Airbnb Property Management: The Ultimate Guide
The secret that many homeowners are learning is that using a property manager removes all the headache and only costs a small portion of the income. On top of dealing with guests and property issues; property managers are often experts on listing on theses marketplaces. A good property manager will regularly optimize the pricing and content of your listing to maximize the income of your property. The optimization of listings is crucial to have your property move up the Airbnb and HomeAway rankings.
Airbnb property management is the process of assisting homeowners to monetize their recreational property with ease. Many families own cabins, trailers, and vacation properties a few hours or more from where they actually live. Since these homeowners are hours from their vacation property they immediately assume there is no way they could monetize their property due to the operational difficulty.
By hiring a property management company to assist you with the operational side of your vacation home you can easily create significant and passive income.
What do Airbnb property managers charge?
The average Airbnb property management fees range between 25 - 50% of the total bookings. These commissions are much lower than conventional property management companies that existed prior to the Airbnb renaissance. Many Airbnb management companies will be willing to negotiate the commission depending on the location and revenue potential. Typically, the higher the revenue potential the lower the company will be willing to accept as a commission.
What does an Airbnb property manager do?
Airbnb property managers are responsible for ensuring that the property is being marketed, cleaned, guest interaction, and financial reporting.
Your property management company should be listing the home on multiple channels to maximize the occupancy and revenue potential. Theoretically, the more people seeing your property the higher your occupancy levels will be. The more demand you have for your property the higher your nightly rates can be.
Cleanliness is an absolute requirement when it comes to operating a successful hospitality business, your Airbnb management company should be responsible for professionally cleaning between guests. Airbnb will ask your guests how clean the unit was and it will have a major impact on your search engine rankings in the future.
Guest interaction is the most time consuming aspect of operating an Airbnb business. Most guests expect timely responses to their questions and Airbnb is monitoring your response times to ensure you’re on top of it. Response times are one of the most important ranking factors. Only hire a property management company that has a 100% response rate.
Do you need a property manager for Airbnb?
No, of course not. If you feel comfortable managing all of the aspects of your vacation rental business then go for it! But most people don’t have the time or experience to successfully manage an Airbnb. Property managers are there to help you grow and operate your business in a safe and profitable manner.
Listing your property on vacation rentals sites such as Airbnb, Homeaway, and VRBO can be a lucrative and rewarding experience. Nothing is more fulfilling than knowing someone is enjoying your vacation property and lining your pockets at the same time. The days of vacation properties being recognized as a cash draining liability are long gone. If you own a property in a hot vacation market you could be making tens of thousands of dollars a year.
Let's make something clear - you can make a lot of money renting your property out as a short term rental, but it will require a LOT of work and a commitment to being the best. The STR market is saturated with millions of extremely talented and creative individuals constantly improving and optimizing their property. In order to succeed in today's climate you will have to work twice as hard and be five times more creative. Being competitive in your market is where property managers can add a lot of value, in addition to saving you a lot of effort.
Can you make a living off of Airbnb?
Absolutely, thousands of people make a great living off of their Airbnb properties. In order to make a significant income from Airbnb you will need several places. On average Airbnb hosts make over $900 per month. Not surprisingly, the income potential varies widely between location, property type, and amenities offered. Many Airbnb towns within a single province or state can vary by tens of thousands per year.
Is Airbnb legal?
Yes, any reputable property management company will strictly follow the local, provincial, and federal laws to ensure your property is safe and legal. The municipality rules for operating an Airbnb vary widely, but your property management company should be able to answer all your questions about local legality.
In most cases, you will have to have the correct zoning and business licenses.
How to know if your Airbnb will be successful
Ask yourself these questions:
- Are there any successful hotels in town?
- How many Airbnbs exist in the town?
- What type of travelers would visit? (working professionals, tourists, locals, etc)
- What is the expected nightly rate?
It is super important that you analyze your airbnb market before launching your business.
Are you looking to hire an Airbnb property management company?
Lifty Life Hospitality provides the best management services in Canada. Our team can help you create a reliable side-income that requires very little time on your side. Give us a call today - (778) 245-4784!