Which costs to check before hiring an operator

What is charged and what is not

The base fee and what it is calculated on

Many operators charge a percentage, but that percentage can be calculated on different things: the gross booking revenue, the revenue after channel commissions, or only the lodging rate without cleaning or taxes. The same percentage gives very different results depending on the base.

For example, if a booking adds up to $1,000 in lodging and $100 in cleaning, a percentage applied to $1,000 is not the same as one applied to $1,100. Ask for a worked example from a real booking, with the full breakdown, and compare proposals using the same booking.

Additional charges

This is where the differences usually are. Ask what is charged apart from the fee and who pays for each item.

• Cleaning and laundry: whether it is charged to the guest, the owner or split.
• Maintenance and repairs: with what markup, if any, and up to what amount they can spend without telling you.
• Supplies and replacement of items.
• Setup or onboarding costs.
• Technology, photography or content, if charged separately.
• Channel commissions and the payment processor's fees.

The costs that stay on your side

Even if the operator does the work, some expenses remain the owner's: property taxes, insurance, utilities, association dues, large replacements and improvements. Ask which are handled through the operator and which you pay directly. That way you know how much you actually keep at the end of the month.

Also review the flow of money: who charges the guest, when your share is transferred and how much is held back for expenses. An operator who holds a lot of money for a long time is financing their operation with yours. Agree in writing on the payment schedule and the maximum amount they can hold.

Contract and reporting

Contract terms

Read the term, the exit conditions and whether there is exclusivity. A long contract with a penalty for leaving ties you down even if the service does not work. Ask what happens to bookings already made if you end the relationship, who owns the listings and reviews, and whether you keep the guest data.

An operator confident in their work does not need to tie you down. Contracts without long terms oblige the operator to earn the renewal every month.

How they report the numbers

Ask to see a sample statement before signing. It should show, per booking, the revenue, each deduction and each charge, and what is owed to you, in a way you can verify against the channels' payouts. If you cannot follow a sample report, you will not follow the real one.

Ask for references and review the work

Before signing, talk to other owners who work with the operator. Ask whether reports arrive on time, whether charges match what was promised and how problems were resolved. Also look at the listings they already manage: photos, descriptions and reviews. Those listings are what your guest will see.

Compare total cost, not the percentage

Ask two or three operators to quote the same property with the same assumptions and add everything up: fee, additional charges and the costs that remain on your side. Also compare what you get in return. A higher fee with more services included can cost less than a low one with many extras.

Questions worth asking

• What base is the fee calculated on?
• What charges sit outside the fee and who pays them?
• Is there a spending limit without owner approval?
• What is the term and how do I exit the contract?
• Who owns the listings, the reviews and the data?
• Which channels do they use and how is the calendar synced?
• How often and in what format do I get reports?

The most useful signal is clarity. An operator who explains every charge before you sign usually explains it too when something goes wrong.