Is 20% of net worse than 15% of gross?

Almost always 20% of net is cheaper for the owner. On a typical Albanian short-term rental, the 'net' figure is about 70–75% of gross after platform fees and cleaning, so 20% of net is roughly equivalent to 14–15% of gross — but with much better incentive alignment.

Why does the manager prefer net?

Because the manager only earns when the owner actually earns. A bad booking that fills the calendar but costs you money to service (last-minute discount, heavy cleaning, damage) doesn't pay the manager either. The manager has to make good decisions.

Can I ask my current manager to switch to net-based pricing?

Yes. Some refuse — that tells you something. Most reasonable managers will agree if you frame it as 'I want our incentives aligned.' If they won't even discuss it, consider whether you're with the right manager.

Does 'net' include the management fee itself?

No. Net is calculated before the management fee. The management fee is then applied to net. Otherwise you'd have a circular calculation.

Gross vs Net Revenue in Albanian Airbnb Management

This sounds like accounting nitpicking. It isn't. The single biggest predictor of whether an Albanian Airbnb owner is happy with their property manager six months in is whether the management fee is calculated on gross or on net. Here's why.

The simple version

Gross is the money guests paid. Net is what's left after the unavoidable costs of running the apartment — platform fees, cleaning, supplies, repairs caused by normal wear and tear. The management fee should be applied to net, not gross.

Why this matters for incentives

Suppose your apartment grosses €1,500 in a quiet October. Costs are €280 (platform fees), €240 (cleaning), €40 (supplies), €110 (replacement light fittings) = €670. Net revenue is €830.

If your manager charges 20% on gross, they earn €300 on this month regardless of what the apartment actually netted you. You receive €1,500 − €670 − €300 = €530. The manager's incentive: take any booking that fills the calendar. A €40-per-night booking with a heavy cleaning aftermath still pays the manager €8.

If your manager charges 20% on net, they earn €166. You receive €1,500 − €670 − €166 = €664. The manager's incentive: only take bookings where the after-cost number is healthy. A €40-per-night booking that nets €20 after cleaning and supplies pays the manager €4.

You pocketed €134 more, the manager earned €134 less, the apartment got a sharper operator. Multiply by twelve months and the gap is meaningful — usually €1,000–€2,500 a year on a typical Durrës or Tirana apartment.

What "net" actually includes

This is where managers vary. The honest definition:

Gross rental income (the actual money received from platforms or guests directly)
− Platform fees and commissions (Airbnb host fee, Booking.com commission, any payment processor fees)
− Direct cost of guest services (turnover cleaning, linen laundering, consumable supplies given to the guest)
− Apartment-attributable repairs (the showerhead that broke during a stay, the lightbulb the cleaner replaced, the new keycard)
= Net revenue

The management fee is then applied to net. The manager's percentage doesn't compound by being calculated on a base that already includes operating costs.

What "net" should NOT include

Some managers will quietly broaden "net" to include things that don't belong, lowering their visible percentage but charging you more in absolute terms. Be specific in your contract that net does NOT include:

Utility bills (electricity, water, gas) — these belong to the apartment, not the rental operation
Building condominium fees
Annual property tax
Mortgage interest if you have one
Insurance
Your own income tax
Capital improvements (a new kitchen, replacing all windows)

If a manager deducts these before calculating their percentage, they're effectively charging you a much higher rate. A "12% of net" model where net is calculated after utilities and condominium fees can work out to 30%+ of actual rental profit.

Worked example: same apartment, three fee structures

2-bed Lungomare apartment, August 2024. Gross: €2,420.

Platform fees: €173
Cleaning: €240
Supplies: €48
AC service: €95
Showerhead replacement: €18

Manager A: 15% of gross — earns €363. Owner receives €2,420 − €574 − €363 = €1,483.

Manager B: 20% of net (the JHA model) — net = €2,420 − €574 = €1,846. Manager earns €369. Owner receives €2,420 − €574 − €369 = €1,477.

Manager C: 12% of net but net includes utilities (€90), building fee (€15), and a built-in €50/month "admin charge" — adjusted net = €1,846 − €155 = €1,691. Manager earns €203 + €50 admin = €253. Owner receives €2,420 − €574 − €253 = €1,593. But the next month off-season, when gross is €450 and the costs don't scale down, the same model gives the manager €50 + 12% × (€450 − €410) = €54.80, while a clean "20% of net" would give the manager €0 — the owner earns €390 in the clean model vs €350 in the slippery one.

The slippery models look good in busy months and bad in quiet months. The clean models scale honestly.

What to ask before signing anything

"Is your fee calculated on gross or net?"
If net: "Define exactly what's subtracted to get to net." Write it down. Match it against the list above.
"Are there any flat monthly admin fees, setup fees, listing-per-platform fees, or photography fees on top of the percentage?"
"How are repairs over a threshold approved? Who chooses the contractor?"
"How much do you mark up cleaning and supplies?" (Honest answer: zero. If they say 10% or 15%, they're nibbling at your margin.)

Some managers will be uncomfortable with this conversation. Their discomfort is information.

Our model, in one paragraph

20% of net for 1–3 apartments, 18% for 4–9, 15% for 10+. Net is gross minus platform fees, minus cleaning at cost, minus consumable supplies at cost, minus apartment-attributable repairs at cost. No setup fees, no monthly admin fees, no per-platform fees, no markups on cleaning or maintenance. Full detail on our pricing page and a real example on our sample monthly report page.