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Building your offer and setting your rates
Commissions, services to offer, packages, and pricing strategy
Your service offering and pricing structure are what set you apart from the competition. After analyzing the market, you need to decide: too expensive and you won't sign clients. Too cheap and you won't be profitable. This chapter helps you build a clear, attractive, and profitable offer.
The goal: every property owner should understand in 30 seconds what you offer, how much it costs, and why it's worth it for them.
We will detail the three main pricing models in the market, the budget needed to get started, often underutilized additional revenue streams, and a month-by-month simulation to understand the impact of seasonality on your cash flow.
Essential services to offer
Core services (management)
- 1 Listing creation and optimization
- 2 Calendar and rate management
- 3 Guest communication
- 4 Review and dispute management
- 5 Monthly reporting to the owner
Operational services
- 1 Guest check-in / check-out
- 2 Cleaning between each stay
- 3 Linen management (sheets, towels)
- 4 Maintenance and minor repairs
- 5 Move-in and move-out inspection
Premium services
- 1 Professional photography
- 2Digital welcome guide personalized
- 3 Guest concierge (recommendations, bookings)
- 4 Advanced dynamic pricing
Add-on services (billed separately)
- 1 Welcome packs (gourmet basket, local products)
- 2 Airport/train station transfers
- 3 Early check-in / late check-out
- 4 Local experiences (tours, cooking classes)
lightbulb With LivretAccueil, your welcome guide turns into an online shop to sell these services directly to your guests.
The 3 pricing models on the market
Before setting your prices, it's essential to understand the three main billing models used by property management companies in France. Each has its pros, cons, and suits different profiles. Your model choice directly impacts your cash flow, commercial attractiveness, and ability to scale.
Commission (%)
18-30% of rental revenue
- Aligned interests with the property owner
- Easy to sell (no fixed cost)
- Revenue scales with quality
- Revenue varies with season
- No revenue if no bookings
The most widespread model among property managers. Ideal for starting out and reassuring owners.
Fixed subscription
200-400€/month per property
- Predictable and stable income
- No seasonality impact
- Easier cash flow management
- Harder to sell initially
- Risk of loss if occupancy is high
Innovative but rare. Requires a track record to convince owners to pay a fixed fee.
A la carte
Per-service pricing
- Total flexibility for the owner
- Low entry barrier (1 service)
- Opportunity for progressive upselling
- Complex to manage (fragmented billing)
- Lower average revenue per property
Suits owners who want to keep control. Often combined with a base package.
| Criteria | Commission | Subscription | A la carte |
|---|---|---|---|
| Ease of selling | High | Medium | High |
| Revenue predictability | Medium | High | Low |
| Peak season revenue potential | High | Capped | Variable |
| Management simplicity | Simple | Simple | Complex |
| Recommended for starting out | Yes | No | As a complement |
Our recommendation: start with the commission model (20-25%) to sign your first property owners. You can offer a fixed subscription later, once you have concrete results to show. Some innovative property managers offer a hybrid: a base fee (e.g., 150€/month) + a reduced commission (10-12%), which secures a minimum income while maintaining aligned interests.
Structuring your offer into packages
Rather than an a-la-carte list of services, offer 2 or 3 clear packages . The owner chooses the level that suits them. It's simpler to sell and simpler to manage.
- Multi-platform listings
- Calendar and pricing
- Guest communication
- Monthly reporting
- On-site operations
For owners who handle on-site operations themselves
- Everything in the Essential package
- Check-in / check-out
- Cleaning + linens
- Routine maintenance
- Digital welcome guide
The owner does nothing. you manage everything. Create your welcome guide for free
- Everything in the Turnkey package
- Professional photography
- Dynamic pricing
- Guest concierge
- Integrated guest shop
For upscale properties and demanding owners
Detailed startup budget
Good news: launching a property management company doesn't require a massive investment. Unlike many businesses, you can start with a modest budget and invest progressively as your portfolio grows. Use our business plan generator to project these numbers. Here's the breakdown by category.
| Expense category | Low estimate | High estimate | Details |
|---|---|---|---|
| Legal status (registration) | 0€ | 2 500€ | Sole proprietorship = free. LLC/SAS with accountant = 1,500-2,500€ |
| Professional liability insurance | 200€/year | 600€/year | Mandatory. Depends on number of properties and estimated revenue |
| Professional website | 0€ | 2 000€ | Free template possible at first, custom site later |
| Operational equipment | 200€ | 500€ | Welcome kit, smart lockbox (~80€), cleaning supplies |
| PMS (management software) | 30€/month | 100€/month | Channel manager + calendar. Essential from 3-5 properties |
| Initial marketing | 0€ | 1 000€ | Business cards, flyers, local advertising, local Google Ads |
| Lawyer (management contract) | 300€ | 500€ | Standard contract drafting. One-time investment amortized across all contracts |
| Digital welcome guide | 0€ | 0€ | Free with LivretAccueil. a professional asset from day one |
| Total to get started | ~1 000€ | ~7 000€ | Excluding operating cash reserve |
Lean version (sole proprietorship)
Sole proprietorship + basic liability insurance + minimal equipment + standard contract. Total budget: around 700-1,200€. You can start signing owners and invest later with your first earnings.
Professional version (SAS)
SAS with accountant + professional website + full PMS + marketing. Budget: 5,000-7,000€. Recommended if you're targeting 20+ properties in year one and want an immediate premium image.
Additional revenue: the key to profitability
Commission on rental income is just the visible part. The most profitable property managers have developed additional revenue streams that can represent 20 to 40% of total revenue. a topic explored in depth in our chapter on revenue optimization. Here is a comprehensive overview of these levers, with actual margins.
| Revenue source | Typical margin | Example |
|---|---|---|
| Cleaning | 30-50% | Charged 80-120€, contractor paid 50-70€ (varies by region: 50-70€ in rural areas, 80-120€ in major cities) |
| Linens | 40-60% | Sheets+towels kit 15-25€, laundry cost 8-12€ |
| Welcome packs | 50-70% | Gourmet basket sold at 35€, material cost 12-15€ |
| Early check-in / late check-out | 80-100% | 30-50€ per service, virtually no cost |
| Local experiences | 15-25% | Referral commission |
| Mid-stay cleaning | 30-50% | Charged 60-80€ for stays of 5+ nights |
| Grocery delivery | 15-20% | Commission on average basket of 80-150€ |
| Airport transfers | 20-30% | Ride-hailing partnership. Ride charged 50-80€, commission 10-25€ |
Gourmet basket / Welcome pack
One of the most profitable upsells. Offer 2-3 tiers: basic (15€, 60% margin), premium (35€, 60% margin), luxury (65€, 55% margin). Negotiate prices with local producers and customize by season.
Early / Late check-in
The easiest revenue to generate. Charge 30-50€ for check-in before 3 PM or check-out after 11 AM. Actual cost: virtually zero if no cleaning between stays is impacted. It's pure profit.
Local partnerships
Restaurants, cooking classes, water sports, bike rentals, spa... Negotiate 10-20% commission on each booking you bring. Integrate these recommendations into your digital welcome guide.
Simulation: upselling revenue for 20 properties
Month-by-month revenue simulation
Seasonality is the number one factor impacting your cash flow. A portfolio of 20 properties doesn't generate the same revenue in January as in August. Understanding this reality is essential for sizing your budget and anticipating slow months.
| Month | Occupancy rate | Rental revenue / property | Commission (22%) | Total 20 properties |
|---|---|---|---|---|
| January | 30% | 750€ | 165€ | 3 300€ |
| February | 35% | 850€ | 187€ | 3 740€ |
| March | 45% | 1 000€ | 220€ | 4 400€ |
| April | 55% | 1 200€ | 264€ | 5 280€ |
| May | 65% | 1 400€ | 308€ | 6 160€ |
| June | 80% | 1 800€ | 396€ | 7 920€ |
| July | 95% | 2 500€ | 550€ | 11 000€ |
| August | 97% | 2 600€ | 572€ | 11 440€ |
| September | 75% | 1 600€ | 352€ | 7 040€ |
| October | 50% | 1 100€ | 242€ | 4 840€ |
| November | 35% | 800€ | 176€ | 3 520€ |
| December | 45% | 1 100€ | 242€ | 4 840€ |
| Annual total | ~17 700€/bien | ~3 674€/bien | ~73 480€ | |
Managing the low season
November through February are critical months. Solutions: offer mobility leases (1-10 months) for students or mobile professionals, develop business clientele during weekdays, or aggressively adjust rates to maintain a minimum 40% occupancy rate.
Maximizing peak season
July-August represent 30% of your annual revenue. To make the most of it: minimum stay of 5-7 nights, aggressive dynamic pricing (+30-50% on last-minute availability), and systematic upselling (welcome packs, experiences).
Expected revenue by property type
Not all properties are equal in terms of profitability for your management company. Here are the average revenues by property type and the corresponding commission at different rates. These figures will help you target the most interesting properties for your portfolio.
| Property type | Rental revenue/month | Commission 20% | Commission 25% | Commission 30% |
|---|---|---|---|---|
| Studio / 1-bedroom | 600-800€ | 120-160€ | 150-200€ | 180-240€ |
| 2-bedroom apartment | 1 000-1 500€ | 200-300€ | 250-375€ | 300-450€ |
| 3-bedroom apartment | 1 500-2 500€ | 300-500€ | 375-625€ | 450-750€ |
| House | 2 000-5 000€ | 400-1 000€ | 500-1 250€ | 600-1 500€ |
| Villa with pool | 3 000-8 000€ | 600-1 600€ | 750-2 000€ | 900-2 400€ |
Analysis: a villa with pool can generate as much commission as 5-10 studios, but requires more operational coordination. The ideal is to mix property types in your portfolio: 2-3 bedroom apartments in volume for stability, and a few premium properties for margin. Target an average commission of at least 300€/month per property to cover your management costs.
When to say YES and when to say NO to a property
Not all properties deserve a place in your portfolio. Accepting an unprofitable property means working at a loss while tying up time you could spend on a performing property. Here's a scoring system to make the right decision.
POSITIVE signals (say YES)
- Tourist location or city center
- Well-furnished and properly equipped property
- Strong photo potential (views, decor, natural light)
- Owner open to improvements
- Good energy rating (C or better)
- Geographic proximity to your other properties
- Estimated revenue > 1,000€/month
NEGATIVE signals (say NO)
- Area with no tourist or business appeal
- Run-down property requiring major renovation
- Owner with unrealistic revenue expectations
- Owner refusing to invest the minimum
- Property too far from your coverage area
- Estimated commission < 250€/month
- Building that prohibits short-term rentals
Quick scoring grid (out of 10 points)
Score 7-10: go for it.Score 5-6: acceptable with conditions (improvements, long commitment).Score < 5: politely decline and recommend another management company if possible.
Benchmarking your prices against the competition
Before setting your rates, it's essential to know what your local competitors charge. Pricing too far from the market (in either direction) hurts your credibility. Here's how to conduct an effective benchmark.
Mystery shopping
Contact 5-10 property management companies in your area posing as a property owner. Ask for their rate card, included services, and commitment period. Note the gaps between their promises and what you find online.
Analyze websites
Many property managers display their rates online. Compile them in a spreadsheet: commission, included services, optional services, setup fees. Identify the median price in your market.
Position your offer
Position yourself in the upper third of the market, never at the bottom. A low price attracts owners looking for the cheapest option who will leave for the first competitor offering less. A fair price attracts owners who value quality.
Never be the cheapest
Property managers who compete on price end up cutting service quality, losing their best cleaning contractors, and getting negative reviews. Instead of lowering your commission from 25% to 18%, invest the difference in service quality: free professional photos, digital welcome guide, detailed reporting. The owner pays more, but earns more too.
Negotiating rates with property owners
The pricing conversation is often the decisive moment in the owner meeting. Here are the techniques that work to justify your rates and close the sale without undercutting your commission.
Present value in euros, not percentages
Never say "I charge 25%". Instead say: "Your property currently generates about 1,200€/month. With our management, our clients in the same area reach 1,800€/month. Even after our commission, you earn 1,350€ instead of 1,200€. That's 150€ more every month while doing absolutely nothing." Use our revenue simulator to back up this argument. Always translate the percentage into net gain for the owner.
When to offer promotional conditions
Rather than lowering your commission (a fatal mistake), offer temporary advantages:
- 1 1 month of free management (in exchange for a 12-month commitment)
- 2 Free professional photoshoot (perceived value 300-500€)
- 3 Free property audit with improvement recommendations
- 4 Free setup of the digital welcome guide included
Handling the "it's too expensive" objection
Sample response: "I understand your reaction. Let's calculate together: you currently manage X bookings per month, with Y€ in revenue. How many hours do you spend per week? What is the cost of those hours to you? With our management, we estimate reaching Z€ in revenue (+30%), and you get back 15-20 hours per month. Isn't 5-7% more commission worth those 20 hours of freedom?" Find more techniques in our chapter on finding property owners.
The performance clause
To reassure a hesitant owner, offer a performance clause: if rental revenue doesn't exceed a certain threshold within the first 3 months, the owner can terminate without fees. This shows your confidence in your results. In practice, terminations are extremely rare if you do your job well.
How much can you earn?
Simulation with 20 managed properties
STARTING OUT
- Commission19 800€/year
- Add-ons+5 940€/year
- Total Revenue~25 740€/year
Often alongside another activity
FULL-TIME
- Commission79 200€/year
- Add-ons+23 760€/year
- Total Revenue~103 000€/year
Viable main activity with 1 employee
GROWTH
- Commission198 000€/year
- Add-ons+59 400€/year
- Total Revenue~257 400€/year
Team of 3-5 people, SME structure
Pricing mistakes to avoid
Slashing prices to sign clients
Offering 12-15% to attract first owners is tempting but dangerous. You won't be profitable and will project a discount service image. It's better to offer 1 free month or a bonus service than to lower your commission.
Not billing cleaning separately
Cleaning is a significant profit center. If you include it in your commission, you lose significant margin. Bill it to the owner (or have the guest pay via Airbnb cleaning fees).
Overly complex offer
10 a-la-carte options make choosing impossible. 2-3 clear packages with a simple upgrade convert better. The owner should understand your offer in 30 seconds.
Ignoring seasonality in forecasts
Taking your best month and multiplying by 12 is a classic mistake. Low season months (November-February) may represent only 30-40% of your peak season revenue. Plan your cash flow on a realistic average and keep 2-3 months in reserve.
Accepting every property without selection
A poorly located or run-down property will cost you more in time and energy than it generates. Every unprofitable property drags your average down and hurts your platform ratings. Better to have 15 profitable properties than 25 where 10 lose you money.
Key takeaways
- 1Offer 2-3 clear packages rather than an a-la-carte service list
- 2The "Turnkey" package at 22-25% is the most requested by owners
- 3The commission model is the best choice for starting out. predictable and easy to sell
- 4Additional revenue (cleaning, linens, packs) represents 20-40% of total revenue
- 5With 20 properties, 100,000€/year in revenue is achievable
- 6Never slash your prices. offer a bonus rather than a discount
- 7You can start with a budget of 1,000-7,000€ depending on your legal structure
- 8Select your properties carefully: 15 profitable properties are better than 25 mediocre ones
- 9Benchmark the competition but never be the cheapest in your market
- 10Always present your rates as net gain for the owner, not as a gross percentage
Enhance your offer with a premium digital welcome guide
Add a digital welcome guide to your service offering to justify your rates and attract the most demanding property owners.
Create my welcome guide for freeQuiz — Test your knowledge
Check that you've understood the key concepts of this chapter.
20 single-choice questions — instant feedback after each answer.
Frequently asked questions
Both models exist. The most common: the guest pays the cleaning fee through the platform (Airbnb displays it separately), and you manage the service. The owner pays nothing for cleaning, but you keep the margin between what the guest pays and what the contractor costs.
By demonstrating value: revenue optimization (+20-30% vs amateur management), higher occupancy rate, guest ratings of 4.8+, zero mental load for the owner. An owner earning 1,800€/month with you vs 1,400€ alone is better off even with a 25% commission.
Yes, with reasonable notice (1-3 months) and by justifying it with added services or increased costs. Include a rate revision clause in your management contract. Satisfied owners easily accept a 2-3% increase.
A 6-12 month commitment is common and justified by the initial work (photos, optimization, setup). Without a commitment, provide 1-2 months notice. Some property managers offer the first month free in exchange for a 12-month commitment.
It's risky at the start because you don't yet have a track record to show. Owners prefer the commission model when they don't know you. You can switch to a fixed subscription after 12-18 months of activity, once you have concrete performance figures to present.
Never lower your base commission. Instead offer one-time perks: free first month, free photoshoot, free digital welcome guide setup. If the owner insists on a rate below your profitability threshold, it's better to politely decline. this type of client will often be difficult to satisfy.
As a sole proprietor with a lean budget, expect around 700-1,200€: liability insurance (200-400€), basic equipment (200-300€), standard contract (300-500€). The website can wait, and so can the PMS if you start with 1-3 properties. The digital welcome guide is free with LivretAccueil.
Start from your actual cost, add your target margin (50-70% for physical packs, 80-100% for services with no material cost like early check-in). Verify that the final price remains acceptable to the guest by comparing it to similar market offerings. A gourmet basket at 35€ is well accepted; at 60€ the conversion rate drops.
Set aside 20-25% of your peak season revenue (June-September) to cover November through February. Develop seasonal additional revenue: mobility leases in winter, corporate housing partnerships, attractive rates for long stays (1 month+). The goal is to never drop below 40% occupancy.
Generally no, unless the property is located very close to your other properties (shared operational costs), or if the owner has other more profitable properties they might entrust to you. A property at 200€/month in commission will probably cost you more in management time than it generates.
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