The property manager's commission is calculated on the basis of two elements:
- the commission rate
- the commission formula.
Setting the commission rate
The property manager's commission rate represents the percentage that the property manager charges the owner for the service provided.
From the property page, go to Edit property
Go to the General tab, General section
Add the property manager's commission rate. This is expressed as a percentage, with a value between 0 and 1, where 1 = 100% (e.g. for 25%, enter 0.25).
The commission rate can be different depending on the duration of the reservation:
- the short-term commission rate applies to reservation of less than 30 nights
- the mid-term commission rate applies to reservation of more than 30 nights
N.B.: The number of nights taken into account to consider a mid-term reservation can be modified. To find out more, see this article: Set mid-term properties
Setting the commission formula
The commission formula allows RentalReady to automatically calculate the property manager commission on each reservation.
The commission formula is composed of :
- variables
- standard mathematical operators
+,-,*,/ - parentheses
()to group elements - digits/numbers, with decimals separated by periods (e.g.: 0.10)
Here is the list of variables you can use in your formula:
| Variable | Meaning |
| rental_price | Rental income |
| platform_fees | Platform fees |
| payment_fees | Payment fees |
| platform_cleaning_fees | Platform cleaning fees |
| invoiced_cleaning_fees | Invoiced cleaning fees |
| office_vat | Office VAT |
| commission_rate | Commission rate |
N.B.: Only the variables listed above are allowed. Thecommission_rate variable must be included in the formula.
Default formula
During your onboarding phase, your RentalReady account manager will ask you for the commission calculation you wish to apply.
This is the calculation that will be set up by default on your office, and which will therefore be applied by default to your properties.
Formula by property
You can apply a commission formula other than the default to one or more properties.
From the property page, go to Edit property
Go to the General tab, General section
Add commission formula
Click on save
N.B.: the new formula only applies to new reservations imported after the modification. If reservations already exist in the future and you wish to apply the new commission formula to them, you must then go to each reservation, click on modify reservation, click on save. If you have more than 50 reservations to modify, you can contact RentalReady support to request a bulk update.
Commission calculation
The two most commonly used property management commission formulas are :
| Commission | Applied on | Formula |
| Gross | Rental income + Platform fees + Payment fees | commission_rate * rental_price |
| Net | Rental income only | commission_rate * (rental_price - platform_fees - payment_fees) |
Here's an example of a reservation with the same financial data and the same commission rate, but with a different commission formula.
| Data | Amount |
| Commission rate | 0,20 (20%) |
| Rental income | 200€ |
| Platform cleaning fees | 50€ |
| Invoiced cleaning fees | 50€ |
| Platform fees | 34€ |
| Payment fees | 0 |
With the Gross commission formula
As a reminder, the corresponding formula is commission_rate * rental_price
This means that the property manager's commission is applied to gross rental income.
The property manager's commission is: 0.20 * 200€ = 40€.
With the Net commission formula
As a reminder, the corresponding formula is commission_rate * (rental_price - platform_fees - payment_fees).
This means that the property manager's commission is applied to net rental income after deduction of all charges.
The property manager's commission is: 0.20 * (200€ - 34€ - 0€) = 33.20€.