Short-Let Management Fees in London: What Landlords Pay (2026)
London short let management fees in 2026: typical percentages, hidden costs, gross vs net and the questions to ask before you sign a contract.
If you own a flat or house in London and you are weighing up short lets, the first question is usually the same: what will it cost me to have someone else run it? The answer is rarely a single number. Management fees in London are quoted as a percentage of booking revenue, but what that percentage covers, and what sits on top of it, varies a great deal from one company to the next.
This guide explains how short-let management fees work in London in 2026, what the typical ranges look like, where the extra costs hide, and the questions that will help you compare proposals like for like.
Quick answer: Published market comparisons put London short-let management at roughly 10-15% of booking revenue for half-service and 20-30% for full-service, with premium operators charging more. The percentage on its own tells you very little. What it is charged on (gross or net), and which costs are billed separately, decide what you actually keep.
How short-let management fees are structured
Most London managers charge a percentage of the booking revenue a property generates. The logic is simple: the manager only earns well if you earn well. Some companies add a one-off set-up fee, and a few charge a flat monthly amount instead, but the percentage model is by far the most common.
Within that model there are three broad service levels.
Half-service (listing and guest support)
Half-service usually covers creating the listing, setting prices, replying to guests and coordinating check-in. The owner, or a separate contractor the owner hires, handles cleaning, laundry, maintenance and anything that needs someone physically at the property. Published comparisons put this tier at around 10-15% of revenue.
It can suit an owner who lives nearby and is happy to deal with the practical side. For most London landlords who bought an investment flat precisely so they would not have to be involved, it leaves too much on their plate.
Full-service (everything handled)
Full-service means the manager runs the whole operation: pricing, guest communication, cleaning, linen, maintenance coordination, compliance tracking and monthly reporting. Typical published ranges sit around 20-30% of booking revenue.
This is the model most landlords mean when they say “hands-off”. The fee is higher because the manager is carrying far more work and, in the best cases, far more responsibility for the quality of the stay.
Premium and luxury
At the top of the market, concierge-style operators serving high-value properties in prime locations can charge 30% and above. That can be justified for a very high-end property, but it is worth testing whether the extra service actually produces extra income.
The costs that sit outside the percentage
This is where proposals that look similar end up very different. When you compare management companies, build a simple list of everything that is not included in the headline percentage.
- Cleaning. Each turnover has a cost. Some managers include cleaning coordination in their fee and pass the cleaner’s charge through at cost. Others mark it up. Whether cleaning is done by the manager’s own team or by a subcontractor also affects consistency, and consistency shows up in your reviews.
- Linen and laundry. Hotel-quality bedding and towels are essential for good reviews. Check whether linen is supplied, laundered and replaced as part of the service or charged separately.
- Consumables. Toiletries, coffee, cleaning products and small replacements add up over a year.
- Set-up costs. Photography, styling, initial stock and listing creation may be included, charged once, or recovered from early income.
- Maintenance and repairs. Most managers coordinate repairs and bill the actual cost. Ask whether there is a call-out or coordination charge on top.
- Platform fees. Airbnb, Booking.com and other channels charge their own commission. These are normally deducted from your revenue before payout, so make sure you understand whether the management percentage is calculated before or after that deduction.
- VAT. Percentages are often quoted exclusive of VAT. If VAT applies, a 20% fee can become 24% in practice.
Gross versus net: the question that changes everything
The single most important thing to clarify is what the percentage is calculated on.
If the fee is a percentage of gross booking revenue, it is calculated on the total guests pay before platform commission, cleaning costs and other deductions. If it is a percentage of net revenue, it is calculated after some or all of those costs are taken off.
Here is a simple illustration. Suppose a flat takes £5,000 in bookings in a month, with £750 in platform fees and £600 in cleaning costs. A 20% fee on gross is £1,000. A 20% fee on revenue after platform fees is £850, and after both deductions it is £730. The same headline number produces a gap of several hundred pounds a month depending on the basis. These figures are an example only, but the principle holds for every property: ask for a worked example using a normal month at your property.
What a good fee should buy you
A lower percentage is not automatically better, and a higher one is not automatically worse. What matters is the net income to you after every cost, and the quality of the service behind it. When you assess a proposal, look for evidence of the following.
- Dynamic pricing that is actually reviewed. Nightly rates should respond to demand, events and local supply. Ask how often prices are reviewed and by whom. At Corporate Stays, pricing is reviewed daily using dynamic pricing software.
- Cleaning quality you can check. Five-star reviews are built on clean, consistent turnovers. An in-house, vetted team usually delivers more reliably than a subcontractor chosen on price.
- Compliance handled for you. In London that means tracking the 90-night cap across every platform, along with safety certificates and insurance. Our guide to London’s 90-night rule explains why this matters.
- A plan for the rest of the year. Short stays are limited to 90 nights a year in a whole London home. A manager who can also place corporate and relocation guests for 90+ night stays can keep the calendar full when the cap is reached.
- Clear owner reporting. You should receive a monthly statement that shows revenue, costs and your net payout, and ideally have access to a calendar so you can see what is booked.
Questions to ask before you sign
Put these to every company you speak to, and compare the answers side by side.
- What exactly does the percentage cover, and what is billed separately?
- Is it calculated on gross or net revenue? Can I see a worked example?
- Is there a set-up fee, and what does it include?
- Who does the cleaning, and what checks are made after each turnover?
- How is linen supplied and laundered, and who pays for replacements?
- What is the notice period if I want to end the agreement?
- How do you track the 90-night limit across platforms?
- How will you handle guest damage and claims?
- How often will I be paid, and how will I see my statement?
Is a fixed income worth considering?
Some landlords decide they would rather give up some upside in return for certainty. In that case, guaranteed rent can be a better fit than a percentage fee, because the payment is fixed and the operator carries the risk of empty months. We compare the two routes in detail in our guide to guaranteed rent versus short-let management.
How Corporate Stays approaches fees
Our fee is tailored to each property and to the level of service you need, so we do not publish a single headline percentage. We prefer to look at your postcode, bedrooms and current situation, and then send a clear written proposal with no hidden extras. Every turnover is cleaned by our own in-house housekeeping team, pricing is reviewed daily, and you receive one clear statement every month.
If you would like to see how the numbers might look for your property, you can get a free income estimate or message us on WhatsApp. We will compare short-let, corporate-let and long-let income for your property, so you can judge the fee against the result rather than in isolation.
Frequently asked questions
How much do short-let managers charge in London?
Published market comparisons put half-service management at roughly 10-15% of booking revenue and full-service management at roughly 20-30%, with premium operators charging more. Your actual fee depends on the property, location and what is included, so always get the proposal in writing.
Is the management fee charged on gross or net revenue?
It varies by company, and it matters a lot. A percentage of gross booking revenue is charged before platform fees and cleaning are deducted, while a percentage of net revenue is charged after. Ask for a worked example using a typical month for your property.
Are cleaning and linen included in the management fee?
Sometimes, but often not. Some managers include cleaning coordination in the percentage and pass the cost of each clean to the owner at cost. Others charge linen separately. Check which costs are in the fee and which are billed on top.
Do I pay anything if my property is empty?
Under a percentage-based agreement you usually pay no management fee in months with no bookings, although fixed costs such as utilities, service charge and any subscription costs still come out of the income. Guaranteed rent is different because the payment is fixed whatever the occupancy.
Can I leave a management company if I am unhappy?
Check the notice period and any exit fees before signing. Corporate Stays works on a 3-month notice period rather than a long lock-in.
This guide is general information, not legal, tax or financial advice. Fee ranges are indicative market figures and individual proposals vary. Last reviewed October 2026.
