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Breaking Down the Hidden Costs of STR Management 🏡 ✍️

💰 Ever wondered why your rental income feels lighter than expected? The answer often lies in hidden booking fees. We’ll show you where they’re buried and how to spot them.

Community Perks with The STR Report

🏠 Top-Tier Property Management â€“ Lower fees, higher payouts, and premium service. Built for investors who want performance and peace of mind. See how much more your property could earn—click to get your free performance assessment.

🔎 Personal Airbnb Investment Finder â€“ Connect with an expert to handpick profitable Airbnb properties that match your criteria. With 213+ successful deals, all cash-flowing, you’re in good hands. Take 15 seconds to fill out the form to see how all of these properties are experiencing a 10-15% Cash-on-Cash return.

🤑 STR Loans & More – Need funding for your next short-term rental? Expect expert guidance, personalized service, and the best possible rates.

September 4th, 2025

Good evening STR Report Community!

In today’s issue, you will find:

📱Today’s Article: Hidden Booking Fees: How They Drain Your Rental Income

📈 Trending Market Highlight: Outer Banks, North Carolina & Lake Placid, New York

✉️ STR News: Glamping demand matches tents, RMS report finds

💸 Mortgage Rate Watch

🌵🚀 Unique Airbnb of the Week

🏫 Subscriber Perks: Go Live Playbook, including: Beginner’s Guide E-Book, Guest Communication Messaging Templates, Airbnb Welcome Guide Template, STR Buy Box Template, & Tax Savings E-Book

✅ Community Perks: Top-Tier Property Management, Personal Airbnb Investment Finder, and STR Loans & More

📬 See our collection of newsletters here: Prior Newsletters

Hidden Booking Fees: How They Drain Your Rental Income📉

Short-term rental property management companies can make hosting seem effortless—handling marketing, bookings, guest communication, and cleaning. But what they don’t always tell you upfront is that their income isn’t just coming from your agreed management fee. Hidden booking fees, often passed quietly to guests, can put money in the company’s pocket without you realizing it.

little rascals money GIF

What Are Hidden Booking Fees?

In the STR world, hidden booking fees are extra charges guests pay on top of the nightly rate. They often appear as:

  • Service fees

  • Platform fees (Airbnb, Vrbo, etc.)

  • Admin or processing fees

  • Resort or amenity fees

Sometimes these fees are legitimate platform charges—but in many cases, the property management company adds their own markup and pockets the difference.

How They Work

Let’s say your listing’s nightly rate is $200. A guest sees an additional $50 “service fee” at checkout. You may assume that fee goes entirely to the booking platform—but it could be split, with a portion going directly to your management company. This extra revenue stream often isn’t disclosed in your contract, and it’s not always factored into the owner’s share.

Why STR PM Companies Don’t Tell You

There are a few reasons:

  1. Perception of Lower Costs – By keeping their “official” management fee low, companies look more competitive.

  2. Extra Revenue Stream – Hidden booking fees can significantly boost their bottom line without raising your direct costs—at least visibly.

  3. Owner Awareness – Many owners focus on nightly rates and occupancy, not realizing other income is being generated.

Why This Matters for Owners

Hidden booking fees can:

  • Make your property seem more expensive to guests, lowering conversion rates.

  • Reduce transparency in your revenue reporting.

  • Potentially violate platform rules if not handled properly.

Over time, these fees can impact your reviews, occupancy rates, and total earnings.

How to Protect Yourself

  1. Ask Directly – When interviewing a PM company, ask: Do you add any booking, service, or admin fees beyond the platform’s fees?

  2. Review Contracts Carefully – Look for vague terms like “service charges” or “admin fees” and clarify who keeps them.

  3. Test as a Guest – Make a mock booking to see exactly what’s charged at checkout.

  4. Request Full Revenue Reports – Ask for a breakdown of all income related to your property, not just the portion paid to you.

Hidden booking fees are a quiet but impactful way STR property management companies can increase their profits—often at the expense of transparency. The best companies will be upfront about every dollar charged and earned, so you can make informed decisions about your investment.

Outer Banks, North Carolina 🏄

Downloadable Outer Banks, North Carolina Short-Term Rental Market Report

Outer Banks STR Market Report.pdf1.83 MB • PDF File
  • Average Daily Rate (ADR): $517.39 per night

  • Occupancy Rate: 61.63%

  • Annual Revenue Potential: Around $91,615 per year

Read our full Outer Banks, North Carolina Short-Term Rental Market Report attached above.

Lake Placid, New York 🛶

Downloadable Lake Placid, New York Short-Term Rental Market Report

Lake Placid STR Market Report.pdf6.87 MB • PDF File
  • Average Daily Rate (ADR): $569 per night

  • Occupancy Rate: 44.47%

  • Annual Revenue Potential: Around $80,038 per year

Read our full Lake Placid, New York Short-Term Rental Market Report attached above.

📬 See our collection of 70+ market reports here: Prior Trending Market Reports

📱TikTok Launches Simplified Affiliate Program for Hotel Promotions
TikTok has introduced TikTok Go, a new simplified affiliate marketing program—initially focused on hotel promotions—that allows creators to tag their location and specific hotels in posts to earn commissions from direct referrals.

🏕️ Glamping demand matches tents, RMS report finds
Luxury outdoor stays have reached a milestone, with glamping options such as yurts, domes, and treehouses now matching tents as campers’ top accommodation choice in the US, according to the 2025 State of Outdoor Hospitality Report from RMS.

💸 Airbnb to Move Property Managers to a ‘Single-Fee’ Payment System
You can expect many hosts to switch to the single-fee model, where guests won't see a service fee when booking. The alternative is to lose a lot of business.

💸Mortgage Rate Watch – September 4th, 2025

Current Mortgage Rates (as of September 4, 2025):

  • 30‑Year Fixed: 6.49 % (−0.04 %)

  • 15‑Year Fixed: 5.85 % (−0.03 %)

  • 30‑Year Jumbo: 6.42 % (−0.05 %)

  • 30‑Year FHA: 6.05 % (−0.04 %)

  • 30‑Year VA: 6.07 % (−0.03 %)

  • 7/6 SOFR ARM: 5.82 % (−0.09 %)

Market Overview: Mortgage rates dipped modestly today, maintaining near the lowest levels since late 2024. The spread between survey-based averages and MND’s rate index is narrowing—highlighting stable bond market conditions and waning volatility.

Rate Trends & Forecast:

  • Short-Term: Expect continued calm in mortgage markets, with minor pullbacks possible as bond yields adjust and economic data unfolds.

  • Long-Term: While a Fed rate cut is anticipated in coming weeks, analysts caution that mortgage rates—particularly 30-year fixed rates—may not fall significantly unless long-term yields and inflation expectations soften further. Adjustable-rate mortgages (ARMs), however, could offer more noticeable savings if shorter-term rates decline.

For real-time mortgage rate updates, visit Mortgage News Daily.

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Subscriber Perks:

📖🏡💰 Go Live Playbook

The "Go Live Playbook" is your all-in-one guide featuring a beginner’s guide e-book, messaging templates, Airbnb welcome book, STR buy box template, and tax savings tips to kickstart your short-term rental success.

Community Perks with The STR Report

🏠 Top-Tier Property Management â€“ Lower fees, higher payouts, and premium service. Built for investors who want performance and peace of mind. See how much more your property could earn—click to get your free performance assessment.

🔎 Personal Airbnb Investment Finder â€“ Connect with an expert to handpick profitable Airbnb properties that match your criteria. With 213+ successful deals, all cash-flowing, you’re in good hands. Take 15 seconds to fill out the form to see how all of these properties are experiencing a 10-15% Cash-on-Cash return.

🤑 STR Loans & More – Need funding for your next short-term rental? Expect expert guidance, personalized service, and the best possible rates.

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