The growing popularity of Airbnb makes short-term rental a very lucrative business. Airbnb reported that the annual income of US Airbnb hosts reached up to $13,800. That is an 85% increase from the host’s yearly income in 2019. But learning how to earn on Airbnb and other short-term rentals is not as easy as ABC. Managing a rental property requires extensive knowledge, time, and effort. How will you effectively manage your rental property if you’re a busy person or not savvy on rental operations? Here’s where property management will help. This article will discuss why property management is the best approach for Airbnb and other short-term rentals.
What is Property Management?
Property management is a service that handles different investment properties, including property management for Airbnb rentals. Property managers oversee the day-to-day operation of any residential or commercial real estate.
How Property Management Works on Short-term Rentals
Owning and maintaining a short-term rental is not as easy as listing your property on Airbnb. Property managers do the groundwork and handle rental listings for property owners. The property management services for Airbnb rentals include:
- Advice on local rental laws
Every state has different local rental laws. You must know the local rental laws to ensure the legality of your rental business. Your property must have the required permits and follow local rental regulations. Property managers are knowledgeable about local rental laws. Property managers advise property owners about requirements to follow and permits to get.
- Client communication and support
As a rental property owner, you need to communicate and deal with guests. Client communication and customer support are vital to the success of short-term rentals. As you deal with different guests, you must know how to communicate with your guests and provide customer support. Part of the property manager’s role is to relate with guests. Property managers will do it all for you; guest inquiries, bookings, and dispute resolutions.
- Client screening
As you deal with different guests, proper guest screening is a must. That is to ensure you and your property is safe. Property managers meticulously screen guests before accepting their booking.
- Income management
Calculating your nightly rate is a nightmare if you’re new to short-term rentals. Property managers are experts in setting up an adequate nightly rate for short-term rentals. They ensure your listing has a competitive nightly rate to cover your operational costs, taxes, and revenue. Property managers also take care of the collection of rental payments.
Property managers deal with the reporting of day-to-day operations. That also includes handling guests’ reviews and disputes.
- Rental cleaning and maintenance
Short-term rentals involve a lot of cleaning and maintenance as guests come and go. Part of the property management service for Airbnb is the cleaning and maintenance of the rental listing.
Good marketing will help to increase your rental accommodation’s occupancy rate. Property managers ensure rental properties are well-marketed and highly occupied. They list your rental property on different online rental platforms.
When You Should Hire a Property Manager?
Short-term rental self-management is not for everyone. Though you can use a property management app for hosting Airbnb, rental hosting is not a walk in the park. Here are some reasons you need to hire a property manager for your short-term rentals.
- You have multiple rental properties. Handling too many rental properties is like having a full-time job. A property manager is a great help when you have too much on your plate.
- You want to earn from your rental property but don’t want to manage your rental accommodation. If you don’t want to deal with guest inquiries, cleaning, maintenance, etc. Then seeking the service of a property manager is the best for you.
- You’re working a full-time job. Having a full-time job takes most of your time, and you don’t want to spend your remaining time cleaning and maintaining your rental property.
- You don’t live near your rental property. Managing it will be chaotic if you don’t live near your rental property. Imagine the distance you need to travel whenever you need to check your rental property.
- You don’t know the ins and outs of the rental business. Operating a rental business requires knowledge. Rental business means permits, taxes, and maintenance. Having someone who knows the ins and outs of the rental business
What is an Airbnb Management Service?
Airbnb allows hosts to hire a property manager to help them take care of their listing and guests. Property owners can get the services of property management companies to handle their Airbnb listings.
How Much Does a Property Management For Airbnb Cost?
Property management companies for Airbnb charge property owners either by:
Some property management services charge a monthly fixed rate. Monthly rates vary depending on the location and services included in the package.
Property management companies also charge based on commission. The average costs for Airbnb property management range from 5%-25% of nightly rates.
Property management fees for Airbnb vary based on different factors. Rates vary based on:
- Rental location
- Type of property
- Potential revenue
- The extent of services needed
- Market season
The Best Property Management Company For Airbnb Listings
The right property management company will surely bring success to your rental property. To help you choose the best property management company for your Airbnb listing, here are some of the factors you need to consider:
- Experience in managing rental properties
- Affordable fees
- Flexible cancellation policy
Is it worth having a property management company for Airbnb?
Yes, data shows listings under property management companies have higher average daily rates in the USA. Honestly, short-term rental hosting is a lot of hard work. Renting your property, no matter how small, is still a business. Success in investment takes a lot of research, time, and hard work. Hiring a real estate agent for Airbnb property management will surely help your rental business become an Airbnb Superhost success.