Managing an Airbnb listing involves looking after your property’s occupancy, its earnings, cleaning it after the guests leave to name a few. While others opt to take care of their own short-term rental property, some sign up for the services of an Airbnb management company. Thinking about whether or not to sign up yourself? We’ll help you decide by weighing the pros and cons in this article.
High involvement and personally meet all guests
While some owners prefer to sit back and enjoy the passive income their short-term rentals provide, other homeowners favour a more hands-on approach. If you’re the type of owner who wants to be involved in every decision including minor rental issues, routine maintenance work, and other small matters, then managing your own Airbnb might be suitable. A positive on this is you’ll also get to meet new people and make your own judgement calls when vetting guests since you’ll be screening them personally.
Set Pricing Yourself
If you decide to self-manage your Airbnb, you can set the pricing yourself, making you in charge of how much your nightly rate is on any given night. Some homeowners would prefer it this way as it gives them a sense of control on what they feel their property is worth.
No Management Fee
Airbnb management companies usually take a portion of the short-term rental’s profit each month. While the percentage varies for every company, not signing up for one also means not having to pay management fees. This is attractive for homeowners who believe they can get more out of their property by not having to seemingly reduce their profit margin.
Potential for Income
This is the real motivator for hosts. The Airbnb site gives you the power to set your own pricing and adjust it as you see fit during peak seasons. There’s even a “Smart Pricing” tool that takes into account local demand and can help you find the right amount to charge.
Host Page Is Helpful
Not everybody can be the perfect host the first time around and it’s easy to compare your offering to others listed locally. However, if you need some guidance or advice, there’s a whole community of hosts who you can talk to.
Fairly Easy to Manage on Your Own
The platform comes with many advantages when it comes to simplifying communication between hosts and guests. It makes the whole process quite enjoyable and you can choose to manage your rental on your own.
While it’s nice to have met guests personally, a big part of the challenge is staying on call 24/7. Property management companies usually have their staff who acts as a support to your guests and can be contacted anytime. Another time-consuming agenda is the maintenance of your property. In case something needs repair, property managers already have their contacts and can get in touch with tried and tested vendors straight away, responding to maintenance issues as quickly as possible.
This is something that most property owners are wary of and is sometimes seen as a negative. After all, they don’t want to change their rates which they believe is the reasonable price to pay for a stay at their place. However, having dynamic pricing for your Airbnb is becoming increasingly more important, as guests will compare prices before booking and a growing number of Airbnbs are applying this already. Why? Because a Friday night is worth more than a Monday night and a busy season is more in demand than off-peak weeks.
Even if cleaning is your strong suit, guests staying in Airbnbs usually expect a higher standard of cleanliness than their own homes. Think of it from a guests’ point of view. While you are aware of the history of your property, guests would not be, so that little stain may be noticed. Luckily, there are many companies that specialise in Airbnb cleaning. Linen also plays an important role as most guests would not like to use old sheets and covers. A lot of cleaning is involved when managing an Airbnb property and it would be less stressful on your part if you outsource all the washing, laundry, vacuuming, and everything else in between.
Hometime Makes Managing Your Property A Breeze
While initially, you might view property management as an expense, it still makes sense long term especially when you take a look at the data that self-managed Airbnbs have an average occupancy of 60% while professionally managed ones can deliver occupancy rates of above 75%.
There’s a lot to Do:
According to Businesswire, the average homeowner spends an estimated nine hours per week managing their vacation rental. From onboarding guests to answering online inquiries to overseeing maintenance, there are a laundry list of responsibilities! This may mean you signed up for more than you bargained.
It’s No 9 to 5:
Homeowners who self-manage are often surprised to learn that they need to be available 24/7 to respond to guest inquiries. Be prepared to answer quickly to any outstanding requests, even when you think you’re off the clock!
You’ll Make Mistakes:
Trials by fire often leave you burned. Early on, you may fail to meet all of the legal requirements that apply to your property. You may not be aware of certain accepted procedures across the rental industry. If you don’t live in the area (and sometimes even if you do), you may have to cycle through multiple cleaning, lawn care, or maintenance companies in order to find reliable contractors. Finally, you may simply not know how best to recoup losses sustained due to rental damage.