The Airbnb phenomenon has taken Australia by storm, with more and more property owners embracing the short-term rental market. However, managing an Airbnb listing can be a daunting task, leading many hosts to seek the services of professional property managers.
Understanding the fees associated with these services is crucial for making informed decisions. To make an informed decision, one question needs to be answered first: how much do Airbnb property managers charge?
What Is an Airbnb Property Manager?
An Airbnb property manager is a professional service provider that handles various aspects of running a short-term rental property. Their responsibilities typically include:
- Creating and optimising listings
- Communicating with guests
- Coordinating cleanings
- Ensuring compliance with local regulations
By outsourcing these tasks, hosts can enjoy a more hands-off approach to their Airbnb business.
Fee Structures
Airbnb property managers employ various fee structures to suit different hosting needs:
- Percentage-based fees (e.g., 20% of rental income)
- Fixed monthly fees (especially for long-term rental arrangements)
- Hybrid models (combination of percentage and fixed fees)
Understanding Airbnb Property Management Fees in Australia
When it comes to Airbnb property management fees in Australia, there are two main structures you’ll encounter:
1. Percentage-based Fees
This is the most common type of fee structure for Airbnb property managers. They take a percentage cut of your rental income, typically ranging from 20% to 40%. The exact percentage will depend on several factors we’ll discuss later.
Pros
- Aligned Interests: Managers have a vested interest in maximising your occupancy and rental income because their fee is directly tied to it.
- Scalability: Fees automatically adjust based on your rental income, meaning you pay more when your property performs well.
Cons
- Higher Fees During Peak Seasons: When your property is booked solidly, you’ll be paying a larger portion of your income in management fees.
- Potential for Lower Quality Service: Some managers might prioritise high occupancy over guest experience to maximise their cut.
2. Fixed-rate Fees
Under this structure, the property manager charges a set fee per month, regardless of how many nights your Airbnb is booked.
Pros
- Predictable Costs: You’ll know exactly what you’re paying each month, making budgeting easier.
- Potential for Cost Savings During Low Seasons: Even if your property sits vacant for some time, you’ll still pay the same management fee.
Cons
- Less Incentive for High Occupancy: Since the manager gets paid the same regardless of bookings, they might not put as much effort into maximising occupancy.
- Potentially Higher Costs Overall: If your property has high occupancy, you might end up paying more overall compared to a percentage-based fee.
Choosing the Right Fee Structure
The best fee structure for you depends on your individual circumstances. Here are some things to consider:
- Your risk tolerance: Are you comfortable with fluctuating costs based on occupancy (percentage-based) or prefer predictability (fixed-rate)?
- Expected occupancy: If you anticipate high occupancy rates, a percentage-based fee might be more cost-effective.
- Level of service: Some fixed-rate packages might have limitations on included services compared to a percentage-based fee with a higher tier.
It’s important to carefully compare the services offered under each fee structure before making a decision.
Average Airbnb Property Management Fees in Australia
In Australia, Airbnb property managers typically charge between 15% and 25% of the rental income as their fee. Here are some examples from popular property management companies:
| Company | Location | Fee Structure |
| MadeComfy | Sydney, Melbourne | 20% commission on bookings |
| Airbnb Rental Managers | Brisbane | 16% management fee, plus additional costs for cleaning and linen services |
| Airkeeper | Perth | 10% commission + $99 monthly fee (within 20km of city centre) |
Factors Affecting Airbnb Property Management Fees in Australia
The cost of hiring an Airbnb property manager in Australia isn’t a one-size-fits-all situation. Several factors can influence the fees you’ll be charged. Let’s delve deeper into these factors:
1. Location
- Metro vs. Regional: Fees are generally higher in metropolitan areas like Sydney and Melbourne due to a more competitive market and potentially higher property values. There might be more demand for property management services in these areas, allowing managers to command a premium.
- Tourist Popularity: Locations popular with tourists might see higher fees as managing short-term rentals can be more work compared to long-term tenancies.
2. Property Type and Size
- Size Matters: Larger properties with more bedrooms and bathrooms naturally require more time and effort to manage, leading to potentially higher fees.
- Unique Features: Properties with amenities like pools, spas, or pets allowed might require additional management considerations and incur higher fees.
3. Level of Service
This is a major factor influencing cost. Here’s a breakdown of common service levels:
- Full-Service Management: This is the most comprehensive package, handling everything from listing creation and guest communication to cleaning, linen changes, maintenance coordination, and guest amenities. Expect to pay the highest percentage or fixed fee for this level of service.
- Mid-Service Management: This offers a middle ground, with the manager handling some aspects like guest communication and listing management, while you might be responsible for cleaning or maintenance coordination. Fees for this tier typically fall somewhere in the middle.
- Basic Service Management: This is the most basic option, often focusing solely on listing creation and guest communication. The responsibility for cleaning, guest amenities, and maintenance falls on you. This tier will have the lowest fees.
It’s also worth checking licencing, more about this can be found here on whether a property manager needs to be licenced.
4. Rental Income Potential
Some property managers might offer a sliding scale for percentage-based fees. This means they might charge a lower percentage for properties with a higher potential rental income. The logic behind this is that the manager benefits from a larger overall income even with a lower percentage cut.
Remember: It’s always best to get quotes from several property managers to compare their fee structures and the services included for each level. This will help you find the best fit for your needs and budget.
Tips for Minimising Airbnb Property Management Fees in Australia
Keeping your Airbnb property management fees in check can significantly improve your rental income. Here are some strategies to consider:
1. Negotiation is Key
Don’t be afraid to negotiate the fees, especially if you have multiple properties under the same manager’s care. Property managers are often willing to offer a discount for managing a larger portfolio. Explain your situation and highlight the potential for them to earn a consistent income from your properties.
2. Consider a Mid-Service Package
If you’re comfortable handling some tasks yourself, a mid-service package can be a good cost-saving option. For instance, you could manage cleaning arrangements or basic maintenance issues while the property manager takes care of guest communication, listing management, and potentially linen changes. This way, you avoid the highest fees associated with full-service management.
3. Shop Around and Compare Quotes
Don’t settle for the first quote you receive. Get quotes from several reputable Airbnb property managers in your area. Carefully compare the services offered under each fee structure. Some managers might offer a lower percentage for a similar level of service compared to others.
4. Highlight Your Property’s Strengths
If your property is well-maintained, in a desirable location, or has features that make it easy to manage (like keyless entry), emphasise these points during negotiations. Managers might be more willing to offer a lower fee if they believe your property is less work to handle.
5. Be Clear About Your Needs
Clearly communicate your expectations and the level of service you require. This will help managers tailor their quotes and avoid misunderstandings down the line.
6. Read Reviews and Check References
Research the reputation of potential property managers by reading online reviews and checking references. This can help you avoid companies with a history of poor service or hidden fees.
Read more on if you can be your own property manger.
Conclusion
Navigating the world of Airbnb property management fees in Australia can be complex, with a range of factors influencing the costs.
By understanding the typical fee ranges, fee structures, and the services offered by property managers, hosts can make informed decisions that align with their individual needs and budgets.