29 Jul Airbnb Property Management: Here is What You Need To Know
What Is Airbnb Property Management?
Airbnb property management is a business model where the property owner outsources the management of their property listing on Airbnb.
The outsourced model appeals to owners who don’t have time to manage guests, live abroad, or want to optimize the ROI on their Airbnb property.
Types Of Airbnb Property Management
You can outsource to an individual manager or a property management company. Some Airbnb Hosts are available as co-hosts to manage other Airbnb properties in their area. It is also possible to outsource many management tasks for digital services or providers.
Some property management companies are generalists. Meanwhile, others specialize in Airbnb or short-term rental management.
The level of service a property manager or management company offers can differ. In other words, you may not want to outsource all aspects of Airbnb management. Here are some of the most common types of property management.
Be Your Own Rental Manager
You don’t need to outsource your Airbnb management. You can be your own Airbnb rental manager. Your occupancy rate and the size of your house determines the amount of work required to manage your property. However, if you manage your private rental, be prepared for more labor. As a result, you will become the bookings manager, receptionist, cleaner, repairs person, and marketing manager for your rental business. If you have a high turnover of short-term bookings, then this could be a full-time job.
Airbnb Rental Property Service
Full-service vacation rental property managers take over all aspects of managing your Airbnb. They are specialists in Airbnb rentals, and familiar with all aspects of Airbnb management. For a short-term rental, this can include managing frequent guest turnover, cleaning, bookings, and key exchange. This style of management requires the most work and comes with a heftier price tag.
A light version of Airbnb property management is essentially a cleaning service. The drudgery of cleaning your Airbnb is something many hosts choose to outsource. A good cleaning company can often be trusted with more than cleaning. You may be able to get a cleaner who checks for property damage and makes sure keys are returned to lock boxes.
Hiring an Airbnb Property Management Specialist
Full-service long-term property managers are great if properties are rented for more extended periods. In these cases, the amount of weekly work required to manage them is considerably lower, so you may not need an Airbnb specialist. However, property managers for long term rentals will still need to carefully screen bookings and keep an eye on the property.
Property Management Software
If your Airbnb is being rented frequently, you may want to enlist the help of a Bookings Manager or other Management Software. These can be individuals or digital services. These services won’t do the heavy lifting of changing beds or cleaning houses, but they will take on the admin related to managing an Airbnb.
What Is Airbnb Property Management Software
Airbnb property management software helps hosts maximize their ROI and minimize time spent on admin. Airbnb management software is effective in assisting Airbnb hosts to manage their Airbnb businesses. Property management software can help you manage guest questions, reviews, calendars, and co-hosts. There are even services which can also help optimize your listing rank.
Top 4 Best Airbnb Property Management Software
If you decide to manage your property or multiple properties yourself, then software will drastically simplify your workload. There’s lots of great software available, and the options can be overwhelming. The software comparison site Captera is an excellent resource for comparing Airbnb Property Management Software. We used to compare some of our favorite vendors with their free comparison tool so you can see at the benefits of our top four picks.
5 Star Captera Rating
What: Guesty is an end-to-end solution for professional short-term property managers, with innovative features designed to make managing an Airbnb easier.
4.5 Star Captera Rating
What: Lodgify is an excellent solution for short term rentals with listings on multiple listings sites. You can integrate and synchronize property data with various external booking channels such as Airbnb and Booking.com.
5 Star Captera Rating
What: Wishbox lets you automate all your guest communication, generate new revenues, and improve your guest experience drastically.
4.5 Star Captera Rating
What: Hostaway is handy if you manage 5 or more properties. It lets you seamlessly manage all rental channels, guest reservations, messages, and teams.
Airbnb Management Services
If you’re looking for more than a software solution you will want to consider a full-service management option. Most Airbnb management services are local to a city or state, and you may want to explore options in your town. If you have multiple properties or would like national service, here are four of our top picks.
4 Best Airbnb Management Services
What: A large property management group offering a choice of virtual management services or full-service property management.
What: A management service which looks after dynamic pricing, listing optimization, home prep, key exchange, cleaning, and guest communication.
3) TurnKey Vacation Rentals
What: As seen on ‘Stay Here’ Turnkey is a management service that focuses on providing a hotel-style service for Airbnb guests. Turnkey offer cleaning, key exchange, and same day turnover options.
What: With over 300,000 nights booked and a super low fee of 10%, Evolve is a dominant force in North America.
Hiring A Property Manager For Your Airbnb
What Can A Property Manager Do For You
What does a property manager do? Management companies, or independent managers, deal directly with guests. As a result, this saves you time and worry over marketing your rentals, managing bookings and payments, handling maintenance and repair issues, responding to complaints, and troubleshooting any problems. An Airbnb property manager will usually partner with a preferred cleaning service, whom they will manage on your behalf.
How Much Does A Property Manager Charge?
The cost of managing your property will depend on your occupancy rate and the size of the property. As a result, property managers will use a commission model and charge as a % rather than as a flat fee. This model gives some flexibility to homeowners who may want to use their property on occasion. You can open your rental calendars only for days they won’t be using the property.
An Airbnb or Vacation Rental property manager can charge anywhere from 15-30% of your nightly rate to manage a full-time listing. Rented.com estimates the USA average is 28% for vacation rentals. However, prices can fluctuate widely based on location, ski market rentals, for example, are often found in more remote areas. These homes typically require a higher fee because mountain homes tend to be more spread out and require more maintenance.
Some property managers will use the guaranteed model. The property owner is guaranteed a fixed monthly income, regardless of how often the property is rented. Income above the guaranteed income goes to the property management company. This model may appeal to owners who live in an area with seasonal fluctuations in visitors, but who want a fixed monthly income. This option is low-risk, but not necessarily the best choice for high profits.
What You Need To Know About The Property Management Contract
Fees & Services
You must be clear on the charges you are going to pay and what they cover before signing a property management contract. A higher property management fee is not always a bad thing if it encompasses all the costs of services. A lower price may exclude some services, which could be charged as hidden ‘extras.’ Extra duties might include; paying bills, managing evictions, and unusual maintenance. If you agree extras will be charged separately, agree at what rate, will it be a flat fee or a price based on a case-by-case basis?
You need to be aware of any restrictions on the property owner in a contract. For example, you may be restricted from entering your own property without notifying the management company and guests or longer-term tenants.
Get Insured & Create An Emergency Fund
The property owner is usually responsible for putting money into a reserve fund. For instance, the property manager can use that fund for agreed purposes. The management agreement should also specify the types of insurance and the amount of coverage you must have. You will need to check that the management company included under your coverage.
Be sure to find out about the structure of the management company and whether you are appropriately covered for liability. When outsourcing to a third party, management companies may not take responsibility for any issues caused by that person. Be it a sub-contractor, cleaner, or serviceman. To protect yourself, you should make sure there is a “reasonable care” clause in the agreement. This clause means the management company must do due diligence to hire quality and trustworthy third parties.
Contract Duration & Termination
Your individual circumstances dictate the contract length you are comfortable with. If you are new to using a property manager, you probably won’t want to sign a long contract before seeing results. In that case, be sure the termination clause is reasonable and you know your rights to terminate.
In conclusion, taking on a property manager or investing in management software is an important decision. It can have a significant impact on your ROI. Be sure to do your research carefully, read reviews, and ask for references before signing a contract.
For more information on managing your own rental check out my guide: Making Money with Airbnb Hosting: The Most Complete Guide on the Planet