Looking to start an STR management company

[Garrett Stockton]

Have you ever had a negative experience with a big national short-term rental (STR) management company? I certainly have. In my case, the large manager was priced well at 10% but the services rendered were almost non-existent. Meanwhile, the local management companies were charging 35% leaving no profit! As a result, I've decided to start my own STR management company, and I'm interested in hearing from other investors about what they value most in a management company.

If you've worked with a management company in the past, what were the most important factors that influenced your decision to partner with them? Whether it was their communication, pricing, attention to detail, or something else entirely, I would love to hear your thoughts in the comments below. By working together and sharing our experiences, we can help create a better future for STR investors and guests alike.

[Eliott Elias]

Know the difference between property management and co-hosting. 

[Drew Sygit]

@Garrett Stockton while what you propose sounds great in theory, there's a reason for the existing pricing options.

How are you ACTUALLY going to offer more services at a lower price, and turn a profit?

Maybe you can offer services A'la carte?

[Garrett Stockton]

@Drew Sygit, Thanks for your feedback! That is an interesting suggestion. I am curious, perhaps I am missing something, but it seems to me that property management is more labor-intensive than it is capital-heavy. What I mean is if I set up the systems to reduce labor, I can run a property management company very efficiently.  Perhaps, I am missing something... what are the operating expenses that justify 25%-35% for property management. 

[Drew Sygit]

@Garrett Stockton many have tried, and more more are trying to use software to streamline and replace/supplement people in the process.

All sounds good on parper - then you have to deal with lazy & tech-UNsavvy tenants and owners who want everything spoonfed to them.