What Specific Metrics Should I Compare in a Management Agreement?

Great question. To compare resort-managed vs self-managed options, build a consistent cash-flow forecast under two scenarios using the same baseline inputs: expected gross rent, local taxes, insurance and utilities. Then add the costs unique to each model. For resort management, include the manager’s commission or management fee, platform commissions, cleaning and linen, pool and garden care, guest support, and any ongoing marketing costs. For self-management, list your own time value (if any) and the costs you’d cover directly. Core metrics to compare include: net operating income (gross income minus all operating costs and management fees or self‑management costs), net cash flow after accounting for owner-use days, and break-even occupancy with seasonal variation. Also weigh non-financial factors like reporting quality, response times, and decision speed. When reviewing the contract, check who can adjust pricing, who approves repairs, reporting cadence, and termination rights, plus how taxes are handled. To ground the decision, request actual statements or sample invoices from current operators and run a side-by-side forecast under both models.