Short-term rental margin calculation: property manager or host, two different formulas.
Margin isn't calculated the same way for everyone. A property manager (on revenue share or master lease) has a different revenue and cost structure than a host, B&B, guesthouse or hotelier running self-managed. This guide shows both formulas, with a concrete worked example and the common mistakes for each model.
In sintesi
Property manager (revenue share or master lease): PM Net Profit = Revenue (net OTA, extras, service margins) minus Costs (rent or % to owner, OTA commissions + gateway, operating costs, utilities, allocated fixed-cost share).
Host / B&B / guesthouse / hotel self-managed: Net Profit = Net stay income + Extras minus Out-of-pocket costs (cleaning, utilities, condo fees, IMU (property tax) / TARI (waste tax), maintenance, mortgage if any, OTA commissions).
Always-true caveat: OTA commissions may include VAT components that — depending on your tax scheme — aren't deductible and must be treated as a cost. Check with your accountant (commercialista) how to handle them in your specific case.
Critical threshold for master-lease PMs: the rent is fixed and hits even at zero occupancy. Calculate how many nights per month are required to cover it.
The two models compared
Property Manager
Revenue share or master lease
A. Your revenue (per property / month)
- 1 Net OTA for the month
- 2 Extra guests / add-on services
- 3 Service margins (cleaning, kits, late check-in...)
B. Your costs
- 4 Rent or % to the owner
- 5 OTA commissions + payment gateway
- 6 Operating and variable costs (cleaning, laundry...)
- 7 Utilities / condo fees / insurance
- 8 Allocated fixed-cost share
PM NET PROFIT = A minus B
The rent hits even at zero occupancy.
How many nights to cover it?
Host / B&B and Guesthouse
Self-managed own properties
What changes:
- 1. No PM fee: you are the manager
- 2. Enter only the costs you bear
- 3. Include taxes, mortgage, utilities, condo fees
Your out-of-pocket costs include:
- • Cleaning and laundry
- • Utilities (electricity, gas, water, internet)
- • Condo fees and insurance
- • IMU (property tax) / TARI (waste tax) / property taxes
- • Ordinary and extraordinary maintenance
- • Mortgage (if any)
- • OTA commissions and payment gateway
NET PROFIT = Net income + Extras minus Out-of-pocket costs
Repeat for each property: you'll find which ones earn and which are losing money.
Property manager example: waterfall on €1,000 of gross booking value (GBV)
A realistic example for a property on revenue share. The gross booking value (GBV) of €1,000 breaks down as follows, from gross to PM EBITDA:
| Line | Amount | % of GBV |
|---|---|---|
| Gross booking value (GBV) | €1,000 | 100% |
| Less owner's share | -€483 | 48.3% |
| Less OTA commissions (19%) | -€190 | 19.0% |
| Less cleaning and linen | -€120 | 12.0% |
| Net PM revenue | €207 | 20.7% |
| Plus extra margins (billed services) | +€30 | 3.0% |
| Less PM variable and fixed costs | -€85 | 8.5% |
| EBITDA (your take-home) | €152 | 15.2% |
The PM's most common mistake
Looking only at "how much I collect" and not at "what I have to cover even when the unit is empty." Fixed costs hit in months with zero bookings too — they must be allocated pro-rata across each property. Under master lease, the rent is the "red line": you have to compute the minimum per-night price (break-even) to cover it.
What does NOT belong in the property manager's margin
One line often mistakenly included in the calculation: the cedolare secca (Italian flat-rate rental tax). It is a private owner's tax (21% on the first property, 26% on the second; from the third onward the owner moves to the business scheme), not the property manager's. A PM on a business scheme (regime forfettario, simplified, ordinary) calculates their own tax on the business margin, not directly on booking revenue. The cedolare appears in the owner statements that the PM produces for the owner, but not in the PM's own margin. Read more: 2026 cedolare secca guide.
Why Excel doesn't scale above a certain threshold
For a few properties, Excel works. As units, sales channels and variables grow, the system starts to crack:
- Data isn't refreshed at the cadence required
- Costs get estimated "roughly" (the VAT component of OTA commissions is one of the most forgotten lines)
- Hard-to-spot errors
- Inconsistent data across properties and periods
- Progressive loss of control over real margins
Read more: Excel vs. dedicated software, when to switch.
How Dott.House calculates margins automatically
Dott.House supports both models (property manager on revenue share or master lease, host self-management) configurable per property. It imports data straight from your PMS (Krossbooking, Avantio) or via CSV import, applies the right formula for the chosen model, and produces the per-property margin automatically. Net yield stops being an after-the-fact estimate and becomes a clear, up-to-date, usable figure.
Want to see the real margin of your properties?
14 days free, no credit card required. Configure the model (PM on revenue share, master lease, or host self-management), import bookings and costs, and you'll have the per-property margin in no time.
Start the free trial