iHousing vs Market Average: How Our Flat Fee Compares to Industry

The Shocking Truth About Airbnb Management Fees in Melaka

Most Airbnb management companies in Melaka charge 20-25% commission on your rental income. That sounds reasonable—until you do the math.

iHousing does things differently: flat RM 200-300/month, regardless of how much your property earns. Here's the comparison that every Melaka property owner needs to see.

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Industry Standard: Commission-Based Pricing

Typical Market Rates

What Most Companies Charge:

• Commission: 20-25% of gross rental income
• Cleaning fees: Added on top (RM 80-150 per booking)
• Markup on maintenance: 20-30% on any repairs
• Booking fees: 3-5% processing fee
• Setup fees: RM 500-2,000 one-time

Real Cost Breakdown

Example Property: 2BR in Melaka Raya

Monthly Performance:

• Occupancy: 70% (21 nights)
• Average rate: RM 250/night
• Gross Revenue: RM 5,250

Commission at 22%: RM 1,155/month

Additional Costs:

• Cleaning markup: RM 50/month (estimated)
• Maintenance markup: RM 100/month
• Booking fees: RM 150/month

Total Monthly Cost to Owner: RM 1,455

Effective Rate: 27.7% of gross revenue!

Annual Management Cost: RM 17,460

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iHousing Model: Flat Fee Pricing

Transparent Flat Rate

What We Charge:

• Management fee: RM 250-300/month flat (depending on unit size)
• No commission: 0% of your revenue
• Transparent cleaning: You pay actual cost (no markup)
• Transparent maintenance: You pay actual cost (no markup)
• No booking fees: Ever
• No setup fees: Ever

Same Property Example

Monthly Performance:

• Occupancy: 75% (we optimize better)
• Average rate: RM 280/night (dynamic pricing)
• Gross Revenue: RM 5,880

Monthly Cost to Owner:

• Management fee: RM 300/month
• Cleaning: RM 0 (included in fee for 1BR-2BR)
• Maintenance: RM 0 (you pay contractor direct)
• Booking fees: RM 0

Total Monthly Cost: RM 300

Effective Rate: 5.1% of gross revenue

Annual Management Cost: RM 3,600

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Head-to-Head Comparison

Annual Cost Comparison

Property: RM 5,880/month average revenue

Fee Type	Industry (22%)	iHousing (Flat)	Difference
**Monthly Fee**	RM 1,155	RM 300	Save RM 855/mo
**Annual Fee**	RM 13,860	RM 3,600	Save RM 10,260/yr
**Effective Rate**	22% + hidden fees	5.1%	16.9% less
**Net to Owner**	RM 50,880	RM 66,560	+RM 15,680 more

The Verdict: iHousing puts RM 15,680 more in your pocket annually.

5-Year Projection

Commission Model (22%):

• 5-year cost: RM 69,300
• Lost opportunity: That money could have been reinvested

iHousing Flat Fee:

• 5-year cost: RM 18,000
• Savings: RM 51,300

What RM 51,300 Buys:

• Down payment on another property
• Major renovations
• Investment portfolio expansion

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Hidden Costs of Commission Model

1. The "Success Penalty"

Problem: The more you earn, the more they charge.

• Your property performs well: RM 15,000/month
• Commission at 22%: RM 3,300/month
• You're penalized for success

iHousing:

• Same fee: RM 300/month
• You keep 100% of additional revenue

2. Revenue Suppression

Dirty Secret: Commission models have no incentive to optimize pricing.

• Higher rate × 22% = more commission
• But 20% higher rate might reduce bookings
• They'd rather keep occupancy steady than maximize your revenue

iHousing:

• Flat fee = we want maximum revenue
• We use dynamic pricing to optimize
• Our incentives align with yours

3. Cleaning Markup

Industry Practice:

• Actual cleaning cost: RM 80
• They charge you: RM 120-150
• Markup: 50-87%

iHousing:

• Actual cleaning cost: RM 80
• We charge: RM 0 (included in management fee)
• You pay actual cost

4. Maintenance Markup

Industry Practice:

• Actual repair cost: RM 500
• They charge you: RM 600-650
• Markup: 20-30%

iHousing:

• You pay contractor directly: RM 500
• We coordinate at no extra charge
• You save 20-30%

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Performance Comparison

Do Flat Fees Mean Less Effort?

Some Think: "If they charge less, they must do less."

Reality: iHousing provides equal or better service.

Service Comparison:

Service	Industry (22%)	iHousing (Flat)
**Platform Listings**	Airbnb only	5 platforms
**Photography**	Basic included	Professional
**Dynamic Pricing**	Maybe (extra fee?)	Included
**responsive support**	Maybe	Included
**Cleaning**	Markup added	Transparent cost
**Maintenance**	Markup added	Direct payment

Why We Can Charge Less

iHousing Advantages:

1. Economies of Scale: We manage 100+ properties, spreading fixed costs
2. Efficient Operations: In-house cleaning team, no middlemen
3. Technology: Automated systems reduce labor
4. Volume Focus: We want more properties at fair rates, not fewer at higher rates

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Break-Even Analysis

At What Revenue Does Flat Fee Win?

Commission Model:

• 22% × RM 1,363 = RM 300/month
• Below RM 1,363/month: Commission costs less

iHousing Flat Fee:

• Fixed: RM 300/month
• At RM 1,363/month: Same cost
• Above RM 1,363/month: Flat fee wins

The Reality:

• Most successful Melaka properties earn: RM 5,000-12,000/month
• Flat fee wins in 95% of cases

Visual Break-Even

Monthly Revenue: RM 3,000

• Commission (22%): RM 660
• iHousing: RM 300
• Winner: Flat fee saves RM 360

Monthly Revenue: RM 8,000

• Commission (22%): RM 1,760
• iHousing: RM 300
• Winner: Flat fee saves RM 1,460

Monthly Revenue: RM 12,000

• Commission (22%): RM 2,640
• iHousing: RM 300
• Winner: Flat fee saves RM 2,340

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Market Analysis: What Others Charge

Typical Melaka Management Companies

Company Type	Commission	Monthly Fee Range	Effective Rate
**Large Franchise**	20-25%	None	20-25%
**Local Agency**	22-28%	None	22-28%
**Hotel Operator**	25-30%	RM 500+	30-35%
**Individual Agent**	15-20%	None	15-20%
**iHousing**	0%	RM 200-300	3-6%

Industry Average: 22-25% effective rate

iHousing Rate: 3-6% effective rate

Savings: 75-85% less cost

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Owner Testimonials

Mr. Tan - Melaka Raya

Previous Management:

• Commission: 25%
• Monthly revenue: RM 8,000
• Management cost: RM 2,000
• Net: RM 6,000

After Switching to iHousing:

• Flat fee: RM 300
• Monthly revenue: RM 9,200 (better optimization)
• Management cost: RM 300
• Net: RM 8,900

Improvement: +RM 2,900/month (+48%)

"I didn't realize how much I was paying until I saw the numbers. iHousing's flat fee model is transparent and fair. Plus, my revenue increased because they optimize pricing more aggressively."

Ms. Lim - Pantai Kundur

Previous Management:

• Commission: 22%
• Annual cost: RM 14,500

After iHousing:

• Flat fee: RM 3,600/year
• Annual savings: RM 10,900

"I thought flat fee meant less service. Wrong. iHousing does more than my previous manager but charges less. The savings go straight into my pocket."

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Who Benefits from Flat Fee?

High-Performing Properties

Ideal If Your Property:

• Earns RM 5,000+/month
• Has 70%+ occupancy
• Commands premium rates
• In popular area (Jonker, Melaka Raya)

Savings: RM 1,000-2,500/month

Multi-Property Owners

Portfolio Economics:

• 3 properties × RM 300/fee = RM 900/month
• vs Commission: RM 3,000+/month
• Savings: RM 2,100+/month

All Property Types

Truth: Flat fee benefits everyone, but especially:

• Well-located properties
• Professionally managed units
• Properties with great reviews

Who Might Prefer Commission:

• Low-performing properties (rarely booked)
• Seasonal properties (used by owner often)
• Part-time rentals

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Transparency Matters

Hidden Fees vs. Flat Fee

Commission Model Hidden Costs:

• Cleaning markup (hidden in "cleaning fee")
• Maintenance markup (hidden in "coordination fee")
• Booking fees (small per-item, adds up)
• Setup fees (one-time but significant)

iHousing Transparency:

• What you see is what you pay
• RM 300/month = RM 300/month
• No surprises, no add-ons
• No hidden markups

We'd rather:

• Charge fair flat fee
• Earn your trust through results
• Grow our portfolio through referrals

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How iHousing Delivers More for Less

Question: "How can you provide full service for RM 300 when others charge RM 2,000?"

Answer:

1. Economies of Scale: 100+ properties spread fixed costs
2. Efficiency: Automated systems, in-house team
3. No Bloat: Lean operations, no middlemen
4. Volume Focus: We want market share, not maximum profit per property
5. Incentive Alignment: Your success = our success

Our Investment in Your Property:

• Professional photography (included)
• 5-platform listing (included)
• Dynamic pricing (included)
• responsive guest support (included)
• Review management (included)

Others Charge Extra For:

• "Premium" photography: RM 300-500
• "Enhanced" listings: RM 200/month
• "Dynamic" pricing: RM 150/month
• "Priority" support: RM 100/month

Total Extra Costs: RM 750+/month

iHousing: All included in RM 300.

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The Parkland Advantage

Special Note for Parkland Avenue Owners:

• Flat fee: RM 200-300/month (depending on unit size)
• This is our exclusive Parkland pricing
• No hidden fees, no surprises

For Other Condos:

• Custom pricing based on your needs
• WhatsApp us for personalized quote
• Still far below industry commission rates

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Make the Switch Today

If you're paying 20-25% commission, you're overpaying by RM 10,000-20,000 annually.

Switching is Easy:

• We handle platform transfers
• No disruption to existing bookings
• Immediate cost savings

WhatsApp Us: +60 19-699 6688 Related Articles:

• [Switching Costs: Competitor to iHousing](/blog/switching-costs-competitor-ihousing-melaka)
• [20% Commission vs RM250 Flat Fee Comparison](/blog/commission-vs-flat-fee-3-year-comparison)
• [Parkland Avenue Pricing Breakdown](/blog/parkland-avenue-pricing-breakdown)

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Last Updated: January 2026 | Data Source: Market analysis & iHousing performance data iHousing's flat fee model saves Melaka property owners RM 10,000-20,000 annually compared to industry standard commission rates. Transparent pricing with no hidden fees means more money in your pocket.