority of the extra expenses showed up on the Property Manager’s statement to me?..Purchasing new sets of towels. The PM’s monthly invoice always claimed the guests “ruined” or pilfered the towels because the towels “disappeared”.
How does an absentee owner such as I, counter that claim? I can’t. One pays what the PM says it cost to replace the towels…month after month.
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After having done the job myself, I don’t think 25% is enough to compensate for the headaches and aggravation of property management!!
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The reason you are getting answers about how to run the place, is because that is what determines percentage!
The answers are trying to explain why a very high percentage cut is required and why splitting expenses is not a good business model.
But, having heard what others have said, of you feel otherwise, do take the plunge, split expenses, and charge a lower percentage, then you can update us in a couple months how it is going?
But the warning that splitting expenses and low percentage charging will backfire on you, have been given repeatedly above by others that have gone before you!
Hi guys,
I plan on becoming a property manager this upcoming fall in Columbus, Ohio.
I will offer a variety of services. I have a few questions regarding payment.
Should I have the payment come directly to me, keep the commission, then give it to the owner or should I do it vice versa?
Are there any specific laws or licenses I must follow/get before managing properties?
How would I go about preparing tax files and spreadsheets for this?
Is this a complicated business or am I overcomplicating it?
Thanks guys.
-Alex
Sorry, you sound completely inexperienced to be asking such basic questions on an international forum. Have you ever managed property before?
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In Hawaii you need a real estate license to manage property. I honestly don’t know if you are up for the task.