Choosing the Right Management Fee Structure

Understanding the Three Fee Models

Vacation rental management companies use three primary fee structures. Each has genuine advantages and trade-offs. Understanding the differences helps you evaluate proposals and compare apples to apples.

1. 1Percentage-based: The manager takes a percentage (typically 20–30%) of gross booking revenue. This is the most common model and the one STAY49 uses. The manager's income is directly tied to your revenue — they only earn more when you earn more.
2. 2Flat fee: The manager charges a fixed monthly fee regardless of how many bookings or how much revenue the property generates. Less common in full-service vacation rental management, but used by some companies — particularly in markets with very stable demand.
3. 3Hybrid: A combination of a lower percentage fee plus additional charges for specific services (cleaning coordination, maintenance management, linen service, etc.). The headline percentage is lower, but total cost can exceed a straightforward percentage model.

There's no universally "best" model — but for Point Roberts' seasonal market, where revenue swings significantly between summer and winter, a percentage-based model is generally the most owner-friendly structure. Here's why.

The Percentage-Based Model (And Why We Use It)

At STAY49, we charge a percentage of gross booking revenue. This means our fee scales directly with your income. When you have a great summer month, we earn more. When January is quiet, we earn less. Our incentives are perfectly aligned with yours — we are financially motivated to maximize your revenue, optimize your pricing, and keep your calendar full.

• Incentive alignment: We only prosper when you prosper. A flat-fee manager earns the same whether your property books $2,000 or $8,000 in a month — they have no financial incentive to push for more.
• Seasonal fairness: In Point Roberts, a flat monthly fee would overcharge you in the slow winter months (when revenue is low) and undercharge during peak summer (when the management workload is heaviest). A percentage fee naturally adjusts.
• Transparency: Your statement shows gross revenue and the management percentage. The math is simple and verifiable. No ambiguity about what you're paying.
• Risk sharing: If your property has an unusually slow month (bad weather, personal use, maintenance closure), a percentage fee drops proportionally. A flat fee doesn't — you pay the same regardless.

What Should Be Included (And What's Often Extra)

The single most important question when evaluating a management fee isn't "what's the percentage?" — it's "what's included?" A 20% fee that charges extra for a dozen services can cost more than a 28% fee that's truly all-inclusive.

Here's what full-service management should include — and what some companies charge extra for:

• Should be included: Listing creation and optimization, professional photography coordination, dynamic pricing setup and management, guest communication (pre-booking through checkout), booking management, cleaning coordination, financial reporting, and owner support.
• Often included: Review management, basic maintenance coordination, linen management, guest supplies restocking, and lodging tax remittance.
• Sometimes extra: Emergency maintenance response, deep cleaning, seasonal property preparation, annual photography refresh, and marketing beyond standard platforms.
• Always separate: Actual cleaning costs (paid to the cleaning team), maintenance and repair costs (materials and labor), supplies and consumables, and insurance premiums. These are property costs, not management fees.

How to Evaluate Management Proposals

When you're comparing management companies, the goal is to understand total cost and total value — not just the headline fee. Here's a framework for evaluating proposals side by side:

1. 1Request a complete fee schedule: Every fee, charge, and cost you could possibly incur. If they can't provide this, that's a red flag.
2. 2Calculate total annual cost: Use a realistic revenue projection (we can help with this) and calculate total management costs under each proposal — including all fees, not just the percentage.
3. 3Evaluate what's included vs. extra: Map each proposal's services against the "should be included" checklist above. Companies with lower headline fees but more exclusions may cost more in practice.
4. 4Ask about revenue performance: What's their average revenue per comparable property? Average occupancy? Average daily rate? A manager who generates 15% more revenue easily justifies a higher fee.
5. 5Check references: Talk to current owners managed by each company. Ask about communication quality, responsiveness, property condition, and financial transparency.
6. 6Understand the contract: What's the term? What's the cancellation policy? Is there a lock-in period? Can you block personal use dates freely?

STAY49's Management Plans

We offer tiered plans because different owners need different levels of involvement. All plans include the same core platform — dynamic pricing, guest management, cleaning coordination, and financial reporting. The difference is the depth of additional services.

• Essentials (20%): Full-service management with all core features. Ideal for owners with newer properties in good condition who don't need extensive maintenance coordination.
• Plus (25%): Our most popular plan. Adds proactive maintenance management, seasonal property preparation, enhanced reporting, and priority support. Best fit for most Point Roberts properties.
• Premier (30%): White-glove service for owners who want zero involvement. Includes everything in Plus, plus annual property refresh coordination, furnishing recommendations, and dedicated account management. Ideal for Canadian owners managing entirely from across the border.

No hidden fees. No cleaning coordination surcharges. No technology fees. No lock-in contracts. Our management percentage is our management percentage — simple, transparent, and aligned with your success.