How Much Does Property Management Cost in Malta? (Our Fees Explained)

Property Management

How Much Does Property Management Cost in Malta? (Our Fees Explained)

Prime Rentals charges a management commission of 10% plus VAT at 18% on Rental Income. Rental Income means the gross accommodation revenue your property earns after any guest refunds, and before Airbnb or Booking.com take their commission. The commission covers MTA licensing, 24/7 guest messaging, listing on the OTAs and marketing. Cleaning and maintenance are not included and are billed by the hour, and linen and cleaning supplies are billed to the owner, so you can see exactly what each element costs. The minimum contract term is 6 months.

That is the short answer. The rest of this article explains what the commission pays for, why some costs sit outside it, and how to compare our structure with other quotes you may receive.

What the commission covers

The commission pays for the work of running your property as a short let business. In practice that means:

  • MTA licensing — short lets in Malta require a Malta Tourism Authority licence, and we handle the licence for your property as part of the commission.
  • Listing on the OTAs — your property is listed on multiple channels beyond Airbnb and Booking.com, and is also bookable directly through our own booking site at booking.primerentals.com.mt.
  • Marketing — promoting your property so it reaches guests across those channels.
  • 24/7 guest messaging — enquiries, pre-arrival information, check-in instructions and questions during the stay, answered around the clock.
  • Pricing — we use dynamic pricing, so rates move with season, demand and booking window rather than sitting at a figure set once a year.
  • Coordination — scheduling cleaning, linen changes and maintenance around bookings so turnovers happen on time.
  • Owner access — the Owner Portal, where you can see your calendar and block dates for personal use.

What is charged separately, and why

Some costs vary so much from one property to another that folding them into a single percentage would mean smaller, simpler properties subsidising larger ones. Cleaning, maintenance, linen and cleaning supplies are not included in the commission. We charge these separately instead.

Cleaning

Turnover cleaning is billed hourly, at the actual hours worked, capped at €16 per hour excluding VAT, with a 3-hour minimum per attendance. A one-bedroom flat and a five-bedroom house take very different amounts of time to clean, and charging by the hour reflects that fairly. Deep cleans, post-construction cleans and cleaning after works are quoted per project, because the scope depends entirely on the job.

Linen, towels, cleaning supplies and consumables

We source and maintain linen, towels, cleaning supplies and guest consumables, keeping a minimum of three full sets of linen per bed and per bathroom so there is always one in use, one in the laundry and one ready. These are not included in the commission, and their cost is billed to the owner. Keeping enough sets in rotation is what allows same-day turnovers without compromising on standards.

Maintenance

We have in-house maintenance staff and also work with a contracted maintenance company. Maintenance is not included in the commission and is billed hourly, at the rates set out in our published rate card, so you know the rate before work is done rather than after. Older properties, properties with pools and properties with more appliances simply need more upkeep, and billing for the hours worked keeps that cost with the property that generates it.

A worked example

The figures below are a hypothetical round number to show how the arithmetic works. They are not an estimate of what any property will earn.

Example only: suppose a property generates €20,000 of Rental Income in a year — that is, gross accommodation revenue after any guest refunds.

  • Management commission at 10%: €2,000
  • VAT at 18% on the commission: €360
  • Total management fee: €2,360

Because the commission is calculated before OTA commissions, it is based on what guests paid for the accommodation, not on what is left after Airbnb or Booking.com take their share. Platform commissions are a separate cost of each booking made through that platform. Bookings made directly through our booking site do not carry an OTA commission at all, which is one reason we push direct bookings alongside the platforms.

Cleaning, maintenance, linen and cleaning supplies in the year would then be added according to how many turnovers the property had and what work was needed.

How fee structures usually differ in the market

When you compare management quotes in Malta, the headline percentage is only part of the picture. The things to check are:

  • The base the percentage applies to. Some managers calculate commission on gross booking value including cleaning fees, others on net payouts after platform fees. The same percentage can mean quite different amounts depending on the base.
  • Whether VAT is included or added. A quoted figure may or may not include VAT. Always ask.
  • What is bundled. Some structures bundle cleaning or linen into a higher percentage; others charge them separately. Bundling looks simpler but can hide how much each element actually costs.
  • Fixed or set-up fees. Some arrangements include onboarding, photography or listing fees, or a fixed monthly charge alongside or instead of a percentage.
  • Mark-ups on third-party costs. Where maintenance or supplies are recharged, ask whether they are passed through at a published rate or with a margin added.
  • Contract length and personal use. Check the minimum term, and whether the contract limits when owners can use their own property.

A fair comparison puts every quote on the same base — the same year of bookings, with all fees and VAT included — and looks at the total cost, not the percentage alone.

Frequently asked questions

What does the 10% commission include?

MTA licensing (we handle the licence), 24/7 guest messaging, listing on the OTAs and marketing. Cleaning and maintenance are billed hourly, and linen and cleaning supplies are billed to the owner.

Is the 10% charged on the amount after Airbnb or Booking.com take their cut?

No. The commission is calculated on Rental Income, which is gross accommodation revenue after guest refunds but before OTA commissions.

Is VAT included in the 10%?

No. VAT at 18% is added to the commission, so the effective charge is 11.8% of Rental Income.

How is cleaning charged?

Hourly, at the actual hours worked, capped at €16 per hour excluding VAT, with a 3-hour minimum per attendance. Deep, post-construction and post-works cleaning is quoted per project.

Can I still use my property myself?

Yes. You can block dates for personal use at any time through the Owner Portal, with no minimum notice, provided no confirmed booking is affected.

Do I need an MTA licence?

Yes. Short lets in Malta require a Malta Tourism Authority licence. Handling the licence is included in our commission.

Is there a minimum contract term?

Yes. The minimum contract term is 6 months. Get in touch and we can take you through the full contract terms.

Find out what your property could earn

Fees only make sense against what the property earns. We offer a free rental revenue report for owners in Malta and Gozo — you can request one using the form on our Property Management page.

If you would rather talk it through, call us on +356 21654848 or email info@primerentals.com.mt. We are based at Matthews Building, Sant Andrija, Marsaxlokk.