All Forum Posts by: Braedon Page

Have to agree with @Jonathan Styer about being VERY intentional if you choose to do this. I have a property management group in Hawaii that offers both STR and MTR services, but we don't mix for the reason that he mentioned - a single STR booking on an island can totally kill any ability to run MTR. Curious to know more about people who have done this successfully - at face value it seems like it wouldn't be worth the hassle of switching between the two strategies.

Can't speak to the organization in Michigan but generally the benefits of a well run STRA far outweigh the costs.

I am a property manager in Hawaii so we are constantly being hit with new anti-STR legislation and have a large, well-funded hotel lobby to deal with constantly. Our local organizations do a lot - we have representatives meeting with council members, a professional PR firm to help change the narrative on STR's here on the islands, and we're working towards increasing our own lobbying power. Notably, we were able to work with local lawmakers to adjust a proposed bill that would've included STR's in an "empty home tax" that would've essentially made all the STR's on the island unprofitable. Our membership dues are under $200 per year, so I'd say it's well worth the money to have some representation.

That being said, from what I've heard we are more organized and effective (possibly out of necessity) than many STRA's out there. If the dues are exorbitant or there isn't a clearly defined value being brought to owners, maybe pass on it, but I'd say by and large that STRA's are well worth what is usually a pretty small individual investment. 

 Aloha from Hawaii Yehuda,

I am a licensed property manager here in Hawaii, but co-hosting (the way that you're talking about it) and short term rental property management are essentially the same. (as long as you're in a market that doesn't require you to be licensed to act in that capacity).

When it comes to profit margins, they can vary widely - which is why it's important to run your numbers before you take on a property. It's relatively easy to look at comparable properties on airbnb with the same bed/bath, general condition, and location and click around their calendar to get a sense of what they're making in bookings each month. Subtract any expenses (for example, we provide welcome baskets for our guests and we pay for them rather than charging our owners). Other things to consider include software and accounting costs. Cleaning fees should essentially be a pass through expense as they are paid by the guest and neither you or the owner really ever see that money. The monthly profit can be anywhere from a few hundred dollars to a few thousand dollars depending on the size, condition, and rental rate of the property. 

All that being said, beggars can't be choosers, and when you're going after your first property it's more important to get your foot in the door and learn the business than it is to make a killing on your first unit - i.e. if you have to make a slim margin to get a great case study, that's better than trying to charge 30% for something you've never done before and spending a year trying to convince someone to roll the dice on you. Another option, to echo what @Andrew Steffens said, would be if you're serious about this business it might be worth your time to work with a licensed property manager to learn the ropes, gain some credibility, and figure out if this is something that's a good fit for you long term. 

 Echoing this - Andrew is the man in this department and has provided us with tons of value. As we've brought on clients for management and talked percentages with them, it seems that most people have a hard time differentiating the service they'll be getting from a manager that charges a high percentage vs a low percentage. If you're going to swing for the fences and try for anything above 20-25%, you're going to have to make a strong case that you'll be putting more money in their pocket as opposed to a manager who charges less. If you can articulate this to them and get them to understand it you might have a shot but for your first management client it might be a bit aggressive. 

 Just taking a brief look at the listing, there are a few easy, low cost things that you can do to simply optimize on airbnb. As others have said, better photos are always worth the investment and definitely a lower cost than major rennovations.

Another thing that I noticed was that your reviews are low - if you can get those up you can be listed as a "guest favorite" on airbnb and that helps you get to the first page when people search for matching criteria, rather than being buried 5+ pages in. Bill Faeth did a great episode on tips to increase five star reviews on his podcast episode linked here. Some simple messages and asking for guests help to grow your business can go a long way!

 I love this .

Interesting though that the general sentiment for how to be a good property manager seems to boil down to "pay attention to detail" and "actually care about the property, guest, and owner". 

I understand that this is easier said than done but is the bar really so low for PM's?

 Interesting. I manage on Oahu and it's a similar situation here. Are there a lot of people running and gunning on the edges of those zones running illegal rentals? What's the enforcement like?