Originally posted by @Alex S.:
Originally posted by @Deanna Lawrence:
Originally posted by @Alex S.:
Most folks on here will advise against having a property management company for STRs,
@Alex S. I'm curious why you would say this?
Property management with LTRs is the norm. It is 10% and they handle all the tenant screenings, repairs, rent collection, etc. Extremely passive for the investor. STRs don't work like that. The management companies want 20% or more, plus the cleaning fee. That is a HUGE chunk of your cashflow. In many areas (like mine)...there aren't even any management companies because there aren't that many STRs. You just simply can't make the numbers work paying a STR manager unless you just stole the property. Also, it is really easy to self-manage. Hire a cleaning crew. Hire a handyman. Keep tabs on them. Just about everything else can be automated.
I think, as STRs are more normalized over the coming years, we'll see those management fees start to drop and maybe it'll be viable.
100% agree with Alex. Also, a lot of times property management companies are way underpricing the property. For example, you're getting a cut of $135 a night 90 days in a row as opposed to using your own pricing software and getting a fluctuating $210-$350 a night or more during those same 90 days. They sell themselves on "being booked up through the end of the year". That doesn't mean anything if they charge the guest peanuts, and you only get half a bag of peanuts. 😄
Self management is easy once you get automated systems up and running, and worth trying yourself for a month or two, and seeing for yourself how much money is possible for how much work.
