Owners ask this first because it determines everything else. The problem: fee structures look similar on the surface but behave very differently in practice. This guide clarifies every common model, what’s typically included, where the “gotchas” hide, and how to compare offers using a single metric: your Effective Take Rate (ETR). It also explains how Recreation’s pricing is built to be transparent and aligned.
Fee Models (What You’ll See in the Market)
Model
How it works
Where it’s used
Watchouts
Commission on Gross Rent (20–35%)
% of nightly rent before OTA/platform fees
Most STR managers
High % can still be fair if there are no hidden add‑ons; confirm inclusions
Commission on Net Rent
% after OTA fees deducted
Some STR managers
Sounds lower but the base is smaller; compare apples‑to‑apples
Flat Monthly Fee (per unit)
Fixed fee regardless of revenue
Urban/condo setups; light‑ops models
Off‑season risk: ETR can spike when revenue dips; check inclusions
Hybrid (Base + Commission)
Monthly retainer + % of rent
Mixed portfolios; boutique firms
Can mask higher all‑in cost once add‑ons are included
Revenue Share / Incentive on NOI or GOP
A % of profit in addition to (or instead of) a base % of revenue
Boutique hotels, larger STR assets
Definitions of “NOI/GOP” matter; expense control incentives can misalign
Per‑Booking / Co‑host Fee
Fixed $ or low % per reservation
Co‑hosts, light‑ops
Limited accountability for maintenance/compliance; variable quality
Master Lease / Guaranteed Rent
Operator pays fixed rent; takes upside/downside
Lease‑arbitrage operators
Not management; different risk profile; ensure legal/HOA alignment
Key idea: almost any model can work if it’s transparent. What matters is the all‑in cost for the service level you need.
What’s Usually Included vs. Extra
Commonly Included
Marketing & distribution (Airbnb, Vrbo, direct)
Guest communications & support
Dynamic pricing & revenue management
Housekeeping coordination & basic QA
Monthly owner statements
Often Extra / Variable
Deep cleaning, preventative maintenance, vendor dispatch
Transparent guest‑paid fee (clearly disclosed; not tacked onto owner statements)
5‑Star Guarantee – if a stay doesn’t earn 5 stars, we waive our management fee for that booking
30‑Day Out Clause – flexibility replaces lock‑ins; we earn retention with performance
Result: predictable economics owners can plan around, plus aligned incentives for quality and revenue.
FAQs
What’s the cheapest way to manage my Airbnb? Self‑managing avoids fees but requires daily work, tools, vendor management, and compliance. Many owners net more with professional management due to pricing discipline and fewer costly mistakes.
Are revenue‑share or NOI‑based models better? They can be — especially for hotel‑like assets — but definitions of expenses matter. Confirm what’s included in “NOI,” who approves spend, and whether there’s also a base revenue fee.
Why do some companies look cheaper but cost more? Because of markups, OTA pass‑throughs, and lock‑ins that raise your ETR. Ask for a one‑page all‑in cost summary across peak and shoulder months.
Ready to See the Difference?
We’ll provide a free revenue analysis comparing your current performance with projected results under Recreation Stays, plus a step-by-step transition plan.
With 25+ years in luxury hotels and vacation rentals, Adam has led operations for brands like Fairmont and St. Regis and built high-performing hospitality businesses from the ground up. Today, as Founder & CEO of Recreation Stays, he brings that same expertise to helping owners unlock maximum returns while delivering five-star guest experiences. He’s also the host of The Proven Principles Hospitality Podcast, where industry leaders share what works in modern hospitality, and was recently recognized as one of the Top 100 Most Powerful People in US Hospitality.
