Collecting payouts as a property manager(management/cleaning fee)

[Jacqueline Mee]

My business partner and I started a property management company this past year after managing a friends airbnb/VRBO. There was a little bit of flexibility in terms of how we collected money with our friend at the time but as we have received inquires to manage other properties we are trying to find the best way to split payouts with property owners. 

Currently, the property we manage is listed in the owners airbnb account with us as co-hosts. We collect a 20-25% management fee + cleaning fee which we pay directly to the cleaners from our business account. Airbnb/VRBO payouts have gone to the owners bank account and then they write us a check for every reservation that includes our 20% + cleaning fee. Logistically, this creates too much work for the owner to have to write checks constantly and we are trying to make their life easier. It worked with our friend but we realize it won't work moving forward with other homeowners.

Looking for recommendations on what others do when property managing others STR? Here are a few possible solutions we have thrown around:

Option #1: Airbnb allows for split payouts. The shortfall of this is that they do not allow you to designate where the cleaning fee is paid out. The cleaning fee is lumped into the total payout. Logistically, this makes it hard to charge a flat 20% as we are collecting a portion of the cleaning fee and they are too. Who pays the cleaner then? Also, not every hosting platform allows for split payouts and it will be tricky to manage different platforms with different payout options.

Option #2: We collect the entire payout and list properties on our business airbnb account. We pay the property owner their portion monthly. This seems the most seamless 

Option #3: I haven't found one but is there a hosting tool that collects payments and allows you to choose how to split it up and automatically payout property owners? 

Appreciate any and all advice or insight into processes others have found success in! Thank you for your time. 

[Kyle Lacasse]

@Jacqueline Mee Hi Jacqueline, be very careful with with this. NH you are required to be at least a Licensed Real Estate Salesperson, or more importantly, a bonded and insured Broker, to handle clients monies managing rental properties. Also, aside from Airbnb, you need to pay state Meals and Rentals Tax per booking. Happy to help if needed, just wanted you to be aware.