Our Hybrid Fee Structure Changes Everything!
For most of the history of Sun Peaks, Property Managers used some variation of a 60/40 (owner/agent) fee structure based on the full pretax price of the booking to calculate the fees. Cleaning, administrative and processing costs were covered by the property manager's 40% fee. In recent years, a creative alternative fee structure has gained a lot of attention by paying owners 75% of the nightly rates of the booking but with separate cleaning and processing fees charged and retained by the property manager. On the face of it, the 75/25+ seems like the better fee structure, and with the average length of booking increasing steadily since the pandemic, it really does pay owners more on many bookings. But there are some real risks with this fee structure used exclusively during market downturns or recesssions (get our White Paper to learn how this model might do in a recession).
However, both models have their weaknesses and their strengths. For instance, on shorter term bookings or during lower demand times where rates are lower, the 75/25+ model can often end up paying the owner around 40% of the booking because the cleaning fee represents a high percentage of the total price paid. Obviously, in these cases, a 60/40 on the pretax is better for owners. However, on longer term bookings during high season rates, the 75/25+ pays owners more.
Top of the Mountain Accommodations pays out owners using a Hybrid Fee structure combining these two different models by calculating owner payouts on a booking-by-booking basis depending on which model provides owners the higher rate. So it doesn't matter if the bookings are during the summer, shoulder, early winter, New Years, short stays, or long stays, you'll always earn the highest return offered in the market. To understand how this works and learn more, fill out the form to get our White Paper.
Our purpose in setting our rates this way is to elminiate any question about which fee structure pays out the best. Neither fee structure alone is always the best, but a Hybrid Fee Structure using both will ALWAYS pay you more. Now, you can choose Top of the Mountain Accommodations to manage your home based on our reputation in the market, because our Hybrid Fee Structure ensures you're going to earn the best returns.