Anyone considering professional management for a holiday let would ask: how much do holiday letting agents charge? In the UK, published rates commonly fall around 15% to 25% of booking revenue plus VAT for full-service holiday letting.
The percentage alone does not tell you what you will actually pay. Some agents charge on gross booking revenue, while others calculate their fee after platform charges. Cleaning, maintenance, photography, onboarding and other services may also sit outside the headline management fee. Here is what to check before comparing quotes.
What percentage do holiday letting agents charge?
Holiday letting agents commonly charge a percentage of the income generated by your property rather than a fixed monthly fee. Published UK guidance puts holiday letting agent commissions at around 15% to 25% per booking, with the final rate depending on the service and provider. For example, on £20,000 of annual booking revenue:
|
Management fee |
Fee before VAT |
Fee including 20% VAT* |
|
15% |
£3,000 |
£3,600 |
|
20% |
£4,000 |
£4,800 |
|
25% |
£5,000 |
£6,000 |
*Illustrative calculation assuming VAT is charged on the management fee.
So a 15% quote and a 25% quote can represent a significant difference over a year. However, you also need to know what that percentage applies to and what services are included.
Gross or net booking revenue: which one matters?
A gross booking value is the amount generated before other deductions. A net booking value is the amount remaining after specified costs, such as a platform fee, have been deducted.
Suppose a booking generates £1,000 and the management company charges 20% on the gross amount.
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Booking revenue: £1,000
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Management fee: £200
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VAT on the management fee: £40
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Amount remaining: £760
Now compare that with an agent charging 20% on a lower net figure. The actual cost can be different even though both companies advertise “20% management”.
Ask this before comparing percentages: Is your management fee calculated on gross or net booking revenue? Without that answer, two percentage quotes are not necessarily comparable.
Does Airbnb charge a separate fee?
Yes. Your holiday letting agent's management fee and Airbnb's platform fee are separate costs. Airbnb has changed its fee structure in 2026. For the relevant UK host model, Airbnb says it is moving to a single 15.5% service fee paid by hosts, with the change applying to UK hosts from June 2026 in its published rollout.
That means you should not look at an agent's 15%, 20% or 25% management fee in isolation if your bookings come through Airbnb.
For example, Airbnb's own illustration shows that a £115 guest price can result in a £97 host payout after its 15.5% service fee, before considering other costs.
What other costs can come with holiday let management?
The management percentage may not cover every cost involved in running your property. Before signing a contract, check whether the following are included:
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Cleaning and linen: Often charged separately per stay.
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Maintenance: Contractor and repair costs may be passed to the landlord.
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Emergency callouts: Check whether there are separate attendance charges.
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Photography: Some companies include professional photography; others charge separately.
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Onboarding or setup: Some agents charge an initial setup fee.
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Listing fees: Some providers charge annual or listing-related fees.
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Guest services: Check whether check-ins, guest communication, and key management are included.
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Compliance: Confirm whether safety checks and administration are included or charged separately.
Published market guidance also highlights setup and listing charges as potential additional costs, so always ask for the full fee schedule, not just the headline commission.
What should a holiday letting management fee include?
A full-service arrangement can cover much more than putting your property on Airbnb. Depending on the company, management can include:
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Creating and managing property listings
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Handling booking enquiries
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Guest communication
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Check-in and check-out arrangements
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Managing booking calendars
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Pricing and availability management
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Cleaning and changeover coordination
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Maintenance coordination
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Property inspections
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Handling guest issues
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Managing reviews and listing performance
The important point is to compare service scope alongside price.
A 12% management fee with limited involvement may cost you less upfront but leave you responsible for several tasks. A higher percentage may include much more day-to-day management.
Are holiday letting agent fees tax deductible?
Management and letting agent fees can generally be allowable expenses when calculating taxable property income, provided the relevant tax rules are met. HMRC lists letting agent and management fees among expenses that can be deducted from rental income.
However, the tax position for holiday lets has changed. The special Furnished Holiday Lettings (FHL) tax regime ended in April 2025, meaning qualifying holiday lets are now subject to the normal property income rules rather than the former FHL regime.
Is paying a holiday letting agent worth it?
That depends on what you are trying to achieve. Self-managing means keeping the management fee, but you take responsibility for marketing, enquiries, bookings, guest communication, cleaning, maintenance and the problems that can arise between stays.
Professional management means giving up part of the booking revenue in exchange for having someone else handle those responsibilities.
The right comparison is therefore not: “Can I find an agent charging less?”
It is: “What will I keep after all costs, and how much work will I still have to do?”
For a landlord who lives far from the property, has several properties or does not want to deal with guests and maintenance, the value of professional management can be greater than the percentage alone suggests.
How to compare holiday letting agents
Before choosing an agent, ask these questions:
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What percentage do you charge?
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Is the fee based on gross or net booking revenue?
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Is VAT added?
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What exactly is included?
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Are cleaning and linen charged separately?
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Are maintenance and emergency callouts extra?
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Is there an onboarding or setup fee?
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Which booking platforms do you use?
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How are bookings, guest communication, and check-ins handled?
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What happens if I want to end the management agreement?
Get the answers in writing so you can compare like-for-like quotes.
How Cribs Estates can help with holiday lets
Cribs Estates supports landlords with property marketing, guest management, compliance and maintenance as part of our wider property management services. Our experience across London means we can help landlords approach short-term letting with the requirements of the local market in mind.
We also work with landlords considering different rental strategies, including shorter and medium-term arrangements. Our London short-term letting service covers flexible 1-, 2- and 6-month options, with support for property marketing, tenant matching, paperwork and move-in and move-out processes.
Want to know how much do holiday letting agents charge? Contact us today.



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