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What do you pay a property manager?


#1

We aren’t always in town so we have someone available in case we need someone local. She also helps coordinate the cleaning services.

We have keyless entry so we don’t need anybody to check in or check out guests, so she is just available if needed and she communicates with the cleaning crew.

What are the going rates? Do you pay a percentage of income? A flat fee? What if she’s not needed but was on call?

Thanks!


#2

I manage my sister’s and partner’s Bimini listing, and I live in Miami so I charge 10% but I do the running of their site on three platforms including Airbnb, manage their calendar, manage the cleaning staff which I also make them provide special touches such as chocolates and personally written notes for the guests. I also provide them a house manual, plus tourist guides. I take care of all requests and I am on standby 24/7.

I also handle the tax reporting for them and all the spreadsheets of costs and income for their tax preparation. all they do is see the income come in.

I also go over once a month when we are not booked on surprise visits to check the cleaning and to inspect the property.

I only right now have my listing and her’s and that is quite enough since it consumes most of my time but then again I am very detailed so I doubt I would be able to handle more then three listings.


#3

I manage my parent’s holiday home for 40% but cover all costs so effectively less. They wouldn’t do it if I didn’t manage so they are happy with that rate.


#4

And you only charge 10%? I know of people charging 20% and don’t do the tax reporting, etc.


#5

Well it is my sister’s property and a whole house in a resort the property fees cover the maid service and check in. So I basically operate remotely and they charge about 300 a night so my chunk is pretty sizeable. If it was someone else I would charge more. I download the earning’s and My LOdge tax covers the reporting of taxes.


#6

I charge 30% and do everything from listing, to managing the renters, taxes, cleaning coordination and property checks. I only take on clients that are absent- and wouldn’t do airbnb otherwise. I want my clients to be happy, and I also want the work to be worth my time.

I have another question, for other property managers on airbnb- are there specific legality measures that need to be taken for, specifically, short term rentals? I have not found any information regarding licensing. I know to handle long term rentals as a property manager, you need a license in most states. I suspect, such rules and regulations haven’t been established yet because this industry has rapidly taken place. Or maybe a license is not required because you are working through a third party (airbnb) and money is being transferred through them…

Any thoughts would be helpful!


#7

It differs state-by-state. Check the local laws. I believe California doesn’t require a license for short-term. Hawaii definitely does.


#9

I manage my home and a neighbor’s home. I charge them 20% of the rental fee and I do the cleaning. Its alot of work communicating with renters and following up all the time.


#10

Ian… You are correct. You are allowed to manage ONE property in Hawaii without a real estate license.

After doing it myself for a friend who has a beach house in my neighborhood, I would never ever, EVER again manage a rental for ANYONE at any price!!! The last straws came in slowly over the several years I was doing it… but in increments… the REAL last straw was when guests called up here saying, “We need you to come down and move the lounge chairs for us.” Just no. I quit. tThat was the end.

Before that… taking calls for trouble, finding, sourcing hunting and waiting for appliance repair to show up in a VERY rural area of Hawaii. Trying to find handymen and plumbers. Window washers. Doing Inventory, stocking, trips to Costco every week for toilet paper, paper towels, soap, cleansers, RidX. Monitoring water levels, calling water truck, taking days off work waiting for these services. Managing cleaning schedule, hiring, firing and watching over cleaners. Trying to troubleshoot why the outdoor shower sparked. Hiring, firing and overseeing gardeners. Check and hauling trash after every guest. Checking and taking propane tanks 45 minutes to town for a fill, hauling back. Fixing fence, trying to get new fence up. Spending all day on emails, text and phone coordinating all of the above. Trying to deal with bugs. Wasps, centipedes, gnats, B52s. Rats. And on and on and on, ad infinitum! My friends, this is just a small smattering of what I did. Never again, there is not enough money in the universe to pay me to do all that again… not at any price!


#11

You may not know this, but some professional managers will pay You to manage your property. Sounds too good to be true but they are doing it for profit, so the offers aren’t always in line with expectations. They do this in order to gain control of the property for a period of time and then capture the upside from its operation (i.e. risk/reward tradeoff).

Otherwise, I see commission rate offers between 18%-40% for full service management in our wholesale rental marketplace, rented. Since the services are controlled for with a standard agreement, the fee disparities basically come down to competition in certain markets, different management company business models, and the unique challenges associated with some markets, such as diffuse units in mountain areas and high maintenance obligations leading to increased rates.

Hope that helps.

Mickey


#14

We have gone with www.bookingteam.com 2.5% of all bookings plus a 25 euro subscription and they do everything online from setup all sites to enquiries to bookings to taking payments to reporting and have all the major partnered guests. Great techy setup first collabration platform very impressive we have 10 properties. They include pricelabs in their package too. Apart from paying someone peanuts to simply meet our guest and let them in that’s it for us. They also send out an automatic email to our cleaner as they get the bookings to put it her calendar.

When I look at some of the percentages here I know we have made the right choice.


#15

Murphy,

Do you think that paying a property manager 15% of the monthly earnings from Air BNB as well as giving the property manager the cleaning fee charged to guests each time (about 40 euros for a very small apartment) would be reasonable?


#16

Why not? I charge 20% of the rent, and get the cleaning fee since I do the cleaning. Four bedroom, 3.5 bath, sleeps 8, two story for $120 cleaning US dollars. Since your place is smaller, its less work. I do all the banking, remit the taxes to the city, handle all the communications with the guests, and also when necessary, manage any complaints.


#17

Ok, good to know. I want to be fair to whoever I ask to property manage but also want to make sure I’m getting enough profit myself.


#18

Agencies in London run them for 20% that includes cleaning, communication with guests & meet & greet I believe. Debating whether to use one if we ever get a chance for a holiday


#20

Hi all,

I wanted to add to this since my company recently put out an article on the topic, and we work with over 700 managers & are constantly analyzing their management offers.

The commission rate that an Airbnb manager charges for all inclusive, full-service management definitely varies pretty dramatically. The US average is 28%, but that hides large discrepancies between companies and geographies.

We’ve seen commission rates get as low as 14% or 10% (for booking/marketing only), and we’ve also seen them go over 40%.

The biggest factor in determining the commission rate will be your area and the type of rental that it is. Urban rentals, for example, will be much cheaper to maintain and serve than a ski house, for example, that would require a manager to do winter proofing, snow removal, etc. Because of that, urban rentals tend to have the lowest Airbnb commission rates, while the beach and lake markets are somewhere in between.

I know most of you in this forum manage the home on your own, and if you ever choose to work with a management company, make sure you know exactly what is included in the commission rate. We’ve seen some sneaky managers advertise low commission rates and tack on additional fees for things that should be included in full-service management. Here’s a chart to show you what I mean (although I will say that all the rates on this chart seem very high):

If you have any questions about this, please feel free to reach out to me! My colleague also put together an article that details more on the cost of an Airbnb property manager that you may find helpful.


#21

Hi, this might depend on if you live in a metro area or not - but as an example, a new Airbnb management service to call out that’s active in the Chicago area – Hostly. Flat 25% service fee for completely managing your Airbnb, and they do “optimized pricing” as an add on too…. if you live in a larger metro area maybe something to try searching for per the above. There are others in Chicago too, but Hostly’s fee looks to be transparent and they claim to have the lowest rates


#22

We have a beach house on the South Coast of NSW (about 3.5 hours from Sydney) in a high tourist area and pay a real estate agent 13% (inc tax) to manage the property. They do everything.
edited to add: this is just management, obviously we pay for cleaning etc on top of that


#23

11% on one property, 14% on another and all they do is book it.
I do everything else.
Used to get 50% of my booking from them, now it is around 25-30%, airbnb and booking.com have really taken over.


#24

Curious, what is the X axis unit of measurement? Is it annual, monthly? What is the region for this data set?


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