If you are thinking about letting a property in London or elsewhere in the UK as a short let, the management fee is one of the first questions you will ask. This guide explains how property management fees in the UK and London are usually structured, what a fee should include, which costs sit on top of it, and how to compare quotes fairly.
How Short-Let Management Fees Are Usually Charged
Most short-let and Airbnb management companies in London and across the UK charge a percentage of the income your property earns, rather than a fixed monthly fee. If the property earns nothing in a month, the manager earns nothing either, so your interests are aligned.
The two numbers to check in any quote are the percentage itself and what it is a percentage of:
- Gross booking revenue: the total the guest pays for the stay, sometimes including cleaning fees.
- Net rental income: the room revenue after items such as cleaning fees or platform charges are taken out.
The same headline percentage can cost you noticeably more if it is charged on gross revenue rather than net income, so always ask.
Why Published Fees Are Hard to Compare
Few managers publish their full pricing, and those that do rarely quote like for like. One company’s rate may be a percentage of gross booking revenue, including cleaning fees, while another’s is a percentage of net income after platform and cleaning costs. Some quote a lower headline rate and then charge separately for onboarding, photography, linen, restocking or each reservation.
That means two quotes with the same percentage can leave you with very different income. The fair comparison is what you are likely to keep each month after every fee and cost, which is why a projection for your specific property is more useful than a headline rate.
What the Management Fee Should Include
A full-service fee normally covers the day-to-day running of the let:
- Listing creation and optimisation on Airbnb, Booking.com and other platforms
- Dynamic pricing, so nightly rates follow demand and London events
- Guest communication, check-in and guest vetting
- Arranging cleaning and linen between stays
- Coordinating maintenance and handling issues during stays
- Tracking nights against London’s 90-night rule
- Regular reporting on bookings, income and costs
Costs That Often Sit Outside the Fee
When you compare quotes, ask which of these are included and which are charged separately:
- Cleaning and linen: usually paid by the guest through a cleaning fee, but check who keeps any difference.
- Onboarding or setup: photography, a deep clean, linen and amenities before the first guest.
- Maintenance and repairs: the work itself is normally charged at cost, sometimes with a handling fee.
- Platform fees: Airbnb and Booking.com take their own service fees, which affect what reaches you.
- Utilities, broadband, council tax and insurance: usually the owner’s cost.
- Consumables: toiletries, tea and coffee, cleaning supplies.
How to Compare Quotes Fairly
- Ask for the percentage and what it is charged on: gross or net.
- Ask for a list of everything charged on top, including setup.
- Ask how they plan to handle the 90-night rule for your property. A plan that mixes short lets with longer serviced accommodation stays can keep a property earning all year.
- Ask for a written income projection for your property, not an area average.
- Check the notice period and whether there is a minimum term.
How Ichiban Stays Charges: Two Ways to Work With Us
Every landlord is different, so we offer two options. There are no upfront fees and no setup costs with either, and we set out the figures for your property in writing alongside your free income projection, before you commit to anything.
Option 1: Guaranteed Rent
You hand the property to Ichiban Stays and we pay you an agreed rent every month, whether or not the property is booked. We run the property day to day, so you get a predictable income without dealing with guests, bookings or empty nights. This suits landlords who value certainty over the highest possible return. Read more about guaranteed rent.
Option 2: Fully Managed
You keep the rental income and we manage everything for a performance-based fee: a percentage of the rental income your property earns. When your property earns more, we earn more, and if a month is quiet, so is our fee. This suits landlords who want the higher income potential of short lets without the work. The fee covers the full service:
- Listings on Airbnb, Booking.com and other platforms
- Dynamic pricing with PriceLabs, reviewed by your dedicated manager
- Guest vetting, communication and check-in
- Cleaning, linen and turnover coordination between stays
- Maintenance coordination and regular property checks
- Compliance support and a clear monthly statement
Not sure which suits you? In your free consultation we will show you what your property could earn under each option, so you can compare them side by side. With either option, check that your mortgage, lease and insurance allow the arrangement.
Learn more about our property management in London, our Airbnb management, or how short-term let management works. We manage properties across the UK, from Notting Hill and Mayfair to cities nationwide.
Frequently Asked Questions
What is a typical Airbnb management fee in London?
Most managers in London and the rest of the UK charge a percentage of the income your property earns. Rates vary between providers and depend on whether the fee is charged on gross or net income and what it includes, so compare the income you would keep rather than the headline rate.
How much does Ichiban Stays charge?
You can choose guaranteed rent, where we pay you an agreed rent every month, or full management for a percentage of the rental income your property earns. There are no upfront fees with either, and we confirm the figures in writing with your free income projection.
What is guaranteed rent?
Ichiban Stays takes on the running of your property and pays you an agreed rent every month, whether or not it is booked, so your income is predictable.
Are there upfront fees for property management?
Some managers charge onboarding or setup costs. Ichiban Stays has no upfront fees to get started.
Is a higher fee ever worth it?
It can be, if better pricing, higher occupancy or fewer empty nights more than cover the difference. Judge a manager on the income you are likely to keep, not just the percentage.
Get a Free Property Assessment
Book a free, no-obligation consultation, call +44 7572 190291 or message us on WhatsApp. We will tell you what your property could realistically earn and exactly how our fees work.
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