Choosing a Short Term Property Manager

[Joshua Ellis]

I am trying to negotiate a better management commission fee for my short term rental. For a newly renovated ocean front condo they are wanting 20%. What would be the best way to negotiate down to 18% or lower?

[John Carbone]

Quote from @Joshua Ellis:

PM charge as in property management fee? It is 20% that I mentioned.

No, the fees they may be charging the guests for each booking. 

-excess cleaning fees 
-damage waivers
- admin fees
-booking fees
-hot tub fee

etc etc etc 

here’s an example. As a homeowner your contract would likely be 20 percent to them of the 1049 charged. Pm will pocket the admin, damage waiver, and anything else from the housekeeping fee which may or may not be reasonable depending on the property and what it actually costs. 

Without those extra fees, the $55 and $69 charge could be added to the top line. Their take of $209 (20 percent) is actually $333 which is 32 percent instead of 20.