Net Yield After Airbnb Management Fees in Dubai

The gross booking revenue from a short-term rental property in Dubai does not show how much the owner will actually receive. You need to take several expenses into account to calculate the property’s net income.

There are a few other costs to consider besides the Airbnb management fee. These include platform fees, cleaning, maintenance, permits, service charges, and utilities, as well as other expenses that can also reduce the final earnings.

This guide uses a Dubai short-term rental example to show how much the owner can earn after deducting all the costs. Remember that the figures are for illustration only because the actual costs will differ from one property to another.

Example: Calculating Net Airbnb Income in Dubai

Let’s take a look at the following simple example to understand how much an Airbnb owner could take home after all the expenses. In this example, we will use a monthly gross booking revenue of AED 15,000.

The table below shows how much income is left after Airbnb and other related costs are deducted. The figures used are examples, not fixed costs for every Dubai Airbnb!

How are the Costs Calculated?

• Airbnb or platform commission: In this example, we use a 3% host service fee, which applies under Airbnb’s split-fee structure. But Airbnb also has a single-fee structure where the host service fee can be higher. The actual fee will depend on the fee structure that applies to the property.
• Airbnb management fee: With a 10% management fee, the cost would be AED 1,500 on AED 15,000 in gross booking revenue.
• Cleaning: The monthly cleaning cost would be AED 900 if the short-term rental home has six guest turnovers at AED 150 per cleaning.
• Consumables: These costs can include toiletries, toilet paper, coffee, tea, and cleaning products, as well as other essentials. We use AED 200 as the monthly cost in this example.
• Tourism Dirham: The Tourism Dirham in Dubai is charged per room for each night. If the holiday rental property is charged AED 15 per room per night, 20 occupied nights would cost AED 300. The Department of Economy and Tourism (DET) requires the Tourism Dirham to be paid by the 15th of the following month.
• DET permit: The cost of a holiday home permit can differ based on the property and the number of bedrooms. For this example, we use AED 370 as an estimated annual permit cost, which works out to about AED 31 per month when divided over 12 months. This is only an example, as the actual permit and related fees may vary. Short-term rentals must be registered and approved by DET before being listed.
• DEWA and chiller: The costs can differ based on the apartment, how much it is used, and the building. AED 700 is used as the monthly cost for this example.
• Internet: The example includes AED 250 per month for an internet connection.
• Service charges: The example uses AED 1,200 per month for the short-term rental property’s service charges.
• Maintenance reserve: A maintenance budget can help cover small repairs and unexpected property problems. For this example, 5% of the AED 15,000 gross revenue is set aside for maintenance, which comes to AED 750.

After all these costs are paid, the owner could be left with around AED 8,719 for the month. But owners should know that not every Airbnb in Dubai will have the same costs and income, as this depends on the type of property, size, and location.

What If You Manage Airbnb Yourself?

Now, let’s use the same one-bedroom apartment and AED 15,000 in gross booking revenue, but this time the owner manages the short-term rental stay on their own. The property still has most of the same costs, but the 10% management fee is removed.

With self-management, the owner earns around AED 1,500 more each month when they handle every task of the property themselves because there is no 10% management fee.

But managing an Airbnb is not only about generating income; it is also about making sure that everything operates smoothly, from answering guest questions, taking care of bookings, organising check-ins and check-outs, arranging cleaning, and sorting out maintenance problems.

You must also be available to help guests when they need anything during their stay.

Self-management can save the owner money, but it also takes more time and effort from the owner. With Host Agents, you will not need to worry about handling these responsibilities.

Is Airbnb Management Worth the Fee?

The fee may be worth it based on your property, costs, and how much of the Airbnb you want to manage yourself.

The best thing about having Airbnb management like Host Agents is that tasks such as guest communication, bookings, check-ins, cleaning, and maintenance will be taken care of on your behalf. You may earn more by managing Airbnb yourself, but you will also need to handle these responsibilities.

We can save you time and effort with our exceptional property management services.

Ready to let Host Agents maximise your rental income without you handling every aspect of your short-term rental?

CONTACT US today for more information on pricing, and we can discuss your property and management options.