Making Sense of the Rental Boom

Hello there. If you own a short-term rental property, you know it’s become quite the business! What used to be about renting out a spare room has turned into a major part of how people travel and invest. Think about it – platforms like Airbnb have helped hosts earn billions. It’s impressive, but it also means managing a rental property isn’t as simple as it once was.

Keeping up with bookings, guests, cleaning, and local rules takes a lot of work. That’s why many owners, especially those who live far away or have several properties, turn to professional property managers. These companies promise to handle the hard parts, use their know-how to boost your income, keep guests happy, and let you step back a bit.

But choosing the right manager is a big decision, especially when it comes to cost. Fees and services can look very different from one company to the next. Just looking at the main percentage they charge doesn’t tell the whole story. Many other costs can pop up. Let’s walk through what you need to know to make a smart choice.

What Do Property Managers Actually Do?

Think of a property manager as your partner in running your rental. They offer different services, usually covering these main areas:

• Getting Bookings: This is job number one – bringing in guests. They’ll create attractive listings with great photos, make sure people find your property online (like on Airbnb, Vrbo, Booking.com), and use smart pricing tools that adjust rates based on demand, aiming to get you the best income. They handle the booking process, too.
• Taking Care of Guests: Happy guests leave good reviews! Managers often handle all communication, answering questions before, during, and after the stay, sometimes around the clock. They might also screen guests and manage check-ins/outs.
• Keeping Your Property Running: A well-kept property is key. Managers often coordinate cleaning between stays and handle regular maintenance or unexpected repairs. They might also restock basics like soap and coffee. Some even use smart home gadgets (like locks or thermostats) to help things run smoothly.
• Handling the Money: Managers usually process guest payments and deal with lodging taxes, which can be tricky. They should also give you an easy way to see how your property is doing, like an online dashboard with booking info and financial reports.

Full Service vs. Marketing Help: What’s the Difference?

This is a really important distinction. Managers generally fall into two camps:

1. Full-Service Managers: These companies aim to do almost everything for you. From marketing and guest communication to cleaning and maintenance, they handle the day-to-day. It’s designed to be a hands-off experience for you. Because they do more, they charge more – often between 15% and 35% (or even more) of your rental income. Big names here include Vacasa, Awning, SkyRun, and Casago. They often have local teams to manage things on the ground.
2. Partial-Service (or Marketing-Focused) Managers: These companies focus mainly on getting you bookings. They excel at listing your property, using smart pricing, and handling reservations. However, you (the owner) are responsible for arranging and managing the on-site things like cleaning, maintenance, restocking supplies, and dealing with guest issues during their stay. Because you do more of the hands-on work, their commission is lower, usually around 10% to 15%. Evolve and RedAwning (with their basic plans) are well-known examples.

Watch Out for Extra Costs!

Here’s something I always stress: the main fee (that commission percentage) is rarely the total cost. Many other charges can add up. Be sure to ask about:

• Setup Fees: Some charge a one-time fee to get your property set up in their system, take photos, etc. This can range from $0 to over $1,000.
• Cleaning Fees: Guests usually pay this, but if you stay at your property, you’ll likely have to cover the cleaning cost afterwards.
• Maintenance & Repairs: Costs for fixing things or regular upkeep (like lawn care) are usually passed on to you, sometimes with an extra service charge.
• Supplies: Restocking toilet paper, soap, coffee, etc., might be an extra charge.
• Special Insurance: Your regular homeowner’s insurance probably isn’t enough. You’ll need specific short-term rental insurance, which is a separate cost. Some managers might offer basic damage protection included in their fee, but full insurance is typically on you.
• Credit Card Fees: Those 3-5% processing fees on guest payments might be passed directly to you.
• Other Fees: Depending on the company and your property, you might see fees for deep cleaning, pool/hot tub care, or even penalties if you end your contract early.

Key Takeaway: Always read the contract carefully and ask detailed questions about all potential fees to understand the true cost.

How Do Managers Charge? Understanding the Models

Besides the Full vs. Partial service difference, companies structure their main fees in a few ways:

• Commission-Based: (Most common) The manager takes a percentage of the rental income.
  • Pros: They are motivated to earn you more money. Your costs are lower when bookings are slow.
  • Cons: Costs aren’t fixed, making budgeting harder. You share more of the profit during busy times. Make sure you know exactly what revenue they take the percentage from (is it before or after things like cleaning fees and taxes?).
• Flat-Fee: You pay a fixed amount each month, no matter how much income the property brings in.
  • Pros: Predictable costs. You keep all the extra income during peak times.
  • Cons: You pay even if the property is empty. The manager might have less incentive to maximize bookings. The base fee might cover very few services, with lots of extras adding up. (This model seems less common for the big STR specialists).
• Hybrid/Tiered: These mix models (like a small flat fee plus a lower commission) or offer different service levels (Basic, Premium) at different prices. Evolve and RedAwning use tiered models, letting you choose more services for a higher commission (e.g., Evolve’s 10% Core vs. 15% Plus plan; RedAwning’s 10% Essential up to 25% Full Service).
  • Pros: Can offer a balance of predictability and incentive. Lets you pick (and pay for) only the services you need. More flexible.
  • Cons: Can be complicated to compare offers. Total cost requires careful calculation.

Comparing Some of the Big Names

Let’s look again at how some leading companies fit these models. It helps to see them side-by-side. Remember, fees and exact services can vary, so this is a general guide based on typical offerings:

Company	Primary Model(s)	Typical Fee Range	Service Level	Key Services Included (Base/Core)	Key Owner Responsibilities (Base/Core)
Vacasa	Commission (Full Service)	~25% – 35%	Full Service	Marketing, Dynamic Pricing, Cleaning, Maintenance, 24/7 Support, Tax/Permit Help, Local Teams	Minimal (Major upkeep beyond routine)
Evolve	Commission (Partial)/ Tiered	10% (Core), 15% (Plus)	Partial (Core)	Marketing, Dynamic Pricing, Booking Mgmt, Guest Support (Booking/Pre-Stay), Partner Network Access, Damage/Liability Protection	Arrange/Manage Cleaning, Maintenance, On-Site Issues
Awning	Commission (Full Service)	Starts 15% – 20%+	Full Service	Marketing, Dynamic Pricing, Guest Comms, Cleaning/Maintenance Coordination, Reporting	Minimal (Major repairs, Furnishing/Design costs)
SkyRun	Commission (Full Service)	~15% – 20%+	Full Service	Marketing, Revenue Mgmt, Maintenance Programs, Cleaning, 24/7 Support, Tax/Permit Help	Minimal (Major upkeep beyond routine)
Casago	Commission (Full Service)	Varies by Location	Full Service	Marketing, Guest Mgmt, Cleaning, Maintenance, Tax Filing, Inspections	Minimal (Major upkeep beyond routine)
RedAwning	Commission (Partial)/ Tiered	10% (Essential)+	Partial (Essential)	Broad Marketing, Dynamic Pricing, Reservation Mgmt, Payment Processing, Pre-Arrival Support, Damage Waiver	Arrange/Manage Cleaning, Maintenance, On-Site Issues

What Else Affects the Price Tag?

Beyond the company’s model, the final fee you’re quoted depends on:

• Location: High-demand areas (beaches, ski towns) often mean higher fees (20%-40%+) because there’s more work and more potential income. Less busy areas might have lower percentages but perhaps minimum monthly fees.
• Your Property: Larger homes or unique luxury properties usually cost more to manage. A simple condo might have a slightly lower fee than a house. If your property needs lots of repairs, expect to pay more or potentially be turned down.
• Services Chosen: As we’ve seen, more services mean higher fees. Full service always costs more than just marketing help.
• Income Potential: Managers might offer a slightly lower percentage for properties expected to earn very high revenue.

Making the Right Choice for You

Picking a property manager isn’t just about finding the lowest percentage. It’s about finding the right partner for your specific needs and property. Here’s my advice, based on years of analyzing these things:

1. Know Thyself (and Thy Property): How much time can you realistically spend? How close do you live? Are you good at managing cleaners and repairs? Be honest about how hands-on or hands-off you want to be. This helps you decide between partial and full service.
2. Do the Math: Look past the headline fee. Get a full list of all potential charges. Compare the total estimated annual cost from different managers against their income projections for your property. Don’t forget to factor in the value of your own time saved.
3. Dig Deeper: Talk to several managers active in your area. Check recent reviews and ask for references (and actually call them!). Read the entire contract before you sign. Ask questions until you are completely clear.
4. Check Their Tech & Reach: How good are their pricing tools? How many websites do they list you on? How easy is their owner dashboard to use? This affects your bottom line.
5. Understand the Exit: Check the contract length and what happens if you want to leave early. Are there penalties?

There’s no single “best” manager – the right fit depends on you. By doing your homework and understanding the true costs and services involved, you can find a partner who helps your short-term rental succeed.

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