Learn More About Our Vacation Rental Management Fees for Owners | Brett/Robinson

Property Management Fees for Vacation Rentals Info Guide

Renting out your vacation home can be a great way to offset costs and earn extra income when not using the property. It’s essential, however, to consider the short term property management fees and associated costs with such an endeavor.

While the management commission may seem straightforward at first glance, additional hidden fees and charges often add up if you aren’t careful to look into them in advance.

Key Factors Impacting Short-Term Property Management Fees

There are several key factors that influence the property management fees charged by different companies:

• Commission percentage - This is the main management fee, usually charged as a percentage of the rental amount. Commission rates can range from 10% on the low end to 40% or more at luxury full-service agencies.

• Unit tier pricing - Some companies charge higher commissions for the first unit or first few units, then decrease the percentage as you add more properties under management.

• Base fees - A monthly or annual base fee on top of commission fees. This covers fixed costs for activities like marketing and support.

• Payment processing fees - Expect fees in the 3-5% range to cover the processing of rental payments.

• Early termination fees - If you wish to exit a longer-term contract, look out for early termination penalty fees.

• Misc fees - Billable fees for tasks like extra cleaning, maintenance calls, etc can really add up.

• Taxes - Booking and management fees typically incur local/state taxes so factor this in.

As you can see, the headline commission percentage does not tell the full story when it comes to property management pricing. Make sure to understand the full fee structure before signing any long term contracts.

Airbnb and VRBO Fees

On vacation rental platforms like Airbnb and VRBO, hosts also pay a commission fee on each booking. Here's a look at their fee structures:

• Airbnb charges hosts a 3% service fee on the booking subtotal (nightly rate + cleaning/other fees). They also charge guests a variable booking fee of 0-20%.

• VRBO charges owners a subscription fee of $499 per year plus a 10% commission on the nightly rental rate only. Additional fees charged to renters may not be subject to the 10% commission.

While sites like these provide ample marketing reach, their commission structures are typically higher than local specialized property management agencies. The subscription and guest fees can also cut into profit margins for owners.

Brett-Robinson's Property Management Fees

Now let's look at the fee structure from Brett-Robinson, the premier provider of property management services on the Alabama Gulf Coast.

Our Commission Structure

• 18% commission on 1-2 units

• 17% commission on 3-4 units

• 16% commission on 5-9 units

• 15% commission on 10-19 units

• 14% commission on 20+ units

Our declining tiered structure provides incentives for owners listing multiple properties. The commission percentage is charged on the total rental amount plus any additional cleaning, pet fees, etc.

Brett-Robinson also charges a 3% payment processing fee on the full booking total including taxes and refundable security deposits.

While the headline commission rates are competitive, be sure to factor in the processing percentage on top of that. The tiered structure is a nice benefit for larger owners. Still, watch out for any base or misc fees that may be assessed.

Overall, Brett-Robinson provides a competitive commission structure in one of the most popular vacation rental markets in the Southeast US.

With over 40 years of experience, Brett-Robinson is the premier vacation rental company in the Alabama Gulf Coast area. Here are some key reasons to consider them for your property management needs:

• Free maintenance program - Brett-Robinson covers maintenance labor and only charges for parts/materials. This keeps costs low for owners.

• Superior marketing - Their data-driven digital and print marketing ensures your property gets maximum rental visibility.

• Optional commission programs - Owners can take advantage of "Bookings-By-Owner" rates for even lower commissions.

• 24/7 support - Experienced staff are available around the clock to assist renters and address any needs.

• Quick turnarounds - With in-house cleaning staff, they can turnover rentals incredibly fast. This reduces vacancy time.

• Revenue management - Their team works to maximize rental revenue across high and low seasons.

With our strong track record and full suite of services, Brett-Robinson is an excellent choice for optimizing your vacation property investment on the Alabama coast.

About Brett-Robinson Vacation Rentals

With over 40 years of experience, Brett-Robinson offers vacation rentals, homes, and condos throughout Gulf Shores and Orange Beach, Alabama. From large beach houses to cozy condos, they have options to accommodate groups and families of all sizes.

In addition to accommodation rentals, Brett-Robinson also offers a variety of entertainment and excursion options. Families can book dolphin cruises, deep sea fishing trips, professionally guided golf weekends, and even hot air balloon rides over the beautiful Alabama coastline.

Brett-Robinson's goal is to provide a complete and memorable beach vacation by pairing spectacular rentals with exciting activities for all interests and ages. Whether you're looking for a relaxing weekend getaway or an action-packed family trip, they have you covered.

The company also assists homeowners in joining their rental program if they purchase a vacation property in the area. By leveraging our extensive marketing reach and experienced support staff, we help owners generate optimal rental income. This provides a great opportunity for buyers looking to offset ownership costs when not personally occupying the home.