Demystifying Costs: How Much Do Short Term Rental Property Managers Charge in Australia?

Living room with calculator, signifying rental management costs

Investing in a short-term rental (STR) property can be a lucrative venture, but managing it effectively requires time, effort, and expertise. This often leads property owners to a crucial question: how much do short term rental property managers charge? Understanding these costs is vital for calculating your potential return on investment and making an informed decision.

While fees can vary, a common benchmark for full-service short term rental property management fees in Australia typically ranges from 20% to 40% of the gross rental income. Many owners find that a figure around the 30% mark is often quoted, but it’s essential to understand what’s included in this percentage and what factors can influence the final cost.

What’s Typically Included in STR Management Fees?

When a short term rental property manager quotes a percentage, it usually covers a comprehensive suite of services designed to make your hosting experience hands-off. These often include:

Listing Management & Marketing: Creating compelling listings on platforms like Airbnb, Stayz, Booking.com, professional photography, and marketing your property.
Dynamic Pricing: Adjusting nightly rates based on demand, seasonality, local events, and competitor pricing to maximize revenue.
Guest Communication: Handling all inquiries, booking confirmations, pre-arrival information, and in-stay support, often 24/7.
Check-in & Check-out: Managing guest arrivals and departures, including key exchanges or smart lock management.
Cleaning & Linen Services: Coordinating professional cleaning between stays and managing linen turnover. (The cost of cleaning itself is usually passed on to the guest or owner, but the management of it is included in the fee).
Property Maintenance: Arranging for minor repairs and coordinating quotes for larger jobs.
Restocking Essentials: Ensuring guest amenities (toiletries, coffee, tea) are replenished.
Financial Reporting: Providing owners with regular statements of income and expenses.

Factors Influencing Short Term Rental Management Fees

Several factors can affect the percentage a property manager charges:

Scope of Services: Some companies offer tiered packages or à la carte services, which can alter the fee. A full-service model will naturally be at the higher end.
Property Location & Type: Management fees in high-demand urban or popular holiday destinations might differ. The size and type of your property can also play a role.
Booking Volume & Occupancy Potential: Properties with higher earning potential might sometimes secure slightly more competitive management rates.
Additional Services: Services like initial property setup, interior design consultation, or handling complex compliance issues might incur extra charges or a higher percentage.

Understanding Value Beyond the Percentage

It’s tempting to simply opt for the lowest property management commission rate, but this can be shortsighted. As we discussed in our guide to finding the best short term rental property management companies, the cheapest option isn’t always the most profitable. A slightly higher fee might be justified by superior marketing, higher occupancy rates, better guest reviews, and proactive maintenance that protects your asset.

The true value lies in the net return you receive, the peace of mind, and the time you save. An experienced manager who can consistently achieve higher nightly rates and occupancy can easily make up for a higher commission.

Maximising Your Returns: The Impact of Property Presentation

Regardless of the management fee, the inherent appeal of your property plays a massive role in its earning potential. A beautifully presented property, much like the luxury staging we provide for display homes, can command higher nightly rates and attract more bookings. This increased revenue can more than offset management costs and improve your overall profitability.

At Airletto, we understand that exceptional presentation is key to unlocking a property’s full financial potential. While we focus on preparing homes for sale and display, the principles of creating an inviting, aspirational space are directly transferable to attracting premium short-term rental guests.

When considering how much short term rental property managers charge, view it as an investment in your property’s success and your own time. Do your due diligence, ask detailed questions about what’s included, and consider how the manager will contribute to maximizing your income. And don’t forget, a stunningly presented property makes their job easier and your returns greater.