If I manage a property on behalf of the owner, is the entire lodging fee my revenue?
No. Under a management contract, only the management fee you receive from the owner — not the full lodging fee — is your revenue for filing purposes. If you receive settlement in foreign currency from Airbnb or another overseas platform, convert it to KRW using the exchange rate on the deposit date to recognize revenue, and outsourced cleaning/linen costs are fully deductible as a business-related expense.
The Trickiest Part — Managed-Property Revenue Attribution and Overseas Platform Settlements
Revenue attribution when operating on the owner's behalf and handling overseas settlements correctly are the key issues
Separate the Management Fee from the Owner's Revenue
When you take over management of a property owned by someone else, only the management fee — not the full lodging fee — should be reported as your revenue. Clearly document the fee rate and settlement structure in the management agreement with the owner.
Overseas Platform Settlements Require Exchange-Rate and Timing Management
Overseas platforms like Airbnb often settle in foreign currency, so revenue should be recognized by converting to KRW using the exchange rate on the deposit date.
Income Structure Features of Shared-Lodging Management (Airbnb)
Key Expense Items
Must-Know for Shared-Lodging Management (Airbnb)
Split Management Costs & Overseas Settlements by Category to Save on Taxes
From outsourced cleaning costs to overseas platform settlements, categorizing each item correctly is what cuts unnecessary tax
Per-Property Supplies Management
Room supplies: bedding, small appliances (owned by the management business, not the property owner)
Shared equipment: smart-key/door-lock systems
Of the supplies the management business purchases itself, any item exceeding KRW 1 million is classified as a depreciable asset and must be expensed over its useful life.
Consumables — Immediate Expense
Amenities, outsourced linen-laundering costs, and similar items are expensed in full at the time of purchase or payment.
Personal-Service Costs — Cleaning & Property-Management Labor
Cleaning and property-management staff require withholding-tax filing and submission of a payment statement regardless of employment form.
Overseas Platform Settlements & Managed-Property Revenue
Overseas platform fees and settlements, such as from Airbnb, are managed by converting to KRW at the applicable exchange rate, and if you're operating under a management contract, only the management fee — not the full lodging revenue — is recognized as revenue.
| Category | Typical Examples | Tax Treatment |
|---|---|---|
| Per-property supplies | Bedding, small appliances, door-lock systems | Depreciated once over KRW 1M |
| Consumables | Amenities, outsourced laundering costs | Fully expensed immediately at cost |
| Personal service | Cleaning/property-management labor costs | Withholding filed, payment statement submitted |
| Overseas platform / managed revenue | Airbnb fees, managed-property revenue | Managed by exchange rate; only the fee is recognized as revenue |