If you’ve grown your portfolio to the point where you’re now managing more properties than you can handle, it’s time to consider getting an Airbnb property manager. There are pros and cons to it, so take a few minutes to find out what they are and what exactly to look for when hiring one.
Simply put, an Airbnb property manager will run your property when you can’t do it yourself. Likely, they’ll do a better job than you would — especially if your hands are full and you’re stressed out from juggling multiple short-term rentals at the same time.
An Airbnb property management company is a great help if your listings are spread apart in different parts of the city or state. Or if you’re scaling quickly and acquiring properties out of state or even abroad. This is especially true for those doing rental arbitrage. You may consider getting a property manager from that local area or hiring someone remote that already has experience overseeing units in that specific location.
Additionally, if you’re busy with other things in your life such as a full-time job, continuing education, family members needing help, or any other situation that needs full-time attention, you’ll want to consider getting reliable outside help.
An experienced short-term rental property manager will provide you with a wealth of knowledge that you wouldn’t otherwise have if you’ve only been renting for a couple of years. Expert managers have the necessary skills in handling not just the operational but also the legal and financial aspects of running an Airbnb.
Here’s what an Airbnb property manager job description looks like:
Yes, that’s a lot! Many Airbnb property companies cover all of them, providing turnkey solutions that will basically shoulder all of the above tasks. But there are also those that deliver limited services only.
It all depends on what clients ask them to do, and the kind of partnership or arrangement they agree on.
While hiring an Airbnb property manager can be a huge benefit, it also has a few downsides. Here’s a list of the pros and cons you can expect from working with a third party in running your rental.
PROS:
A property manager will:
CONS:
Just like shopping for goods and services or hiring an employee, you’ll have to know what to look for when hiring an Airbnb property manager. Do your research, interview several candidates, and find out as much as you can about each of them.
Ideally, you’ll be working and partnering with them for several years so you’ll want to find one that understands and shares your business values, work ethic, and passion for short-term renting.
Here’s a list of questions to ask before hiring a property manager.
It’s important to make sure that the managers you consider are licensed real estate professionals. Since they will be representing you, and are responsible for marketing, leasing, and managing your rental, it’s crucial that they are qualified for the job.
Do your due diligence in checking their background. Read the guest reviews for the listings they manage, and look out for complaints about lack of communication, inaccurate listing description and photos, cleanliness, bed bugs, or poorly handled emergencies. Those are major red flags.
An Airbnb property management company will charge fees based on a number of factors: the services they provide you; the size, location, and condition of your property; and whether you’ll pay them on a monthly fixed rate (also known as “guaranteed” model) or on a commission basis. Many Airbnb property managers who charge a commission typically ask for 20%-50% of the rent collected.
You’ll have to decide whether you’ll let them assume all the day-to-day requirements of operating your short-term rental, or just a number of selected tasks.
But while an Airbnb property manager can be a great asset to your business, they are not a prerequisite to succeeding at short-term renting. There are lots of ways to run your Airbnb cost-efficiently, and one of them is by using property management software (PMS) to optimize your operations. With a PMS, you can automate various aspects of your business including guest screening, booking, payments, remote or contact-less check-ins and check-outs, turnovers, and more.
In spite of being an added expense, an Airbnb property manager provide you with more advantages than disadvantages. You can step away from demanding, day-to-day tasks and focus on things that matter to you more – whether in or outside of your business. And without needing to devote all the necessary attention to your Airbnb, you can actually say you’re really making “passive income” on the side.
Just remember. Deciding whether to get an Airbnb property manager will largely depend on your personal business goals, operational needs, and budget. Your willingness to hands-on manage the business yourself or to entrust it to others will also be a factor. It all depends on you.
Ready to learn how we built and operate a $2M/year short-term rental business, operate properties throughout the USA remotely, and acquired 70+ properties without owning any in just 2 years? Attend our free online master class to learn how you can do the same. Click here.
