Define the fee base first
Ask whether the fee applies to accommodation revenue, cleaning charges, extras or the total guest payment. Establish whether discounts, refunds and channel commissions are deducted before the management fee is calculated. Two identical percentages can produce different invoices.
Distribution costs need their own line. A booking platform fee does not disappear because a manager operates the home. Confirm who pays it and where it appears in the statement. Deposits and tourist taxes must not be treated as owner revenue simply because cash has passed through an account.
Separate three layers of cost
A guest cleaning charge might be a pass-through or have a different contractual treatment. Reconcile the charge against the actual cost and avoid counting it as margin twice. Separate routine maintenance from capital improvements; a pump replacement and a new pool are different decisions.
| Layer | Examples | Decision to document |
|---|---|---|
| Initial preparation | Photography, inventory, linen, minor works | One-off cost and approval process |
| Variable operation | Cleaning, laundry, supplies, distribution | Charged per stay, night or revenue |
| Property stewardship | Pool, garden, insurance, maintenance | Who commissions, pays and checks |
Put competing proposals through the same scenario
Use the same sold nights, average nightly rate, number of stays and owner-use dates for both proposals. Apply each proposal’s exact fee rules, then compare the remaining owner amount. Different occupancy assumptions obscure the contractual comparison.
Add a cancelled stay, an urgent repair and a late arrival. These examples expose approval thresholds, additional charges and responsibility gaps. Ask each manager to explain how the events would appear in the monthly statement. If they cannot, the proposal is not yet specific enough.
Account for work left with the owner
An inexpensive fee may depend on the owner arranging technicians, purchasing supplies or responding to guests. List those tasks and the availability they require, even if they do not generate an invoice. A remote owner may value dependable local execution differently from someone living nearby.
Premium delivery relies on repeatable details: spare linen, cleaning checks, accurate arrival instructions and incident handling. Request an inventory example, a maintenance record and an anonymised statement. These show more about the operating model than the phrase full service.
Agree approvals and reporting before launch
Document the spending limit for routine work, the emergency procedure and how supporting invoices are shared. Clarify responsibility for supplier quality, warranties and complaints. The owner should be able to trace a cost from request through approval to completion.
A payout needs a reconciliation of completed stays, recognised revenue, refunds, commissions, expenses and balance. Keep future bookings separate from earned revenue. A bank transfer alone does not show whether the operation is performing.
Stress-test the low season and the exit
Repeat the comparison with fewer sold nights and one material repair. Fixed costs remain when there are no guests. Review contract duration, renewal, termination, listing ownership and accepted future bookings before signing.
A Portugal Active assessment should start with the home, owner availability and agreed service scope. This guide deliberately gives no universal management percentage: without a contract and calculation base, that number would not help you compare offers.
Your decision checklist
- Get the fee base in writing.
- Separate distribution, operation, maintenance and investment.
- Compare identical calendars and assumptions.
- Agree approval limits and statement detail.
- Review exit terms and future reservations.
