Airbnb Management Fee Calculator: See What You'll Save with Flat Fee
The Math Doesn't Lie: Flat Fee Wins Every TimeMost 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:
| Company | Commission | Additional Fees | Total Cost |
|---|---|---|---|
| **Competitor A** | 20% | Setup: RM 1,500 | 20% + one-time |
| **Competitor B** | 22% | Photography: RM 800 | 22% + one-time |
| **Competitor C** | 18% | Marketing: RM 500/year | 18% + recurring |
| **Industry Average** | 20% | Various add-ons | 22-25% 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 Size | Monthly Fee | Included Services |
|---|---|---|
| **1 Bedroom** | RM 200 | Everything |
| **2 Bedrooms** | RM 250 | Everything |
| **3 Bedrooms** | RM 300 | Everything |
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 Type | Monthly | Annual |
|---|---|---|
| **Base Commission (20%)** | RM 2,000 | RM 24,000 |
| Platform fees (amortized) | RM 100 | RM 1,200 |
| Marketing budget | RM 150 | RM 1,800 |
| Emergency call-outs (avg) | RM 50 | RM 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 Type | Monthly | Annual |
|---|---|---|
| **Flat Management Fee** | RM 250 | RM 3,000 |
| Setup fees | RM 0 | RM 0 |
| Photography | RM 0 | RM 0 |
| Platform listing | RM 0 | RM 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 Revenue | 20% Commission Cost | iHousing Flat Fee | Monthly Savings | Annual Savings | 3-Year Savings |
|---|---|---|---|---|---|
| RM 5,000 | RM 1,000 | RM 250 | RM 750 | RM 9,000 | RM 27,000 |
| RM 6,000 | RM 1,200 | RM 250 | RM 950 | RM 11,400 | RM 34,200 |
| RM 7,000 | RM 1,400 | RM 250 | RM 1,150 | RM 13,800 | RM 41,400 |
| RM 8,000 | RM 1,600 | RM 250 | RM 1,350 | RM 16,200 | RM 48,600 |
| RM 9,000 | RM 1,800 | RM 250 | RM 1,550 | RM 18,600 | RM 55,800 |
| RM 10,000 | RM 2,000 | RM 250 | RM 1,750 | RM 21,000 | RM 63,000 |
| RM 11,000 | RM 2,200 | RM 250 | RM 1,950 | RM 23,400 | RM 70,200 |
| RM 12,000 | RM 2,400 | RM 250 | RM 2,150 | RM 25,800 | RM 77,400 |
| RM 13,000 | RM 2,600 | RM 300 | RM 2,300 | RM 27,600 | RM 82,800 |
| RM 14,000 | RM 2,800 | RM 300 | RM 2,500 | RM 30,000 | RM 90,000 |
| RM 15,000 | RM 3,000 | RM 300 | RM 2,700 | RM 32,400 | RM 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 Item | Commission-Based | Flat Fee (iHousing) |
|---|---|---|
| **Office overhead** | High (prime location) | Efficient (shared space) |
| **Staff per property** | 1:30 ratio | 1:80 ratio (tech-enabled) |
| **Marketing spend** | High (paid ads) | Low (organic SEO) |
| **Software/tools** | Expensive enterprise | Efficient 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
| Year | 20% Commission | iHousing Flat Fee | Savings |
|---|---|---|---|
| **Year 1** | RM 28,800 | RM 3,000 | RM 25,800 |
| **Year 2** | RM 28,800 | RM 3,000 | RM 25,800 |
| **Year 3** | RM 28,800 | RM 3,000 | RM 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:
- Airbnb
- Booking.com
- Agoda
- VRBO
- 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 6688Related 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.
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