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Property Management

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Table of contents

Cap rate calculator
The cap rate calculator is used to understand and compare the potential return on investment from an investment property.
Enter the current market value or purchase price of the property. This is the basis for determining the capitalization rate.
Input the total yearly income generated by the property, including rent, fees, and any other sources of revenue, before expenses.
Input the percentage of annual gross income that represents the property's total operating expenses. This is an alternative way to represent operating expenses if the exact dollar amount is unknown.
Enter the annual dollar amount of all costs associated with managing and maintaining the property, such as utilities, taxes, insurance, and repairs.
Input the estimated percentage of time the property is unoccupied or not generating income. This accounts for potential income loss due to vacancies.
This field displays the calculated yearly income after subtracting operating expenses and adjusting for vacancy rate. This figure is used to determine the capitalization rate and evaluate the property's potential return on investment.
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ResourcesseparatorProperty Management

Understanding Airbnb Management Pricing Options

Key takeaways

Understanding Airbnb Management Pricing Options

If you're thinking about hiring someone to manage your Airbnb, pricing is the first — and most confusing — thing you'll encounter. Every company structures fees differently, and comparing them apples-to-apples isn't easy. This guide breaks down every major pricing model, what each includes, and how to calculate what you'll actually net. For a broader look at what full-service management entails, see Awning's vacation rental property management overview.

The Four Main Airbnb Management Pricing Models

1. Commission-Based (Percentage of Revenue)

The most common model. The management company takes 15–30% of your gross rental revenue each month. Full-service companies that handle everything — pricing, guest communication, cleaning coordination — typically charge 20–30%. Lighter platforms charge 10–15% but leave day-to-day operations to you.

2. Flat Monthly Fee

A set monthly rate regardless of occupancy. Works in your favor during peak season, against you in slow periods. More common in long-term property management companies that have expanded into STRs.

3. Tiered / Hybrid Pricing

A base fee covers core services (listing, booking, guest messaging), with add-ons for cleaning coordination, dynamic pricing, or additional channel distribution. Tiered models offer flexibility but require close reading of what each tier actually includes.

4. Per-Booking Fees

A flat fee per reservation rather than a percentage. Cost-effective for high-nightly-rate properties; expensive for budget listings with frequent short stays.

What's Typically Included in Management Fees

Before comparing prices, confirm what each fee actually covers. These services vary widely:

  • Dynamic pricing optimization — adjusting nightly rates based on demand
  • Multi-channel distribution (Airbnb + VRBO + Booking.com + direct booking)
  • Professional photography and listing copywriting
  • 24/7 guest communication
  • Cleaning and turnover coordination
  • Maintenance response and vendor coordination
  • Occupancy tax remittance
  • Real-time owner reporting

Awning's Airbnb marketing service and guest check-in/out management are included in full-service management — not add-ons.

📎  Related: Awning Services Included in  Management

Airbnb Cleaning Service

Guest Check-In / Check-Out Management

Airbnb Supplies Restocking

Airbnb Home Automation

Airbnb Marketing & Channel Distribution

Airbnb Guest Guidebook Service

 

Always ask: 'What am I charged for that isn't in the base management fee?' The answer tells you more than what they say is included.

How to Evaluate Pricing: Net Revenue Is What Matters

A manager charging 25% who drives 40% higher occupancy through superior distribution and pricing often delivers more money to you than a 15% manager with limited reach. The right comparison is projected net owner income after all fees — not the headline percentage.

Use Awning's free Airbnb estimator to see projected revenue for your property based on real market data. Then compare that against local Airbnb market data to assess how realistic the projections are.

Questions to Ask Before Signing

  • What is the exact commission rate and what does it cover?
  • Are cleaning fees passed through at cost or marked up?
  • How many channels will my property be listed on?
  • Is dynamic pricing included or an extra charge?
  • What is the minimum contract length and cancellation policy?
  • Is there a markup on maintenance repairs?
  • Do I have real-time access to an owner dashboard?

📎  Further Reading

Top Airbnb Management Companies  (Reviewed)

Airbnb Management Companies in Florida

Best Insurance Companies for Airbnb  Hosts

RedAwning Full-Service Property Management

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