What percentage do vacation rental management companies take in Virginia?

Virginia does not set a percentage. The fee is whatever you and a licensed manager agree in writing, and we found no dated Virginia source for typical rates, so we will not quote one. Firms may charge a share of rental revenue, a flat fee or both, plus separate charges for cleaning, supplies, maintenance and extras. What matters is the base the percentage applies to and what is billed on top, so compare quotes line by line.

What the law does say about the fee

Only a licensed individual or firm may negotiate the fee. The Real Estate Board's rules list negotiating or agreeing to any commission, commission split, management fee, or referral fee among the activities that must be performed by a licensee.^[1] Someone without a licence who offers to run your rental for a cut is a warning sign. See does a property manager need a licence in Virginia.

The rules also limit how a manager may earn money on your property:

• A manager cannot write your agreement so that you receive a fixed "net" amount and the manager keeps whatever the market pays above it. The Board treats making a listing contract or lease which provides for a "net" return to the seller or lessor, leaving the licensee free to sell or lease the property at any price the licensee can obtain in excess of the "net" price named by the seller or lessor as an improper financial dealing.^[2]
• A manager cannot quietly profit from the vendors it hires for you. The same rule lists receiving financial benefit or other valuable consideration for any work or service related to a transaction without the prior written acknowledgment of the person paying for such work or service as improper.^[2]

That second rule is the reason to ask whether the firm marks up cleaning or repairs, and to see the answer in writing.

What a vacation rental fee can include

Vacation rental management is more labour than a one-year lease, so the pricing has more parts. Ask each firm to show which of these apply and how each is charged:

• the management percentage, and what it is a percentage of
• a start-up or onboarding charge for the listing, photos and setup
• cleaning and linen, and whether the guest pays a cleaning fee that goes to the cleaner or to the firm
• supplies, restocking and laundry
• maintenance, including a markup on repairs and an hourly charge for the manager's time
• booking-site and payment-processing fees, and who bears them
• a charge for filing tax returns, if the firm handles that

Two firms can quote the same percentage and cost you very different amounts a year because of the base and the extras. Ask each for a sample owner statement from a real month, with names removed.

The base matters as much as the rate

A percentage of what? Ask whether it applies to the nightly rate only, or also to cleaning fees and other guest charges, and whether it is taken before or after taxes.

Taxes matter here. A county's transient occupancy tax is imposed on the total price paid by the customer for the use or possession of the room or space occupied in a retail sale,^[3] and Virginia's sales tax applies to the sale or charges for any accommodations furnished to transients for less than 90 continuous days.^[4] Collections of the local tax are deemed to be held in trust for the county, city or town imposing the tax,^[3] so they are not income to you or the manager. A fee calculated on gross amounts that include tax would be a fee on money that belongs to the locality, so ask.

When the firm pays itself

Guest payments pass through the manager's escrow account. The escrow rule says the account may include moneys that will ultimately belong to the licensee in the escrow account, provided such money is separately identified in the escrow account records and paid to the firm from the escrow account when funds become due to the licensee.^[5] Ask when the firm takes its fee (at booking or after the stay), when you are paid out and how a cancelled or refunded booking is handled.

How to compare quotes

Request the same information from every firm, in writing, then lay the quotes side by side. A rate that looks low can cost more once the extras are added; a higher rate that includes cleaning coordination, tax filing and guest support can cost less. Our answer on what a property management agreement should include lists the terms to look for, and how property managers charge in Virginia covers the long-term version of this question. For the job itself, see what a vacation rental manager does.

Whatever the fee, the rental still has to be legal where it sits. Check whether you need a permit first, so you are not paying a manager to run a rental your locality does not allow.

Stop and call a pro if

• a firm quotes a fee but has no Virginia real estate licence, or will not give its licence number
• the agreement is not in writing, or leaves out the fee, the payout dates or how to end the contract
• the contract asks you to accept a "net" return and leaves the manager free to keep everything above it
• the manager asks you to send rent or deposits anywhere other than its escrow account
• you have a dispute over fees or held funds, in which case a Virginia attorney or the Real Estate Board is the place to go

Read more in commercial answers or browse the commercial services directory. To line up help with the rental, describe the job once and local pros quote it.