The contract signed with the owner is a property management company's most important document. It sets what you do, what you charge and who is responsible for what. A vague agreement costs you later: disagreement on the commission base, a disputed cleaning, a security deposit not withheld, termination in the middle of the season. This guide reviews the clauses to include and how to calculate a commission without ambiguity. It's written for the French market and doesn't replace having your template reviewed by a lawyer, especially if your business falls under the Hoguet law, which regulates real estate agents in France.
The short answer
A good property management agreement specifies six things: the services entrusted, the exact commission base, recharged expenses, how funds and the security deposit are handled, how legal obligations are split (declaration, tourist tax, night cap) and the termination conditions. For the commission, the rate matters less than its base: 20% of a gross amount and 20% of an amount net of platform commissions and cleaning fees give very different results.
Essential clauses
1. The parties and the property
The owner's identity, the property manager's company name, the property's address and the furnished tourist rental's registration number. If your business falls under the Hoguet law, mention your professional license, your financial guarantor and your insurer.
2. The services entrusted
List them precisely, for example:
- creating and updating listings;
- managing the calendar and prices;
- communicating with guests;
- welcoming guests, handing over keys, inventory checks;
- cleaning, linen, restocking consumables;
- handling incidents and small repairs, with a spending cap without prior approval;
- a monthly statement to the owner.
What isn't listed isn't owed, and can be billed on top.
3. Setting prices
Who decides rates, minimum stays and promotions? Provide for a floor price set by the owner, and the possibility for the property manager to adjust prices above it. If you use dynamic pricing, say so.
4. Funds
This is the most sensitive clause. Specify who collects the rent:
- if the platforms pay the owner directly, the property manager bills its fees;
- if the property manager collects and pays out, it must hold the professional license and financial guarantee required by the Hoguet law, and the agreement must state the payout deadlines.
Without a financial guarantee, an agent should not handle funds on the owner's behalf.
5. Security deposit and damage
How the security deposit is requested (card hold, deposit through the platform), who decides to withhold it, how withheld amounts are paid out, and what remains the owner's responsibility beyond that.
6. Legal obligations
Who declares the furnished rental, who keeps the documents, who collects and remits the tourist tax for direct bookings, who monitors the 120-day (or 90-day) cap for a primary residence. See France's Le Meur law: what changes in 2026.
7. Term, exclusivity and termination
Initial term, renewal, notice period, what happens to bookings already confirmed after the agreement ends (often honored by the property manager until they end), and any exclusivity over the property's management.
8. Reporting
Frequency and content of the statement: bookings, revenue, commission, recharged expenses, tourist tax, net amount due to the owner.
The commission: the rate and above all the base
Property managers often advertise a rate around 20 to 25% of rental revenue. That figure means nothing until the base is defined. Three questions to settle in the agreement:
- Before or after the platform's commission? Airbnb and Booking.com take their share from the payout.
- With or without cleaning fees? If they pay for the cleaning, it makes sense to exclude them from the base.
- Including or excluding VAT? Specify whether the commission is subject to VAT.
Example for a three-night stay:
| Line | Amount |
|---|---|
| Price paid by the guest for the nights | €450 |
| Cleaning fee paid by the guest | €60 |
| Platform commission (example: 15% of the total) | €76.50 |
| Platform payout | €433.50 |
| Commission base used | 20% commission |
|---|---|
| Price of the nights | €90 |
| Platform payout, cleaning included | €86.70 |
| Platform payout, excluding cleaning (€433.50 − €60) | €74.70 |
For the same advertised rate, the gap exceeds €15 on a single stay. Over a year and a portfolio, it's the difference between a relationship of trust and a dispute. To test your own figures, use our management commission calculator.
Platform commission amounts depend on your plan and change over time: always use the actual amounts for each booking.
Recharged expenses
Linen, consumables, a light bulb, a locksmith: these expenses incurred on the owner's behalf are disbursements, recharged to the cent, with receipts, and kept separate from your fees. Set a cap in the agreement above which you ask for the owner's approval.
Other revenue: no-shows, withheld deposits, compensation
A guest who doesn't show up, a withheld security deposit, compensation from the platform: specify whether the commission applies to these amounts, and at what rate.
What Boostinghost does
Boostinghost supports the owner relationship from start to finish:
- agreements generated and signed online: the document is sent to the owner by link, who signs it remotely;
- a continuous serial number for each agreement (register of agreements) and the property manager's professional mentions (license, guarantee, insurance) included automatically; without a financial guarantee entered, the agreement states that the property manager doesn't handle funds;
- a commission rate per owner, applied to the base of each line;
- owner invoices with commission, cleaning and expenses, and a statement of amounts due;
- tax certificates for owners (Pro plan and up);
- Agency Mode to track your owner clients' accounts from your own space.
Common mistakes
- A rate without a base: "20% of revenue" isn't enough.
- Expenses mixed with fees, which muddles the owner's accounts.
- Collecting rent without a financial guarantee.
- Forgetting the end of the agreement: who honors bookings already made?
- No spending cap for urgent repairs.
Frequently asked questions
What commission does an Airbnb property manager charge?
Advertised rates are often around 20 to 25% of rental revenue, depending on the services included, the city and the type of property. Always compare on the same calculation base.
Is the commission calculated on the price paid by the guest?
That needs to be specified in the agreement. The clearest base for the owner is often the platform payout excluding cleaning fees, but any base works as long as it's written down.
Do you need a written agreement?
Yes. For a business subject to the Hoguet law, a written agreement is mandatory; for a service provision, a written contract prevents disputes.
Can an agreement be terminated in the middle of the season?
Depending on the notice clauses provided. Plan what happens to bookings already confirmed, to protect guests and the property's rating.
Are expenses subject to the commission?
No, in principle: they are costs incurred on the owner's behalf, recharged as is. Write it into the agreement.
Key takeaways
A solid property management agreement lists the services, defines the exact commission base, separates fees and expenses, settles the question of funds and the security deposit and splits the legal obligations. A commission rate only makes sense with its base: write it down in black and white, with a worked example if needed.
Sources
- https://www.legifrance.gouv.fr/loda/id/JORFTEXT000000512228
- https://www.economie.gouv.fr/dgccrf/les-fiches-pratiques/professionnels-de-limmobilier-les-regles-connaitre
- https://www.boostinghost.fr/en/pricing.html
Sources verified on October 21, 2026.
