How to Calculate Whether Your Property Manager Is Earning Their Fee

Most STR owners know what they're paying their property manager. Far fewer know whether they're getting good value for it. The gap between those two things is where a lot of money gets left on the table.

Here's the framework that actually tells you.

The Right Benchmark: Net Revenue Comparison

The question isn't "how much am I paying in fees?" It's: am I netting more money with this manager than I would without one — or with a different one?

To answer it, you need your current gross revenue (what your manager collects before their fee), your management fee percentage, and an estimate of what your property would earn self-managed based on comparable properties and market data.

If gross revenue with a manager minus fees is lower than what you'd likely earn self-managed, something is wrong. Either the manager isn't outperforming your baseline, or their fee is too high relative to the value they're adding.

The Comps Test

Find 3–5 comparable properties in your market (similar size, location, amenities) and check their estimated annual revenue via AirDNA, Rabbu, or similar tools. How does your property's performance compare?

If comparable properties in your area average $65,000/year and yours is doing $48,000, that $17,000 gap is your starting point for a real conversation with your manager — or a reason to consider switching.

What Underperformance Usually Looks Like

Below-market ADR. If your nightly rates are consistently lower than comparable properties, you're losing money every night.

High occupancy, low revenue. A manager who fills your calendar by underpricing is not serving your interests, even though the occupancy number looks impressive.

Stagnant reviews. Reviews should improve or hold steady under good management. If yours have been flat for 12 months, ask why.

No accountability conversation. If you've had a bad quarter and your manager's response was to explain the market rather than own any part of the miss, that's a red flag.

What Switching Costs

Switching property managers typically involves a notice period (usually 30–60 days), transition coordination, and a temporary dip in listings while the new manager onboards. It's not nothing. But staying with a manager who's underperforming by $15,000/year because switching is inconvenient is a much worse deal.

The TruStay Calculation

We manage properties in Utah, Colorado, Idaho, Texas, and expanding markets. Our fee is 20% at base — but it drops to 17% if we miss your agreed revenue goal, and goes up to 23% if we beat it.

Before you sign with us — or anyone else — get a free TruQuote. We'll give you an honest revenue projection based on your specific property, and you can use it to evaluate whether the switch is worth it.