Airbnb Management Fees in Tel Aviv: How to Read an Offer

"How much do you charge?" It is often the first question owners ask, and the answer rarely fits in a single number. Two management companies quoting the same percentage can leave you with very different income at the end of the month. It all depends on what is included, what the fee is calculated on, and which costs are added on top. Here is how to read an offer, line by line.

The three ways to pay a management company

1. A commission on revenue. This is the most common model: the management company takes a percentage of the rental income. Its interests are aligned with yours: if the apartment earns more, it earns more; if the apartment rents poorly, it earns little.

2. A monthly flat fee. A fixed amount, whatever the number of bookings. Easier to budget, but the manager has no direct interest in increasing your income.

3. A hybrid model. A small flat fee plus a reduced commission, or a commission plus services billed per task (check-in, cleaning, call-outs).

No model is better in absolute terms: what matters is the net income you are left with. And if you are still deciding whether to hire a manager at all, compare the options in self-manage, co-host or property manager?.

The key question: a commission on what?

The same percentage does not produce the same result depending on what it is calculated on. Ask precisely:

• Is it calculated on the amount paid by the guest, or on the amount after the platform's fees?
• Are the cleaning fees paid by the guest included in the base?
• Is it quoted before or including VAT (ma'am, Israel's value-added tax)?
• Is it charged only on completed stays, or also on cancelled bookings?

Over a full year, the gap between two calculation bases quickly becomes visible. A serious management company explains it to you plainly, in writing.

What should be included (and what is often billed on top)

For full-service management, check every item:

Item	What to check
Listing creation and photos	Included, billed once, or at your expense?
Pricing	Adjusted daily, or a fixed rate?
Guest messaging	7 days a week, in which languages?
Check-in and key handover	In person, or a key box only?
Cleaning and linen	Charged to the guest, to the owner, or both?
Guest amenities and consumables	Recharged at actual cost, or with a markup?
Minor repairs	Labor included or billed separately?
Monthly statement	Itemized line by line, with receipts?

Setup costs (professional photos, missing equipment, linen, a smart lock) are sometimes billed once, at the start. That is not unusual, as long as they are announced in advance and justified.

Costs that do not depend on the management company

Some costs exist whichever manager you choose:

• the platform's service fees, whose structure varies (shared with the guest, or charged entirely to the host);
• the apartment's running costs: arnona (municipal property tax), vaad bayit (building committee fees), electricity, water, internet, insurance;
• normal wear and tear: linen, bedding and small appliances to replace;
• taxes on your income, which depend on your personal situation. Discuss them with an accountant or tax adviser familiar with both Israel and your country of residence.

An honest offer mentions these costs, even if it does not bill them.

How to compare two offers

1. Ask each management company for a net income projection, for the same apartment and with the same dates blocked for your own use.
2. Check that both projections are based on the same assumptions for pricing and occupancy, and ask where those assumptions come from.
3. Compare the commission base and the list of costs that are recharged.
4. Look at the level of service: in-person check-in and inspected cleaning cost more than a key box, but they protect your reviews, and therefore your future income.
5. Read the exit terms: notice period, bookings already confirmed, any fees.

A lower commission is not a saving if the apartment rents less often or at lower rates. To run the full calculation, follow our method: calculating net yield, line by line.

Red flags

• A very low percentage, with no clear list of what is included.
• "Coordination fees" added to every contractor's invoice.
• No detailed monthly statement, or expenses without receipts.
• A long commitment, with no way out.
• Income promises with figures before anyone has even seen the apartment.

Before signing, also read the management contract carefully, clause by clause. And if your current manager already shows several of these signs, see when and how to switch management company.

And at ConciergerieTLV?

Our fee is set out in black and white in the proposal we give you after the estimate and the visit to your apartment, with no commitment. You know exactly what is included, what our fee is calculated on and which costs may be added. Every month, you receive a detailed statement: bookings, income, fees and expenses.

👉 Get your free estimate: you receive a personalized estimate, followed by our detailed proposal.