How much do Airbnb management companies charge? Fees explained

Published UK guides put Airbnb management fees at about 12% to 25% of booking income: Wise says most London managers charge 12% to 20%, and Houst puts UK fees at 15% to 30%. The headline percentage is only half the story, because what's included and what the fee is charged on can make two quotes hundreds of pounds a month apart.

How much do Airbnb management companies charge?

Figures published by the industry put full-service management in the UK at 15% to 25% of booking income, with part-service options lower. Houst's guide to fees says most companies charge typically 15-25%, with some starting lower and some charging up to 30% for premium or guaranteed-income models.

At Guestwise, our fee is 12% + VAT of what each booking earns, and we're paid per booking, so if your home doesn't earn, neither do we.

Should you pay a percentage or a fixed fee?

Most managers take a percentage of each booking. Houst's guide explains that this model means they earn more when your property earns more, and you pay nothing during empty periods. A few use a fixed monthly fee or guaranteed rent, where you get a set amount and the manager keeps the rest. That gives certainty but usually means you earn less in a strong market.

What should the fee include?

A full-service fee should usually cover:

• creating and managing your listings on Airbnb, Booking.com and other sites
• pricing every night, and adjusting prices as demand changes
• answering every guest message, day and night
• checking guests before they arrive
• organising cleaning, laundry and repairs
• handling problems during a stay

Which extras should you ask about?

These are the costs that make quotes hard to compare. Ask every company, in writing:

1. Is the fee plus VAT? A fee of 12% + VAT is 14.4% in total.
2. What is the fee calculated on? Total booking value, or the amount after platform fees and cleaning?
3. Who pays for cleaning and laundry? Usually the guest pays a cleaning fee, but check who keeps the difference.
4. Is there a setup or onboarding fee? Photos, listing creation and key safes are sometimes charged separately.
5. Are repairs marked up? Some companies add a percentage to maintenance bills.
6. What's the minimum contract and notice period? A low fee with a long lock-in can cost more if things go wrong.

How much difference does the fee make?

Using BNBCalc's Brighton average of £29,500 a year in bookings, here's what each fee costs over a year, including 20% VAT:

This is arithmetic for illustration, before platform fees and running costs, not a forecast.

Take a Brighton flat booked for 20 nights in a month at £160 a night. That's £3,200 of booking income before costs.

• At a 12% + VAT fee, the management fee is £460.80.
• At a 20% fee with no VAT, the fee is £640.
• At a 20% + VAT fee, the fee is £768.

That's a difference of over £300 in a single month, before you look at what each company includes. Always check whether VAT is included in a quoted percentage.

How do you compare two quotes?

Take one realistic month for your home, for example, the nights you'd expect booked and the likely nightly price. Work out, for each company, what would actually reach your bank account after every fee and cost. That single number is the fairest comparison, far better than comparing percentages.

Our short-let vs long-let calculator does this sum for you, and compares it with the rent you'd get from a tenant.

Is a cheaper fee always cheaper?

A manager who charges 5% less but prices badly, answers guests slowly or lets reviews slip can easily cost you more than they save. A few extra booked nights a month, or a slightly higher nightly price, usually matters more than the fee. Ask each company how they set prices, and ask to see real results for homes like yours.

What should you ask every management company?

1. What exactly is your fee, is VAT added, and what is it calculated on?
2. What's included, and what costs extra?
3. Whose account will my listing sit on?
4. How do you set prices, and how often do they change?
5. How quickly do you answer guests, including at night?
6. What's the minimum contract, and how do I leave?
7. Can I speak to an owner you manage a similar home for?

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This is general information, not legal, financial, tax or insurance advice. Market figures are averages as of the date shown above and change every month. Speak to a qualified professional before you act on anything here.