What short-term letting management costs — the commission model

Hiring a short-term letting manager usually means surrendering a percentage of your rental income. That trade-off feels obvious until you start comparing quotes and realise what each manager does — or doesn't do — for that cut. A cheap commission hides nasty surprises; a high one might include services you don't need. Understanding what drives the cost helps you spot whether you're comparing apples with apples.

The commission is not just for showing up

When a manager quotes a flat percentage, they're packaging several labour streams into one number. That percentage covers the time spent photographing and uploading your listing, fielding enquiries, vetting guest profiles, liaising with cleaners, handling check-in and checkout, sorting damage claims, and chasing late payments. Some managers also absorb the cost of software subscriptions (booking engines, pricing tools, guest messaging platforms) or professional insurance. Others don't. A low quote sometimes means you're paying the software licence yourself, or the manager handles fewer of these tasks than you assumed.

The percentage also reflects what happens when things go wrong. A manager who investigates noise complaints, mediates disputes with guests, or coordinates emergency repairs is spending unscheduled time on your property. A manager who simply forwards complaints to you and bills you extra for each interaction looks cheaper at first glance.

What tilts the price up or down

The core commission is rarely a fixed number across all managers in your region. Several factors reshape it. Occupancy rates matter: a manager handling a property with 70 per cent occupancy works harder per booking (more turnover, guest acquisition, cleaning coordination) than one with 90 per cent occupancy on a property in a desirable area. Geographic location shifts cost too — a manager in a remote or seasonal destination absorbs higher guest acquisition costs and irregular booking patterns. Whether you own one property or ten shapes their efficiency; managing a portfolio of ten lets spreads fixed costs thinner than managing one.

Property size and guest turnover also move the needle. A four-bedroom villa in a holiday hotspot generates more bookings per year than a studio, but each booking needs inspection, cleaning coordination, linen management, and guest communication. A manager charging a flat fee sometimes actually prefers high-turnover units because the work scales predictably. One charging a lower percentage might be selective.

Seasonal swings and minimum stay lengths change the workload too:

• Short 2–3 night stays multiply the number of turnovers and guest handovers annually
• Minimum five-night stays reduce administrative overhead per booking
• Peak and off-season fluctuations create uneven workload (and sometimes uneven rates)
• Seasonal closures mean some months generate no income but still incur basic admin

Hidden costs buried outside commission

A manager's advertised percentage often excludes fees that bite your profit differently. Some charge separately for damage claims investigation, guest dispute mediation, or emergency repairs they arrange and oversee. Others bundle these into commission but limit their scope (e.g., they'll coordinate a plumber, but you pay the call-out fee plus a service charge). Marketing spend — refreshing photos, paid listing promotion on secondary platforms, or seasonal campaigns — may be part of their commission or billed as a separate monthly or annual fee.

Payment processing, bank transfers, currency conversion (if international guests are typical), or accounting reconciliation can be rolled into the percentage or charged separately. Some managers hold damage deposits in their own trust account and charge a small admin fee for managing claims. Cleaning is sometimes included in their commission, sometimes contracted separately (meaning you negotiate directly with the cleaner and pay them independently).

The surest way to compare is to ask each manager for a written breakdown showing what commission covers, what's extra, and what responsibility or cost falls on you.

What to ask when quotes look wildly different

If two managers differ significantly, probe the gaps. Does the lower quote exclude guest screening or cleaning coordination? Will they actively manage occupancy with dynamic pricing, or just accept what guests offer? Do they handle seasonal property maintenance, or leave that to you? Are they handling guest issues and complaints, or passing them to you after-hours? How quickly do they respond to problems — and does a delayed response cost you lost revenue or guest ratings?

A manager offering significantly less commission might be testing a lower-cost model, building a portfolio in your area, or handling only the listing and booking side while you manage everything else. None of these is inherently wrong, but the savings evaporate if you end up paying for additional services or absorbing hidden workload yourself.

Finding a manager whose commission aligns with what they actually deliver means comparing scope alongside price. On Strove, you can review what each manager's service package actually includes and ask specific questions before you commit.