When you compare managers, ask each one to explain the fee against the same booking figures. Check the calculation base, platform deductions, cleaning, VAT, included responsibilities, extra charges and contract term. A lower headline rate can mean something different if the basis or scope changes.
Start with the calculation base
Ask whether the management fee applies to gross booking revenue or to an amount after specified deductions. Confirm which platform charges are deducted, how cleaning is treated and whether VAT is added to the management fee. Ask for the explanation in writing so you can compare like with like.
Prestwich Property’s current offer
For the current Greater Manchester serviced-accommodation management offer, the fee is 20% plus VAT on booking revenue after booking-platform commissions and cleaning charges have been deducted. The minimum term is 12 months.
Cleaning charges, repairs and household bills remain owner costs. Staging is separate. Guest, property, listing and review management, marketing and maintenance-contractor coordination are included; coordinating a repair does not mean the repair cost is included.
A worked illustration
This example uses stated assumptions, not a typical platform charge, quote or forecast.
- Booking revenue
- £3,000.00
- Assumed platform commission, 15.5% plus 20% VAT
- −£558.00
- Assumed cleaning charges
- −£300.00
- Fee calculation base
- £2,142.00
- Management fee at 20%
- £428.40
- VAT on that fee at 20%
- £85.68
- Management fee including VAT
- £514.08
Under these assumptions, the fee before VAT is 14.28% of the £3,000 booking revenue. Including fee VAT, it is 17.14%. The equivalent changes when platform and cleaning deductions change. It is not your profit: other property costs remain separate, and this illustration makes no allowance for VAT recovery.
Compare scope as well as price
Ask who handles guest communication, listing changes, reviews, marketing, maintenance coordination and owner reporting. Clarify who authorises work, how costs are approved, what information you receive and which decisions remain yours. Check notice, termination and handover terms, especially if you already have a manager.
A guest review describes a guest’s experience; it does not by itself establish an owner’s financial result. If a provider makes a performance claim, ask for the period, properties, calculation and source behind it.
A practical comparison list
- The fee base, platform and cleaning treatment, and VAT.
- Included work and separate owner costs.
- Maintenance approval, reporting and owner decisions.
- Contract term, notice and what happens at handover.
Compare against your own booking statements where possible. This is general information, not accounting or tax advice.