How do I find and evaluate vacation-rental property managers?

Question

I just purchased my first STR in Hawaii (Kauai Island). I am not wanting to manage this property on my own long-term. I am curious what the consensus is among experienced investors:

AirBnB, or VRBO? or both? Do you bother with other sites like Craigslist?

In finding a good vacation rental property manager, where do you start? What should I be looking for and what should I be cautious of?

Thanks in advance for any advice you may have or resources you may direct me to!

Mike V. · Answer

You're getting some semi accurate info here.

First, if you go with one of the big 3 on island property management companies you will be charged 35-40% gross bookings and will be very lucky just to break even.  They will make your nightly rates insanely above market rate, get very low occupancy numbers, and frequently have 'flash sales' to get the occupancy numbers up.  They don't do a good job marketing and will give your listing very little personal attention.  Anyone I know who has gone this route regrets it, expect those who treat it as a timeshare and bought 20 years ago.   These owners are the ones I get the best deals from since they're so sick of losing money and just want out.  I've reviewed over 100 printouts of their rental activity logs when they go on sale and they're all basically the same poor results.

Second,  if you're going to consider an OTA  the only one with a decent presence in Kauai is evolve and you'll have the same general issues as the big players except their pricing is more realistic.  They won't do a good job managing reviews or handle any of the on property customer service.  This is a good option if you only want them to manage your calendar and bookings.

Your best option (since you specifically say you can't self manage) is to find someone who will do it for you for 20% or less.  This will likely require a trip to have conversations in person since you have no connections yet.  Another option is to search for properties in your area on VRBO and see who has great reviews and self manage, and shoot them a message asking if they're interested in handling another unit.  This is probably the easiest way.

To answer your questions:  VRBO and AirBnB will be sufficient.  You need both.  Be cautious of the big players locally, and anyone who wants to charge over 20%.  Be cautious of anyone who can't quickly and easily provide you multiple listings they own or manage, who promise you more than what your gut tells you the nightly rate is, and anyone who doesn't use AirBnB / VRBO and only use their 'professional websites'.

I shot you a PM and might be able to give you a few local names to reach out to.  Oh, and I have no idea what Patrick is talking about with AirBnB not syncing their calendar with anyone else.  I have mine synced to vrbo and my management software and it updates hourly.

Mike V. · Answer

@Greg Horn I think it's a matter of perspective.  I'd give them a 7/10.   I would give Vacasa, Parrish, Suite Paradise etc all 3/10.   Someone looking to get away from the 40% full service agencies might rate them a 9/10 because they solve their problem.  (It's a HUGE improvement from a 3/10).   Someone who has self managed units themselves and understands the actual amount of work, time, and customer service will probably rate them closer to a 6 or 7/10.

I have not tried them myself.  I have looked into them at pretty great detail and know people who currently use them.  No OTA will ever give your unit the amount of attention you feel it deserves and as a result you're leaving money on the table.  But as i said, Evolve is better than the other OTAs so if its the direction he wants to go, Evolve would be the recommendation.

Personally, I would find someone who self manages in that area from VRBO and use them.  Simply pay them 20% to throw you into their proven system and let them do all the work.  Use their cleaners, maintenance people, and systems to leverage your success.  Someone who will treat it as their own.  I do this very selectively in Poipu and i'll put my results up against any management companies on the island and come out way ahead both in gross rent and reviews.

Patrick Franta · Answer

Jared,

Congrats on the purchase!  The 2 main players on Kauai are Coldwell Bali Hai on the north shore and Hawaii life vacations.  Our company will likely be in the market soon as well, and we offer great service at 25%.

If you are going to start out self managing you should absolutely be on Air Bnb and VRBO.  There is no reason to miss out on a large volume of booking by  only going with one.  The only issue is that Air Bnb will not sync their calendar with anyone else so you will have to manually update their calendar with the VRBO bookings so you don't double book.

When you decide on a management company you will benefit from their listing syndication.  Just like the MLS they are able to syndicate to most of the travel sites like booking.com, tripadvoisor, expedia, etc.  This will improve your occupancy rates and your top line revenue.

I am more than happy to provide additional info if you'd like.  Just shoot me a message.  Mahalo!

Greg Horn · Answer

@Mike V. I'm curious to hear more about your experience with Evolve. I've heard a handful of owners tell me that they love their service, but I haven't dug in deeply. Have you tried them yourself?

Michael Greenberg · Answer

I find in my market that the smaller properties do well on Airbnb, while my homes do well on VRBO.  Not sure if the holds true in Hawaii, but worth an investigation.  I would test both and see how it plays out for you.  I would also steer clear from Craigslist, especially if you are remote.

In my market I have met independent owner/managers and they are compelling.  I would search both OTA's for multiple property managers, and strike up a conversation.  Since they know your market and are local, they'll likely be more attentive and flexible with your own initiatives.  They'll also likely be less expensive.

Aloha,

Mike

Loren Clive · Answer

Personally, I just use AirBnb and have 75% occupancy. VRBO charges higher fees, but you know what, I might put up the listing just to see if I get my holes filled. I tried and didn't get any action from craigslist except from people who wanted one-night rentals without paying cleaning fee.

You can sync the VRBO and AirBnb calendars through the AirBnb site.

Find a good housekeeper where your rental is located--ask your realtor--and s/he can be your co-host on AirBnb. That's all you really need.

Patrick Franta · Answer

Mike,

What software do you use?  As far as I know Air Bnb does not have an outgoing API.  My wife's company uses escapia and they have a third party integration tool so they can manage all calendars from their software.

How do I find and evaluate vacation-rental property managers?

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