Managing a Property

[Clare376]

I'm looking for advice. I've been asked to manage a property and we're trying to come up with a percentage to pay me. I'll manage website, handle communications, clean, do routine maintenance, snow plow/mow, and write reviews. Any thoughts on a fair % to charge?

[Anonymous]

@Clare376  I think an hourly rate would be fairer to you than a % commission. 

[Mike-And-Jane0]

I think 17.237% of the net figure paid out by Airbnb to the host

[Elena87]

@Clare376 

There are variations in how much a listing can make, so there isn't a straightforward figure you can arrive at, or adapt a formula.

Usually professional companies charge between 15-40% for full management services, but of course there is a wide variance, say if a place takes 500 a night compared to one doing 120 a night, then remember a listing that has an average booking duration of 12 nights is likely to require less of your attention than a two nights average place would.

You would need to do your sums with a percentage based reward, work out how much hours you will likely be putting in against what the estimated take will be.

You can consider taking a set fee per booking plus look to pocket a realistic cleaning fee.

Even write in a percentage bonus if you are doing superstar business and the takings exceed a agreed target.

Perhaps to review low season versus high season operations too if there are wide contrasts. 

It's always worth to review the agreement regularly to make sure things are fair once you see the finances.

[Lisa723]

@Clare376 my co-host gets 30% of rent and 100% of cleaning fees. In addition to supporting guests and managing turnovers, she is responsible for hauling trash/recycling and maintaining hot tubs.

I partially agree with @Anonymous; things like mowing, plowing, and maintenance are better charged hourly. I also suggest that you need a written contract spelling out exactly what you are responsible for, as there is a lot of room for unaligned expectations with any such arrangement.

[Anonymous]

I should probably clarify - the main reason I don't pay co-hosts by commission is that the workload is not promotional to the room rate. I don't expect an employee to absorb any part of the losses if I offer a discount or Airbnb grants an Extenuating Circumstances refund. And there are so many ways the volume of work can fluctuate:  some guests may leave the home spotless, others may leave an absolute pigsty, and this doesn't correspond to the cost of the booking or the "cleaning fee."

I think a small commission is fair compensation for the time you spend online dealing with the listing, reviews, and guest correspondence, since it's hard to quantify that in terms of hours. But an hourly rate is more appropriate for the time you spend at the property doing cleaning, guest service, and maintenance.