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Managing an Airbnb or holiday let in the UK? Here’s a quick breakdown of what you can expect when it comes to property management fees in 2025:
Quick Comparison of Fee Models:
| Fee Model | Cost Range | Services Included |
|---|---|---|
| Percentage-Based | 10–40% of revenue | Guest communication, maintenance, dynamic pricing |
| Fixed Monthly Fees | £100–£500 | Predictable costs, tailored service packages |
| Mixed Fee Models | Varies | Combines percentage and fixed fees for flexibility |
| Extra Services | Varies (£50–£300+) | Cleaning, setup, pool/hot tub maintenance, pet cleaning |
Takeaway: Whether you’re in London, a tourist hotspot, or a rural area, understanding these fees helps you budget smarter and maximise your rental income.
Percentage-based fees remain the most common pricing model in 2025, with management companies typically charging 10% to 40% of your rental revenue. This setup aligns the manager's earnings with your property's performance, encouraging them to maximise bookings and rental rates.
The percentage charged depends on the level of service:
If you prefer predictable costs, fixed monthly fees might be a better fit.
Fixed monthly fees provide cost consistency, regardless of how often your property is booked. These fees usually range from £100 to £500 per month, depending on the property's size and the services provided.
| Service Package | Monthly Cost | Typical Inclusions |
|---|---|---|
| Basic Package | £100–£200 | Listing management and guest communication |
| Standard Package | £200–£350 | Basic services plus cleaning coordination and maintenance scheduling |
| Premium Package | £350–£500 | Full-service management with 24/7 support |
This model is ideal for property owners who want predictable expenses.
Mixed fee structures combine elements of both percentage-based and fixed fees. This approach allows hosts and managers to share both risks and rewards, making it a popular choice for those with varied needs.
In addition to standard management fees, you need to account for extra services that can affect your overall costs:
| Service Type | Typical Cost | Notes |
|---|---|---|
| Property Setup | £300 | One-time onboarding fee |
| Cleaning Services | £50–£100 per night | Generally passed on to guests |
| Pool Maintenance | £135–£185 monthly | Seasonal service |
| Hot Tub Upkeep | £25–£150 monthly | Includes chemical balancing |
| Pet Cleaning | £10–£50 per night | Applicable for pet-friendly properties |
| Insurance Coverage | £7+ per night | Optional property protection |
Interior design services start at £99 and can go up to £1,199, while full furnishing packages range from £15,000 to £45,000. These upgrades often help increase nightly rates and improve occupancy.
Management costs vary significantly across the UK, influenced by regional factors such as rent levels and demand.
Management fees in London and other major cities tend to be higher due to increased costs. For example, the average monthly rent in London reached £2,121 as of February 2024. Here's a breakdown of typical fee structures from leading firms:
| Area | Basic Service | Full Management |
|---|---|---|
| London | 15% (min £1,800) | 20.4% (min £3,000) |
| Rest of UK | 15% (min £1,200) | 20.4% (min £2,400) |
These figures highlight the noticeable differences in fees between London and the rest of the UK.
In popular tourist destinations, management fees can climb to 30–35% of booking revenue. While basic services are in line with UK averages, full-service packages often account for seasonal peaks and additional marketing efforts. Hosts in these areas should budget for these fluctuations, especially during high-demand periods.
In contrast to urban areas, rural regions typically have lower management costs. For instance, in the North East, where average monthly rents are £695, fees generally range from 20–25% of booking revenue. A common pricing structure includes a one-off administration fee of £350 plus VAT and a monthly fee of 10% of the rent plus VAT. Interestingly, the rise in remote working has driven increased demand for rural properties, which could influence the scope of management services required.
Several key factors influence the management fees you might face, beyond just regional differences.
The type and size of a property play a big role in determining fees. Larger properties typically incur higher costs due to their revenue potential, even if the percentage fee stays the same. For instance, managing a 4-bedroom holiday cottage involves more effort than a studio flat. Luxury properties often come with higher fees due to the need for extra services, while well-maintained homes usually fall under standard rates. On the other hand, properties requiring significant upkeep may result in additional charges.
Location and market trends directly impact fee structures. For example, in the Cotswolds, where average property values are around £504,000 and annual revenue is approximately £33,000, fees reflect the area's affluent visitor base. In the Lake District, occupancy rates average 63%, while Cornwall’s consistent popularity influences how fees are adjusted based on local demand.
The level of service you choose also affects costs. Providers offering partial services - like listing optimisation, pricing strategies, and booking management - typically charge 10-15% of monthly rental income. Full-service management, which includes property preparation, maintenance, and cleaning, tends to range between 15-40%.
Seasonal trends have a noticeable effect on fees, especially in tourist-heavy areas. For example, UK holiday let occupancy saw a 98% increase in January 2024 compared to 2019. Many companies now use dynamic pricing, adjusting fees during peak seasons, local events, or holiday periods. These temporary changes help cover the extra service demands during busy times and allow for more precise budgeting.
Get a clear picture of your potential earnings. In the UK, rental yields average around 5%, but they can vary by region. Useful tools like AirDNA (free plan available, with paid plans starting at £15.99/month) and Beyond Pricing (30-day free trial, then a 1% fee per booking) can help with market insights. To estimate annual revenue, multiply your nightly rate by the occupancy rate. For example, a two-bedroom flat in Brighton charging £150 per night with a 63% occupancy rate could bring in £34,500 per year before fees.
Now, let’s dive into the expenses that might impact your earnings.
Here’s a look at common fees you might encounter:
| Fee Type | Typical Range | Notes |
|---|---|---|
| Monthly Management | 8–12% | Based on collected rent |
| Setup/Onboarding | Up to £400 | One-time fee |
| Contract Setup | £250 | Per contract |
| Reserve Fund | £200–£400 | Ongoing |
| Advertising | £80–£160 | Per vacancy |
Always check your management agreement for any additional charges.
Once you’ve worked out your income and expenses, use digital tools to simplify your budgeting process:
Combine these tools with a straightforward spreadsheet to keep tabs on your income and fees efficiently.
Property management fees in 2025 differ based on service levels and location. London and popular tourist areas generally command higher rates. The sector has grown by 3.3%, with increased competition driving new service offerings and a rising preference for all-inclusive management packages.
These steps help ensure you're financially prepared to manage your property effectively.
When choosing a property management provider, prioritise those with clear pricing structures, strong maintenance networks, and reliable guest screening processes. Compare service offerings and negotiate fees - especially if managing multiple properties - to keep costs manageable and services aligned with your needs.