The Headline Percentage Is Only Half the Story

Every Vermont vacation rental management company leads with a number. 20%. 25%. "Starting at 18%." It sounds straightforward until you read the contract and find a list of additional charges that quietly erode the advantage.

Understanding how management fees actually work — and how to compare them honestly — is one of the most important things you can do before signing with any STR management company.

The Three Fee Structures You'll Encounter

Flat Percentage

The most common structure in Vermont. The management company takes a fixed percentage of gross rental revenue — typically 20–30% — and that's it. Simple, predictable, and easy to model. The better flat-percentage companies include photography, listing creation, and guest communication in that fee with no add-ons.

Watch for: some "flat percentage" contracts still exclude specific services. Read the full list of what's included before assuming it means all-inclusive.

Tiered Percentage

Some companies lower their percentage as revenue increases. For example: 28% on the first $30,000 in annual bookings, 22% above that. This can benefit high-revenue properties, but it creates complexity — and the lower tier may be designed to sound attractive while rarely being reached.

Watch for: seasonality can create months where you're always in the higher tier, even if your annual revenue eventually qualifies for the lower rate.

À La Carte (Base Fee + Add-Ons)

Some national platforms and a handful of Vermont operators charge a lower base percentage but bill separately for services most owners expect to be included. Listing creation, photography, cleaning coordination, guest screening — each carries its own line item.

Watch for: this structure almost always costs more than it appears. A 15% base fee with $400 in photography, $150/month in reporting fees, and a 10% maintenance markup can easily equal or exceed a transparent 25% flat rate.

What Vermont's 20–30% Range Actually Covers

At the high end of the typical range, you should expect a management company to cover — with no additional charges — all of the following:

  • Professional photography at onboarding
  • Listing creation and optimization on Airbnb, VRBO, and direct booking channels
  • Dynamic pricing management
  • All guest communication (pre-booking, pre-arrival, during stay, post-stay)
  • Cleaning coordination (cleaner cost is separate; coordination should not be)
  • Maintenance coordination for routine issues
  • Monthly owner statements
  • Vermont rooms and meals tax remittance (increasingly expected)

If a company is charging 25–30% and still billing for items on this list, the effective cost is meaningfully higher.

The Hidden Costs That Inflate Your Real Fee

Maintenance Markups

Some management companies add a 10–20% markup on every contractor invoice that passes through their system. A $500 HVAC repair becomes $550–$600. This rarely appears in the headline fee discussion but can add up significantly over a year of normal property maintenance.

Cleaning Coordination Fees

The cleaner cost itself is always passed to the owner (as a guest-facing cleaning fee). But some companies charge an additional coordination fee — $15–$30 per stay — on top of the cleaner's invoice. On 80 stays per year, that's $1,200–$2,400 in fees you may not have anticipated.

Photography and Listing Fees

If a company charges for professional photography separately, expect $300–$600 for a well-done shoot. Some also charge for listing creation, staging consultation, or initial setup. These are legitimate costs, but they should be disclosed upfront — not invoiced after you've committed.

Onboarding or Setup Fees

Less common but worth asking about. Some companies charge a flat onboarding fee ($250–$500) to get your property live. Others waive this for properties they're confident will perform well.

How to Compare Two Companies Honestly

Take your estimated annual gross revenue — let's say $60,000 — and model both offers fully loaded. Add up the management percentage, any photography or setup charges, estimated maintenance markups, and coordination fees. Compare the total cost, not the headline rate. A 22% offer with $1,500 in add-ons costs more than a 25% all-in offer on $60,000 in revenue.

Transparency Is the Right Standard

The best management companies can tell you clearly, in writing, everything that is included in their fee and everything that is not. That conversation should take five minutes. If it requires multiple follow-ups and a careful reading of a complicated contract, that tells you something about how the relationship will operate.

Far & Away Homes charges a transparent flat percentage with professional photography included at onboarding and no hidden add-on fees. Get a free estimate on what your property could earn under full management.