How our fee's are calculated
Before listing your property using UnderTheDoormat, you can use ourcalculator to determine your potential earnings. This calculator works on the assumption that your property is high quality, well kept and based within London.
The short-let pricing of your home is a multi-layered process. Here we explain how it works and how we reach the profit potential per night you will earn. To discover your potential earnings, you'll want to do the following:
- Add your Postcode
- Enter the number of people your property can accommodate i.e. how many guests it can sleep (2 adults per bedroom)
- The number of bedrooms
- Click calculate earnings, and your potential earnings will show up.
Your revenue is determined once any UnderTheDoormat fees are deducted, giving you an estimate of your income.
Understanding the calculator
Once you've entered your details, we'll present you with a table showing a breakdown of the following:
● Average Guest Nightly Rate
● Average occupancy (based on 365 days availability)
● Annual Guest Spend
● Annual profit potential (after fees)
Average Guest Nightly Rate
UnderTheDoormat’s flexi-rates system ensures you maximise on the profit potential of your property. Essentially, flexi-rates mean the nightly rate changes according to the level of demand for properties within a given area. The more in-demand accommodation is, the more we can charge. Our management system means we’ll lower nightly rates slightly during periods of less demand to make sure occupancy remains consistent.
The price of a property you earn does vary throughout the year as dynamic, flexi-rate, pricing maximises occupancy. We use an average guest nightly rate that assumes the property is available throughout the year. If you only give availability for a specific month, you might earn less or more based on the peak season.
This will give you a thorough understanding of what you could earn, assuming you have full availability to give you a standard benchmark figure. We determine this rate using dynamic pricing software that reads market dynamics to work out your average guest nightly rate.
Annual Revenue Potential
This is calculated by:
Your average guest nightly rate x average occupancy = Annual revenue potential
Whatever guest nightly rate you have. We calculate your annual revenue based on a presumption of full availability in the year.
The annual revenue potential is the total your guests would be paying in the year if they pay your average guest nightly rate for every night of the year at 75% occupancy.
UnderTheDoormat works off of a 75% occupancy rate as an approximate measure for individual units. Property owners with multiple units in one building can, however, achieve 90-95% occupancy if managed correctly.
The level of occupancy fundamentally depends on two main factors, namely the location of the property and its availability. More central locations tend to have higher year-round occupancy, with properties showcasing more availability driving greater occupancy too. Naturally, the quality of the property and how well it is maintained will increase its popularity and therefore its demand.
UnderTheDoormat Fees
The Annual Potential Profit line shows your property’s average guest nightly rate minus the UnderTheDoormat fee of 25% + VAT.
The income you receive from each stay will vary due to our flexi-rates revenue management system, through which prices are adjusted to maximise occupancy and income in response to seasonality, supply and demand.
This figure is 70% of the Gross Booking Value (GBV). A Gross Booking Value is the total accommodation amount a guest will pay for their stay in your property.
What do our fees cover?
We use a multi-platform distribution strategy which means we use 40+ platforms to market a property. These platforms all have different ways of calculating commission. Some take a commission on the cleaning fees, some do not. Some have higher commissions, such as Expedia or Plum Guide, and others have strong guest Loyalty Programs such as Booking.com's Genius and Marriott's Bonvoy - schemes that are beyond our control. We mark up your nightly rate to recoup this amount, but due to the variance in the platform commission, this may also mean your net income varies by booking.
The 25% fee charged to our customers includes the following:
- A bespoke property management service with a team dedicated to running your home. You and your property will be fully looked after every step of the way.
- A thorough cleaning service. We want to make sure your property looks its best after every guest leaves, so our fee includes professional cleaning to maximise your property’s appeal and maintenance.
- Up to £1 million in property insurance cover and insurance of individual items with a value of up to £25,000.
- Total flexibility. Our fully flexible calendar allows you to stay in your home whenever you like. Our expert team will manage the rest.
- Guest linen management.
- A concierge service for the best in guest satisfaction.
Calculate your Profit Potential Today
Want to know the profit potential on your property? Try out our earnings calculator today and unlock a new income stream from your home. The calculator will give you a ballpark idea of what you can expect to earn given a 75% occupancy rate. There’s always an opportunity to earn more if you want to!
Have any more questions about how we work and how we can help market your property?
Get in touch with one of our friendly team members today.
Give us a call on 020 7952 1650, or send us an email at myhome@underthedoormat.com. We’re looking forward to hearing from you!
When we give you your bespoke price guide based on everything we know about your home, we will quote nightly net rates to you as this is the simplest way to understand exactly what you will earn. These earnings may be subject to income tax depending on your individual tax status.
*The Average Guest Nightly rate is the average amount your property will achieve if you divide your total annual earnings by the total number of nights which are booked
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