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pricing-comparison Published: 2025-01-09

Airbnb Management Fee Calculator: See What You'll Save with Flat Fee

Calculate your savings with flat fee management vs. 20% commission. Interactive examples show how RM 250/month beats commission-based pricing. See 3-year savings projections.

Airbnb Management Fee Calculator: See What You'll Save with Flat Fee

Airbnb Management Fee Calculator: See What You'll Save with Flat Fee

The Math Doesn't Lie: Flat Fee Wins Every Time

Most Airbnb management companies in Malaysia charge 15-25% commission on your revenue. iHousing does it differently: a flat RM 200-300/month fee.

Let's calculate exactly what this means for your bottom line.


The Traditional Commission Model

Here's what most property managers charge:

CompanyCommissionAdditional FeesTotal Cost
**Competitor A**20%Setup: RM 1,50020% + one-time
**Competitor B**22%Photography: RM 80022% + one-time
**Competitor C**18%Marketing: RM 500/year18% + recurring
**Industry Average**20%Various add-ons22-25% effective

Hidden Costs: Most commission-based companies also charge for:

  • Setup fees: RM 500-2,000
  • Professional photography: RM 500-1,500
  • Platform listing fees: RM 200-500/platform
  • Marketing budget: RM 100-300/month
  • Emergency call-out fees: RM 50-100/visit

Real Effective Rate: 22-28% after all fees!


The iHousing Flat Fee Model

Simple, transparent pricing:

Property SizeMonthly FeeIncluded Services
**1 Bedroom**RM 200Everything
**2 Bedrooms**RM 250Everything
**3 Bedrooms**RM 300Everything

What's Included:

  • ✅ Property listing on 5 platforms (Airbnb, Booking.com, Agoda, VRBO, Expedia)
  • ✅ Professional photography
  • ✅ Dynamic pricing management
  • ✅ responsive guest communication
  • ✅ Cleaning coordination (no markup)
  • ✅ Maintenance coordination (no markup)
  • ✅ Review management
  • ✅ Monthly performance reports

No Hidden Fees: RM 200-300/month. Period.


Scenario Comparison: RM 10,000/Month Property

Let's compare actual costs for a property earning RM 10,000/month gross revenue:

Commission-Based Company (20%)

Fee TypeMonthlyAnnual
**Base Commission (20%)**RM 2,000RM 24,000
Platform fees (amortized)RM 100RM 1,200
Marketing budgetRM 150RM 1,800
Emergency call-outs (avg)RM 50RM 600
**TOTAL****RM 2,300****RM 27,600**

Net Income: RM 10,000 - RM 2,300 = RM 7,700/month

Effective Rate: 23%

iHousing Flat Fee (2-Bedroom)

Fee TypeMonthlyAnnual
**Flat Management Fee**RM 250RM 3,000
Setup feesRM 0RM 0
PhotographyRM 0RM 0
Platform listingRM 0RM 0
**TOTAL****RM 250****RM 3,000**

Net Income: RM 10,000 - RM 250 = RM 9,750/month

Effective Rate: 2.5%

Savings:

  • Monthly: RM 2,050 saved
  • Annual: RM 24,600 saved
  • 3-Year: RM 73,800 saved!

That's RM 73,800 extra in your pocket over 3 years.


Interactive Calculator: Your Savings

Use this table to calculate your potential savings:

Monthly Revenue20% Commission CostiHousing Flat FeeMonthly SavingsAnnual Savings3-Year Savings
RM 5,000RM 1,000RM 250RM 750RM 9,000RM 27,000
RM 6,000RM 1,200RM 250RM 950RM 11,400RM 34,200
RM 7,000RM 1,400RM 250RM 1,150RM 13,800RM 41,400
RM 8,000RM 1,600RM 250RM 1,350RM 16,200RM 48,600
RM 9,000RM 1,800RM 250RM 1,550RM 18,600RM 55,800
RM 10,000RM 2,000RM 250RM 1,750RM 21,000RM 63,000
RM 11,000RM 2,200RM 250RM 1,950RM 23,400RM 70,200
RM 12,000RM 2,400RM 250RM 2,150RM 25,800RM 77,400
RM 13,000RM 2,600RM 300RM 2,300RM 27,600RM 82,800
RM 14,000RM 2,800RM 300RM 2,500RM 30,000RM 90,000
RM 15,000RM 3,000RM 300RM 2,700RM 32,400RM 97,200

Find your expected monthly revenue in the left column to see your savings.


The Break-Even Point: When Flat Fee Wins

At what revenue does flat fee become cheaper than commission?

Calculation:

  • Flat fee (2-bedroom): RM 250/month
  • Break-even revenue = RM 250 ÷ 20% = RM 1,250/month

Result: If your property earns MORE than RM 1,250/month (RM 15,000/year), flat fee saves you money!

Reality Check: Any decent Airbnb in Melaka earns RM 5,000-15,000/month. So flat fee wins in almost every case.


Real Owner Example: Switching from Commission to Flat Fee

Owner: Mr. Tan, 3 Properties in Melaka

Before (Commission-Based Manager):

  • Monthly Revenue: RM 25,000 total
  • Management Fee (20%): RM 5,000/month
  • Net Income: RM 20,000/month

After (iHousing Flat Fee):

  • Monthly Revenue: RM 28,000 total (we increased it!)
  • Management Fee: RM 750/month (3 × RM 250)
  • Net Income: RM 27,250/month

Impact:

  • Monthly Income Increase: +RM 7,250
  • Annual Income Increase: +RM 87,000
  • Service Level: Improved (more bookings, better communication)

Switching was the best decision I made. Same properties, RM 87K more per year."


Why Commission-Based Companies Charge More

Understanding their cost structure explains why 20% is standard:

Cost ItemCommission-BasedFlat Fee (iHousing)
**Office overhead**High (prime location)Efficient (shared space)
**Staff per property**1:30 ratio1:80 ratio (tech-enabled)
**Marketing spend**High (paid ads)Low (organic SEO)
**Software/tools**Expensive enterpriseEfficient tools
**Profit margin target**40-50%20-30% (volume)

Our Secret: We operate efficiently and pass savings to owners. Higher volume = lower margin needed per property.


The "Commission Trap" to Avoid

Trap #1: Low Commission Rate + High Hidden Fees

Offer: "Only 15% commission!"

Fine Print:

  • +RM 1,000 setup fee
  • +RM 800 photography
  • +RM 200/platform listing
  • +RM 150/month "marketing support"

Real Cost: 22-25% effective

Trap #2: Tiered Commission

Offer: "15% for first RM 5K, 25% above that"

Impact: As your revenue grows, your rate INCREASES. You're penalized for success!

Our Flat Fee: Same RM 250 whether you earn RM 5K or RM 15K. We reward your success.

Trap #3: Performance-Based Commission

Offer: "10% base + 10% performance bonus"

Fine Print: "Performance" = whenever they feel like charging it. Subjective and unpredictable.

Our Flat Fee: 100% predictable. Same every month. No surprises.


3-Year Cost Comparison: RM 12,000/Month Property

Year20% CommissioniHousing Flat FeeSavings
**Year 1**RM 28,800RM 3,000RM 25,800
**Year 2**RM 28,800RM 3,000RM 25,800
**Year 3**RM 28,800RM 3,000RM 25,800
**TOTAL****RM 86,400****RM 9,000****RM 77,400**

What could you do with RM 77,400?

  • Down payment on another investment property
  • Complete renovation of existing property
  • 3+ years of mortgage payments
  • Children's education fund

Does Flat Fee Mean Lower Service?

Common Concern: "If you charge less, do you provide less?"

Reality: We provide MORE. Here's why:

5-Platform Listing (Others: 1-2 platforms)

We list your property on:

  1. Airbnb
  2. Booking.com
  3. Agoda
  4. VRBO
  5. Expedia

Result: 60% more bookings than single-platform managers.

In-House Cleaning Team (Others: Outsourced)

  • Our Way: Our own team, no markup, consistent quality
  • Their Way: Outsourced, 20-30% markup, variable quality

quick response during business hours Time (Others: Business hours)

  • Our Way: We handle late-night emergencies
  • Their Way: Guests wait until morning

Verdict: Flat fee + better service = unmatched value.


Who Benefits Most from Flat Fee?

1. High-Performing Properties (RM 10K+/month)

Savings: RM 15,000-25,000/year vs. commission

2. Portfolio Owners (Multiple Properties)

Savings: Multiply by number of properties. 5 properties = RM 100K+/year saved!

3. Year-Round Properties

Savings: Commission charges even in low months. Flat fee is predictable.

4. Growing Properties

Savings: As your revenue grows, your savings GROW. With commission, your cost GROWS!


Ready to Calculate Your Savings?

WhatsApp us your property details for a custom savings calculation:

  • Expected monthly revenue
  • Property size
  • Location

We'll show you exactly what you'll save with flat fee pricing.

+60 19-699 6688

Related Resources:

  • [Parkland Avenue Pricing Breakdown](/blog/parkland-avenue-pricing-200-300-breakdown)
  • [20% vs Flat Fee: 3-Year Comparison](/blog/commission-vs-flat-fee-3-year-calculator)
  • [Full Management Services](/services/full-management)

Frequently Asked Questions

Q: Is flat fee really better for low-revenue properties?

A: If your property earns LESS than RM 1,250/month, commission might be cheaper. But if we're managing it, we'll get it above RM 5,000/month, so flat fee wins quickly.

Q: Do you ever increase the flat fee?

A: No. The fee is locked in for as long as we manage your property. No inflation adjustments, no surprise increases.

Q: What if I need extra services beyond standard management?

A: Most services are included. For additional requests (deep cleaning, special repairs), we charge at cost with no markup.

Q: How do you make money if the fee is so low?

A: Volume. We manage 100+ properties efficiently. Our margins are lower per property, but we make it up in scale. You benefit from our efficiency.

Q: Can I switch from commission to flat fee mid-contract?

A: Check your existing contract. If there's a penalty, we'll help you calculate whether switching still makes sense. For most owners, the savings exceed any penalty within 6-12 months.


Last Updated: January 2025 | Data Source: iHousing Pricing Analysis

Flat fee pricing. Transparent costs. Maximum savings. That's the iHousing promise.

Ready to Start Your Airbnb Journey?

Contact iHousing today for a free consultation about your Melaka property.

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