Negotiating with a Service Provider

Proven strategies to maintain quality services while keeping costs under control.

Author

Dom Trovato
February 17, 2025

Talking rates with your essential service providers (cleaners, handyman, etc) isn’t exactly fun, but it’s one of those ‘host life’ moments you’ve got to master. As a host, these team members are essential partners in delivering exceptional guest experiences, but you also need to protect your margins. When someone asks for a 20% rate increase, what do you do? Panic? Accept it without question? Nope. 

Today, we’re laying out how to handle these tricky conversations like a seasoned host—without sacrificing quality or relationships.

Here’s the Situation:

Your cleaning company hits you with 20% a rate hike you weren’t expecting. You value their service, but your budget isn’t a bottomless pit.

The Goal: lock in reliable, high-quality cleaning without overspending or burning bridges. Tough? Yes. Impossible? Nope.

Why This Negotiation Matters

  • Guests notice cleanliness first. A spotless space means happy guests and glowing reviews.

  • Price increases will happen. But smart hosts manage them without tanking their profits.

  • Solid negotiations keep your service top-tier and your costs in check.

Preparation is Key

  • Define your non-negotiables: What matters most to you? Speedy turnover? Impeccable cleaning? A budget cap?

  • Know the market: Research local rates to benchmark your expectations.

  • Build leverage: Don’t put all your eggs in one basket. Have backup cleaners in mind.

Sample Conversation

🧹Cleaning Company:
"We’d like to continue working with you, but due to rising costs, we need to increase our rate by 20%"

🏠 Host:
"Thank you for letting me know. We’ve been happy with your cleaning services, and maintaining a strong partnership is important to us. I’d like to discuss your proposed rate increase and how we can align it with our needs and budget."

🧹Cleaning Company:
"We appreciate your feedback and value the partnership as well. Unfortunately, with rising costs, we’ve had to adjust our pricing to ensure we can continue providing quality service. The new rate reflects those changes."

🏠 Host:
"I understand. Rising costs impact all of us, and I appreciate the work you’ve done to maintain quality standards. Could you walk me through what’s driving the increase so I can better understand the breakdown?"

(Tactic: Use curiosity to uncover their priorities and constraints.)

🧹Cleaning Company:
"Sure. The increase is primarily due to higher wages for our staff and the cost of supplies, which have risen significantly over the past year."

🏠 Host:
"That makes sense, and I respect the effort you’re putting into ensuring your team is well-compensated. At the same time, I need to balance rising costs with ensuring profitability for my rental. Have you explored any cost-saving measures that could help us avoid such a steep increase?"

(Tactic: Suggest collaboration to find alternative solutions.)

🧹Cleaning Company:
"One option might be adjusting the frequency of some services or focusing on essential tasks during each visit. That could help reduce costs on our end."

🏠 Host:
"That’s helpful to know. Another option I’d like to explore is if we can lock in a longer-term agreement at a more manageable rate. For example, if I commit to a 12-month contract, could we keep the rate closer to the current one?"

(Tactic: Offer something of value—a long-term agreement—to counterbalance their request.)

🧹Cleaning Company:
"We could consider that. A longer-term contract helps us with planning and scheduling, so we might be able to reduce the increase slightly."

🏠 Host:
"That’s great to hear. Let’s work together to finalize a structure that benefits both sides. My goal is to maintain our relationship while ensuring costs remain aligned with the overall value you provide."

(Tactic: Reinforce the partnership and shared benefits.)

Pro Tips For Hosts

  • Set Expectations Early: Include rate review timelines and service scopes in your contracts.

  • Diversify Your Vendors: More options, more power.

  • Regular Check-Ins: Stay ahead of price hikes with periodic reviews.

  • Track Performance: Quality metrics justify your asks.

  • Negotiate Annually: Get ahead of renewals before they surprise you

  • Don’t Forget the 6 Principles to Master The Art of Negotiation:

Closing Thought:

Negotiation isn’t about who wins—it’s about finding common ground. Handle it right, and you’ll keep your Airbnb spotless, your guests thrilled, and your wallet happy.

Plan ahead, stay calm, and be professional. You’ve got this.

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