Property Management Pricing & Fees
TL;DR
At a high level, here’s how it works:
- Guests pay a sum of money to Airbnb, Vrbo, or whatever platform they booked on
- Airbnb deducts Service Fees and pays the rest to Savvy
- Savvy uses this money to pay all necessary parties involved, including contractors, government departments, and suppliers just to name a few
- Savvy charges a vacation rental property management fee for its services, then pays the remaining money (known as “Net Profit”) to the Owner
- The Owner then pays mortgage, property taxes, and utilities
- This is how the cash flows for a typical Airbnb reservation. There are slight variations but this covers the gist of things. For example, in some markets, Airbnb will remit taxes directly to the city instead of the property manager (i.e. San Francisco).
What Guests Pay
Guests are responsible for paying various charges based on where they’re staying and how they’re booking. In most cases, these charges include but are not limited to:
- Rent
- Cleaning
- Credit Card Processing
- Insurance
- Taxes
One thing to keep in mind is that what the guest pays to Airbnb is NOT what you (or we) receive on the other end. There’s lots going on from the time the guest makes the payment and you get paid…
Since Savvy does full trust accounting, we’ll actually collect all the income and manage the money in such a way that the funds get distributed appropriately based on who’s owed what (for example, paying tax monies to the proper jurisdictions).
What We Charge
At Savvy VRM, we pride ourselves on simple, straightforward pricing that’s honest, fair, and easy to understand. That’s why we offer one flat rate for full-service Airbnb management through a revenue-share model that ranges between 20-30% (depending on the type and location of your property).
What You Earn
At the end of the day, you earn all the profit that remains after making sure that (a) the guests are taken care of, and (b) the property is taken care of. Since short-term rental investment properties are kind of like a micro hotel business, you have to make sure your operating and financial plans consider the longevity of the investment.
Once a month, you’ll receive your earnings straight to the bank account of your choice. Then you use that money to pay the mortgage and utilities. When done right, you’re left with cash in your pocket and essentially a free vacation home that you can not only use whenever you want but also one that prints money.
Here’s what that might look like on your monthly statement:
Get in Touch
One of the great things about being a smaller company is that we have a more personal connection with our owners and guests. There’s no robotic call-routing, no account reps or corporate hierarchies to navigate, just real people doing real work—and having lots of fun along the way! Whether you want us to manage your home, or you just want to stay at one, we’re here for you. Get in touch today and let know how we can help.
