Airbnb management companies are a necessity for entrepreneurs who wish to turn their short-term vacation rental business into a source of passive income. Brands like HeartHomes (https://hearthomes.ca/airbnb-management-in-calgary/) offer to take over all the responsibilities and chores, although choosing a management company requires comprehensive research.
Benefits of Choosing a Good Airbnb Management Company
The main benefit has just been mentioned above – these companies allow you to step away from performing all the daily tasks required for the business to operate. It gives their clients an opportunity to pursue other aims while their Airbnbs are generating stable revenues.
Another major advantage modern Airbnb management companies offer is the quality of service. This is especially applicable for aspiring entrepreneurs who will most likely not be able to offer a flawless service on day one. It is almost impossible to take everything into account in advance, and it is very common for freshly launched rentals to have something go wrong.
Considering that the reviews left by the first guests will determine the entire course of the business’ development, it is reasonable for such hosts to hire professional managers. This will ensure a high level of quality on day one and significantly improve the chances of getting positive reviews from the first visitors.
The last positive factor we would like to mention is the customization of the service. It is not necessary to completely step away from the business if you prefer not to do so – you can easily opt-in for only a portion of the management services and focus on the tasks you enjoy the most. A common solution among modern hosts is to entrust a management company with daily chores and maintenance, while performing all the guests’ communications and planning themselves.
Risks of Choosing a Bad Airbnb Management Company
The obvious risk associated with hiring a management company is that you are giving away a large portion of control over the enterprise to a third party. In case you have a clear vision for this business, it might not be the same as the managers see it. A good company will always consult with the host and have every detail agreed upon in advance, making the choice even more important.
Of course, a poor management company offers poor service, and the service quality is a massive factor to the enterprise’s success. Even an Airbnb with an established positive reputation will see a decline in revenues when bad reviews start coming in.
Speaking of revenues, the services of these companies are obviously not free. Most commonly, the hosts have to give up on portions of their profits. It is not an issue for successful short-term rentals, but it might be problematic for businesses that are not generating as much revenue.
What to Look for When Picking an Airbnb Management Company
Being able to make an informed choice is vital for having a smooth and successful experience with a management company, so here’s a detailed list of what to look for:
- Pricing policies
- Company’s history
- Business transparency
- General strategy
- Software automatization
- General expertise in the niche
- Customer orientation
- Efficient property maintenance
As we have just discussed, costs associated with hiring a management company are important to consider when doing so. We suggest comparing multiple offers in your area by taking into account both prices for separate services and for complete packages.
At the same time, price is not the only factor. In some cases, it is worth giving up on a larger portion of the current revenue to get a better service which will likely lead to the revenue growing bigger.
As for the quality of the services, the easiest option to discover it is to read reviews from existing customers. With larger companies, you can easily find dozens of posts on Trustpilot and other similar platforms. Even in case the reviews are good, it is a great option to learn more about the company and the way it operates.
When hiring a management company, it is also important to ensure it operates legally and does not indulge in shady practices. A good business will have its financial reports in public access, enabling you to dig a bit deeper into its operations.
The ability of the business to provide helpful advice and develop individual strategies for their clients is also crucial. You can learn more about its approach on the provider’s website and in the reviews of its customers that we’ve mentioned previously.
Modern Airbnb management companies also offer access to advanced automatization tools. This might include an automatic calendar to synchronize bookings between different platforms, a chatbot for instantly providing the guests with some brief introductions to the property, instruments for leaving automatic reviews, and even systems to schedule maintenance workers.
Aside from having a good strategy, a successful short-term vacation rental management business should have comprehensive experience in the niche. The best companies will always be able to provide you with legal advice, help you learn and manage local taxes, and guide you through all the other aspects of the industry.
A major benefit of high-quality management companies is their 24/7 availability for guests. These enterprises always have staff online who are willing to answer the guests’ questions and deal with various emergencies at any time of the day.
By efficient maintenance, we refer to the company’s ability to develop and sustain a schedule of maintenance workers required to keep the property in a good state. This includes hiring and scheduling technicians, cleaners, and other employees. The best management companies have these employees available at all times, enabling them to deal with various issues immediately in case of an emergency.