Running an Airbnb in London can be both rewarding and challenging. While the city attracts millions of visitors every year, managing a short-term rental requires time, attention, and expertise. For many property owners, hiring a professional Airbnb management company in London is the simplest way to maximise revenue while ensuring guests receive a first-class experience.
But how much does Airbnb management really cost in London? The answer is not as straightforward as a flat percentage. It depends on pricing models, the services you need, and the hidden costs that are often overlooked. At The Moa and Kin, we believe in transparency. This guide breaks down the true cost of Airbnb management in London so you know what to expect before you commit.
Key Highlights
- Airbnb management in London is usually charged as a percentage of booking revenue or a fixed monthly fee.
- Common commission rates range from 15% to 25% + VAT.
- Additional costs may include cleaning, laundry, restocking, repairs, and compliance.
- The true cost should be measured against net income, time saved, and service quality.
- Choosing a transparent, guest-focused management company like The Moa and Kin can increase your revenue and peace of mind.
Common Pricing Models
Airbnb management companies in London typically charge in one of three ways: commission-based fees, fixed monthly fees, or hybrid models. Understanding these pricing structures is the first step to working out the real value for your property.
1. Commission-Based Fees
This is the most common pricing model in London. Management companies take a percentage of your booking revenue, usually between 15% and 25% + VAT, depending on the services included.
- What is usually covered: guest communication, listing optimisation, professional cleaning coordination, and check-in/check-out services.
- Who it suits best: landlords with high-occupancy properties who want an all-inclusive service.
While commission-based fees may sound steep, the right company can increase your occupancy rate and nightly prices enough to more than cover the cost.
2. Fixed Monthly Fees
Some Airbnb management companies prefer to charge a flat monthly rate, regardless of how many bookings you receive.
- Pros: predictable costs, easier budgeting.
- Cons: in slow months, you might pay more than the income generated.
This option can be appealing if your property is in a prime location with consistent bookings all year round.
3. Hybrid Models
A growing number of companies are offering hybrid packages. This is usually a smaller monthly retainer plus a lower commission per booking.
- Why it works: combines cost certainty with performance incentives.
- Best for: hosts who want balance between fixed costs and variable earnings.
At The Moa and Kin, we review your property and recommend a tailored plan that makes sense for your occupancy potential and revenue goals.
Potential Additional Costs
The base management fee is only part of the picture. Many hosts are surprised when they see additional charges appear on their statements. Knowing these in advance can save you unexpected frustration.
1. Cleaning and Laundry
Cleaning fees are usually passed on to the guest, but the host remains responsible for ensuring the property is consistently well maintained. Some companies include laundry in their service, while others charge extra.
2. Maintenance and Repairs
From a broken lightbulb to plumbing emergencies, upkeep is essential. While day-to-day issues are often billed separately, some Airbnb management providers add a surcharge for organising contractors.
3. Restocking Essentials
Toiletries, fresh linens, tea, coffee, and kitchen basics all contribute to a positive guest experience. Depending on your agreement, these may be included in the management fee or billed separately.
4. Marketing and Photography
Professional photography and optimised listings can make a huge difference to bookings. Some companies bundle this into their initial set-up, while others charge a one-off fee.
5. Licensing and Compliance
In London, short-term lets must comply with local regulations, such as the 90-night rule for entire home listings. Some management companies assist with licensing and compliance but may charge additional fees.
At The Moa and Kin, we are upfront about these costs. Our philosophy is simple: hosts should never be surprised by hidden charges.
How to Evaluate the True Cost
When considering Airbnb management in London, it is important to look beyond the headline percentage. A cheaper company may appear cost-effective but could lack the expertise or services that maximise your earnings. Here is how to evaluate the true cost.
1. Calculate Your Net Income
Instead of focusing solely on the management fee, consider your net income after fees and expenses. A company charging 20% commission but increasing your occupancy by 30% could deliver more income than a cheaper competitor.
2. Assess Service Quality
Guest satisfaction directly affects your revenue. A five-star experience leads to positive reviews, repeat stays, and higher rankings on Airbnb. Ask: does the management company prioritise guest care as much as revenue?
3. Factor in Your Time Saved
Managing an Airbnb is not just about finances, it is about time. Handling late-night guest queries, arranging cleaners, and dealing with issues can quickly become overwhelming. Consider how much your time is worth and how outsourcing improves your lifestyle.
4. Review Transparency
Some companies bury costs in the small print. Before signing a contract, request a clear breakdown of what is included, what is optional, and what will always incur extra charges.
5. Think Long-Term
A management partner is an investment. Cheaper is not always better if it means missed bookings or poor guest experiences. The true cost lies not only in the fee you pay but in the income you could lose with subpar service.
Did You Know?
- London is one of Airbnb’s busiest cities, with thousands of active listings competing for visibility.
- Properties with professional photography earn up to 40% more bookings than those without.
- Airbnb applies a 3% host service fee in addition to management charges.
- Guests are more likely to book properties with a response time under one hour, making guest communication critical.
- The 90-night annual limit for entire-home listings is strictly enforced by London councils.
Why The Moa and Kin Approach is Different
At The Moa and Kin, we view Airbnb management as a partnership. Our aim is to make hosting stress-free while ensuring your property performs at its best. Here is how we stand apart:
- Tailored Pricing: We do not believe in one-size-fits-all. Our packages are designed to suit your property’s unique needs.
- Full Transparency: No hidden extras. You will know exactly what is included and what additional services cost upfront.
- Guest Experience First: We prioritise hospitality, ensuring every stay leaves a lasting impression.
- Regulatory Guidance: We keep you compliant with London’s short-let regulations, saving you potential fines.
- Revenue Focused: From dynamic pricing tools to expert listing optimisation, we ensure your property reaches its full earning potential.
FAQs about Airbnb Management in London
1. How much do Airbnb management companies charge in London?
Most companies charge between 15% and 25% + VAT of booking revenue, though fixed fees and hybrid models are also available.
2. Does the management fee cover cleaning?
Cleaning is usually charged separately and passed on to guests, though some companies include it in their service packages.
3. Is Airbnb management worth it for a single property?
Yes. Even if you own one property, management saves time, improves guest satisfaction, and often increases revenue.
4. Do management companies handle guest communication?
Yes. Professional managers handle all communication, from booking enquiries to check-in details and support during the stay.
5. Can Airbnb management companies help with London regulations?
The best providers, such as The Moa and Kin, offer guidance on compliance with rules like the 90-night limit to avoid legal issues.
Making the Right Choice for Your Airbnb Property
Airbnb management in London can be a worthwhile investment, but only if hosts understand the true costs involved. By reviewing pricing models, anticipating hidden expenses, and carefully evaluating the value offered by different providers, hosts can make smarter decisions that protect both their property and their profits.
For a deeper look into why working with experienced professionals can transform your hosting journey, you may also like our related blog: The Key Benefits of Airbnb Rental Management Professionals. This guide explores the advantages of partnering with experts who can maximise earnings while reducing the day-to-day stress of hosting.