Fixed-income "guarantees" vs transparent percentage fees
A fixed-income model pays a set monthly amount regardless of what the property earns. It feels safe, but the incentive is wrong: an operator only offers a fixed figure when their data says they can earn more than they're paying you. When peak demand hits, that upside flows to them. A transparent percentage fee flips this — the operator earns a percentage of actual revenue, so they only earn more when you do. We don't make more unless you make more.
What a proper management fee should cover
- Listing optimization — professional photography, conversion-focused copy, market-tuned positioning.
- DET licensing & compliance — registration, guest filings, Tourism Dirham collection under a licensed structure.
- Dynamic revenue management — daily, data-driven pricing (via Purple OS), not static rates.
- Asset protection — automated housekeeping and inspection workflows after every checkout.
How to compare fees properly
Don't compare percentages in isolation — compare net outcome. A 15% fee that produces weak occupancy can leave you with less than a 20% fee that maximises both occupancy and rate. Ask any manager for their net payout on comparable units; how they price (static or dynamic); and exactly what's included vs charged extra.
