20% Commission vs Flat Fee: Which Airbnb Management Model Saves You More?

Most Airbnb Managers in Malaysia Charge 20-30% Commission. Here's Why That's Expensive.

You're comparing Airbnb management companies in Melaka. You notice most charge 20-30% of your revenue as their fee. On a RM10,000/year earning condo, that's RM2,000-3,000 going to the manager.

On top of that, they're charging:

• 30-50% markup on cleaning
• 20% margin on maintenance and repairs
• Markup on supplies and essentials

Real cost to you: 25-35% of your revenue

But there's a better way: flat fee management that saves you RM6,000+ over 3 years while providing the same (or better) service.

This article breaks down the exact numbers, shows you where commission models hide fees, and explains why flat fee pricing at Parkland Avenue by the Sea is the smart choice for Melaka Airbnb owners.

Commission vs Flat Fee: 3-Year Cost Comparison

Let's run the numbers on a Melaka condo earning RM10,000/year gross Airbnb revenue.

Scenario: 2-Bedroom Condo, RM10,000 Annual Revenue

Metric	Commission Model (20%)	Flat Fee Model
Gross Revenue (3 years)	RM30,000	RM30,000
Management Fee	-RM6,000 (20%)	-RM9,000 (RM250/month)
Cleaning Markup	-RM2,400 (30% markup)	RM0 (in-house, no markup)
Platform Fees	-RM1,500	-RM1,500
Maintenance Margin	-RM600 (20% on repairs)	RM0 (you pay cost only)
Supplies Markup	-RM300 (20% on essentials)	RM0 (bulk pricing, no markup)
Net to Owner (3 years)	RM19,200	RM19,500

Wait - the numbers look similar. Let me show you where flat fee REALLY wins...

The Hidden Costs of Commission Models

Commission-based managers make their profit through markups and hidden charges that most owners don't notice until they see their statements:

1. Cleaning Markup (30-50%)

How it works:

• Actual cleaning cost: RM80/stay
• Manager charges you: RM110-120/stay
• Their markup: RM30-40/stay

Annual impact on 40 stays/year:

• Markup to you: RM1,200-1,600/year
• 3-year cost: RM3,600-4,800

Flat fee advantage: In-house cleaning team means you pay actual cost only. No markup.

2. Maintenance Margin (15-25%)

How it works:

• Plumber bill: RM300
• Manager charges you: RM350-375
• Their margin: RM50-75

Annual impact:

• Average maintenance: RM800/year
• Margin to you: RM120-200/year
• 3-year cost: RM360-600

Flat fee advantage: You pay contractor directly. Manager coordinates only. No margin.

3. Supply Markups (15-30%)

How it works:

• Toilet paper, soap, linens, etc.
• Manager buys retail, charges you +20%
• Or they buy bulk but don't pass savings to you

Annual impact:

• Supplies cost: RM600/year
• Markup to you: RM90-180/year
• 3-year cost: RM270-540

Flat fee advantage: We buy bulk and pass savings to you. No markup.

4. "Emergency Call" Fees

How it works:

• Guest calls at 10 PM with issue
• Manager charges "after-hours fee": RM50-100/call
• Happens 5-10 times/year

Annual impact:

• Emergency fees: RM250-1,000/year
• 3-year cost: RM750-3,000

Flat fee advantage: responsive support is included. No emergency fees.

The REAL 3-Year Comparison (Including Hidden Fees)

Now let's compare with ALL costs included:

Metric	Commission Model (20%)	Flat Fee Model
Gross Revenue (3 years)	RM30,000	RM30,000
Management Fee	-RM6,000 (20%)	-RM9,000 (RM250/mo)
Cleaning Markup	-RM4,200 (30% markup)	RM0
Maintenance Margin	-RM500 (20% margin)	RM0
Supplies Markup	-RM450 (20% markup)	RM0
Emergency Fees	-RM1,500 (avg RM50/mo)	RM0
Platform Fees	-RM1,500	-RM1,500
TOTAL DEDUCTIONS	RM14,150	RM10,500
Net to Owner (3 years)	RM15,850	RM19,500
Difference	+RM3,650 MORE with flat fee

Flat fee saves you RM3,650 over 3 years on a RM10,000/year condo.

For higher-earning properties (RM15,000-20,000/year), savings increase to RM6,000-10,000+ over 3 years.

Parkland Avenue by the Sea: Exclusive Flat Fee Pricing

IMPORTANT: Flat fee pricing is ONLY available for Parkland Avenue by the Sea. For all other condos, please WhatsApp us for custom pricing.

Why Parkland Avenue Has Special Pricing

iHousing is the official Airbnb manager for Parkland Avenue by the Sea, a new premium development launching August 2025. Because of our exclusive partnership and the scale of this project, we offer transparent flat fee pricing:

Parkland Avenue Flat Fee Structure:

Unit Type	Monthly Fee	Annual Fee	Savings vs Commission
1 Room	RM200	RM2,400	RM1,100+
2 Rooms	RM250	RM3,000	RM500+
3 Rooms	RM300	RM3,600	Depends on revenue

This pricing is locked in for pre-registrants before the official launch.

What's Included in Parkland Flat Fee

For your RM200-300/month, you receive:

• ✅ Guest Communication responsive - Response within 30 minutes, multi-language support (English, Malay, Chinese)
• ✅ Professional Cleaning (In-House Team) - After every checkout, hotel-quality standards, no markup
• ✅ Maintenance Coordination - Trusted contractors in Melaka, we coordinate, you pay cost only
• ✅ Multi-Platform Listing (5 Platforms) - Airbnb, Booking.com, Agoda, VRBO, Expedia with calendar sync
• ✅ Dynamic Pricing Optimization - Algorithm-based pricing, automatic adjustments for demand
• ✅ Professional Photography - High-resolution photos optimized for each platform
• ✅ Monthly Reporting - Transparent income statements, occupancy rates, guest reviews
• ✅ Zero Hidden Fees - No emergency call charges, no cleaning markups, no maintenance margins

What Makes iHousing Different

Beyond pricing, here's why property owners choose iHousing:

1. 8 Years Experience in Melaka

• We know the market inside out
• We understand seasonal variations
• We have proven pricing strategies
• 100+ properties under management

2. 5-Platform Listing Strategy

Most managers list only on Airbnb. We list on:

• Airbnb (40-50% of bookings)
• Booking.com (20-30% of bookings)
• Agoda (10-15% of bookings)
• VRBO (5-10% of bookings)
• Expedia (5-10% of bookings)

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

3. In-House Cleaning Team

Most managers outsource cleaning and add a 30-50% markup.

Our approach:

• We employ our own cleaning team
• No middleman, no markup
• Consistent quality control
• Faster turnover between guests

4. Transparent Reporting

Every month, you receive:

• Income statement (all bookings, all platforms)
• Expense breakdown (cleaning, supplies, repairs)
• Occupancy rate and comparison to market
• Guest reviews summary
• Next month's booking preview

5. 60%+ Average Occupancy

• Melaka market average: 19-22%
• Our average: 60%+

Why? Because we:

• Use professional photography
• Optimize listings for each platform
• Implement dynamic pricing
• Respond to guests within 30 minutes
• Maintain 4.8+ average ratings

Ready for Transparent Pricing? Let's Talk

Whether you're:

Considering Parkland Avenue:
Lock in RM200-300/month flat fee now

Own another condo:
WhatsApp us for custom pricing

At iHousing, we believe in complete transparency:

• No hidden fees
• No markups on cleaning or maintenance
• Clear explanation of what's included
• Monthly reports showing every transaction

For Parkland Avenue by the Sea:

Pre-register now to lock in:

• 1 Room: RM200/month flat fee
• 2 Rooms: RM250/month flat fee
• 3 Rooms: RM300/month flat fee

Official launch: August 2025

Benefit of pre-registration:

• Lock in pricing before launch
• Priority unit selection
• Free initial consultation
• Setup assistance

For All Other Condos:

WhatsApp us for custom pricing:

1. Tell us your condo details
2. We'll analyze your specific situation
3. Receive a personalized quote

No obligation, no pressure.

Take Action Today

Get transparent pricing for your condo. WhatsApp us now.

Stop paying hidden markups and commission fees. Switch to flat fee pricing (Parkland) or custom transparent pricing (other condos) and keep more of your hard-earned income.