Cleaning Fees

• Cleaning fees are kept as revenue by almost 80% of our STR Property Management clients

Transcript:

Cleaning fees are the ones that are charged to guests. What we're looking to know is how you handle those cleaning fees that are charged to guests.

For example every stay has a $200 cleaning fee What we want to know is whether you as a property management are keeping that $200 and using it to pay the cleaning expense or do you pass that revenue and the expense on to your owners through an owner report?

So let's say a cleaning fee collected from a guest was $200 and your payment to the cleaner was $190. Are you as a property management company keeping that extra $10, that variance?

In our experience, about 80% of property management companies keep the cleaning fees on their books and off the owner statements. It's definitely a cleaner approach:

  • There are fewer transactions on the owner statement
  • It reduces the chance of timing mismatch where the revenue is in one month and the expenses in another
  • Enables the property manager to keep a little margin in exchange for managing the cleaning staff

We can handle it either way, but we do need to know from you what your process is.