Short-term rental
Property manager takeaway
Also written: STR management fee
What Property manager takeaway means
Property manager takeaway, or STR management fee, is the percentage of gross rental revenue collected by a short-term rental management company for handling operations, marketing, guest communication, and maintenance coordination. Ranging typically between 10% and 30%, it directly determines net owner payouts.
Formula
Property Manager Takeaway = Gross Rental Revenue × Management Fee Percentage
How it is used
Operators evaluate their takeaway rate against the service scope provided, such as full-service management versus guest-only communication. Revenue managers and investors analyze takeaway fees to calculate net yield on investment properties. High takeaway rates require strong pricing power and superior occupancy rates to justify the cost over self-management models. Operators often adjust these fees dynamically based on length of stay, season, or portfolio size to remain competitive in suburban or urban markets.
Worked example
A short-term rental property generates $10,000 in gross rental revenue in a month. The management contract stipulates a 20% commission fee. The property manager takeaway is $2,000 ($10,000 × 0.20), leaving the property owner with $8,000 before secondary deductions like cleaning or maintenance expenses.
Common mistake
Confusing whether the takeaway percentage applies to total guest invoice revenue—including cleaning fees and local taxes—or strictly base rental income.