Professional Management on a Short-Term Rental?

[Ryan Smith]

Hey Folks, 

I'm sure the answer varies by market and experience, but I wanted to see what advice some of you may have when considering professional management and STR.

Here is the situation: 

I am purchasing a 2BR/2BA condo in Destin, FL with deeded beach access. I will be utilizing it as a primary residence this September but I will have most of the high season (March-September) to generate STR income before I move in.

I have spoken with one property manager that I trust and who I have worked with before as a customer, his rate is 22%. 

I have two single family properties that I manage on my own, but I am relatively inexperienced. 

Bottom Line: Is a property manager a good choice to maximize value in the most popular booking period?

[Mike Woods]

If done properly, self managing an STR will require very little time and effort and can increase your ROI dramatically. The key is putting the right team in place and managing bookings efficiently. First, hire a house cleaner that you trust and pay him / her well above market rates. This is an investment that will pay HUGE dividends, as this person will be your daily "boots on the ground." Second, hire a local handyman to be on call in the event something goes wrong at the property. Third, have backups for each of these two resources in case one were to fall through. And last, be willing to manage the bookings yourself via airbnb, homeaway or the like. This will involve 2-5 emails per guest.

With the right team and an efficient, self-managed, booking process, I think you will find that property management fees will have to be pretty low (I suspect lower than 22%) to make financial sense.