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This Airbnb clears $2,311 self-managed, $828 at 20% and $86 at 30%

The short answer

Short-term managers charge a share of booking revenue, and the percentage is several times a long-term manager’s. In this example a manager at 20% of revenue takes $1,483 a month and leaves $828, while the same house self-managed clears $2,311 and at 30% is left with $86.

Quote a long-term rental at 10% and a short-term rental at 20% and it sounds like twice the price. It is closer to six times, because the short-term fee is charged on booking revenue rather than on rent, and booking revenue on the same house is far larger. On the example below, 20% comes to $1,483 a month.

Managers publish their own rates and the structures vary, so the number to work with is the one on the agreement in front of you. What follows is what each level does to a real set of figures, with 20% and 30% of revenue as the example’s.

What does the fee do to the numbers?

The example house costs $350,000 with 20% down on a 30-year loan at 7%, plus $25,000 of furniture and kitchen gear. It averages $375 a night, is booked 65% of the year, and pays $4,200 a year in property taxes and $2,400 for insurance that covers paying guests.

One Airbnb each month, self-managed and managed
You manage itManager at 20%Manager at 30%
Booking income$7,414$7,414$7,414
Airbnb’s fee (15.5%)−$1,149−$1,149−$1,149
Manager or co-host–−$1,483−$2,225
Cleaning and supplies−$450−$450−$450
Utilities and internet−$350−$350−$350
Repairs and big repairs (10%)−$741−$741−$741
Property taxes and insurance−$550−$550−$550
Mortgage−$1,863−$1,863−$1,863
What’s left each month+$2,311+$828+$86

These are example figures, not a quote.

Ten percentage points of management fee, the gap between 20% and 30%, is worth $742 a month on this house. That is almost the entire profit at 20%. On a short-term rental the management rate is not a line item to settle later; it is one of the three or four numbers that decide the deal, alongside the nightly rate, the booking rate and the price.

Why is the percentage so much higher than on a long-term rental?

Because the work is on a different scale. A long-term manager signs one lease, then collects twelve payments and answers the phone. A short-term manager handles a new arrival every few nights: pricing the calendar, answering messages at all hours, scheduling cleaners between a checkout and a check-in, restocking, handling reviews, and dealing with the guest who locks themselves out at midnight.

The split also differs. Some managers take their percentage and leave cleaning, supplies, utilities and maintenance to you, which is what the table above assumes. Others fold cleaning and guest supplies into a higher percentage. A 25% quote that includes cleaning and a 20% quote that does not are not the same offer, and on this house the cleaning and supplies line is $450 a month. Always ask which costs sit inside the percentage.

Does the fee come off the gross or after Airbnb’s cut?

This is the question people forget to ask, and it is worth $230 a month here. If the manager takes 20% of everything guests pay, the fee is 20% of $7,414, or $1,483. If the manager takes 20% of what reaches you after Airbnb’s fee, the fee is 20% of $6,265, or $1,253.

When a co-host is paid through Airbnb’s own co-host payout tool, it is the second one. Airbnb’s help center says a host’s potential earnings are worked out by multiplying the nightly price by the number of nights, adding other guest charges such as the cleaning fee, then subtracting the host service fee and any applicable taxes and fees. The co-host’s share is calculated from that figure, so the co-host does not get a cut of Airbnb’s cut.

The same page lists four ways a host can set the payout: the cleaning fee on its own, the cleaning fee plus a percentage per booking, a percentage per booking with the cleaning fee included or excluded, or a fixed amount per booking. Four structures, four different bills on identical bookings.

Because the calculator’s management field is a percentage of revenue, a 20% co-host paid after Airbnb’s fee is about 16.9% in that box, and the house clears $1,058 instead of $828. Worth checking which one your quote means before you model it.

What else does a short-term manager charge for?

The monthly percentage is often not the whole bill. Fee schedules commonly also name an onboarding or listing setup fee, a markup on maintenance invoices, a linen or consumables charge, a fee for owner stays that block the calendar, a minimum monthly fee that applies in the slow season, and an early termination fee.

The minimum is the one that bites in a seasonal market. A percentage-only fee falls to almost nothing in February, which is exactly what you want when the bookings do too. A floor of a few hundred dollars a month removes that protection in the months you need it most.

Where is the break-even for doing it yourself?

Self-managing this house is worth $1,483 a month, which is real money for real work. Here is the whole range against the $105,500 of cash the purchase took.

The same house at five management rates
Fee each monthWhat’s leftReturn on cash
You manage it$0+$2,31126.3%
10% of revenue−$741+$1,56917.8%
15% of revenue−$1,112+$1,19913.6%
20% of revenue−$1,483+$8289.4%
25% of revenue−$1,854+$4575.2%
30% of revenue−$2,224+$861.0%

Read it as a wage. The step from 20% to self-managed pays $17,796 a year for guest messages, cleaner scheduling and calendar pricing on one house. Whether that is a good rate depends on how many hours it actually takes you and whether you want the job, but pricing it tells you something either way: a house that only works self-managed is a house whose numbers depend on your labor staying free.

What to ask before you sign

Get four things in writing: the percentage, what it is charged on, which costs sit inside it, and the minimum monthly fee. Then put the resulting rate in the short-term rental calculator and check what is left at a booking rate 10 points below the one you were quoted.

If a managed house only clears money at the top of its booking range, the fee is doing what Airbnb’s own fee stack already started. The full method for analyzing an Airbnb covers the other inputs, and the occupancy a house needs to break even tells you how much room the managed version has left.

More answers

  1. This Airbnb clears $828 a month at 65% booked and loses $105 at 50%

    It depends on your booking rate far more than on the market. In this example a $350,000 Airbnb booked 65% of nights clears $828 a month after Airbnb’s 15.5% fee, a 20% co-host and every other cost. The same house at 50% booked costs its owner $105 a month.

    5 min read

  2. This Airbnb clears $828 a month, or $728 once it is insured for guests

    Usually not. Most homeowners and dwelling policies are not written for paying guests, and a claim can be denied on that basis. In this example a policy that covers short-term guests costs $1,200 more a year, taking the house from $828 a month to $728.

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  3. Airbnb’s 15.5% fee costs this host $500 a month, unless the price goes up 15%

    Most hosts now pay Airbnb a single 15.5% fee, taken from the nightly price and any fees they add, such as cleaning, and guests pay no service fee on top. In this example, a 20-night month at $200 paid the host $3,880 on the old split fee and pays $3,380 on the single fee. Raising the price to $230 brings the payout back to $3,887.

    5 min read