How to select an Airbnb / Holiday Let Management Company?

Two different companies could claim “full management”, yet have a very different level of effectiveness when measured by profit and overall performance. Needless to say, we come to realise that the income of a property sometimes relates directly to management.

The selection of the right management company, as important as it is, has turned out to be more important than most host/ landlords initially believe.

With long-term letting, rent is largely dictated by the market, and the involvement of the agents will be limited. In holiday letting, the same property may function differently depending on reviews, pricing strategy, guest communication, cleaning standards, and maintenance.

Here we explain how to effectively compare, what factors to focus on beyond the cost percentage and how to determine if the cost is reasonable for your property.

In short, it's rarely the case that the least expensive management company represents the best value. The key to knowing how to compare when it comes to management fees is to understand exactly what you're comparing.

In some holiday lets, the management fee is inclusive, and some will do it as a net percentage. Does it mean it is an entirely managed, hands-off service? Is the cleaning process and high-quality laundry and linen included? How flexible is the agreement if things do not go as planned?

A slight increase in fees with improved execution means that there will often result in higher net earnings, not less.

Not all “full management” offerings are the same. When researching different companies, it is essential to ask exactly what’s included.

Points that should be clarified are included, whether the guest communication (24/7 or only certain hours?) Involves dynamic pricing and revenue management? Takes care of the cleaning and quality control? Takes care of maintenance?Takes care of review management and responses?

And if these are billed separately, your actual cost is going to be way higher than the advertised fee.

Things to consider asking are: What will my average monthly income will look like after fees? Are cleaning/maintenance costs deducted at cost or with a markup? Are there onboarding or setup fees?

A 20% charged company that improves pricing, delivers great occupancy, and consistently delivers high reviews will easily beat a 12% option that delivers substandard performance.

Most management companies use one of the following pricing models or a combination:

The other element that also plays a critical role and is often ignored is the length of the contract. Always be cautious of the length and exit terms. It is often the case that companies will provide lower costs for the management fee but raise the cost associated with the exit.

Certain Airbnb management companies charge their management fee according to the contract length. A common example of a company that follows this approach is Houst. They allow a lower percentage to be charged to the host, depending on the commitment entered into.

At first glance, this seems like a good thing. It seems like a better deal when you dont have to pay as much for a headline. But it is important to be aware of what you are sacrificing in this situation. When it comes to hosting fees being dependent on the terms of contract flexibility is something that needs to be considered because if performance drops, exiting early may involve or trigger steep financial penalties. A lower fee doesn’t help if results aren’t there. A slightly higher fee on a flexible agreement can often be a better value than a discounted rate tied to a long contract.

Some companies (including Sykes and peers with multiple service packages) adjust fees by service tier, offering different levels of service. Hosts need to check exactly what’s included in each tier.

If it’s hard to understand the pricing now, it will be harder once the property is live.

Comparing different Airbnb management companies, hosts often get hung up on price and services offered. One of the clearest indicators of performance, however, is often overlooked: review scores across the company’s managed portfolio. Always ask to see examples of properties they manage and their average review scores, not just that one standout listing.

Review scores indicate what actually happens once guests arrive. They reflect cleanliness, communication, problem resolution, and consistency, all those areas which directly impact bookings, pricing power, and long-term returns.

A management company may tout competitive fees and lovely sales messaging, but if the reviews don’t support it, performance usually follows suit. A management company charging 20% with consistent, strong reviews will usually yield higher net income than a cheaper provider with poor guest experiences.

When comparing providers, question the vagueness of their explanations regarding pricing and no transparency regarding cleaning or maintenance costs. We sometimes note in some management companies steep fees for cleaning or significant maintenance charges.

One of the most significant and least considered aspects in the selection of a management company is who actually owns the performance.

There are lots of companies that discuss maximising revenue; however, it is not clear who is accountable for; If the bookings are down or reviews are not so great? In some models, a great deal of dependence is placed upon automated pricing systems. Which can be characterised by a “set it and forget it” strategy. Whenever performance suffers. It is primarily blamed on market conditions rather than actively addressed.

Many of these property management companies are not local, which means its is important to understand the location of these firms and who the host will deal with on a daily basis. The term “full management” does not always mean what the hosts want it to mean. The selection among the many choices available is another decision the host may not take seriously enough.

The nuance is easily overlooked, but it does have significant implications with regard to performance, communication, and overall experience.

Local management, as a rule, is led by an owner-operator and or a dedicated local team that manages a certain geographic area. Since they are intricately tied to the local market, they tend to have a stronger understanding of local demand, seasonal fluctuations, events, and pricing specifics of the market. They are also more likely to be aware of what is happening at the property, which is why they might act faster when problems occur and could be more accountable for outcomes such as reviews and occupancy.

It is typically well-suited for the host that values responsiveness, personal attention, and local knowledge. The fact that the same staff handle pricing, guest interaction, cleaning standards, and problem resolution means that there is active management rather than passive monitoring. Nonetheless, the service quality can be variable based on the local partner model.

National or centrally operated companies, on the other hand, usually manage a large portfolio of properties in different regions following a common set of systems and procedures. These providers often have the advantage of being large-scale with a recognisable brand. This type of setup usually feels reassuring to a host/ property owner. That said, national models can sometimes struggle with local nuance at times.

Before finalising, it’s worth considering who will be responsible for your property on a day-to-day level, who makes the final decisions regarding pricing, how local issues are handled, and the time frames for resolving problems. Answers to these questions often say a lot more than the question of price.

In looking for a holiday let management company to work with, most property owners pay considerable attention to the start of the process. However, significantly fewer consider the end. This is even though it could have consequential effects in terms of earnings and flexibility should the need arise.

Contracts and notice periods are only part of it. In reality, is that parting ways with a management company is often more complicated than some hosts expect. Ownership of listings, access to data, and handover timelines are factors that could influence how seamless the process is.

Before signing, it’s important to understand who retains key assets such as listing photos, descriptions, and guest reviews. In some cases, these are retained by the management company, meaning a host may need to start again when switching providers or returning to self-management. Calendar control is another common issue. Some agreements include blocked periods during handover, which can directly affect bookings and income.

Before committing, ask for a clear explanation of what happens at the end of the agreement, how long handover typically takes, and what support is provided during the transition. Understanding the exit process upfront is often just as important as understanding the management fee.

A quick conversation can help you understand what good management should actually deliver before you commit.