Holiday Let Management Fees in the UK: Percentage vs Flat Fee, With the Sums
Short answer: most UK holiday let managers take a percentage of your bookings. Published guides put full service at roughly 15% to 25%, often before VAT. A flat monthly fee costs the same in a quiet month or a full one. Which is cheaper depends on what your place earns and what each fee covers.
I run a flat-fee service, so I've got a view. The sums matter more than my opinion. Here they are.
Handing your home to someone else is about trust as much as money. If you've been burned by hidden extras before, fair enough. I'll show every number.
What the percentage usually is
Holiday Let Investor gives 15% to 25% for full service. Pass the Keys puts popular national park areas, including the Lake District, at around 18% to 25%.
Three things change what that costs you:
- VAT. If the manager is VAT-registered, 20% plus VAT is effectively 24%.
- What it's calculated on. Gross bookings, or after Airbnb and Booking.com take their cut? Ask for a worked example on a real booking.
- What's outside the fee. Setup, photos, linen, cleaning per changeover, mark-ups on repairs.
What a flat fee looks like
Mine: £250 a month for a 1-bedroom. £300 for 2. £350 for 3. From £400 for 4 or more. Up to 8 stays a month are included. Then £20 for each extra stay.
It covers my time. Guest messages from enquiry to check-out. Organising changeovers. Coordinating repairs and maintenance.
It doesn't cover cleaning, linen or repairs. Those are billed separately, at cost, with no mark-up from me. Three-month initial term, then 30 days' notice. I'm not VAT-registered, so the fees are what you see.
The sums
A 2-bedroom that brings in £30,000 a year in bookings. That figure is just an example. Use your own.
| Manager taking 20% | Flat fee (2 bed) | |
|---|---|---|
| Yearly management fee | £6,000 | £3,600 (12 × £300) |
| If 20% has VAT added | £7,200 | £3,600 |
Cleaning, linen and repairs come on top with a flat fee. Many percentage managers pass those on too. Not all. Ask.
Where it flips. At 20%, a £300 flat fee costs the same as the percentage at £18,000 a year in bookings (£3,600 ÷ 0.20). Below that, the percentage is cheaper. Above it, the flat fee wins, and the gap grows with every extra pound. With VAT on the percentage, the break-even drops to £15,000.
So flat fees suit places that do well. If yours earns less, or you mostly use it yourself, a percentage may cost you less. I'd rather you knew that now.
What a percentage manager gives you
Be fair. A percentage manager gains when your income rises, so they're pushed to raise it. Some offer a bigger marketing machine or an all-in package including cleaning.
A flat-fee manager is paid the same whatever happens. So judge them on service, speed of replies and how they handle the day-to-day. That's the bit I know. Guest messages are my day job.
Nine questions for any manager, me included
- Is the fee on gross bookings or after platform fees? Show me on a booking.
- Is VAT included, or added?
- What's the total of every other charge in year one, in pounds?
- Do you mark up contractor invoices? By how much?
- Who pays for linen, consumables and restocking?
- What's the minimum term and notice period?
- If I leave, do my listings, reviews and photos come with me?
- Which sites will I be on, and who sets the nightly price?
- Can I see a sample statement?
If a manager won't answer these in writing, that is the answer.
Platform fees are separate
Airbnb says most hosts on its host-only fee structure pay 15.5%, taken from the payout. Booking.com and Vrbo set their own. These are on top of your manager's fee.
What I don't know
I don't know your income. The break-even is only as good as the figure you put in. I also can't tell you what any other manager charges beyond what they publish.
Quick FAQ
Is a flat fee always cheaper? No. See the break-even above.
Does it include cleaning? Not with me. Cleaning, linen and repairs are billed separately at cost.
Long contract? Three-month initial term, then 30 days' notice.
Can I see how much I'd save? Use the savings calculator on the home page. It uses your numbers. Results are examples, not promises. Revenue isn't profit.
Sources
- Holiday Let Investor: management fees UK
- Pass the Keys: what management companies charge
- Charge Automation: UK fee models, Airbnb host-only fee
- Our own fees: Our House Stays: fees explained
Want to run your own numbers? Use the savings calculator. Or tell me about your holiday let and I'll tell you straight whether a flat fee or a percentage suits you. I'll reply personally, usually within a working day.
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About the author / how we know this
I'm Steve. With Christie, I run Our House Stays. I manage holiday homes for other owners, working through client businesses, and I handle guest communications for those homes. Before that I ran small businesses and holiday-let operations.
What I know first-hand: guest messages, changeovers, and what breaks at 11pm. What I'm not: a lawyer, planner or accountant. Where rules or tax come up, I link the official source and tell you to check it.
I'm not neutral. I run a flat-fee service. I don't quote ratings, reviews or revenue figures, and I don't name the people I work with. Got something wrong? Tell me using the form above.
Last reviewed: 23 October 2026.