Airbnb Management Fees: A Complete Breakdown of All the Costs

Many real estate investors hesitate to hire a property manager for their Airbnb vacation rental due to uncertainty about management fees. However, this hesitation can prevent them from maximizing their rental’s performance and passive income. This article aims to clarify common misconceptions by providing a detailed breakdown of Airbnb management fees, including typical costs, included and excluded services, additional service charges, and factors influencing pricing.

In the U.S., standard Airbnb management fees typically range from 20% to 35% of monthly revenue, with rural hosts sometimes paying up to 40%. For those seeking a lower-cost option, half-service management is available for as little as 10%, though it only covers marketing—leaving cleaning, maintenance, and guest communication in the hands of the host.

The lowest starting rates of 20% for full-service management are offered by Awning, ranked first on our best Airbnb management companies. According to hosts the company has consistently offered hosts better service, support and lower rates than local and national property managers. Services are available in all 50 states.

What an Airbnb Management Fee Is

An Airbnb management fee is the amount paid to a property management company to handle the essential operations of your short-term rental business. In return, hosts enjoy a stress-free experience and passive real estate income. Additionally, professional Airbnb managers typically enhance rental performance by an average of 20%, helping to offset some or all management costs.

The services covered by Airbnb management fees vary by company but generally include:

• Listing optimization, distribution, and marketing
• Dynamic daily pricing to maximize revenue
• Guest communication and support for seamless hosting
• Cleaning and restocking between guest stays
• Property inspections, maintenance, and repairs
• Online performance tracking and reporting
• Ability to block the rental calendar for personal use

Top-tier Airbnb management companies may also offer additional services, sometimes included in the standard fee or available at an extra charge:

• Interior design and furnishing to enhance appeal
• Short-term rental licensing and permits for compliance
• Tax collection and remittance to simplify financials
• Vacation rental insurance for added protection

Most Airbnb management fees are calculated as a percentage of monthly rental income before tax, factoring in the nightly rate, occupancy rate, and additional guest-related fees (e.g., cleaning, pet fees, property insurance).

In the U.S., Airbnb management fees typically range from 10% to 35% of revenue, depending on the level of service provided. Fees at the lower end (10%) often exclude critical services like cleaning, while rates above 35% can significantly cut into rental income. Finding the right balance is key to maximizing profitability while ensuring professional management.

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Typical Airbnb Management Costs and Fees

The primary factor influencing Airbnb management fees for property owners is the type of service provided. Airbnb management companies generally fall into two categories: full-service and half-service providers.

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Half-Service Airbnb Management Costs and Fees

The typical Airbnb management fee for half-service providers is 10% to 15% of monthly rental revenue. Two of the most popular names in the US vacation rental industry falling within this category are Evolve and RedAwning. Both Evolve and RedAwning charge a universal fee of 10% of rental income.

The services covered by the half-service Airbnb fee usually include:

• Optimizing and marketing listings
• Dynamic pricing and managing revenue
• Managing booking and reservations
• Communicating with and supporting guests
• Managing guest reviews
• Collecting taxes
• Property damage protection
• Reporting to property owners

Full-Service Airbnb Management Costs and Fees

The typical management fee for full-service vacation rental property management companies hovers around 25%, but can be anything from 15% to 40%. Here are the fees that some of the biggest names within this category charge:

• Awning: Starting at 20% for truly full-service coverage
• SkyRun: Starting at 20%, varying by market
• Vacasa: 25%-35% as reported by Vacasa reviews by property owners

In addition to the services covered by half-service property managers, full-service Airbnb management companies also provide:

• Getting properties guest-ready including design, furnishing, linen, and legal requirements
• Cleaning and restocking rentals between stays
• Inspecting and maintaining properties
• Maintaining lawns, swimming pools, and hot tubs
• Coordinating property repairs

Sometimes all these services are covered by a single Airbnb management fee, and sometimes some of them are charged separately.

The services offered by these companies are supposed to eliminate the need for owner intervention, providing investors with a stream of passive income.

Additional Costs for Airbnb Management

In addition to their standard management fees, many Airbnb companies charge extra fees to hosts or guests, including:

• Onboarding Fee: Some companies charge a setup fee (e.g., Air Concierge charges $300).
• Vacancy Fee: Some managers charge fees when the property remains unbooked.
• Cleaning Fee: Typically charged to guests ($50-$100+ per night); hosts pay when using the rental personally.
• Pet Fee: Covers extra cleaning for pet-friendly rentals ($10-$50 per night).
• Restocking Fee: Charged for replenishing guest supplies.
• Amenity Fees: Covers maintenance for lawns, pools ($135-$185/month), and hot tubs ($25-$150).
• Special Service Fees: Includes linen restocking, direct booking, credit card processing, and surcharges.
• Vacation Rental Insurance: Optional coverage for damage and liability (e.g., Vacasa charges $7+ per night).
• Repairs: Costs for handyman services are deducted from rental income or a deposit.
• Early-Termination Fee: Some companies charge to exit contracts early (Air Concierge: $3,500-$7,500).
• Interior Design & Furnishing: Services like Vacasa’s design packages ($99-$1,199) or Awning’s full furnishing ($15,000-$45,000) to enhance rental revenue.

These additional fees can impact overall profitability, making it essential to evaluate management costs carefully.

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How Airbnb Management Companies Determine Fees

Many Airbnb management companies charge a universal fee across all markets and property types and sizes. The main factor that determines the fee is the type of company: full-service vs. half-service with the former being significantly more expensive as they cover a much wider range of services.

However, some Airbnb managers vary their fees based on a number of different factors including:

• Market: Charging higher fees in top tourist destinations and lower fees in less popular locations.
• Type of vacation home: For instance, Air Concierge charges 18%-20% (three-month contract vs. one-year contract) for luxury properties and 22%-25% for regular short-term rentals.
• Size of home: Managing larger properties tends to cost less.
• Condition of home: Airbnb properties in a poor state might render higher fees to get them in proper shape and to compensate for potentially lower occupancy. Some Airbnb management companies may turn down a property if it is in disrepair.
• Revenue: Low-revenue properties are charged a higher percentage fee to cover the cost of operations, whereas high-revenue properties are charged a lower percentage fee. Awning is willing to renegotiate rates if properties outperform expected revenue.
• Occupancy rate: Vacation rental homes that suffer from low Airbnb occupancy rates are sometimes required to pay higher management fees.
• Rental duration: Many property managers charge discounted Airbnb management fees for weekly and monthly rentals (different from long-term rentals).
• Required services: While many property managers provide a standard portfolio of vacation rental property management services, some are willing to accommodate the specific needs of the property and preferences of the owner. In this case, fees will differ.
• Contract duration: Signing a long-term contract can reduce property management fees.

Many serial real estate investors wonder if they can get a discount on the Airbnb management fees when bringing in multiple vacation rentals. The truth of the matter is that most large-scale, nationwide companies are quite robust when it comes to their fees and do not offer much discounts. Awning offers discounts to Airbnb managers that onboard multiple properties.

How Airbnb Management Fees Are Calculated

To understand how Airbnb management fees are calculated by companies, let’s take a look at a specific example: the calculation of a 10% management fee.

Let’s say your property earned a total revenue of $1,000 last month. In most cases this is collected by the Airbnb manager. At the end of the month, they will take out their standard fee of 10%, equivalent to $100. Afterwards, they will take any additional fees incurred during this month such as amenity maintenance and repairs, let’s say another $350. At the end, the remainder ($550) will be wired to the host. This example does not include the fee that booking platforms like Airbnb charge property managers directly.

The variables of the Airbnb management fee formula are:

• ‍Total revenue: Includes booking and all fees collected from guests
• ‍Management Fee: The percentage fee charged by the management company
• ‍Platform Fee: The fee charged by Airbnb
• ‍Net Revenue: The earnings of the property, less the management fee
• ‍Additional Fees: The fees from the property, including cleaning, maintenance and restocking
• ‍Final Payment: The payment received by the host from the management company

The Airbnb management fee formula is:

Step 1: Calculate Net Revenue

(Total Revenue) * (1- (Management Fee + Platform Fee)) = Net Revenue

Step 2: Take out any fees

Net Revenue - Additional Fees = Final Payment

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Here is how the formula works with the example of $1,000 in revenue, 10% fee and $350 in maintenance costs:

Step 1: Calculate Net Revenue

($1,000) * (1- (10% + 3%)) = Net Revenue

$1,000 * 87% = $870

Step 2: Take out any fees

$870 - $350 = $520

All of these details should be reported to the property owner every month, the more detail the better. We strongly suggest getting copies of sample statements from the company to understand the level of reporting and avoid extra fees.

How Airbnb Management Fees Are Charged

Most Airbnb management companies collect rental revenue from guests on behalf of hosts and deduct their fees at the end of the month. For example, if you earn $1,000 in rental income and the management fee is 15%, the company takes $150, plus any additional expenses—say $250—leaving you with $600.

Awning operates differently. While it still collects revenue from guests, it charges hosts directly for expenses as they occur, deducting payments from a linked credit card or bank account. In the same scenario, with $250 in expenses, the host receives $850 at month’s end.

This approach provides full transparency, allowing hosts to see exactly what they’re paying for throughout the month. In contrast, many property managers add markups to services, leaving hosts to dispute charges rather than ensuring payments go directly to vendors.

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How to Negotiate the Best Price for Airbnb Property Management

With numerous vacation rental management companies available in every U.S. market, property owners can take steps to secure the best rates and value. Here’s how to find the most cost-effective Airbnb management fees:

• Compare multiple companies: Industry fees range from 10% to 40%, so get quotes from at least 4-5 managers instead of choosing one based on reputation or recommendations.
• Consider local managers: Smaller, local companies often offer better rates than national firms, though very small teams may lack coverage in emergencies.
• Request multiple quotes: Show interest in working with different companies to encourage competitive pricing.
• Use your own team: If you have trusted cleaners or maintenance staff, opting for half-service management can significantly cut costs.
• Get involved: Taking on some responsibilities, especially if you live nearby, can reduce fees and give you greater control.
• Review the contract: Carefully read the management agreement to understand the exact services, responsibilities, and fees before signing.
• Negotiate rates: While large companies may be rigid, presenting lower competitor quotes may encourage them to adjust their pricing.
• Ask for bulk discounts: If managing multiple properties, inquire about potential discounts.
• Check reviews: Read online feedback from other hosts to uncover hidden fees or unexpected costs before committing.

Following these steps ensures you get the best Airbnb management fees without compromising on service quality.

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Are Airbnb Management Fees Worth It?

Hiring a professional short-term rental property management company can be a very worthwhile experience. You will not only benefit from passive income, but your rental’s performance will be optimized, as long as you choose the best company and negotiate the best fees.

When deciding if the Airbnb management fees that you are about to pay are worth it, ask yourself these two questions:

Is this property manager offering me the best value for money in the area? 

It’s crucial to shop around and get quotes from a number of small and big property managers. This will allow you to compare and contrast the services they cover and the fees they charge in order to select the best value for money.

Does the expected boost in revenue compensate for the management fees?: 

Most good Airbnb management companies give you an estimate of the increase in rental income you can expect once you hire them. Compare this to the monthly fees you’ll have to pay. If you gain more than what you will need to pay, the management fees are worth it as they will give you access to passive real estate investing.

Takeaway

In the US market, Airbnb management fees start at 10% (for half-service) and reach 40% (for full-service), with some companies charging additional fees for various extra services. The main factors that affect the fee structure include the company, the covered services, the market, the property type and size, the rental duration, and the contract duration. In most cases, working with a professional property manager is totally worth it as property owners benefit from enhanced passive income.

Awning is the top vacation rental management company in the US market, offering end-to-end services for investors. Our services include 24/7 guest communication, dynamic pricing, calendar management, and more and are available in all 50 states. Plus, our fees start at just 20% of revenue, with no extra charges or fees. Call or text 415-941-5206 to learn more and get started.