If you’re considering turning a property into serviced accommodation, one of the first questions you’re likely to ask is:
How much does Airbnb management actually cost?
The answer varies considerably. Across the UK, management companies use different fee structures and offer very different levels of service. More importantly, the cheapest management fee doesn’t necessarily mean the best return for the property owner.
Here’s what you need to know.
What Does Airbnb Management Typically Cost in the UK?
Airbnb and serviced accommodation management companies will commonly charge a percentage of the booking revenue generated by your property.
Depending on the company and the level of service provided, management fees can vary significantly. Some companies offer relatively low headline rates, while others charge more for a comprehensive management service.
There can also be additional charges for services such as guest communication, cleaning coordination, listing creation, photography, dynamic pricing, maintenance coordination, linen and laundry, check-ins, software and booking systems.
This makes it important to look beyond the headline percentage when comparing management companies.
What Does an Airbnb Management Company Actually Do?
A good serviced accommodation management company should do considerably more than simply put your property on Airbnb and respond to guest messages.
Depending on the service, management can include creating and optimising listings, managing pricing, communicating with guests, coordinating cleaners and maintenance, managing reviews, dealing with problems during stays and continually working to keep the property’s booking calendar performing.
For many property owners, this is the main attraction of using a management company.
Serviced accommodation can potentially produce attractive returns, but it is also considerably more hands-on than a traditional rental property.
Airbnb Shouldn’t Be Your Only Source of Bookings
This is an important distinction when choosing a management company.
Although the term Airbnb management is commonly used, Airbnb is only one potential source of bookings for a serviced accommodation property.
At N And N Stays, our properties can receive bookings through major platforms such as Airbnb and Booking.com, but we also invest heavily in developing our direct-booking business.
We operate our own direct-booking website and actively market our accommodation outside the major booking platforms. This includes email marketing, Google, Facebook and other digital marketing activity, alongside building relationships and repeat business with contractors, companies and guests who need accommodation regularly.
Why does that matter?
Because every direct booking reduces the property’s reliance on third-party booking platforms.
It also means we’re not simply waiting for someone to discover a property while browsing Airbnb. We’re actively working to generate demand and build a customer base that can book with us directly.
Over time, repeat guests, company relationships and direct bookings can become an increasingly valuable part of a serviced accommodation business.
What Are You Actually Paying a Management Company For?
This is why comparing management companies purely on their percentage fee can be misleading.
You’re not simply paying somebody to answer messages.
A strong management service should be working on both sides of the business:
Operating the property — guest communication, cleaners, maintenance, reviews, problems, compliance processes and the everyday work involved in delivering a good stay.
Generating and maximising bookings — pricing, calendar management, listing optimisation, multiple booking channels, direct bookings, repeat business and marketing.
Ultimately, the important number for a property owner isn’t simply the management percentage.
It’s what you’re left with at the end.
Is a Lower Management Fee Always Better?
Not necessarily.
Imagine one manager charges 10% but produces £2,500 per month in booking revenue.
Another charges 15% but produces £3,500.
After the management fee:
10% manager: £2,250 remaining
15% manager: £2,975 remaining
Despite charging the higher percentage, the second manager has left the owner £725 better off before other property costs.
Of course, real property performance involves other costs too, but the example illustrates an important point.
Pricing strategy, occupancy, average nightly rate, booking length, operating costs and the ability to generate bookings can have a much greater effect on an owner’s return than a small difference in management percentage.
How Does N And N Stays Charge for Management?
Our management service is generally charged as a percentage of the booking revenue generated by the property.
We’ll explain our current management fees and any other applicable costs when we assess your property, so you understand how the figures work before deciding whether to proceed.
Our aim is to operate the property professionally while allowing the owner to remain as hands-off as possible.
There will naturally be other costs involved in operating serviced accommodation, such as cleaning, linen, maintenance and booking platform charges.
We believe owners should understand the complete financial picture rather than simply being shown an attractive headline revenue figure.
What Should You Ask a Serviced Accommodation Management Company?
Before appointing anyone, it’s worth asking some important questions.
Do they rely primarily on Airbnb?
Which other booking platforms do they use?
Do they have their own direct-booking website?
Do they invest in marketing?
Do they actively target contractor and corporate stays?
How is pricing managed?
Who deals with guests when something goes wrong?
How are cleaners and maintenance managed?
How do they encourage repeat business?
And importantly, does the management company have experience actually operating serviced accommodation themselves?
Understanding how a property performs in the real world is very different from simply creating an Airbnb listing.
Is Airbnb Management Worth Paying For?
That depends largely on how involved you want to be.
Self-management can save the management fee, but you’re effectively taking on another job. Guests can message at any time, cleaners need coordinating, prices need adjusting, maintenance problems occur and gaps in the calendar need managing.
Then there’s the work required to actually generate bookings.
For owners who enjoy doing all of that themselves, self-management can make sense.
For owners who want the potential benefits of serviced accommodation without handling the day-to-day operation and marketing, professional management can be a very different proposition.
Thinking About Using Your Property for Serviced Accommodation?
N And N Stays manages serviced accommodation across Bath, Bristol, Swindon, Cardiff, Newport, Swansea and surrounding areas.
We have particular experience with contractor, corporate and longer-stay bookings alongside the leisure market, and we’re continually investing in our direct-booking operation and marketing.
If you already own a property — or you’re considering purchasing one for serviced accommodation — we can look at the property, its location and likely demand before discussing whether serviced accommodation is genuinely a good fit.
Not every property should be serviced accommodation, and we’d rather tell you that before you make the investment.
If you’d like to find out what your property could potentially achieve as serviced accommodation, get in touch with N And N Stays for an initial assessment.
Get in touch with N And N Stays for a free, no-obligation property assessment and discover whether serviced accommodation could work for your property.
Call us on 01225 595686
WhatsApp us: 07869 362439
Email: info@nandnstays.co.uk