By the Luxury Lodging team · Published · Updated
How much does a vacation rental management company charge?
It depends on the property and how much of the work you hand over. At Luxury Lodging, vacation-home management fees range from 10% to 20%, depending on the home and the services included, and our independent hotel fees generally run 10 to 20 percent of rental revenue after taxes and booking-platform fees. Whoever you talk to, ask what the percentage is calculated on, which services it covers and which property costs you still pay. Two quotes with the same percentage can leave very different amounts in your account.
What the percentage is calculated on
Most managers quote a percentage, and the number means little until you know the base it applies to. For our hotel clients the fee is calculated on rental revenue after taxes and booking-platform fees, including cleaning fees and other guest-paid fees. Ask any manager to put their base in writing so you can compare quotes fairly.
What the fee should cover
- Pricing. Rates set from demand and comparable properties, with dynamic pricing as conditions change.
- Listing marketing. Descriptions and presentation built around the home’s features and amenities.
- Guest communication. Messages before and during each stay, with 24/7 guest support.
- Property care. Coordination of cleaning and maintenance.
If you only want help with part of the work, partial management covers jobs such as guest communication, check-ins and dynamic pricing. See full vs. partial management for how the two compare.
Costs that sit outside the fee
In our arrangements, property expenses are paid separately from the management fee. So are separately agreed projects such as furnishing or photography. Approvals and costs for that kind of work are agreed before it starts.
What your proposal should spell out
Before you sign with anyone, the proposal should state the service scope, how the fee is calculated, which property expenses you cover, when you get paid and what work is priced separately. Every Luxury Lodging proposal covers those points.
Judge the fee by what reaches you
A lower percentage with weak pricing can earn you less than a higher one with strong pricing. Our owner guide to short-term rental income explains how to separate gross bookings from the money that actually lands with you.
Questions owners ask
What does Luxury Lodging charge to manage a vacation home?
Vacation-home management fees range from 10% to 20%. Homes differ in size, condition, location and how much work the owner wants to hand over, so where your home falls depends on the property and the services included. Your proposal states the exact fee, how it is calculated and what it covers before you decide.
Does Luxury Lodging offer a revenue guarantee?
Yes, for qualified owners. If your home’s gross bookings in your first 12 months with us, not counting the first month while the listing gets active and gathers reviews, do not come in at least 25% above your previous 12 months of gross bookings, we refund management fees to make up the difference, up to the full fee. To qualify, you provide 12 months of financials from your booking platform. The guarantee depends on our review of that documentation and the terms in your management agreement.
Are cleaning and repairs included in the management fee?
Luxury Lodging coordinates cleaning and maintenance as part of management. Property expenses are separate from the management fee, and approvals and costs are agreed before work starts.
What is the management fee for a small hotel?
Hotel management fees are generally 10–20%, depending on the property and service scope. The percentage is calculated on rental revenue after taxes and booking-platform fees, including cleaning fees and other guest-paid fees.
Talk to us about your property
Book a free 30-minute property review · Contact the management team · Call 813-303-1614
We manage vacation rentals in Tampa, St. Petersburg, Clearwater, Largo, Madeira Beach, Indian Shores, Bradenton, Chicago and Arizona.
