Perhaps you slipped into the vacation rental business as a way to make some extra money from a spare room or a summer home you use only a few weeks out of the year. If you did well in the early days, you may have picked up another property or two in the hopes of continuing to ramp up your income stream.
Unless you also decided to become a full-time property manager, the demands of taking care of multiple properties or even just one particularly busy rental can quickly become overwhelming. If you're finding yourself too stressed or starting to miss important things in managing your properties, it may be time to hire a vacation rental property manager to help. Here are some advantages in doing just that.
They Have a Better Overall Understanding of the Rental Industry
If you're doing something full-time, you'll have a better understanding of the entire business and market. Property management companies make it their business to keep their fingers on the pulse of the rapidly changing rental industry. These professionals spend time each day working with real estate agencies and others in the business so they will be first to know about market trends and developments, particularly in the geographic area where they work.
They Stay Up-To-Date on State Laws, Statutes, Taxes and Regulations
Many local and state governments are re-thinking their laws, taxes, fees and regulations when it comes to the booming short-term rental market. It can be difficult for an individual rental property owner to stay informed and in compliance with new Airbnb rules and regulations. Failure to do so may result in large fines or other penalties that can negatively impact your rental business. Rely on your property management firm to stay abreast of these developments and to notify you when necessary.
They Manage All The Details With Expertise
If you've taken on Airbnb management yourself, you know how many details need to be attended to each and every day. From answering e-mails and questions from guests to making sure your property stays clean and well-maintained, the list of things to do is long and never-ending at times.
Property management companies can manage all these details for you for a small fee. Because they handle these details for multiple properties as part of their daily business, they can often do so much more efficiently than you can on your own. This ultimately means saving you time and money, which means a higher profit margin at the end of the day.
Professional vacation rental management firms also have access to automated tools that can help set the ideal rental price for a particular property on a specific day or check and manage booking calendars automatically. They have the expertise to create professional airbnb listings with stunning photography as well.
Perhaps one of the greatest advantages of using a property management firm is that you provide 24/7 service for your guests without having to be tethered to your phone. Answering guest questions or taking care of emergency maintenance issues becomes someone else's responsibility.
They Can Maximize Bookings and Profits
Since property managers understand the local rental market as well as supply and demand in the area, they can help you with your overall marketing effort. For example, when peak season is about begin, property management firms will automatically increase prices and perhaps change minimum night stays to help you take advantage of high demand in the area.
When a slower period approaches, a vacation rental property manager may run special promotional programs, shorten minimum night stay requirements or reach out to past guests with deals that can help keep your rental booked as much as possible.
Since management companies stay tied to the community, they may be able to find ways to help you piggyback on local events, festivals, business conferences or other happenings as a lodging provider.
They Work With a Network of Service Providers
Property managers in a particular geographic area have developed a trusted network of cleaning services, repair professionals, and contractors who can help with just about any last-minute or emergency situation at a rental property. As a result, if and when those unforeseen situations occur, you can have peace of mind knowing that your guests are in good hands and that problems are being addressed quickly and efficiently.
They Can Be a Wealth of Knowledge for Future Planning
As time goes on, you may want to make decisions about purchasing additional properties, selling certain properties or updating rentals. Your property management firm can provide recent, relevant data to help you make the best decisions. For instance, if there seems to be an oversupply in one area of the city but an undersupply of rentals in another, your property manager may advise you to invest in the latter. If there is a high demand for properties with hot tubs, swimming pools or outdoor kitchens, you may want to focus on those areas when you renovate.
They Can Boost Your Ratings and Income
If your vacation rental property stays clean and well-maintained and your guests receive attentive, helpful and prompt service throughout their planning, stay and follow-up, the likelihood of receiving five-star ratings is very high. The higher your ratings, the higher you will appear on airbnb search results and the better chance you'll have of securing the next bookings. Property management firms stay on top of the details and, as a result, can help you exceed customer expectations time and time again.
The bottom line is that unless you love being a property manager yourself, either as a full-time job or as an intensive hobby, hiring an Airbnb management company can deliver a great deal of value for the investment. It's worth considering these top reasons when making the final decision.