Why the percentage model is used
Short-let income is not steady. A property can be busy in one month and quiet the next, and a fixed monthly management fee takes no account of that. Charging a percentage of booking revenue means the fee moves with what the property earns, so a quieter month costs the owner less than a busy one.
It is also straightforward to read on a statement. The rate is stated in the agreement, and what the rate is applied to should be stated alongside it.
What the percentage is applied to
Two apparently similar quotes can diverge here. A percentage only becomes meaningful once you know the figure it is applied to. Ask each manager to confirm the basis of the charge in writing.
Ask about the base
- Booking revenueWhat the property earns from stays. Hostahome's rates are charged on booking revenue.
- Whether cleaning fees charged to guests are included in that figureTreating guest-paid cleaning fees as revenue can quietly raise the amount a percentage is taken from.
- Whether the figure is before or after the booking platform's own deductionA rate taken on the gross guest price is not the same as the same rate taken on the payout.
Hostahome's three rates
Hostahome offers three agreement terms. Rolling is 20% of booking revenue, a six-month agreement is 18%, and a twelve-month agreement is 15%. The rate is the only thing that changes between them — the management service is the same on every option, and onboarding is free for new management clients.
See full pricing → or read how to choose between a rolling and a fixed term.
What the fee covers
The management fee covers the whole operation rather than a single task. In Hostahome's case that is pricing and distribution across more than 20 booking sources, guest communication 24 hours a day, ID checks on every guest, booking review against the property's rules, cleaning and turnover coordination with cleaner evidence and checklists, maintenance coordination with approved local trades, and owner reporting through the Owner Portal.
The detail is set out in what full-service management actually covers.
What usually sits outside it
A management percentage does not necessarily include the property's running costs. Confirm each cost in the written quote. Utilities, council tax or business rates where they apply, insurance, broadband, service charges, consumables and the cost of repairs are commonly the owner's. Where the line falls on cleaning, linen, listing photography and out-of-hours call-outs varies between providers, so put those four on your list of questions.
Booking platform fees
Platform fees are separate from management fees, and they are not a single number. Airbnb describes two structures: a split fee, where a host fee is deducted from the host's price and guests pay a service fee on top, and a single fee, deducted from the price to calculate the payout. Airbnb states that the single fee is required for traditional hospitality listings, and that most hosts using property management or channel management software are on the single fee as well. Other channels set their own commission.
Comparing two quotes properly
The questions that separate two quotes with the same headline rate.
- The base
What to ask: Is the rate charged on booking revenue, on the guest total, or on the platform payout?
Why it changes the total: The same percentage on a larger base is a larger fee.
- Cleaning and linen
What to ask: Who pays for them, and are they recharged at cost or with a margin?
Why it changes the total: Frequent changeovers can make cleaning and linen a significant operating cost.
- The term
What to ask: What notice applies, and does the rate change if you leave early?
Why it changes the total: A lower rate tied to a long term is not the same offer as a rolling one.
- Existing bookings
What to ask: What happens to bookings already on the calendar if the agreement ends?
Why it changes the total: Decides who is responsible for stays that straddle the end date.
| Consideration | What to ask | Why it changes the total |
|---|---|---|
| The base | Is the rate charged on booking revenue, on the guest total, or on the platform payout? | The same percentage on a larger base is a larger fee. |
| Cleaning and linen | Who pays for them, and are they recharged at cost or with a margin? | Frequent changeovers can make cleaning and linen a significant operating cost. |
| The term | What notice applies, and does the rate change if you leave early? | A lower rate tied to a long term is not the same offer as a rolling one. |
| Existing bookings | What happens to bookings already on the calendar if the agreement ends? | Decides who is responsible for stays that straddle the end date. |
Getting a figure for your property
A percentage describes the fee, not what a property will earn. Earnings depend on the property, its location, its standard of finish and how it is run. A property review gives you the operating picture instead: what the property needs, which costs need allowing for, which rate applies and what the agreement says.
For local property considerations and how management is organised, see management in Salford or management in Stevenage.
