Air BNB profitability

[Ryan Dosenberry]

Air bnb hosts,

I know it depends on many factors (location, rates, occupancy, etc) but I’m curious to hear how many of you have been profitable even when outsourcing all management costs? I am looking at the Chicago market either city or suburbs where we have family and can use when we need it but otherwise have someone else manage the rentals. What should I expect to pay a management company? Seems like they would require a much higher percentage with air bnb‘ than long term rentals.

Thanks!

[Wendy Schultz]

We property manage and depending on the property, many of our owners turn a profit even after our cut (25%).fProperty managers for short term rentals charge a lot more because it's a lot more work with marketing the property, handling guest customer service, turning the property between guests, filing sales and room tax, monitoring pricing, 24/7/365 service, etc. Not all property managers are created equal and short term rentals are a much different ballgame than long term rentals so be sure to find a manager that specializes in short term rentals. Part of the reason our owners are profitable is because we consult with them on how to set up the house to be most profitable (ie how to set up sleeping spaces, how to select the right property before they purchase, where to purchase, etc). Plus we focus more so on getting the highest revenue rate than the highest occupancy rate so the properties are more profitable with less wear and tear. Finding a property management team that is able to help you be most profitable is absolutely key.