STR Management Fees in Houston TX: Gross vs. Net Commission (And What to Ask Before You Sign)

Many Houston short-term rental owners sign a management contract without fully understanding how the fee is calculated. The biggest variable is often not a hidden line item. It is the base number that the commission is calculated on.

💰 Gross vs. Net: The Fee Calculation That Changes Everything

The most important number in any STR management contract is not the percentage. It is what that percentage is applied to. Industry guides commonly cite full-service management fees of roughly 20–35% of revenue, and many managers calculate their percentage on the gross booking total (which can include platform fees and the cleaning fee) (source). Hooray Stays’ commission starts at 20% of net nightly revenue: the nightly rate after the booking platform’s host fee, with cleaning fees and taxes excluded.

Here is why that matters in plain math. When a guest books your Houston property and Airbnb collects $2,000, a portion of that total is Airbnb’s own service fee and your cleaning fee. A manager charging 30% of gross takes 30% of all $2,000. A manager charging 20% of net takes 20% of what remains after those pass-through costs are removed. The gap is not small.

📊 Hypothetical Houston Booking Examples with Actual Numbers

Texas Medical Center Week Stay

Hypothetical example: A traveling nurse or specialist renting near the Texas Medical Center for seven nights at $150 per night generates $1,050 in nightly rate, plus a $100 cleaning fee, for a $1,150 booking total. If the platform’s host fee takes about $150 of the nightly portion, net nightly revenue is roughly $900. A manager charging 30% of gross takes $345. At 20% of net, the commission is about $180. That is about $165 more in your pocket from a single seven-night booking. Actual fees depend on your platform, pricing, and agreement.

NRG Stadium Event Rental

Houston’s event calendar drives strong short-term demand. Hypothetical example: during a major NRG weekend, a two-bedroom booked at $400 per night for two nights produces $800 in nightly rate, plus a $125 cleaning fee, for a $925 booking total. If the platform’s host fee takes about $125 of the nightly portion, net nightly revenue is about $675. A manager charging 28% of gross takes $259. At 20% of net, the commission is $135. That single reservation produces a $124 difference, and owners with multiple event weekends per year feel that gap.

Airport Corporate Housing Stay

Houston’s energy sector, healthcare industry, and port activity generate consistent corporate travel demand. Hypothetical example: a month-long corporate stay with $3,350 in nightly rate and a $150 cleaning fee produces a $3,500 booking total. If the platform’s host fee takes about $250 of the nightly portion, net nightly revenue is $3,100. A manager charging 30% of gross collects $1,050. At 20% of net, the commission is $620. The owner keeps $430 more from a single booking. That is not a rounding error.

The Comparison Table Houston Owners Should Study

🚩 Pain Points to Ask About Before You Sign

These are common concerns worth raising with any Houston manager. Knowing them helps you know what questions to ask before signing anything.

• Unreachable managers: Ask who actually answers when you call during a guest emergency, and how quickly. When you call Hooray Stays at (832) 224-6713, Matt answers the phone himself.
• Surprise consumable bills: Ask whether soaps, coffee, paper towels, and toiletries are billed back to you, and whether with a markup. At Hooray Stays, guest consumables are stocked and included with no markup.
• Long contracts with no performance accountability: Ask about the contract term and how much notice is required to cancel. Hooray Stays agreements can be cancelled with 30 days’ notice, so the relationship stays because it is working.
• Nobody ever visits the property: Ask how often someone physically visits. Remote-only management can let small maintenance issues compound into expensive repairs. Hooray Stays conducts quarterly in-person walk-throughs on every property.
• Automated pricing with no human judgment: Ask whether a person reviews pricing. Dynamic pricing tools are useful, but they do not know that a last-minute FIFA World Cup Fan Festival event just appeared on the East Downtown Houston calendar this week, or that a corporate group is looking for three units simultaneously near Greenway Plaza. Hooray Stays reviews pricing daily with human eyes.

Why Houston’s 2025 Event Calendar Makes This Decision Urgent 🗓️

Houston has a busy event calendar this year. FIFA World Cup Fan Festival events are drawing international visitors to East Downtown right now. NRG continues to anchor sports and concert traffic on the southwest side. The Texas Medical Center remains the largest medical complex in the world, generating year-round corporate and travel nurse demand.

If your current management agreement is approaching its anniversary, this is exactly the right moment to run the numbers. Pull your last six months of gross booking statements, identify what your manager was actually paid on, and compare it to what you would have paid on net. The difference will likely surprise you.

If you are also considering properties in other Gulf Coast markets, our breakdown of what Bolivar Peninsula owners need to know before hiring applies many of the same fee-structure questions to the Crystal Beach market.

What Hooray Stays Includes in Its Management Service

The true cost of management is never just the commission percentage. It is the commission plus every add-on billed to your account each month. Hooray Stays includes the following (depending on the agreement, a monthly technology fee may also apply for the smart lock, Ring exterior camera, and guest WiFi system; exact terms vary by property):

• Guest consumables restocked with no markup: soaps, shampoos, conditioners, coffee, paper goods
• Signed rental agreement and government-issued photo ID required from every guest before check-in
• Breezeway safety certification
• STR permitting guidance
• $1,500 damage waiver on reservations
• Quarterly in-person property walk-throughs
• Daily human revenue management

When comparing managers, add the commission to every add-on billed separately so you are comparing total cost, not just the headline percentage.

The Two Questions Every Houston Owner Should Ask Before Signing

You do not need to be a real estate attorney to protect yourself in a management contract. You need two answers before you sign anything.

1. What is your commission rate, and is it calculated on gross or net revenue? If the answer is gross, ask them to restate it as a net equivalent so you are comparing apples to apples.
2. What is billed separately? Get a full list in writing of every item that is not included in the management fee. Consumables, maintenance markups, and supply restocking fees add up fast.

Matt and Carissa Codd built Hooray Stays because they own and operate short-term rentals themselves on the Texas Gulf Coast. They know what it feels like to watch a booking statement and wonder where the money went. That personal stake in results is why the fee structure, the contract terms, and the service model are built the way they are.

If you own a property near the Medical Center, Greenway Plaza, the Energy Corridor, or anywhere else in the Houston market and you are not sure whether your current manager is working for you or against you, the next step is a free 15-minute call. Matt will walk through your actual numbers with you. No sales pitch, no obligation, just math. You can also see our Houston Airbnb property management page and what’s included in Hooray Stays property management. Book your free fee analysis call here. Or call directly at (832) 224-6713.

Frequently Asked Questions ❓

How much do STR management companies charge in Houston TX?

Industry guides commonly cite full-service management fees of roughly 20–35% of revenue, and many managers calculate their percentage on the gross booking total, which can include platform fees and cleaning fees that never reach the owner. Always ask what the percentage is calculated on. Hooray Stays’ commission starts at 20% of net nightly revenue (the nightly rate after the platform host fee, with cleaning fees and taxes excluded).

What is the difference between gross and net commission for Airbnb management?

A gross commission is calculated on the total amount the guest pays, including Airbnb’s platform fee and the cleaning fee. A net commission is calculated only on the nightly revenue after those amounts are deducted. At the same percentage, a gross-based commission costs the owner more.

Does Hooray Stays include consumables in their Houston management fee?

Yes. Hooray Stays stocks guest consumables including soaps, shampoos, coffee, and paper goods with no markup. When comparing managers, ask whether consumables are billed back to the owner.

What contract terms does Hooray Stays offer Houston owners?

Hooray Stays agreements can be cancelled with 30 days’ notice. The setup fee is waived on select longer-term agreements. Exact terms vary by property and agreement.

Who handles guest communication for Houston properties managed by Hooray Stays?

Matt and Carissa Codd run the operation themselves, and you can reach Matt directly at (832) 224-6713.

How often does Hooray Stays visit managed properties in Houston?

Hooray Stays conducts quarterly in-person property walk-throughs on managed properties. When comparing managers, ask how often someone physically visits.

Keep reading 📚

• Best Airbnb Management Companies in Galveston TX: What Local Owners Should Know Before Hiring
• Best Airbnb Management Companies in Crystal Beach TX: What Bolivar Peninsula Owners Need to Know Before Hiring
• Best Airbnb Management Companies in Sargent TX: What Gulf Coast Cabin Owners Need to Know Before Hiring

Written by Matt & Carissa Codd, owners of Hooray Stays and active Texas Gulf Coast short-term rental operators. Last updated June 12, 2026. Questions? Call 832-224-6713.