If you’re considering turning your property into a vacation rental, one of the first steps you’ll need to take is understanding the costs involved in property management. Knowing what vacation rental property managers charge will help you make informed decisions and maximize your profits. In this guide, we’ll break down the different types of fees you can expect and what services these fees cover.
We wrote this because at Cascadia Getaways, we believe in transparency in both fees and how our business works. We share often with our homeowner partners what goes into our business, what tools we use, what improvements we are making and more, because we are partners.
How Do Vacation Rental Management Fees Work?
Vacation rental management fees are the costs associated with hiring a property management company to handle the day-to-day tasks of running your rental. These companies take care of everything from marketing your property to guest communication and maintenance. In return, they charge a fee based on the services they provide.
The fees can be structured in different ways, depending on the management company and the type of services offered. The most common fee structures are:
- Percentage-based fees: These fees are a percentage of your rental income, usually ranging from 10% to 50%. The percentage can vary depending on the services included and the company’s policies.
- Flat-fee pricing: Some companies may offer a flat rate for managing your property, regardless of income or occupancy rates. These are more traditionally for services rendered and may be a better fit if rentals are rare and your goals are not revenue based.
- Guaranteed income: In some cases, property managers offer a guaranteed income model, where you’re assured a fixed amount regardless of booking rates. However, this model often comes with higher fees and is more rare after events like COVID.
How Much Are Average Vacation Rental Management Fees?
On average, vacation rental management fees fall between 10% and 50% of your rental income. This range depends on factors like location, property type, and services provided. A property management company in a highly seasonal area may charge higher fees because of the limited season or rentals. Managers may also charge a higher fee for services offered, for example if the management company also manages the HOA, staff or higher level services.
If you’re working with a company like Evolve, fees may start as low as 10%, offering you the opportunity to keep more of your rental income. However, as with all services, you should carefully evaluate what’s included to ensure you’re getting value for the fee. Many low cost managers are not full service or charge for services elsewhere. Managers that follow the Evolve management model require the homeowner to manage local operations, cleaning and maintenance or hiring someone to do that work for you which could result in a higher effective management rate.
What Services Are Covered By Vacation Rental Management Fees?
Vacation rental property managers provide a variety of services to ensure your property is maintained and your guests have an exceptional experience. Here’s a breakdown of what typically falls under management fees:
1. Listing Marketing and Promotion
One of the key services covered by your management fee is getting your property in front of potential guests. This includes listing your property on platforms like Airbnb, Vrbo, and Booking.com, as well as running marketing campaigns to attract more bookings.
A great manager will be driving direct bookings, re-marketing to your past guests and have a paid marketing strategy as well. These manager see the value in direct booking and the benefits of repeat guests for your home. Cascadia Getaways leverages sophisticated retargeting, email marketing, search engine optimization (SEO), Wifi based email capture and marketing as well as
2. Calendar Management and Booking Software
Managing the calendar for your vacation rental can be time-consuming, especially when you’re dealing with multiple platforms and connectivity constraints. Property managers typically use sophisticated booking software to keep your calendar synced across all platforms, helping you avoid double-bookings and missed opportunities. This software allows managers to have high connectivity support with online booking channels, connect to even more platforms, distribute the correct pricing and availability etc.
3. Guest Support
Your property manager will handle guest inquiries, bookings, and communication. This can be a huge time-saver and ensures that your guests have the best experience from start to finish. You never know when a guest will reach out and with what issue, on top of that listing sites will reward listings based on response rates and times.
Cascadia Getaways has a 24/7 team dedicated to both reactive guest communication and proactive out reach to current and past guests to drive superb guest experience and reviews.
4. Revenue Strategy
Experienced property managers use revenue management techniques to maximize your rental income. This includes adjusting nightly rates based on demand, seasonality, and competitor pricing, ensuring your property is always competitively priced. With Cascadia Getaways, you get a revenue manager who has over a decade of vacation rental revenue management experience.
What Services Are Not Included in Short Term Rental Management Fees?
While management fees cover many essential services, there are certain costs that may not be included. These extra services typically come with additional fees. Be sure to ask your property manager about these before signing a contract.
1. Cleaning
Cleaning fees are typically charged separately from management fees. A property manager may arrange for cleaning between guest stays, but you’ll usually need to pay for this service directly.
At Cascadia Getaways, we pass this cost on to the guests and pay our cleaners directly. We handle the overhead of payments, supplies, training, hiring, inspecting and sending a cleaner back should an issue arise.
2. Stocking
Restocking the property with amenities like toiletries, towels, and kitchen supplies is generally not covered by management fees. This is an extra expense that you should factor into your budget.
At Cascadia Getaways, we have our supplies reordering tied to our reservation system that order soaps, shampoos etc at just the right time. We cover guest consumables so you dont have to!
3. Maintenance
Property upkeep, including repairs and regular maintenance, is often billed separately. If anything breaks or needs fixing, you’ll be responsible for these costs unless specifically negotiated otherwise.
At Cascadia Getaways, we have a damage protection program to cover most guest damage and handle the administration of that program and claims process. You will be kept in the loop on what has happened, replacement and just see the impact on your statements. We also have maintenance programs if you are looking for a predictable maintenance expense instead of surprises.
4. Guest Contact or Point Person
Some property managers may offer additional concierge-style services, like personal guest communication or on-site help, which might come with an extra charge.
Cascadia Getaways proactively reaches out to all guests to offer to assist with their trip, handle questions before they become issues and let them know we are available 24/7.
5. Payment Processing
Payment processing fees can sometimes be a separate charge. These fees are typically associated with the platforms where you list your property, but some property managers may have their own payment processing fees as well. We pass these expenses on to the guest as part of the transaction, never to the owner.
6. Technology Fees
At Cascadia Getaways, we are a technology enabled property manager leveraging industry leading tools an AI to deliver superior results. As a result, we do not pass technology fees to owners but have seen other managers pass along some of these costs. It is always worth asking more about fees you may be surprised to see later.
Make Your Vacation Rental Management Fees Go Further
To maximize the value of the fees you’re paying, be sure to research and understand what’s included in each fee structure. A transparent property manager will outline all the services and any additional costs upfront. You can also negotiate services or look for bundled packages that might save you money in the long run.
For example, you might find that a property manager offers a lower base rate but charges additional fees for each service. Alternatively, a higher management fee might cover more services, making it a better overall deal.
Vacation Rental Doesn’t Have to Be Hard
With the right property manager, running a vacation rental can be a smooth and profitable experience. By understanding the various fees involved and knowing what services are included, you can ensure that you’re making the best decision for your property.
Don’t forget to choose a management company that offers transparency and clear communication. This way, you’ll avoid any surprises and can focus on enjoying the benefits of your rental income.
Want to learn more? Lets talk!
FAQ: What Do Vacation Rental Property Managers Charge?
Q: What is the average fee for vacation rental property management?
A: The average vacation rental management fee ranges from 10% to 50% of your rental income, depending on the services provided and the property’s location. Lower fee managers may not be full service or have other fees, while higher management fee managers are often higher levels of service or in more seasonal markets.
Q: Are there any hidden fees?
A: Yes, some property managers may charge additional fees for cleaning, stocking, maintenance, guest communication, technology and payment processing. Be sure to clarify all fees before signing an agreement. Cascadia Getaways does not charge owners for stocking, guest communications, payment processing, technology or cleaning outside of bi-annual deep cleans. Cascadia Getaways at the request of our owners have also stood up a maintenance program to help homeowners have a predictable expense.
Q: Can I negotiate property management fees?
A: Yes, many property management companies are open to negotiation. It’s a good idea to discuss fees upfront and ensure you understand what’s included. Keep in mind how much they can negotiate will depend upon your properties revenue, owner usage and services they need to provide.
Q: Is it worth paying a higher management fee?
A: A higher management fee may be worth it if the company provides more comprehensive services, such as better marketing, premium guest support, and maintenance. Ultimately, it depends on the value you place on these services.
Q: How do I choose the right property management company?
A: Look for a company with a proven track record, transparent fee structures, and services that align with your needs. Research reviews and ask for references to ensure you’re making the right choice.
By understanding vacation rental management fees and how they impact your bottom line, you can make more informed decisions and increase your property’s profitability. Whether you’re just starting out or looking to improve your current rental operation, Cascadia Getaways can guide you through every step of the process.
If you want to learn more about the industry we love and what questions you should ask when looking for a manager, we are here to talk! Or if you want to learn more about Cascadia Getaways, lets talk! Either way, we offer a low pressure conversation with a real industry veteran and Oregon native.
Or you can call (971-350-2280) or email us (Owners@CascadiaGetaways.com)
