What should I look for in an Airbnb management service contract?

The fees charged by Airbnb management companies can vary widely, depending on the level of service provided, the location of the property, and other factors. You might encounter fixed-rate fees, which are charged on a monthly basis regardless of the number of booked nights.

Alternatively, you may be charged commission-based fees, as is the case with Stayful. These fees are typically charged as a percentage of the rental income, which aligns with the service’s interests of maximising your occupancy and nightly rate.

You may also be charged a combination of both. Additional fees can include setup fees, cleaning fees, and premium service fees, like professional photography or specialised marketing.

The service scope should be detailed enough to cover all responsibilities and tasks the management company will handle. This can range from guest communication, booking management, housekeeping, and maintenance to pricing strategy and marketing.

Each service should be clearly defined to prevent any ambiguity. The clearer the scope, the fewer misunderstandings in the future.

The typical contract for Airbnb property management services in the UK is one year. However, it can vary depending on the specific property and the owner’s needs. Some contracts may be shorter, such as six or three months, while others may be longer, such as two or three years.

Longer contracts are more common if the management company has invested heavily in marketing or property improvements.

Flexibility largely depends on the company. Some might be open to negotiations, while others might have standardised contracts. Larger firms might have less flexibility than smaller, more localised services looking to attract new clients.

Yes, many management companies will be willing to accommodate additional services, though these may come at an added cost. It’s essential to discuss these beforehand and have them incorporated into the contract or provided as an addendum. Documenting them in writing will help avoid potential disputes in the future.

Do your research on prevailing market rates, and be clear about what services you value most. Understanding the management company’s value proposition and comparing it to others in the market will give you leverage in negotiations.

Openly discuss your budget and any potential discounts, especially if you’re bringing multiple properties or a long-term commitment to the table.

Typically, contract renewals or revisions occur at the end of the contract term, be it annually or biannually. However, some contracts may have clauses that allow for mid-term revisions, particularly if both parties agree. It’s important to be aware of any automatic renewal clauses and the notification period required for changes or termination.

A consolidated contract can streamline the management process, offering a holistic view of all properties under one agreement. It could also potentially offer volume discounts. However, separate contracts might be beneficial if the properties have distinct needs, if they’re located in different areas with separate local management teams, or if you wish to test the service’s performance on a single property before committing others.

Look out for:

Automatic renewal clauses that might lock you in without explicit consent.

Ambiguous fee structures that don’t clearly outline all potential charges.

Clauses that impose high penalties for early termination.

Restrictive dispute resolution clauses that might limit your recourse options.

Any waiver of rights or liabilities that heavily favour the management company.

Review the contract’s termination or cancellation clause for guidance. Typically, you’ll need to provide written notice, adhere to any notice period specified, and potentially pay any associated penalties. Always communicate openly with the company and ensure all obligations on both sides are fulfilled upon termination to avoid disputes.