Payment breakdown with co-host on simplified pricing (Portugal)

[Lauren2660]

Hello kind readers 🙂

We are in the process of setting up a co-hosting service in Madeira, Portugal.

With the latest news on a transition to simplified pricing, we've decided to just go that route from the start as it seems it will become the standard pricing method, plus it's way less confusing and more transparent to owners and to guests.

I'm putting together an info pack for potential clients and I just want to make sure that the pricing breakdown I'm explaining to owners is correct... please could you check this for me...

Using an example of €100 per night

€100 x 7 nights                          €700

+ cleaning fee                            €40

- 15% service fee                       €111

-23% VAT on service fee        €25.53

TOTAL                                           €603.47

Split Payment

Owner (80%)                              €482.78

Co-host (20%)                           €120.69

From what I have learnt talking to other co-hosts, the co-host is then billing the owner directly to recoup the portion of the cleaning fee that gets paid out to the owner? Hoping to get some smarter ideas on how to handle this? Tricky as its a fixed cost so difficult to incorporate into nightly fee.

Are there any other costs relevant to Portugal that anyone is aware of that I've left out?

Thanks in advance!

[Helen3]

Why would you be asking for commission on the cleaning, service fee and VAT?

I wouldn’t use you on this basis @Lauren2660 

[Lauren2660]

Hi Helen,

The service fee and VAT are AirBNB's deductions... editing now to hopefully make more sense.

[Lauren2660]

Nope. Can't edit as 45 minutes have passed since my post... but hope that clarifies.

[Helen3]

I know that @Lauren2660  I’ve been hosting for 5 years.

The way you have set out the figures is that you are charging the host your commission on the total sum not the net sum. 

[Lauren2660]

Thanks for your reply Helen. Please view from a perspective that I'm trying to learn and not to bamboozle anyone or rip anyone off.  If I've made an error it's just that - this is why I am asking for help so that I do right by my clients. I know us newbies are probably so annoying with our simplistic questions. Your 5 years experience is why I appreciate and value your opinion. I'm very grateful for this community and people who give of their time to help others.

The way I am seeing it is that I've deducted all the necessary amounts BEFORE splitting the nett amount 80 / 20. 

If you have a minute would you mind terribly reworking my example to the way you would set it up as a co-host, as I'm not understanding where I'm charging commission on the cleaning fee, service and VAT?

Thanks

[Marit-Anne0]

@Lauren2660 my caretaker charges a fixed fee for turnovers based on the size of the property. Fees for other services, like preparing for the season, monthly property checks in off-season, assistance/contact with guests during stays/meeting and greeting are also fixed. 

[Neil522]

If you have simplified pricing are you disadvantaged in searches as your nightly rate will appear to be higher as it includes the fees  that airbnb add on whereas most don't ?