First Short Term Rental: Self Manage or Hire Management?

[Robert Reynolds]

Hi,

I’m currently in escrow on my first short term rental in Joshua Tree. I’ve been helping other Los Angelenos buy out there and thought it was time for me to get my first short term rental. I’ve been debating on self-managing or hiring a management company at about 20-25% management fees.  I’m pretty sure I could manage on my own, but I’m not sure I want to take on another job right now. Any tips and advice would be greatly appreciated. 

Thanks,

Robert 

[Nathan Gesner]

Quote from @Robert Reynolds:

I’m currently in escrow on my first short term rental in Joshua Tree. I’ve been helping other Los Angelenos buy out there and thought it was time for me to get my first short term rental. I’ve been debating on self-managing or hiring a management company at about 20-25% management fees.  I’m pretty sure I could manage on my own, but I’m not sure I want to take on another job right now. Any tips and advice would be greatly appreciated. 

You'll hear some people say you can manage a STR with just a few minutes a month, but that's bunk. I do believe you can do it with just a couple hours a week. The question is, can you handle the interruptions to your ordinary schedule? STR requires a responsive host and people won't wait three hours for you to return a call, email, or text. When guests are checking in and can't get the lock to work or can't find the TV remote, you need to pick up the phone.

Run your numbers with management in place, but try it on your own. If it works, you'll net more. If it doesn't work out, you'll still make it.