The Who, What and Why of Airbnb Property Management
History of Airbnb
In 2008, Brian Chesky founded a small company based on the idea of renting out the extra space of your house to complete strangers. This little company grew into what we know now as Airbnb - one of the largest short-term rental booking platforms in the world. They now list millions of properties and accommodate tens of millions of guests every year!
Why is Airbnb always in the news?
Airbnb has been in the news a lot recently for causing a long-term rental crisis’ in many of the biggest cities in the world. Recently, the City of Vancouver made an extensive effort to reduce the number of vacation rentals from operating. Most of these “vacation rentals” were never built with the intention of people using them to generate hotel-like revenues, they were not designed to be vacation destinations, but rather they were intended to be residential housing for locals. Of course, every municipality now has strict rules and regulations in place to ensure only the right types of properties are legally allowed to operate. Even Airbnb requires hosts to provide certain basics’ to their guests. These rules can become a pain to follow and can easily land you in a dark place if you’re not careful.
What is so great about Airbnb?
Sites like Airbnb, VRBO, and HomeAway create a unique opportunity for home-owners that have vacation-style properties to generate a significant side-income. Depending on the size, region, and activities available the nightly rates can easily range from $100 up to $600+.
Luckily there are many communities in British Columbia that are pro-Airbnb because they were clearly designed with the intention of being a vacation-friendly destination. Tofino, Cultus Lake, and Whistler to name a few. These regions are prime vacation rental destinations because they offer world-class activities and a solid infrastructure built with the sole intention of catering to visitors. If you or someone you know owns a cabin in any of these regions and they're not generating a substantial side-income they’re leaving thousands of dollars a year at the door.
Can someone else manage my Airbnb?
For most home-owners the idea of generating thousands of dollars in side-income sounds great, but they already have a job, family, and many other things that consume their time. They simply cannot afford to commit the time required to launch and manage a short-term rental. It's why most properties in these locations go un-rented; the owners simply do not have the time.
Now the vacation rental industry has adapted, yet again, to provide home-owners that have no time or desire to generate passive income from their property. Enter: Vacation Rental Management Companies - the solution to the problem. These organizations are able to list your property on multiple platforms such as Airbnb, VRBO, HomeAway, Booking.com, and many more. These distribution channels allow for greater exposure, resulting in significant revenues. They will also organize the cleaners, provide quality control measures to ensure every guest is provided for and that the property remains in tip-top shape.
But what if the home-owners want to use the property?
Easy. Just let the management company know when you would like to use your property (assuming know bookings are already secured) and you can have complete use of your place. It is often encouraged that you lock-off any personal items in a closet so guests do not damage or steal anything important to you.
How much do conventional property management companies cost?
Historically conventional property management companies have kept between 40 - 50% of each booking as a fee. These commissions are steep. But the new wave of Airbnb property management companies have found technological efficiencies which allow them to charge anywhere between 30 - 35% of a booking and provide the same or better guest experiences. By cutting the commission fee this provides significant savings to the home-owners.
What are some great Airbnb Markets in BC?
There are many excellent Airbnb markets in BC, but it is very important you understand how to properly evaluate a marketplace before you dive in to deep. Consult with our Airbnb property management team to help determine if your market is a great fit.
Here are some excellent Airbnb markets in BC:
- Cultus Lake
- Harrison Hot Springs
- Sun Peaks Resort
What is Lifty Life Hospitality?
Lifty Life Hospitality was founded with the clear intention of providing home-owners with the opportunity to generate a considerable income without any effort. Call it passive income if you like! Our team manages the day-to-day operations of the property from booking to cleaning and we only make money if you do.
Our short-term rental management company provides home-owners with a professional team, well versed in vacation rental market. Our listing and revenue manager, Connor, works with some of the largest online travel agencies in North America. He has an in-depth understanding of how to price and optimize each listing based off the tens of thousands of units he manages each and every day.
We provide full-service short term rental management services throughout the British Columbia, so whether your property is located Kelowna, Cultus Lake, Tofino, Harrison Hot Springs, Whistler, or any amazing BC destinations. We can serve you!