Part of the Short-Term Rental Management Guide, step 2: compare
The Main Fee Models
Percentage of Gross Revenue
The manager takes a share of the total booking revenue. The catch is the definition of "gross." It may include the rent only, or the rent plus the guest cleaning fee and other guest fees. It is usually calculated before or after the platform's fee, depending on the contract.
Ask: gross of what, exactly? Does it include cleaning fees, pet fees and extra-guest fees?
Percentage of Net Revenue
The share is taken after certain costs come off, such as platform fees and cleaning. A higher percentage of net can cost you less than a lower percentage of gross. It depends on which costs are deducted first.
Ask: which deductions come off before the percentage is applied, and in what order?
Flat Fee
A fixed monthly or per-booking amount, regardless of revenue. Predictable, and it does not grow with a great season. Flat fees are more common for limited services than for full service.
Ask: what exactly does the flat fee cover, and what happens in a month with no bookings?
Co-Host Payout Share
On Airbnb, an owner can pay a co-host directly through the platform. As of October 2026, Airbnb's help center lists four options: the cleaning fee only; the cleaning fee plus a percentage per booking (excluding the cleaning fee); a percentage per booking, with or without the cleaning fee; or a fixed amount per booking. Airbnb calculates the share from the host's earnings after the host service fee and applicable taxes and fees. Only the owner can set it up, and the co-host has 14 days to confirm it.
Airbnb also says the owner receives a tax document on the full booking amount, and the co-host receives one for what they were paid. Keep your own records of the co-host's share. See Airbnb tax basics.
Hybrid Models
Some agreements combine a base fee with a percentage, or set different rates for short stays and monthly stays. Read the definitions carefully.
Fees That Sit Outside the Headline Rate
| Item | What to ask |
|---|---|
| Setup or onboarding fee | Is it one-time? Is it refundable if you leave early? |
| Photography and listing creation | Included, or billed? Who owns the photos? |
| Guest cleaning fee | Who keeps it? Is the management percentage applied to it? |
| Cleaning cost | If the guest fee does not cover the real cost, who pays the gap? |
| Linens | Owner-provided, rented, or billed per turnover? |
| Consumables | Billed at cost, or with a markup? |
| Maintenance and repairs | Hourly rate for the manager's time? Markup on vendor invoices? |
| Snow removal and seasonal work | Included, billed by the visit, or your own contract? |
| Owner stays | Is a cleaning charge applied after you use the home? |
| Minimums | Is there a monthly minimum fee? |
| Exit or termination | Any fee to leave? What about future bookings? |
None of these are bad in themselves. What matters is that they are written down and that you include them when you compare quotes.
Platform Fees Come off Too
Before or alongside the manager's fee, the platform takes its share. As of 6 October 2026:
- Airbnb says its single host-only fee is mandatory for most hosts and is typically 15.5%, deducted from the payout.
- Vrbo's help page lists a 12% commission on rent and guest fees plus a 3% payment processing fee, and Vrbo has told hosts it moves everyone to a single 12% commission from 29 October 2026.
Ask each manager whether their percentage is calculated before or after these platform fees. The details are in Airbnb vs Vrbo for owners.
A Worked Example (Hypothetical)
These numbers are invented for illustration only. They are not a quote, an estimate of your income, or the fees of any real company.
Assume one booking: 4 nights at $300, plus a $200 guest cleaning fee. The guest pays $1,400 before taxes. Airbnb's 15.5% single fee is $217, so the host payout is $1,183. The actual cleaning cost is $180.
| Quote A: 18% of gross | Quote B: 24% of net | |
|---|---|---|
| Fee base | $1,400 (rent plus cleaning fee) | $1,183 payout minus $180 cleaning = $1,003 |
| Management fee | $252 | $240.72 |
| Owner keeps (before other costs) | $1,183 minus $252 minus $180 = $751 | $1,003 minus $240.72 = $762.28 |
In this made-up case, the higher percentage costs the owner less, because it is applied to a smaller base. Change the definitions and the result can flip. Always run your own numbers using the net vs gross income guide.
How to Compare Quotes Fairly
- Use one sample booking, ideally a typical week for your home in each season.
- Apply each manager's exact definitions: what the percentage applies to and what comes off first.
- Add every extra from the table above that you would actually use.
- Include costs that stay with you either way: utilities, insurance, property tax, repairs.
- Compare in dollars, not percentages.
- Then compare service: how often pricing is reviewed, inspections after each stay, crew distance, owner stays, exit terms.
The questions to ask a property manager cover the service side.
Warning Signs
- A fee you cannot reproduce from the contract wording.
- A very low headline rate with long lists of add-ons.
- Promises of a set income or occupancy.
- Markups that are not disclosed until the first statement.
How New England Host Co Prices
New England Host Co does not publish its management pricing; it is quoted privately for each home. Full-service management is one package, not priced in components, and co-hosting is a separate product. Owners pay license and permit fees, consumables (rebilled at cost), utilities, owner stays and repairs. Ask for a free property analysis to discuss your home.
Back to the owner hub.
FAQ
Is a Percentage of Gross or Net Better for Owners?
Neither is better by default. It depends on the rate and on what comes off before the percentage applies. Compare both on the same booking in dollars.
Who Should Keep the Guest Cleaning Fee?
Whoever pays the cleaner usually does. What matters is that the management percentage is not also applied to money that only passes through to cleaners, unless you agreed to that.
Are Setup Fees Normal?
Some managers charge them, some do not. Ask what you get for it and whether it is refunded if the contract ends early.
Does the Management Fee Replace the Airbnb Fee?
No. Platform fees and management fees are separate. Ask whether the manager's percentage is calculated before or after the platform fee.
