Hey folks - I recently got a question as to whether having an STR manager is worth it or not. There's a lot of chatter, so let's break down what Cohosts/STR managers really do and if working with one makes sense for your real estate investing goals.
Business is about solving problems. Below is a list of some of the main problems Cohosts/STR managers should be solving (if they're good at what they do) for you:
1) Maximizing Revenue:
Market getting crowded? You bet. Austin STRs saw a 12% bump in supply over the past year. To stand out, you need a dialed marketing strategy. Most hosts miss out on stuff like dynamic pricing (changing nightly rates to match the ebbs and flows of the market, like airlines do), or things as simple as hiring a professional photographer to capture the main highlights of your STR. Most if not all STR managers should have a number of actionable steps to increase revenue like the examples above. The tools I find best for this are PriceLabs and RankBreeze.
2) Respecting Your Investment:
Damage to the property, stolen items, being a good neighbor, the list goes on. STR managers have guest screening and security systems in place.
And also if anything is damaged or stolen, they'll likely have insurance for it and replace it immediately so you don't have to scramble to do it on your own. They also know how to do the whole advanced security systems thing, like installing smart tech, cameras, and sensors, to keep your place safe. My company uses Minut, Schlage, and Ring for security.
3) Eliminate headaches of operating an STR:
Booking dramas, improper screening, lackluster contracts, neighbor tiffs, guest complaints, late night phone calls and the whole shebang. An STR manager take care of the nitty-gritty and all the BS. They'll usually automate most of the guest communication and have systems in place for screenings, bookings, contracts. If something urgent does arise, it helps to have a local STR manager that can handle it for you rather than larger national companies like Vacasa and Evolve - that tend to be notoriously bad at handling issues for owners. Tools I use for my STR business are Hospitable, Safely, & Touchstay.
Important note to consider:
If you're the go-getter type with time to spare and want to be hands-on, I'd recommend self managing and capturing as much revenue as you can by implementing tools like PriceLabs, Hospitable, TouchStay, etc to run a more efficient STR! However, if you're looking to scale your portfolio or take a more hands-off approach, an STR manager might just be your new best friend, handling the complexities of running a hospitality business while you collect the checks each month.
STR life is a much deeper hole to go down than many realize. But whether you're DIY-ing or leaning on an STR manager, the goal is to make it work for you. If you need help with your Airbnb/Vrbo in the Austin, TX or Hill Country, TX markets then feel free to reach out to me directly to see if there's anyway my team at Host Del Casa can help. Cheers to stress-free hosting!
