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.
Ranked first on our best Airbnb management companies, Awning offers full-service management starting at 10% of monthly revenue, significantly lower than the industry average. Following its acquisition by RedAwning in April 2024, Awning has expanded its services nationwide, providing comprehensive property management solutions across 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 digital 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 40% 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.
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.
1. 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 U.S. 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 bookings and reservations
- Communicating with and supporting guests
- Managing guest reviews
- Collecting taxes
- Property damage protection
- Reporting to property owners
2. Full-Service Airbnb Management Costs and Fees
The typical management fee for full-service vacation rental property management companies hovers around 25% but can range anywhere from 15% to 40%.
Examples of popular full-service Airbnb management companies include:
- Awning: Nationwide provider, charging around 10% of rental revenue. Services include listing optimization, dynamic pricing, guest communication, cleaning coordination, and maintenance.
- Vacasa: Operates nationwide with fees ranging from 25% to 35%. Services include full marketing, booking management, guest support, housekeeping, and maintenance.
- SkyRun: Charges around 20% and emphasizes local expertise, providing marketing, dynamic pricing, guest services, housekeeping, and maintenance.
- AvantStay: Specializes in luxury rentals, with fees starting at around 20%. Offers interior design, marketing, guest services, booking management, and comprehensive property maintenance.
Full-service Airbnb managers take care of everything needed to run a short-term rental, allowing owners to benefit from passive income. In addition to the services provided by half-service managers, full-service management includes:
- Interior design and furnishing tailored to the needs of the hospitality industry
- Short-term rental licenses and permits guidance and assistance
- Smart home installation, preparation, and management
- Linen provision and regular replacement
- Housekeeping between stays including professional cleaning, linen changing, laundry, and supply restocking
- Inspections
- Amenities maintenance and management
- Preventive maintenance
- Emergency repairs arrangement
- Tax support
- Legal assistance
- Ongoing reporting
- Short-term rental insurance including property damage protection and general liability
- Quarterly/annual performance evaluation and strategy adjustment
When selecting an Airbnb management company, it's crucial to understand the fee structure and services included to ensure they align with your investment goals and expectations.
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 property management companies charge a setup fee to integrate your property into their system. For example, Air Concierge charges an onboarding fee of around $300.
- Vacancy Fee: While less common, some managers charge fees when a property remains unbooked to cover baseline operational costs.
- Cleaning Fee: Typically charged to guests, cleaning fees range from $50 to $100 per stay, depending on property size and location. Hosts may incur these fees when using the rental themselves.
- Pet Fee: For pet-friendly rentals, additional fees cover extra cleaning and potential pet-related damages, generally ranging between $10 and $50 per night.
- Restocking Fee: Some managers impose monthly or per-stay fees for replenishing guest supplies, such as kitchen items, linens, and toiletries.
- Amenity Fees: Charges to maintain amenities like lawns, pools ($135-$185 per month), and hot tubs ($25-$150 per month) are common.
- Special Service Fees: Fees for services like linen restocking, direct booking facilitation, credit card processing, and related surcharges are frequently applied.
- Vacation Rental Insurance: Some companies offer optional or mandatory damage and liability coverage. Vacasa, for instance, charges approximately $7 per night for this coverage.
- Repairs: Costs for handyman services or repairs are usually deducted from rental income or from a designated deposit.
- Early-Termination Fee: Exiting a management contract prematurely can be costly. Air Concierge charges between $3,500 and $7,500 for early termination.
- Interior Design & Furnishing: Many companies offer interior design and furnishing services to improve rental appeal and revenue. Vacasa provides packages priced between $99 and $1,199, while companies like Awning offer comprehensive furnishing services ranging from $15,000 to $45,000.
Understanding these additional fees is crucial, as they significantly impact your overall profitability. Carefully evaluate management costs and services to ensure alignment with your financial goals.
How Airbnb Management Companies Determine Fees
As of 2025, the fee structures and practices of Airbnb management companies have evolved. Here's an updated overview:
Fee Structures:
- Full-Service Management: Typically ranges from 20% to 35% of monthly rental income. For instance, Awning charges a 10% management fee, while Air Concierge's fees range between 20% and 25%.
- Half-Service Management: Generally falls between 10% and 15% of monthly rental revenue. Companies like Evolve and RedAwning offer services at a flat 10% fee.
Factors Influencing Fees:
Airbnb management companies may adjust their fees based on several factors:
- Market: Higher fees are often charged in top tourist destinations, while lower fees apply in less popular locations.
- Type of Vacation Home: For example, Air Concierge charges 20%-25% for their full-service management, depending on the level of service chosen.
- Size of Home: Managing larger properties may cost less on a percentage basis due to economies of scale.
- Condition of Home: Properties in poor condition might incur higher fees to cover the costs of necessary improvements and to compensate for potentially lower occupancy rates.
- Revenue: Low-revenue properties may be charged a higher percentage fee to cover operational costs, whereas high-revenue properties might benefit from a lower percentage fee.
- Occupancy Rate: Homes with consistently low occupancy rates may face higher management fees to offset the increased effort required to secure bookings.
- Rental Duration: Some managers offer discounted fees for longer stays, such as weekly or monthly rentals, differentiating from standard short-term stays.
- Required Services: While many property managers provide a standard set of services, some offer customizable packages to accommodate the specific needs of the property and preferences of the owner, which can affect fees.
- Contract Duration: Signing a long-term contract can sometimes reduce management fees, providing stability for both parties.
While many large-scale, nationwide companies maintain firm fee structures, some, like Awning, offer discounts to owners who 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 deduct 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: Deduct Additional Fees
Net Revenue - Additional Fees = Final Payment
Here is how the formula works with the example of $1,000 in revenue, a 10% management fee, and $350 in maintenance costs:
Step 1: Calculate Net Revenue
($1,000) * (1 - (10% + 3%)) = Net Revenue
$1,000 * 87% = $870
Step 2: Deduct Additional 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
As of 2025, Airbnb management companies commonly charge fees ranging from 20% to 35% of monthly rental revenue. Typically, these companies collect guest payments, deduct their management fees, and then remit the remainder to hosts. For example, if your property generates $1,000 in monthly revenue with a management fee of 25%, the company deducts $250, leaving you with $750.
Awning takes a different approach by offering a lower management fee starting at approximately 10%. Using the same scenario, Awning would deduct $100 from your $1,000 revenue, leaving you with $900. However, it's important to note that additional expenses, such as maintenance or restocking fees, may still apply separately and affect your overall earnings.
Awning’s model prioritizes transparency, clearly showing hosts exactly what expenses they incur each month. Unlike other management companies that may include markups on vendor services, Awning ensures payments go directly to vendors without hidden costs. This approach reduces disputes over charges and enhances clarity between hosts and the management company.
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.
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 U.S. market, Airbnb management fees typically range from 15% to 40%, depending on the scope of service. Basic management (listing, communication) starts around 10%, while full-service (cleaning, maintenance, 24/7 guest support) can reach up to 40%. Key factors influencing these fees include property type, size, rental duration, and contract terms. Hiring a professional management company can significantly boost passive income and simplify property ownership.
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 10% of revenue, with no extra charges or fees. Call or text 415-941-5206 to learn more and get started.
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