Short-term rentals are popping up all over the world as more and more companies switch to remote working and people are able to work remotely anywhere they want. With this increase in remote working and travel has come a demand for short-term vacation homes that people can rent that have amenities one would expect staying in their own home. However, the management of these properties can be tricky for investors. Especially if they are investing outside of the city where they are located.
Unlike long-term tenants on leases, short-term guests typically book through online marketplaces like Airbnb, VRBO, or HomeAway. These guests will sometimes have stays as short as one night! This means extra work for anyone trying to self manage these properties. You have to be available to schedule cleanings, deal with last minute bookings, cancellations, re-stocking amenities, maintenance issues, and more. For this reason many seasoned investors, especially those with larger portfolio’s are transitioning to professional property management companies specialized in short-term rentals to handle this side of things.
Choosing The Right Property Management Company
When looking into property management companies for your short-term rental or rental properties there are a few things you should consider as an owner/investor:
Consider What you’re Looking for in a Management Company
You as an investor and owner of a property need to give some thought into what you’re looking for out of your short-term rental property management company. Are you looking for this to be a completely passive investment where the rental company does everything? Are you wanting to remain involved in communicating with guests and just need someone to handle the cleaning and restocking of amenities? There are a variety of service levels with short term rental property management companies and you as the owner should be educated on these as they come with varying management rate percentages as well. Please check out our website for some of the different service levels.
Find out About The Firm’s Marketing Strategy
There are a lot of services that a short-term property management company will provide you. This typically includes onboarding of the listing, professional photography, guest vetting and communication, pricing strategies, cleaning scheduling, restocking amenities, etc. One important thing not to overlook is the company’s marketing strategy. Do they have one? Or are they just relying on the marketplaces like Airbnb or VRBO to market your property for you?
Unfortunately with the increased supply of short-term rentals on the marketplaces, the days of just throwing listings on the marketplace and expecting them to remain constantly booked might be over. You need to ensure that your property management company has a solid foundational marketing strategy to make your property stand out.
Check The Reviews
This is an obvious one but you should definitely look into each company’s reviews both via their website and if you can find their company profiles on the online marketplaces such as Airbnb, VRBO, or HomeAway. Similar to how you would look at restaurant reviews before going to try the food you should look at their website for Google Reviews that past or current clients might have left about their services. Looking online on the marketplaces will show you reviews guests have left staying at the properties they manage. This should give you an idea of the customer service level and will also allow you to review what the other properties look like that this company is managing. Are they similar to yours? Looking at reviews can give you a good indication of the type of property management company this is.
Compare The Management Fee
Working with a short-term property management company does provide a wide array of services, but it also comes with a cost. Most property management companies will charge a percentage of the gross nightly rate per booking, or gross payout per month depending on the level of service they offer. When evaluating different property managers you need to compare the services that are being included with the specific fee to ensure you are getting an apples to apples comparison.
Examine Any Contracts
Many but not all management companies will have you sign contracts if you want them to manage your property. It is important to review these carefully to protect yourself as the owner. Some companies will try to lock you into mandatory periods of time where you are unable to fire them without paying a penalty. In this instance, if there is a bad experience you may end up coming out of your own pocket with fees and still have to restart the search for a management company.
Connect with The Right Company
If you have been thinking about working with a short term rental property management company, then please contact us at NomadSTR. We are industry experts in this market and provide a level of customer service both for our clients and guests that is unmatched. Our level of services are unrivaled and customizable for every owner. We will ensure you maximize your return on investment without the hassle and headache of managing a short-term rental property!