What is a Tech Fee (and Why You Need One)?

Why Every STR Manager Should Be Charging a Tech Fee

If you're managing short-term rentals and not charging a tech fee, you're leaving money on the table. A tech fee is not just another line item - it’s a sustainability tool for your business.

Here’s why.



What Is a Tech Fee?

A tech fee is a flat monthly charge billed to property owners to cover the tools and software you use to manage their properties. Unlike commission-based fees, it’s not tied to booking volume - it’s a consistent, predictable cost that reflects your professional infrastructure.

Think of it like a utilities bill for modern hospitality.


Why Tech Fees Are Essential for STR Businesses

Whether or not the property has guests, your software stack keeps running. That includes:

  • Property management systems
  • Dynamic pricing tools
  • Smart locks and access control
  • Bookkeeping software
  • Guest experience apps

When owners stay in their own properties, you don’t earn commission - but you still pay for the tech. Charging a tech fee makes this transparent and ensures you’re not silently absorbing operating costs.


What’s Typically Included in a Tech Fee?

Here’s what your tech fee might cover:

  • PMS software (e.g. Guesty, Hostaway)
  • Dynamic pricing tools (e.g. PriceLabs)
  • Noise monitoring (e.g. Minut)
  • Smart locks/access control (e.g. Schlage)
  • Accounting software (e.g. QuickBooks Online, VR Platform)
  • Digital guest guidebooks (e.g. TouchStay)
  • Security & compliance tech (e.g. Ring)

All of these are necessary to run a professional STR operation - and none are free.


How Much Should You Charge?

Most STR managers charge $100–$150/month per property as a base tech fee. This won’t always cover all tech costs, but it significantly offsets them - especially at scale.

You can also layer in optional add-ons, such as $30/month for vacation rental tax filing.

These allow you to build recurring revenue and offer clients choice and clarity.


How to Explain the Tech Fee to Homeowners

The key is to be confident and clear. Here’s a simple way to frame it:

“We include a monthly tech fee to support the modern systems that keep your property running smoothly, securely, and professionally—even when it’s not booked.”

Emphasize:

  • Predictability
  • Transparency
  • Efficiency
  • Guest satisfaction

Most clients prefer a clear, itemized fee over vague, bundled charges.


When to Introduce the Tech Fee

Start with new homeowners. They won’t have pre-existing expectations, making them more receptive. As you build confidence, you can roll it out to existing owners - perhaps with a discount or during key events (like when they reserve prime dates for personal use).


FAQs

Is a tech fee the same as a management commission?
No. The tech fee is a flat monthly charge, while management commissions are typically a percentage of booking revenue.

What if an owner objects to the tech fee?
Frame it as a cost-sharing measure. You’re investing in tools that benefit their property—and this line item creates transparency and predictability.

Can I customize tech fees by owner?
Yes. While a base fee works well, you can tailor services and fees based on property size, complexity, or owner preferences.