Airbnb Management Fees & Profits

With over 150 million users, Airbnb is undoubtedly appealing to hosts and guests. The US has over 600,000 listings, the highest of any country globally. Some owners manage their rental properties themselves, while others hire an Airbnb management service company to handle bookings, choose quality guests, and ensure that property repairs are done as required.

What are Airbnb Management Fees?

When property owners request Airbnb management services, they hand over the responsibility of running their property to the company and pay Airbnb management fees for this service. The amount they pay depends on whether they are getting full or half service from the Airbnb management company.

The fees depend on the management method in most cases. Some cover marketing, guest communication, listing optimization, property inspections, and booking calendar management. Cleaning fees, laundry services, property repairs, and maintenance are usually not included but may be requested as needed.

At Vello, you get a professional Airbnb manager to ensure your property is adequately cataloged and optimized to rank on Airbnb and other platforms. Other services include concierge support, cleaning between guests, and routine property inspection. We also offer photography and interior design services to make images of your property appealing.

Typical Airbnb Management Costs and Fees

Airbnb management fees vary from company to company, but the typical rate for full-service Airbnb management is 10% to 35% of the monthly revenue. The rate excludes extras such as cleaning and property maintenance.

Properties in rural areas tend to have a higher percentage fee because they have a lower occupancy. Property managers will have to work harder to get bookings for such locations. Interestingly, Airbnbs in top tourist destinations can have higher or lower management fees, depending on the management company.

For example, one company may charge a higher rate because of continuous bookings, while another may charge a lower rate for the same reason.

Hosts can also pay for half-service management, often 12.5% of the monthly revenue. The management company charges for marketing, while the host is responsible for cleaning, maintenance, and guest care. Guests are often charged $30 - $100 extra per night to cover the cleaning fees.

How Airbnb Management Fees Are Charged and Calculated

Most Airbnb Managers charge a percentage of nightly income earned. To simplify it, they apply the percentage for monthly revenue earned. For example, if 10% is the lowest rate, and vacation rental owners earned $2500 this month, the management company will take out $250. The percentage fee is applied to the income before tax.

The home's condition, booking fees, contract duration, occupancy rate, and rental duration sometimes influence the percentage fee. For example, a one-year contract may attract a lower percentage, while a three-month contract will attract a higher one. Some property managers charge an initial setup fee. At Vello, we don’t charge this fee because we believe if the host doesn’t earn, neither should we.

Different Property Management Fee Structures

Some management service providers charge a fixed percentage, while others offer a variable fee structure depending on the size of the booking, total booking revenue, and length of stay. The fixed-rate covers basic services such as managing the booking calendar, cleaning, restocking, and inspecting for damages.

The host may be required to provide services not covered by the management costs. On the other hand, when rental properties attract continuous bookings, hosts make more money because they pay a fixed rate.

The Airbnb management service company makes more money on the percentage fee structure, which is why most favor it. However, they also have reason to work hard to attract continuous bookings. The downside is that the management fees are less predictable than the fixed-rate fee structure.

Factors Determining Airbnb Property Management Fees

The property size, location, and management responsibilities are some factors that influence property management fees. Large properties attract a higher fee because they require more attention than smaller ones. Older rentals may also cost more for vacation rental owners because they require regular inspections and upkeep.

The reputation of the Airbnb property manager may also come into play. For example, seasoned experts may charge a higher percentage than those new in the industry because they understand the market and how to bring in quality guests.

The fees will also depend on whether the hosts wish to get full-service or half-service Airbnb management. An Airbnb with a lower occupancy rate may attract a higher management fee than a property with a high occupancy rate.

Typical Rates for Airbnb Property Management

The average rate for Airbnb property management is 25%, but some Airbnb managers charge 10% while others get to the 40% mark.

For example, if a guest stays for four days, one company may charge 25% for full service while another company may charge 18%-20% for lesser services.

The location of the property also matters when it comes to Airbnb rates. Some destinations, like Hawaii and Florida, have some of the highest Airbnb occupancy rates in the US, at 65.4% and 55.3%, respectively. The property management rates in these areas may be lower than in Nevada, which has a 48% occupation rate.

Vacation rental management tends to be easier in areas that are easier to market, so the management company charges less.

Benefits of Using Airbnb Property Management Services

Airbnb Management services make life easier for rental owners. They don’t have to be involved with marketing, communication with guests, listings, or bookings. Depending on the management service requested, the hosts can go about living their lives without worrying about the state of the property or whether it is restocked and ready for the next guest.

Airbnb property managers are also experts at optimizing listings and increasing bookings. They also provide professional services by ensuring they communicate with clients and confirm bookings without involving the hosts.

If the Airbnb property is a side hustle, property owners save time because they will concentrate on their main hustle but still make passive income with the help of Airbnb property management service.

Contact Vello Today!

If you have rental properties and are looking for a professional and trustworthy Airbnb management service company, call (504) 512-8651 or email us at hello@stayvello.com. We charge a fair rate and provide listing services on all major booking platforms, including Airbnb and Vrbo. We aim to increase your property’s visibility and get you continuous bookings.

Our interior design services involve customizing your property to suit your needs and appeal to your target guests. Images will sell your listing; when you sign up with us, you get professional photography at no cost.

As far as we are concerned, your guests are also our guests, and we will treat them with the same consideration that you would. We also take responsibility for your property by ensuring it is clean and well-maintained for the next guests.

If you have any questions feel free to ask

Schedule a consult

We're on Instagram

#dowhatyouwanna