The Main Costs of Having Professional Managers and Hosts
Many of us don’t live in the same location as our short-term rental, making it vital we have a good management system in place. But make sure you’re aware of the high costs involved.
All too often I see people sign up for a professional host to manage their property or a management company specializing in Airbnbs. It could be because they’re too busy with their full-time job, live in a different location, or just unsure how to manage it themselves. And they’re all good reasons. There is no law saying you have to manage your place yourself. Just make sure you know about all potential costs.
Commission
Obviously, they’re not going to manage your rental for free. Make sure you shop around, as commissions can vary. Most charge between 15% and 20% per booking. Which can be reasonable, especially in high season. But, you still might have your cleaning company and linen bill to come out of your revenue. Make sure you find a manager who includes the linen and cleaning in their commission.
Plus, don’t forget, you will still have to pay commission to a booking platform.
Booking platforms
Did you know that certain platforms charge professional managers and hosts a higher commission rate? This is an extra cost you wouldn’t have if…
