The Texas short-term rental market thrives as a lucrative real estate investment. Investors capitalize on the state's booming tourism and business travel sectors, from the urban scenes of Austin and Dallas to the Hill Country retreats. But for many property owners, experienced and newcomers alike, one question consistently rises: what percentage do STR managers charge?

This seemingly straightforward question deserves a nuanced answer. Management costs vary significantly based on service level, location, property type, and the management company's model. Understanding STR management fee structures will help you make a more informed decision for your Texas investment property.

In this guide, we break down the typical percentage ranges, what these fees cover, available fee models, hidden costs, and how to determine if you're getting value for your investment. By the end, you'll be equipped to evaluate management partners confidently.

Typical STR Management Fees

Short-term rental management fees typically range from 15% to 40% of the gross rental revenue. This percentage applies to the total amount guests pay (including the nightly rate and sometimes the cleaning fee) before expenses are deducted.

This wide range exists for good reason. A management company charging closer to 15% may offer different services than one charging 35%. Markets, like high-demand urban centers, command lower fees due to higher occupancy rates and revenue potential, while vacation areas with seasonal fluctuations see higher percentages. At Surge, our performance-based fees start at 15%, aligning our success with yours.

Common STR Management Fee Models

Before comparing percentages across companies, understand that not all fee structures are equal. The manager's model can significantly impact your bottom line and the relationship dynamics with your management partner.

The Commission / Percentage-Based Model (Industry Standard)

The most common model in the Airbnb property management fees landscape is that the management company receives a predetermined percentage of your property’s revenue, typically calculated on the nightly rate plus cleaning fees.

Pros:

• Aligned Incentives: The manager benefits from maximizing your property's performance. When you earn more, they earn more.
• Performance-Driven: You pay only when your property generates income. If your property is empty, your management costs are minimal or zero.

Cons:

• Variable Costs: Your monthly management expense will fluctuate with seasonality and booking patterns, making budgeting less predictable.

The Flat-Fee Model

You pay a fixed monthly amount regardless of your property's occupancy or revenue performance.

Pros:

• Predictable Expenses: You know your monthly management costs, making financial planning easier.

Cons:

• Misaligned Incentives: The management company earns the same amount whether your property generates $10,000 or $1,000 in a month. This reduces motivation to maximize occupancy and rates.
• Risk on the Owner: You're responsible for the full fee during low seasons or if the property remains vacant for extended periods.

The Hybrid Model

This less common approach features a lower monthly base fee plus a reduced commission percentage on bookings, combining elements of both previous models.

Pros:

• Balanced Approach: Aligns incentives while providing stability in management costs.
• Lower Percentage: The commission rate is lower than in pure percentage models.

Cons:

• More Complex: Harder to track and understand true management costs.
• Potential for Higher Total Fees: In some cases, the combined costs may exceed what you pay under a single model.

What's Included in a Management Fee?

The percentage is only meaningful when you understand the services you're receiving. A 15% fee that leaves you handling guest communications and maintenance coordination is very different from a 25% fee that delivers a hands-off experience.

A comprehensive full-service property management package should include the following:

• Dynamic Listing & Multi-Platform Marketing: This isn't just putting your property on Airbnb. We create professional listings with high-quality photos, write compelling copy, and manage your presence across multiple platforms (Airbnb, VRBO, etc.) to maximize visibility.
• 24/7 Guest Communication & Support: We handle all guest communication around the clock, from the first inquiry to post-stay reviews. No more 2 AM calls about the Wi-Fi password.
• Proactive Revenue Management with Dynamic Pricing: We use technology to adjust your nightly rates daily based on local demand, events (like SXSW in Austin or the State Fair in Dallas), seasonality, and competitor pricing to maximize revenue.
• Complete Operations & Turnover Management: We coordinate every aspect of the turnover process, including cleaning, laundry, restocking essentials, and ensuring the property is ready for the next guest.
• Thorough Guest Screening & Vetting: We implement a rigorous screening process to vet potential guests, minimizing risks and protecting your investment.
• Transparent Owner Portal & Financial Reporting: You get a dedicated online portal to view your booking calendar in real-time, track financial performance, and block out dates for your own stays.

What's Usually Not Included? Potential Extra Costs

A responsible management partner should be transparent about costs outside the standard management fee. Knowing these potential extras will help you budget accurately and avoid surprises.

• Consumable Supplies: Items like toilet paper, paper towels, coffee, soap, and guest amenities are not included in the management fee. Most companies purchase these in bulk (passing on cost savings to you) and bill them back at cost.
• Maintenance & Repair Costs: Your management fee includes coordination of maintenance issues, but repair and service call costs are an owner expense. This includes plumbers, electricians, HVAC technicians, and other service providers.
• Deep Cleaning & Annual Maintenance: Periodic deep cleaning, carpet cleaning, or seasonal maintenance like HVAC servicing are billed separately from regular turnover cleans.
• Initial Setup and Furnishing: The one-time cost of designing, furnishing, and stocking a new STR property is separate from ongoing management. This initial setup and furnishing is crucial for creating a property that attracts guests and commands premium rates.

The Surge Difference

At Surge, our business model is based on a simple principle: we win when you win. Our performance-based fee structure (starting at 15%) means our financial success is tied to your property's revenue. This creates a partnership where we're motivated to maximize your booking rates, occupancy, and revenue. If your property's income increases, so does our compensation, creating a virtuous cycle of aligned interests.

No Long-Term Contracts: Earning Your Business Monthly

Unlike competitors who lock clients into year-long contracts, we operate on a month-to-month basis. We are confident in the value we deliver. This approach forces us to continuously prove our worth and earn your business each month through results and service quality. If we are not performing, you are free to make a change without being trapped in a lengthy contract.

Unmatched Texas Expertise

Our exclusive focus on Texas STR management gives our clients a significant competitive advantage. We understand each Texas market, from Austin's evolving short-term rental regulations to Dallas's convention calendar, or maximizing revenue during peak seasons in the Texas Hill Country. This expertise translates into higher occupancy rates and better revenue management strategies tailored to Texas travelers.

A True One-Stop-Shop: Integrated Design & Management

Surge offers a unique advantage through our integrated design and management approach. We manage properties and create high-performing ones from scratch. Our in-house design team furnishes rentals to be stylish, durable, and optimized for 5-star reviews, leading to higher booking rates and revenue. Our managed properties showcase this integration, where interior design meets strategic dynamic pricing and operations, creating turnkey investments.

Evaluating an STR Management Company's Fees

Now that you understand the landscape, here are the key questions to ask potential management partners to ensure you are comparing apples to apples:

• Ask for a detailed, itemized list of all included services.
• Request a transparent breakdown of all potential extra fees (e.g., onboarding fee, maintenance call-out fee).
• Ask about restocking supplies and maintenance billing.
• Request a custom revenue projection (pro forma) for your property.
• Check online reviews and ask for references from local current owners.
• Understand their pricing strategy. Do they use dynamic pricing software? How often do they review and adjust rates?
• Clarify their communication process for maintenance and emergency situations.
• Ask about the average occupancy rates for similar properties in the same area.

Conclusion

As we've explored in this article, the percentage STR managers charge is only part of the equation. The more important question is: what return on investment will professional management deliver?

The right property manager isn't just a cost; they're an investment that should deliver measurable returns through increased revenue, protected asset value, and reclaimed personal time. When evaluating management value, consider not just the fee percentage, but the net result: higher occupancy rates, premium nightly rates through strategic pricing, and freedom from day-to-day headaches. For most investors, especially those seeking passive income, the value of professional management far outweighs the percentage fee.