KEY TAKEAWAYS
- Management commission is not always calculated the same way: gross vs. net makes a real difference in what you keep.
- Hooray Stays charges a commission that starts at 20% of net nightly revenue, after the booking platform’s host fee, with cleaning fees and taxes excluded.
- Houston’s mix of Medical Center stays, corporate relocations and event travel means nightly rates vary widely, so how your fee is calculated matters on every single booking.
- Always ask any manager what their percentage is calculated on before you sign.
- A free property-specific analysis can show you what your Houston home could realistically earn under different fee structures.
The most important number in any property management agreement is not the percentage. It is the number that percentage is applied to. Two managers can both quote you 20%, and one of them can keep thousands more of your revenue each year. Understanding gross versus net commission is the single most valuable thing a Houston STR owner can do before signing a contract.
Gross vs. Net: Why the Base Number Changes Everything
A gross commission is calculated on the total booking amount before any platform fees are deducted. If a guest pays $200 per night on Airbnb, the manager’s percentage is applied to that $200.
A net commission is calculated after the platform’s host fee is deducted. Airbnb now charges most hosts a host-only service fee of about 15.5%. That comes off the top before you or your manager see a cent. A manager charging on the net recognizes this reality. A manager charging on the gross does not.
Cleaning fees and taxes are a separate matter. A well-structured agreement excludes them from commission entirely. The cleaning fee covers the cleaner. Tax revenue belongs to the government. Neither should be part of a manager’s cut.
How Hooray Stays Calculates Its Commission
Management commission at Hooray Stays starts at 20% of net nightly revenue. That means the nightly rate after the booking platform’s host fee, with cleaning fees and taxes excluded from the calculation. Some agreements add a monthly technology fee for the smart lock, exterior camera and guest WiFi system. Exact terms depend on the property and agreement.
If you want to compare how different managers approach this, the table below gives you the right questions to ask.
Questions to Ask Any Manager Before You Sign
| Question to ask any manager | Hooray Stays answer |
|---|---|
| Is your percentage calculated on the gross booking total or the net after platform fees? | Net nightly revenue, after the platform’s host fee is deducted. |
| Do you take a percentage of the cleaning fee? | No. Cleaning fees are excluded from commission. |
| Do you take a percentage of taxes collected? | No. Taxes are excluded from commission. |
| Are there monthly technology or software fees on top of commission? | Some agreements include a monthly technology fee for the smart lock, exterior camera and guest WiFi system. This is disclosed upfront. |
| What notice do I need to cancel the contract? | 30 days. |
| Is there a setup fee? | Waived on select longer-term agreements. There is also a current promotion: the first 30 days are commission-free. |
| Who manages pricing and how often is it reviewed? | Daily human review of pricing. No fully automated-only approach. |
| Who do I contact if I have a question about my property? | Owners deal directly with Matt and Carissa Codd. Matt’s number is (832) 224-6713. |
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. See Fairly’s overview of average Airbnb management fees for a broader breakdown. Always ask any manager what their percentage is calculated on.
A Hypothetical Example: Net vs. Gross on a Houston Booking
Hypothetical example. All figures are illustrative. Platform fee rate is approximately 15.5% based on current Airbnb host-only fee policy. Math is shown in full.
Suppose a guest books a Houston property for three nights at $180 per night, plus a $120 cleaning fee.
- Gross nightly total: $180 x 3 = $540
- Airbnb host-only fee (approx. 15.5%): $540 x 0.155 = $83.70
- Net nightly revenue (what the owner actually receives before management fee): $540 – $83.70 = $456.30
- Cleaning fee passed through in full: $120 (excluded from commission in both scenarios)
Scenario A: Manager charging 20% of gross nightly revenue
- Commission: $540 x 0.20 = $108.00
- Owner keeps from nightly revenue: $456.30 – $108.00 = $348.30
Scenario B: Hooray Stays charging 20% of net nightly revenue
- Commission: $456.30 x 0.20 = $91.26
- Owner keeps from nightly revenue: $456.30 – $91.26 = $365.04
On this three-night booking, the owner keeps roughly $16.74 more under a net-based structure. Multiply that difference across dozens of bookings per year and it is a meaningful gap in annual take-home.
Why Houston’s Demand Mix Makes This Calculation Critical
Houston does not have one type of guest. It has several, and they behave differently.
Texas Medical Center generates consistent weekday demand from patients, families and medical professionals rotating through the city. Stays tend to be mid-length and repeat. Nightly rates are steadier than event-driven markets, but the volume is high.
Corporate and relocation travel from the energy sector and other major employers fills calendars during business weeks. These guests often book through platforms with higher gross rates, which makes the gross-versus-net distinction more consequential.
Event-driven weekends bring demand around NRG Stadium, Toyota Center and the city’s live music scene. Houston’s calendar for late October 2026 includes activity across multiple venues. On nights like these, nightly rates climb. The dollar difference between a gross and net commission grows proportionally with every rate increase.
A manager doing daily human review of pricing can respond to this demand mix. A manager locked into a static rate schedule or a purely automated tool may miss the nuances. At Hooray Stays, pricing is reviewed by a human every day.
What Else Comes With Hooray Stays Houston Management
Commission structure matters, but it is one piece of the picture. Here is what is included in Hooray Stays property management at no additional markup:
- Guest consumables: soap, shampoo, coffee and paper goods, provided with no markup to you.
- Up-to-$1,500 damage waiver included for owners at no cost to them, covered as part of the guest’s booking.
- Signed rental agreement and government photo ID from every guest before check-in.
- Smart lock with unique guest codes; exterior camera (no interior cameras).
- Quarterly in-person walkthroughs of your property.
- Listing on Airbnb, Vrbo, Booking.com and our direct-booking site at rent.hooray-stays.com, where guests pay no platform service fees.
- Breezeway short-term rental safety certification.
- Owner payouts by the 5th of each month with a line-item statement.
- Maintenance over $250 requires your approval before work proceeds.
- Owners deal directly with Matt and Carissa Codd, no intermediaries.
Guests who connect to our guest WiFi system provide their email and can receive offers to book direct in the future, which helps grow your direct booking revenue over time.
Houston STR Regulations: What Owners Should Know
Houston’s short-term rental ordinance took effect January 1, 2026. It requires a $275 annual registration per property, human-trafficking awareness training, and a certificate plus emergency contact posted at the entrance. Listings may not be advertised as event venues, and fines can reach $500 per day for violations. Always confirm current requirements with the City of Houston directly.
Get a Free Property-Specific Analysis
Revenue projections depend on your specific property: its location, size, condition and the demand patterns of your immediate neighborhood. Rather than give you a generic number, we offer a free analysis tailored to your Houston home.
Explore short-term rental management for Houston property owners or call Matt directly at (832) 224-6713 to talk through what your property could earn and exactly how your management fee would be calculated.
You can also read how we approach the same gross-versus-net question in coastal markets: STR management fees in Surfside TX: gross vs. net explained.
Frequently Asked Questions
What does “net nightly revenue” mean in a property management agreement?
Net nightly revenue is the nightly rate after the booking platform’s host fee is deducted, with cleaning fees and taxes excluded. Hooray Stays calculates its management commission on this number, not the gross amount the guest pays.
How does Airbnb’s host fee affect what a Houston owner actually earns?
Airbnb now charges most hosts a host-only service fee of about 15.5%. That amount is deducted from the gross booking total before the owner receives funds. A manager charging commission on the gross includes this platform cost in their base, which means the owner effectively pays commission on money they never receive.
Does Hooray Stays take a percentage of cleaning fees or taxes?
No. Cleaning fees and taxes are excluded from the management commission calculation entirely.
What is the management commission at Hooray Stays?
Management commission starts at 20% of net nightly revenue: the nightly rate after the booking platform’s host fee, with cleaning fees and taxes excluded. Some agreements add a monthly technology fee. Exact terms depend on the property and agreement.
What Houston STR regulations do owners need to follow?
As of January 1, 2026, Houston requires a $275 annual registration, human-trafficking awareness training, and a certificate plus emergency contact posted at the property entrance. Listings cannot be advertised as event venues, and fines can reach $500 per day. Confirm current requirements with the City of Houston.
How do I contact Hooray Stays about managing my Houston property?
Owners deal directly with Matt and Carissa Codd. You can call or text Matt at (832) 224-6713, or visit the Houston property management page to request a free analysis.
Keep reading
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Thinking about professional management?
Get a free, property-specific analysis from Matt and Carissa Codd. Current promotion: your first 30 days are commission-free.
Written by Matt Codd, who owns and runs Hooray Stays with Carissa Codd and operates his own Texas short-term rentals. Last updated October 28, 2026. Questions? Call (832) 224-6713.