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Updated almost 3 years ago on . Most recent reply

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Julie Washburn
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Question about short term rental management commissions

Julie Washburn
Posted

I would love to hear from others how their short term rental management commissions are set up. The manager for my short term rental charges 30% of gross revenue. However, they include municipal taxes and fees as part of that gross revenue (this wasn't defined in the contract, so I had to figure it out over time by asking for more transparent billings). So, when someone books on Airbnb, Airbnb collects those required taxes and pays them directly to the corresponding municipalities. As the owner, these funds never come near my account. However, my property manager then bills me for 30% of these costs. Has anyone else had it done this way? Trying to decide if this an industry norm or if it's something to push back on. The commissions taken out due to this can add up to $700-800/month in costs to me. 

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Andrew Steffens
#4 Short-Term & Vacation Rental Discussions Contributor
  • Tampa, FL
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Andrew Steffens
#4 Short-Term & Vacation Rental Discussions Contributor
  • Tampa, FL
Replied

I have never seen it done this way. A typical Airbnb booking for our clients would look something like this:

Gross Rent: $1000 (10x$100 a night)

Cleaning Fee: $200

Taxes and Airbnb Fee: Usually about 25% total in FL (13% state and local tax, 12-15% Airbnb Fee): $300

Guest Total: $1,500

Airbnb keeps: $300 to pay themselves and the taxes

Airbnb host fee: $30

Management Commission: $194 (20% fee)

Owner Receives: $776

If it is on another platform where we collect the taxes it does not change the net to owner.  The way they do it seems unnecessarily complicated at best and deceptive at worst.

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