Do I need an Airbnb property management company?
So do you think you need a vacation rental
management company to run at your Airbnb or VRBO? Well, in this video I’ll walk you through
the options you have and you may find that maybe you don’t. Hi, I’m Heidi Miget and I’m
a marketing strategist for vacation rental home owners. My company, Fully Booked Consulting
works with homeowners across the country to get their property listed on these sites and
ranked highly so that they can get booked. As an Airbnb superhost and a premier partner
myself, I know what it takes to get to the top of the rankings and if you stay to the
end, you’ll learn about the free guide I have that will be perfect if they were just getting
started and we’ll walk you through exactly what you need to focus on.
When you first decide that you’re going to list your property as a short term rental,
you have a lot of decisions to make and one of the first decisions is how are you going
to manage your rental? Well, in this video, I’ll walk through the
top three most common ways that you can manage your rental and I’ll walk through the pros
and cons of each one so that you can decide which option works best for you.
Option number one is a traditional management company. Typically, this is going to be a
company that is local in your area and it’s really full service. They are going to handle
everything for you, from getting your sites listed or your property listed, they’re going
to do the marketing and the inquiry management and anything that has to do with the maintenance
of the home, as well as the cleaning schedule. It is full service. So that’s really the pro,
is that it’s stress-free and it’s a great option if you are especially not close to
your property. Now, the cons is that this is the most expensive
option. Typically, property management companies are charging anywhere between 30 and 50 percent
of your rental income, so you’ll just want to do the numbers there if you think that
this is the option is really understand how much income they can bring in for you and
you know, if they’re taking 30 to 50 percent, what does that leave you and can you pay the
bills and hopefully still profit off of that? Now, something to keep in mind if you go the
route of a traditional property management company is that in a lot of cases, the way
that they set up is that they will manage your property under their profile, which means
that all of the guest data that is associated with your bookings and the reviews, they will
essentially own or keep. So, if you are deciding that maybe in a year or two, you might want
to manage it yourself, then you might be starting from scratch when you do that, meaning that
you won’t have any reviews and you won’t have that guest data as far as email addresses,
etc. So, if you are going to go this route to begin
with, ask those questions and understand what does it look like if it doesn’t work out and
you want to change how your property is managed in a year or two.
Option number two is what I’m calling modern property management and what this is is it’s
really a twist on the traditional model in the sense that these companies aren’t necessarily
locally based. They are remotely managing a large portion of it, but then they have
on the ground services in your area, depending on what company you go with. The key players
in this space include Evolve, Vacasa and Turnkey and each one of these has a unique business
model with different services where Evolve is really more on the front end than anything
else and then you will be responsible for the on the ground services. Turnkey and Vacasa
have more on the ground services, and the price goes up for those companies because
of that. So, you would just have to evaluate what exactly you’re looking at to take over
and then decide which company is the best fit for you.
So the prices here range from 10% on the lowest end with Evolve being at the 10 percent since
they’re really just doing the front end and you’re still having to do a big portion of
it on the back end and then Vacasa and Turnkey are a little bit higher and prices range from
20 to 30 percent of rental income for those ones.
Now, the pros of going with one of these companies is that these are companies that really focus
on technology and marketing and so they have set up thousands of listings and they have
a great process that will get you listed and also getting listed on multiple booking sites
all at once. Because of the technology that they have in place, they can really get that
going for you quickly. So, that is a major pro if you want to just get up and running
and have some solid marketing right out of the gate.
Now, the cons could be that you, it’s not as full service potentially, depending on
which company you go with. So again, you want to look into each of these and evaluate what
works best for you. And then something to keep in mind just like
the traditional company route is that you will want to inquire about, if this doesn’t
work out, what happens when I want to move my listing elsewhere? So, definitely find
out what happens to the reviews. Will those transfer over and do you get any of the guest
data like email addresses? So same thing with the traditional company. You want to check
on that. Option number three is self-manage. Self-manage
is the option that we have chosen for our rental property and the option that most of
the homeowners I work with have chosen as well. And this means essentially you are the
booking manager, you’re responsible for the calendar, the marketing, the cleaning, the
property management. All of it really will fall on you as the main point of contact.
Now, this could mean that you are the person doing all of these tasks or you are deciding
which pieces of this you are going to hire out. Now, one question I get asked quite often
is, can I choose the self-managed route if I live remotely? And the answer absolutely
is yes, and I work with many homeowners that manage it this way. The key to this is just
that you have established local contacts that you can trust that can be your eyes and ears
for your property. Now, the pros with this option of course,
is that you have full control over your property. You have control on how you market it and
where you market it, your messaging, marketing, the tone that you set with your guests and
how you communicate with them. All of that is fully under your control, which is really
the reason why many homeowners choose this option.
Now, of course the con is also you are fully responsible for everything, so that means
that you will have to make sure you know exactly how all of the pieces are going to get accomplished
and it also in a lot of cases means you are in the main point of contact, regardless of
what time it is. So that is something that you will want to evaluate is are you okay
with that and if not, maybe you can hire out pieces of that. You have someone to manage
the inquiries piece of it, but you’ll want to keep that in mind if you’re deciding to
go the self-managed route. If you’re going the self-manage route, it’s imperative that
you have systems and a marketing plan to get your listing seen and booked.
So, I have a free guide for you. Grab it in the link below and it’s a marketing roadmap
and it will walk you through the seven most important steps that you want to focus on
when you are first getting listed. So, be sure to grab that free guide.
If you liked this video, please let me know by giving it a thumbs up, subscribing to the
channel, and also comment below with which option you are going to go with. I would love
to hear. Thank you so much for watching and I post new videos every Tuesday, so I will
see you next week.