When managing a listing for a client- how to factor in management fees when there has been a refund

Lisa10
Level 3
New Orleans, LA

When managing a listing for a client- how to factor in management fees when there has been a refund

A question for those who offer host management services. My management fee is a % of rental income. When you are forced to give a refund based on something going awry with the home (in this case, an AC went out) - do you still base your % on what the rental income would have been, before the refund? I'm thinking yes because my level of management effort is not only the same, but I actually put out even more effort in crisis management. Would love to hear other opinions. Thank you!

2 Replies 2
Gerry-And-Rashid0
Level 10
London, United Kingdom

@Lisa10

 

Where you have not created the issued (eg forgot to turn up to let the guest in) then any refund should not affect your %

 

If you are also expected to deal with other issues such as breakdowns etc then this should have been agreed up front. If not then you need to discuss with your client - for example do they have an insurance policy that covers leaks, burst pipes, fixing A/C etc - then agree any extra fee for additional work required

Thank you Gerry and Rashid! Great advice.