What should I look for in a Property Manager for an Airbnb?

Question

I am currently shopping for an investment property that I plan to run as a Short-Term Rental on Airbnb from afar (2.5 hours driving distance) and I am currently investigating property managers/management companies for quotes. I'm wondering what should I be looking for in a property manager for this? For example, changing lock combinations, house inspections, communication with guests, etc. What can I punt to the property manager and what should I be handling?

In addition, what are things I should be asking property managers when I'm vetting them for the job? For example, rates, availability, response time, etc.

Thank you for your responses!

Sunny Alexander · Answer

@Grace Wang completely agree! The first test is to try calling them to see if they answer, ask about processes, ask for their fee structure so you can see ALL the fees, ask about their adaption plan for the property, and interview a few. You will gain insight if you talk to a few PM which will help make your decision. They are taking care of one of your assets and it is important that they understand and respect that responsibility. Congrats and good luck!

Grace Wang · Answer

@Ivan Alvarado Check if the PM has multiple cleaning crews, takes care of laundry/linens, restocking bathroom items, property maintenance, etc.I'd recommend you ask them open ended questions and pay close attention to their responses. Good PM companies will be able to speak in detail about their processes. Last thing I'd do is ask for some links to the other short term listings they manage and see how the ratings are. hope this helps

Pat Leri · Answer

@Ivan Alvarado I do Airbnb since 10 years. The think what a Management can do what you can't do should be selling your rooms.If they don't apply dynamic pricing, additional marketing campaigns,... to get your vacant nights booked than the main benefit of a management company for Airbnb is not there.See their listings, are they booked out on Airbnb/VRBO or are they open. That gives you a direction.See in Airbnb if you can see a host which acts like management company (Host name is not a private name but a company). That's a good way to start to find active ones in your area.30% is a lot. It's on the top end. Airbnb takes another 5%A management company has to offset your loss due to vacancy. If you have both cost it's reducing your cashflow big time.

Jean H. · Answer

@Ivan Alvarado if you’re just looking for someone to check on the property after each stay, just self-manage your property and hire an above-average cleaning person/crew. They can act as your boots on the ground and check on the property when they’re cleaning and tell you when you’re running low on supplies, furniture is broken, etc. Bonus points if they know a good handyman to help when things break down. In terms of what to ask for in a PM, ask what platforms they use—not just Airbnb vs VRBO, but if they use a channel manager, a pricing tool, etc. who pays for that? Is there a website for an owner to be able to see the bookings, calendar, expenses, revenues? Who is in charge of collecting and remitting taxes? Do they take care of utilities, lawn and pool maintenance, or do you? How do they vet guests? How many other properties do they manage? Do they own any of their own? Will the listing be under their name or yours?That’s all I can think of for now

Jason Mileshko · Answer

Experience, track record, referrals.

Ivan Alvarado · Answer

Thank you for the valuable insight everyone. Spent the day reaching out to multiple property managers and the average rate is a whopping 30% of the booking revenue for the area I'm interested in! Granted, all are very invasive and handle EVERYTHING. They manage the listing on Airbnb, hire the cleaners, communicate with guests, work with contractors, restock household items, etc. The only communication between them and myself would be an invoice at the end of the month that itemizes all expenses and revenue. I was hoping for something less invasive, like checking up on the property after every guests' stay and letting me know of the property's shape. I'm fine with dealing with the rest. @Jimmy Woodard I sent you a request to connect so I can pick your brain on this!Thanks again everyone!

Jimmy Woodard · Answer

@Ivan Alvarado if you want to save 10-25% of your gross revenue (not net, gross), consider self-managing. It's entirely possible to self-manage remotely and will lead to a greater ROI. Happy to share tips/tricks if you want to DM me.