Skip to main content

Get a Rental Estimate

    The growth of the Airbnb management industry has led to a variety of different types of contracts being used by property owners and management companies.

    When renting to a traditional tenant, the owner signs a standardized contract that is based on local tenancy laws. This contract typically covers a number of topics, including the length of the lease, the rent, and the responsibilities of the tenant and landlord.

    When working with a vacation rental management company, the owner will typically sign a more customized contract that outlines the specific services that the management company will provide. This contract may also include provisions for things like damage deposits, cleaning fees, and marketing costs.

    It is important to carefully review any contract before signing it, regardless of whether you are renting to a tenant or working with a management company. This will help to ensure that you understand your rights and responsibilities under the contract.

    Airbnb Management Fees

    Airbnb property management agreements typically include a commission fee that is charged by the management company.

    The amount of the commission fee can vary depending on the services that are being offered, as well as the quality of the property. In general, management fees start as low as 10% and can go as high as 35%. However, most management companies charge between 15% and 25% for a full-service solution.

    While the management fee is an important factor to consider when choosing a management company, it is also important to understand the company’s service capabilities and ability to generate revenue. Revenue generation is based on dynamic pricing and minimum stay optimization, and a strong understanding of market forces can allow a management company to earn 20-35% more for a property than competitors.

    Therefore, it is important to understand the management company’s approach to revenue management as well as the fee structure in the Airbnb management agreement.

    Full Management Services

    Some of the most common services that are included in Airbnb property management agreements include:

    • Listing management: The management company will create and maintain your Airbnb listing, including taking photos, writing a description, and setting the price.
    • Multi-channel marketing: The management company will promote your listing on other websites and channels, such as HomeAway and VRBO.
    • Guest communication: The management company will communicate with guests before, during, and after their stay, answering questions and addressing any concerns.
    • Screening assistance: The management company will screen guests to ensure that they are suitable to rent your property.
    • Dynamic pricing: The management company will use data to set the optimal price for your listing, maximizing your earnings.
    • Cleaning coordination: The management company will coordinate with a cleaning service to clean your property after each guest stay.
    • Restock: The management company will restock your property with essentials, such as towels, linens, and toiletries.
    • Property management: The management company will handle all of the day-to-day tasks associated with managing your property, such as responding to maintenance requests and handling unexpected issues.

    It’s important to read the scope of services carefully to make sure that it covers all of the services that you need. You should also ask the management company about any additional services that they offer, such as concierge services or event planning.

    Termination Provision 

    Airbnb management agreements should have clear termination provisions.

    There are many reasons why you may need to terminate a vacation rental management agreement, and most of them are not related to your satisfaction with the service quality. For example, you may need to sell the property or move in yourself.

    The ideal management agreement should have a termination clause that allows for maximum flexibility and minimal penalties for termination. The best Airbnb management companies are flexible because they know that their service is good and they want to provide flexibility for owners whose plans change.