The trade-off in one line
A rolling agreement gives you more flexibility. A longer fixed term gives you a lower rate on the relevant booking revenue. The management service itself is the same on both, so the decision is about how long you want to commit, not about how much service you receive.
The three options side by side
Hostahome management agreements. Rates are charged on booking revenue.
- Commitment
Rolling — 20%: Continues period to period.
Six months — 18% · Twelve months — 15%: Runs for the agreed term.
- Rate
Rolling — 20%: 20% of booking revenue.
Six months — 18% · Twelve months — 15%: 18% over six months, 15% over twelve.
- Service included
Rolling — 20%: The complete management service.
Six months — 18% · Twelve months — 15%: The same complete management service.
- Onboarding
Rolling — 20%: Free for new management clients.
Six months — 18% · Twelve months — 15%: Free for new management clients.
- Best suited to
Rolling — 20%: Owners whose plans for the property may change.
Six months — 18% · Twelve months — 15%: Owners settled on short-letting for the period ahead.
| Consideration | Rolling — 20% | Six months — 18% · Twelve months — 15% |
|---|---|---|
| Commitment | Continues period to period. | Runs for the agreed term. |
| Rate | 20% of booking revenue. | 18% over six months, 15% over twelve. |
| Service included | The complete management service. | The same complete management service. |
| Onboarding | Free for new management clients. | Free for new management clients. |
| Best suited to | Owners whose plans for the property may change. | Owners settled on short-letting for the period ahead. |
When rolling suits
Rolling management suits an owner who is testing short-letting for the first time, who may sell or move back in, who is waiting on a planning or lending decision, or who simply wants to see how the property performs under management before committing to a year. The higher rate may be a reasonable price for the ability to change course before committing for longer.
When a fixed term suits
A six- or twelve-month agreement suits an owner who has already decided that short-letting is the plan for the period ahead — a second property held for the medium term, a home that will not be lived in again this year, or an owner moving from an arrangement that already worked. The lower rate applies to the relevant booking revenue for the whole term, so it reduces the fee on each booking rather than being settled at the end.
What to read closely in any agreement
These five clauses shape how the agreement operates and how it ends. Read them before signing, whichever manager you are considering.
Five clauses to check
- Notice period and how notice is givenHow long, from when, and in what form. A term that renews automatically should say so plainly.
- What happens to bookings already on the calendarWho honours stays falling after the end date, and who holds the guest relationship for them.
- Who owns the listing accountIf the listing sits in the manager's account, the reviews and history usually stay there too.
- What is chargeable outside the management feeCleaning, linen, consumables, call-outs and photography are the usual candidates.
- The closing statementWhen the final statement is issued, and how deposits, damages and pending payouts are settled.
If you are moving from another manager, the practical order of work is set out in our guide to changing management company.
Confirming the details
Your rate, term and operating scope are confirmed in writing during the property review, before anything is signed. If a clause is unclear, ask for it to be explained in plain English and set out in the written agreement.
