Hidden Costs of Airbnb Management: What Most Companies Don't Tell You

The 20% Commission Is Just the Beginning

When you hire an Airbnb management company charging 20% commission, you expect to pay 20% of your revenue in fees. Simple, transparent, fair - right?

Wrong.

What most management companies don't tell you is that commission is just one piece of their revenue puzzle. The real money comes from hidden markups and fees that can add another 5-10% to your effective management rate.

After analyzing statements from 100+ properties that switched to iHousing, we've identified 7 hidden revenue streams that commission-based managers use to pad their profits.

Hidden Cost #1: Cleaning Markup (30-50% Margin)

How It Works

Your manager says: "We include professional cleaning after every guest checkout."

What they don't say: "We mark up the cleaning cost by 30-50% and pocket the difference."

Real example from our client who switched:

Item	Actual Cost	What They Charged	Markup
Cleaning fee per stay	RM80 (cleaner rate)	RM120 (on your statement)	+50%

Annual impact (40 stays/year):

• Actual cleaning cost: RM3,200
• What you paid: RM4,800
• Hidden profit to manager: RM1,600/year
• 3-year cost: RM4,800

Why they do it: Cleaning is the most frequent expense. A small markup on every stay adds up to thousands per year.

Flat fee advantage: iHousing employs our own cleaning team. You pay actual cost only. No markup.

Hidden Cost #2: Maintenance Margin (15-25%)

How It Works

Your manager says: "We coordinate all maintenance and repairs for you."

What they don't say: "We add 15-25% to every contractor bill as our 'coordination fee.'"

Real example:

Service	Contractor Bill	What You Paid	Margin
Plumbing repair	RM300	RM360	20%
Aircon servicing	RM150	RM180	20%
Electrical work	RM200	RM250	25%

Annual impact (avg RM800/year maintenance):

• Actual cost: RM800
• What you paid: RM960-1,000
• Hidden profit: RM160-200/year
• 3-year cost: RM480-600

Why they do it: Maintenance is unpredictable. Adding margin ensures they profit from every repair.

Flat fee advantage: We coordinate maintenance but you pay contractors directly. No margin.

Hidden Cost #3: Supply Markups (15-30%)

How It Works

Your manager says: "We keep your property stocked with essentials."

What they don't say: "We charge 15-30% above retail on toilet paper, soap, linens, and other supplies."

Real example:

Supply Item	Retail Price	What You Pay	Markup
Toilet paper (bulk)	RM25/case	RM30-32/case	20-28%
Liquid soap	RM40/case	RM48-52/case	20-30%
Towels (bulk)	RM25/towel	RM30-33/towel	20-32%

Annual impact (avg RM800/year supplies):

• Actual cost: RM800
• What you paid: RM960-1,040
• Hidden profit: RM160-240/year
• 3-year cost: RM480-720

Why they do it: You buy supplies every month. Small markups add up consistently.

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

Hidden Cost #4: "Emergency Call" Fees (RM50-100/call)

How It Works

Your manager says: "We provide responsive support for your guests."

What they don't say: "After 6 PM or weekends, we charge RM50-100 per call as an 'emergency fee.'"

Real example from client statements:

Month	Emergency Calls	Fee Charged
January	6 calls	RM480 (RM80 avg)
February	4 calls	RM300 (RM75 avg)
March	7 calls	RM560 (RM80 avg)

Annual impact (avg 6 calls/month):

• Hidden profit: RM4,800-6,000/year
• 3-year cost: RM14,400-18,000

Why they do it: Guests frequently need help outside business hours. This creates a recurring revenue stream.

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

Hidden Cost #5: Platform Fee Padding (1-2%)

How It Works

Your manager says: "We handle all platform fees (Airbnb, Booking.com, etc.)."

What they don't say: "We add 1-2% to platform fees as a 'processing fee' for ourselves."

Real example:

Platform	Actual Fee	What They Charged	Extra
Airbnb	3% of booking	4% of booking	+1%
Booking.com	3% of booking	4.5% of booking	+1.5%
Agoda	3% of booking	4% of booking	+1%

Annual impact (RM120,000 gross revenue):

• Actual platform fees: RM3,600
• What you paid: RM4,800-5,400
• Hidden profit: RM1,200-1,800/year
• 3-year cost: RM3,600-5,400

Why they do it: Platform fees are unavoidable. Adding 1% is pure profit.

Flat fee advantage: Platform fees pass through at cost. No padding.

Hidden Cost #6: "Premium" Service Upsells

How It Works

Your manager says: "Basic service is included, but we offer premium upgrades."

What they don't say: "These 'premium' services have 50-100% margins and we'll push them hard."

Common premium upsells:

Premium Service	Actual Cost	What They Charge	Margin
Professional photography	RM300-400	RM600-800	100%
Floor plan rendering	RM150	RM300-400	100-166%
Listing optimization	RM0 (done in-house)	RM200-300	Infinite%
Guest welcome packs	RM25/pack	RM50/pack	100%

Annual impact:

• Hidden profit: RM500-2,000/year (varies by what you buy)
• 3-year cost: RM1,500-6,000

Why they do it: One-time sales with huge margins boost profits.

Flat fee advantage: Professional photography and listing optimization are included. No upsells.

Hidden Cost #7: Cancellation/Change Fees (RM50-150)

How It Works

Your manager says: "We handle guest cancellations and booking changes."

What they don't say: "We charge RM50-150 per cancellation/change as an 'administration fee.'"

Real example:

Month	Cancellations	Fee Charged
Average	4-6 cancellations	RM200-900/month

Annual impact:

• Hidden profit: RM2,400-10,800/year
• 3-year cost: RM7,200-32,400

Why they do it: Cancellations are common. Fees monetize a necessary service.

Flat fee advantage: Cancellations and changes are included. No fees.

Total Hidden Costs: The Real Numbers

Add up all the hidden fees and the picture becomes clear:

Hidden Cost	Annual Amount	3-Year Total
Cleaning markup	RM1,600	RM4,800
Maintenance margin	RM160-200	RM480-600
Supply markups	RM160-240	RM480-720
Emergency fees	RM4,800-6,000	RM14,400-18,000
Platform fee padding	RM1,200-1,800	RM3,600-5,400
Premium upsells	RM500-2,000	RM1,500-6,000
Cancellation fees	RM2,400-10,800	RM7,200-32,400
TOTAL HIDDEN FEES	RM10,820-23,040/year	RM32,460-69,120 (3 years)

On a RM10,000/month condo:

• 20% commission = RM24,000/year
• Hidden fees = RM10,820-23,040/year
• Effective rate = 29-36% (not 20%)

Flat Fee vs Commission: The Truth

Metric	Commission (20%)	Flat Fee
Advertised rate	20%	RM250/month (3% of revenue)
Actual rate (with hidden fees)	29-36%	3%
Annual cost (RM10k/mo revenue)	RM34,820-47,040	RM3,000
3-year cost	RM104,460-141,120	RM9,000
Difference	Flat fee saves RM95,460-132,120 over 3 years

Parkland Avenue: Flat Fee Transparency

IMPORTANT: Flat fee pricing (RM200-300/month) is ONLY available for Parkland Avenue by the Sea, launching August 2026. For all other condos, please WhatsApp us for custom pricing.

What's Included (No Hidden Fees)

• ✅ Guest Communication responsive - No emergency fees
• ✅ Professional Cleaning (In-House) - No markup
• ✅ Maintenance Coordination - You pay cost only
• ✅ 5-Platform Listing - No fee padding
• ✅ Dynamic Pricing - Included
• ✅ Professional Photography - Included
• ✅ Cancellations/Changes - No admin fees

Ready for Transparent Pricing?

For Parkland Avenue: Pre-register now to lock in RM200-300/month flat fee.

For other condos: WhatsApp us for custom pricing with full transparency.

Stop paying hidden markups. Switch to flat fee pricing and keep RM95,000+ of your income over 3 years.