Vacation rental management is a service that operates the property on behalf of the owner: marketing, guests, cleaning, and maintenance. According to Bizportal on 17.8.2026, management fees for vacation rentals range from 15% to 20%, with the difference from long-term rentals stemming from frequent guest turnover. This does not include a specific company's price in Eilat, nor does it reflect Livo's yield.
How much do vacation rental management fees cost?
Vacation rental management fees range from 15% to 20% of income, according to Bizportal on 17.8.2026. The same guide states that for long-term rentals, the customary rate is 6% to 10% of the rent, and for short-term rentals, it is higher due to significantly greater turnover and operation.
Table: Published Management Fee Rates
| Rental Type | Management Fees | Source |
|---|---|---|
| Long-term rental | 6% to 10% of rent | Bizportal, 17.8.2026 |
| Short-term rental and vacation rentals | 15% to 20% | Bizportal, 17.8.2026 |
These are general rates in Israel. The guide does not specifically address Eilat, so it is advisable to request a written quote from each company. According to the same guide, the rate is usually plus VAT, and sometimes a fixed monthly minimum is added.
What should be included in vacation rental management?
What is included in vacation rental management is determined by the contract, and it's worth clarifying each service: marketing and property presentation, responding to inquiries, guest reception, cleaning and laundry between stays, and coordinating professionals. The Bizportal guide notes that the price depends on what is included in the service, such as marketing and property photography, as well as whether the company receives a commission from the professionals it refers.
What is actually included is determined solely by the contract. A service not written in it will not be provided to you.
What does a management company not take on?
According to Bizportal, the company is not a party to the rental agreement, does not bear the tenant's debts, and does not replace building insurance, and the obligation to repair defects remains with the owner. It is advisable to check in writing how this works for vacation rentals, and who pays for damage caused by a guest.
How do management fees change net yield?
Management fees are deducted from income before reaching net yield. TDN states in a marketing publication from 7.5.2026 a gross yield of 8% to 12% with good management and a net yield of about 5% to 7%. This source markets investment apartments, and the gap between the two numbers also includes platform fees, cleaning, and electricity, not just management. Details can be found in Yield from a vacation rental in Eilat.
According to Bizportal, management fees are recognized as an expense only under the marginal tax route. The implications for the tax route should be checked with an accountant, and not assumed in advance.
What questions to ask a management company before signing?
Before signing, ask a management company about the rate, what's included, and what happens when something goes wrong. Checklist:
- Rate and calculation method. Percentage of income, monthly minimum, and whether the price is before or after VAT.
- What's included. Cleaning, laundry, guest reception, photography and marketing, and what is charged separately.
- Repairs. An expense ceiling that is automatically approved, above which owner approval is required, as recommended in the guide.
- Commissions from professionals. If the company receives a commission for referrals.
- Reports. Monthly booking and income report, including paid nights and blocked nights.
- Termination of engagement. Contract period, notice period, and penalties.
- Permit and regulations. That short-term rental is permitted in the property. See What to check before buying for short-term rental.
How can Livo help?
Livo does not offer management services here and does not guarantee yield. Those looking for an income-generating property can leave their details on the Income-generating properties in Eilat page, and a licensed Livo agent will get back to them, without commitment to a specific outcome. You can also see what vacation rentals look like from the guest's perspective in Villas in Eilat.
The information on this page is general, based on public publications cited alongside it, and is not investment, tax, or legal advice. Livo does not guarantee any yield. Before any transaction, it is recommended to consult with a lawyer and an accountant.
FAQ
How much does vacation rental management cost?
According to Bizportal on 17.8.2026, management fees for short-term rentals and vacation rentals range from 15% to 20%, compared to 6% to 10% for long-term rentals. This is a general rate and not the price of a specific company in Eilat.
What does vacation rental management include?
The Bizportal guide mentions property marketing and photography and coordinating professionals as part of what the price depends on. What is actually included is determined by the contract, so ask about each service, such as guest reception, cleaning, and laundry, and read the contract line by line.
Do management fees include cleaning?
The publications cited on the page do not specify this. Ask explicitly if cleaning and laundry are included in the rate or charged separately, and have it written in the contract.
Do management fees include VAT?
According to Bizportal, the rate is usually plus VAT. Request to see the final price including VAT in a written quote.
Can I consult before deciding?
Yes. On the Income-generating properties in Eilat page, you can leave your details, and a licensed Livo agent will get back to you. The information is general and not investment, tax, or legal advice.
עודכן לאחרונה: 30 באוקטובר 2026