London’s short-term rental market offers lucrative rewards, yet it comes with a complex web of fees, commissions, and hidden costs. As a landlord or property owner, you want to know: how much should you expect to
pay for professional management? What do these charges really cover, and how do you separate genuine value from enticingly low headline rates?

Let’s demystify the costs of short-let property management in London. The goal is to help you make informed, confident decisions that maximise returns while keeping your experience genuinely stress-free.

Understanding Core Management Fees
The core of any short-let management service in London is the management fee. This charge covers the day-to-day running of your property. Most reputable agencies charge a percentage of your booking revenue,
ensuring their priorities align with maximising your income.

Average management fee: In London, expect a commission of 12–20% (plus VAT) of rental income.
Smart Stay benchmark: At 15% plus VAT on each booking, Smart Stay positions itself within the industry standard, ensuring complete operational coverage and attentive, round-the-clock service for you and your
guests.

Companies may also charge a set-up or onboarding fee to cover professional photography, property listing creation, and initial inspections. At Smart Stay, this is £315 plus VAT for up to two bedrooms; larger properties
attract a slightly higher set-up fee.

Cleaning and Preparation Costs
A premier guest experience relies on immaculate cleaning and consistent property preparation. This is never bundled into the commission. Expect a separate cleaning fee per booking, typically passed onto guests. Feesvary according to the property’s size and the standard dictated by the agency.

With Smart Stay, cleaning services incur a fixed fee—transparent for guests, simple for hosts. Additional services (such as laundry, deep cleaning, or repairs) are arranged at cost price, eliminating overpriced mark-ups.

Breakdown of Typical Charges
What should you truly expect to see on your statement as a London landlord? Here’s a typical breakdown:

Set-Up Fee: One-off cost covering onboarding essentials
Management Fee: Ongoing commission (12–20% plus VAT)
Cleaning/Service Fees: Charged per booking (dependent on size and frequency)
Maintenance Charges: For ad hoc repairs or emergencies, usually arranged at cost
Payment Handling Fees: Sometimes, a percentage for credit card processing (Smart Stay charges 3%)

Some agencies may advertise low commission rates but then add extra fees for essentials like marketing, guest support, or emergency call-outs. With Smart Stay, all essential elements are included within the transparent
commission.

What Do You Actually Get For Your Money?
It’s tempting to focus solely on headline rates. True value comes from what’s included behind those numbers. Here’s what a reputable, full-service agency like Smart Stay delivers:

Personalised property management: Hands-off for you, seamless for guests.
Professional photography and marketing: Ensures your listing stands out to attract premier bookings.
24/7 guest communication and support: Protects your reputation and minimises disruption.
AI-driven pricing optimisation: Maximises revenue in a dynamic marketplace.
Comprehensive maintenance and inspections: Keeps the property in show-home condition, safeguarding your investment.

Comparing Value: Beyond Low Fees
Should you opt for the cheapest management agency? In London, the answer is rarely yes. Super-low headline rates can mean hidden add-ons, minimal proactive support, and lost earning opportunities due to poor
pricing or marketing. A slightly higher, all-encompassing management fee may result in significantly greater net income through higher occupancy, superior guest reviews, and less stress.

Look for agencies providing full service under a transparent contract. Choose companies that proactively manage listings, pricing, and guest vetting, not just handle key drops.

How Do Fees in London Compare to the UK Generally?
London leads the way in short-term rental management sophistication. In other regions, letting or management fees often start from 10% and can climb higher for fully managed services. Ancillary costs such as cleaning
or marketing may be less in smaller cities, reflecting lower overheads. However, service quality often follows suit.

London landlords should expect the best—in both cost recovery and elevated service standards.

In Summary: What Should You Budget For Quality Management?
Allow for the following when calculating the real cost of short-let property management in London:

Set-up fee of £315–£300+ plus VAT depending on property size
Management commission of 15–20% plus VAT
Fixed, transparent cleaning and maintenance costs arranged by your manager

Crucially, a quality short let property management london provider will offer genuine end-to-end support. That means no nasty surprises, no unnecessary time drains, and a focus on ensuring your returns are truly
maximised.

If you’re seeking hassle-free management and optimal yields, a specialist like Smart Stay transforms your property aspirations into reality. Consider not just the initial outlay but the ongoing value—both in income and peace
of mind. That’s the true cost of property management done right in London.