Do you want to earn passive income from your vacation rental property? Your best bet could be hiring an Airbnb property management company.
Key Takeaways
- Short-term rentals can be a lucrative investment, but managing these properties requires significant time, commitment, and skills.
- A good Airbnb management company communicates effectively, charges based on the value it provides, and is transparent with its clients, among other key qualities.
- Each company featured in this blog offers a range of services from full service management to more hands-off approaches, catering to different needs and preferences of Airbnb hosts.
Airbnb rental properties are a lucrative way to invest in real estate and generate handsome returns. But there’s one aspect that many investors tend to overlook: Airbnb rental property management.
Table of Contents
- Qualities of a Good Airbnb Property Management Company
- How to Choose the Best Airbnb Property Manager for Your Investment Property
- 7 Best Airbnb Property Management Companies in the US
- How to Manage Your Own Airbnb Property
While the returns are quite substantial, the truth is that running an Airbnb property isn’t easy. It’s not everyone’s cup of tea.
When it comes to Airbnb rental property management, you can choose to either do it yourself or hire a property manager or management company. With the former, you need a lot of commitment, time, and skill regarding handling guests and payments. Such requirements make it less feasible for newbie investors who’re yet to have a good experience in the field.
This is where Airbnb property management companies come in. In today’s article, we’ve compiled everything you need to know about hiring a property management company for your Airbnb.
Because we want you to succeed, we’ve also listed a few top Airbnb property management companies you can consider.
But first, what should you watch out for when looking for a management company for your Airbnb rental?
Qualities of a Good Airbnb Property Management Company
Many Airbnb property management companies promise to offer you the ultimate Airbnb host experience. However, not many live up to their word.
Here are seven essential pointers on choosing a property management company that will help you maximize your Airbnb rental property.
1. Effective Communication
Flawless communication is key to providing top-notch services to guests. Also, the Airbnb rental owner needs to receive timely updates on the status of bookings and payments.
A good Airbnb property management company must provide 24/7/365 support. This is how you get five-star reviews that will positively impact the number of bookings you get.
However, trying to keep up with prompt communication can be overwhelming. Sometimes, it’s not possible to reply to every incoming message. It is why a good Airbnb property management company needs to use automation software.
Airbnb automation software solutions help property management companies to communicate effectively with guests and schedule timely maintenance requests with contractors. They also allow such companies to manage work orders.
A competent Airbnb property management company won’t allow you to fall behind in maintenance or require you to make multiple inquiries before resolving a certain issue. In fact, you should be able to reach out to them or submit a maintenance request online.
2. Value-Based Fees
Like many companies, some Airbnb property management agencies set their pricing based on what their competitors are charging. The best property management company is one that prices its services based on the scope and quality of services you receive.
As an Airbnb host, you need to know that the cheapest property management company isn’t necessarily the best. Your main focus should be on a positive return on investment.
A good property management agency will charge you based on your location, property size, and property condition. The pricing will also be determined by the kind of services you’re looking for. If you want a completely hands-off approach where the company handles everything, be prepared to pay more.
That said, here are some common Airbnb property management company pricing structures you need to be aware of:
Guaranteed Model
The guaranteed model ensures that you receive a certain amount of monthly income for the whole year. The property management company pays you an agreed amount every month despite the prevailing season.
You’re assured of a fixed income whether your property receives bookings or not. The downside to such a model is that you lose the flexibility to leverage the high season and maximize temporary demand spikes.
Flat-Rate Model
With the flat-rate model, you pay the management company an agreed fixed rate every month. While it may seem like a perfect solution, especially during the high season, it may eat into your profits during the low season. The fee remains constant whether you receive bookings or not.
With that said, always ensure you go through your property management contract carefully. Some management agencies may have additional fees on top of the management fees, increasing the final costs.
Commission Model
With the commission model, you pay the Airbnb management agency a certain percentage of your Airbnb income. In most cases, the Airbnb management commission starts at 10% and can go up to 25%.
The best thing about the said model is that if your rental income is low, the management commission fee is also low.
3. Transparency
On the same pricing breath, while you want a company that gives you value for your money, you also want one that will be transparent on how your money is spent.
Firstly, a competent management company will be transparent about its pricing models and how the fees are structured. The company should be clear on any upfront and extra fees. You should be able to tell how much money is expected from you every month to estimate whether the Airbnb rental will make a profit.
Secondly, a good property management agency will offer you frequent financial and performance reports. The reports should show you all the essential details in an easy way so you could see how your business is progressing.
The details should include occupancy rates for all of your Airbnb properties, nightly rates for all of the dates your property was booked, and money paid out to vendors and contractors. The agency must also be able to provide transaction histories.
The company should also have a system in place to ensure that clients’ funds never get mixed up. You should also receive monthly income and expense statements.
It will be a plus if you can access the said statements and reports online at any particular time from any location.
4. Industry Expertise
Your Airbnb property management agency should have extensive local industry expertise. Working with such a company will give you a competitive edge through their understanding of the local market dynamics and competition.
The company should help you:
- Come up with a competitive pricing strategy
- Adhere to the local Airbnb laws and regulations
- Pay property taxes on time
- Identify what amenities to offer to your guests
- Provide local recommendations and experiences to your clients
In short, a good Airbnb property management company will help you stand out even in the most competitive markets by offering you its extensive industry expertise.
5. Effective Guest Screening
As an Airbnb host, you may not have enough time to screen and vet potential guests. If you’re handling the property management yourself, you can end up with troublesome guests who may damage your property, hold rowdy parties, or breach the terms of the Airbnb agreement.
To protect your Airbnb rental from such guests, you need a property management company to help you lease your rental to responsible guests. The right agency will handle the guest screening and take care of the due diligence.
The company will ask all the right questions and go through guest profiles to ensure you won’t have to deal with difficult guests.
6. Guidance
Many Airbnb property management companies are able to handle basic maintenance tasks. While a company may have local industry expertise, not all of them can offer great advice and guidance on the perfect business direction.
For example, a good property management agency will advise you on the applicable tax deductions for your vacation rental. Such an agency will also perform regular property inspections to carry out timely maintenance and repairs before the issues become larger problems.
In addition, the company will direct you to the right attorney with the right industry and local experience to offer legal advice to avoid any issues in the future.
7. Advertising & Marketing
Today’s Airbnb market faces stiff competition. An Airbnb host must come up with an effective marketing strategy to attract new guests and stay ahead of the competition.
Top Airbnb rental property management companies use tried-and-tested marketing strategies to maximize bookings and boost revenues. They aim to make owners happy by getting positive reviews on short term rental platforms.
The companies ensure they market the properties on platforms where the target market is present. They hire a professional photographer to take high-quality pictures of the property and post them on various marketing channels. Some may even run dedicated pages on social media platforms, such as Instagram and Facebook.
Be sure to ask the agency whether you’ll need to pay more for the marketing services or whether it comes with the standard package.
How to Choose the Best Airbnb Property Manager for Your Investment Property
Just because an Airbnb property manager or company has all of the qualities we discussed above doesn’t automatically mean they’ll be perfect for you. Here’s our guide on how you can find the best Airbnb property manager for your needs:
Determine Your Needs
Start by assessing what property management services you need. Do you require full-service management, including listing creation, pricing optimization, guest communication, and cleaning? Or do you just need help with certain aspects? Knowing what services you need will help narrow down your options.
Look for Local Companies
It’s generally better to choose a smaller, local vacation rental management company rather than a large national or international firm. Smaller companies can provide more personalized attention to your property and are more likely to have established relationships with local cleaners, maintenance staff, and other service providers.
Check Online Reviews
Look for Airbnb management companies with a strong online presence and positive reviews from current and past clients. Check their website and social media pages and review sites like Yelp and Google Business. If you see any negative reviews, pay attention to how the company responds to them, as this can indicate how they handle customer service.
Ask About Pricing and Fees
Airbnb management companies typically charge either a flat monthly rate or a percentage of your rental income. Get quotes from several companies and ask about any additional fees for services like professional photography, linen rental, or damage protection. Then, compare their costs and services so you can find the best value.
Inquire About Guest Communication and Support
Find out how the company communicates with guests and handles issues that arise during the guest’s stay. Do they offer 24/7 support? How quickly do they respond to inquiries and complaints? Find a property manager who’s excellent in guest communication and support so your property can get five-star reviews and repeat bookings.
Evaluate Reporting and Transparency
Ask the company how they will keep you informed about your property’s performance and earnings. Look for one that provides detailed financial reports and has a user-friendly portal or app for tracking how your property is doing.
Consider the Company’s Experience and Expertise
You’d want to choose a company that has experience managing properties similar to yours in your local market. When prospecting, ask about their average occupancy rates, nightly rates, and guest satisfaction scores. The more experienced and knowledgable the property manager, the better they can optimize your property’s performance.
7 Best Airbnb Property Management Companies in the US
At this point, you already know why you need to hire an Airbnb property management company. After seeing what to be on the lookout when you look for one, let’s break down some of the best short term rental management agencies. Hopefully, we’ll be able to help you eliminate the guesswork.
1. Evolve
Evolve is one of the largest property management companies in the US. Founded in 2011 by Adam Sherry and Brian Egan, the company has expanded its services to manage both Airbnb and long term rental properties.
Evolve stands out from many of its competitors due to the wide range of services it offers. They include:
- 100% risk-free guarantee
- Low management fees once your property secures a booking
- Up to $1,000,000 in liability insurance and $3,000 in damage protection
When it comes to property management fees, Evolve is quite affordable compared to other management agencies. They charge a 10% fee for every booking secured. The said amount is quite cheaper than the industry standard of 20%-50%.
However, if you’re looking for a more hands-off approach, you might need to consider other companies. Evolve rental management is a better option for Airbnb hosts who still want to remain engaged in the running of the property. It is because the company doesn’t coordinate restocking, cleaning, repairs, and maintenance.
Being a half-service Airbnb management company, you can expect the following standard services from Evolve:
- Crafting a fully customized and professional Airbnb listing with high-quality photography and description
- Marketing on top short term rental platforms, such as Airbnb, Booking.com, and Vrbo
- 24/7 support and prompt response to inquiries
- Linking you to on-site cleaning and support partners
2. Vacasa
Vacasa was founded in 2009 and offers its services in the US, Mexico, Canada, and Costa Rica. The company is a full-service alternative to Evolve for Airbnb hosts who want to invest passively. Full-service means that the company takes care of everything, from bookings to cleaning once the guests check out.
Since Vacasa is a full-service Airbnb property management company, you don’t need to worry about finding a cleaning service or a repair contractor. Here’s a breakdown of what you can expect from the company:
- Onboarding: Vacasa offers high-quality photos, custom copywriting, 3D home tours, and optimized listings of your Airbnb property.
- Marketing: The agency will post your listing on top short term rental sites. They have a team hired exclusively to handle reservations and offer 24/7 guest service.
- Full-Service Management: As an Airbnb host, Vacasa provides you with a dynamic pricing strategy, guest screening, professional cleaning, and damage coverage.
Vacasa’s pricing is quite straightforward. Homeowners pay an agreed comprehensive charge for all services offered. The amount is determined by factors such as location, number of bedrooms, guest amenities, weather, historical trends, and local events.
Vacasa Requirements
Property owners who wish to have their Airbnb properties managed by Vacasa must sign a one-year contract. The contract allows you to terminate the agreement with a 90 days notice. However, there are few details regarding whether there are any additional costs to terminating the contract.
If any bookings are made within that 90 days window, Vacasa will still honor the bookings, and payments will be made to the company.
3. Casago
Casago offers mixed rental property management services. For 15 years, the company has been managing Airbnb rentals, long term rentals, corporate housing, and single family homes. They also work with unfurnished long term rentals.
Additionally, the company owns and operates eight resorts and a collection of more than 3,000 condos and beachfront properties. Perhaps, it is the most valid reason to have your Airbnb property managed by Casago.
Casago is also a full-service Airbnb property management company. You can expect the company to:
- Offer 24/7 support
- List your property on more than 25 short term rental sites
- Manage bookings, cleaning, and checkouts
You may want to discuss listing optimization with Casago before hiring them since we haven’t seen any mention of optimization. You don’t want to have to figure out how to list on Airbnb yet receive no bookings since the listing isn’t well-optimized.
As for the pricing, Casago charges an average of 18%, which is still quite fair compared to the industry standard. The company is transparent regarding monthly revenue reporting, reservation dates, and other activities about your rental.
Casago is a good option for beginners who are still struggling to earn a consistent income since they have no minimum requirements to partner with them. You’re also free to use your property as you wish. However, they require a 30-day notice if you wish to have your property unlisted.
4. SkyRun Vacation Rentals
Founded in 2004, SkyRun vacation rentals is quite a unique property management company, since it lets investors buy into the business and property managers. The company currently operates in 27 international and national destinations, handling over 900 properties.
Here’s a breakdown of the services you can expect from SkyRun:
- Cash: The company uses automation software to keep your overhead expenses low and power your business. Your listing is uploaded to 65+ vacation rental platforms and optimized to perform better than your competitors. The company offers straightforward terms with no onboarding fees.
- Care: SkyRun has preventive maintenance measures in place through thorough inspections, service, and smart tech to help keep your property in top condition. They also ensure your property is cleaned and restocked between guests.
- Communication: The company employs local staff located near your home to help you communicate directly with the property manager. The property manager is also always available to handle smooth guest communication.
SkyRun charges 15% of your rental income, though the rate may vary depending on your location. There are no hidden charges or additional expenses in start-up, onboarding, or ongoing service.
This Airbnb property management company allows you to visit your property anytime. You’re only required to provide a notice in advance for the dates you wish to visit. SkyRun also has no revenue or property type requirements to run your property.
5. Air Concierge
Air Concierge is a full-service property management company founded in 2012. Based on the West Coast, the company specializes in Airbnb properties in large markets, such as Los Angeles, Seattle, and San Diego.
Air Concierge takes care of everything associated with running the Airbnb property, such as:
- Listing description and custom copywriting
- High-quality photography
- Listing on top short term rental sites
- Guest screening
- 24/7 guest support
- Cleaning and stocking
- Damage coverage
Air Concierge’s pricing model is quite upfront. Its management fee starts at 22% but drops for longer bookings or higher-priced stays. For example, the fee is 20% for bookings worth $1,000 or more per night and 12%-18% for bookings that are 30, 60, or 90 days.
This company allows you to use your property during the agreement term by reserving the dates in advance. You can also end the contract after the 90-day probation period through a 30-day notice.
Air Concierge doesn’t have any property type or minimum revenue requirements.
6. AvantStay
AvantStay is a full-service property management company that uses proprietary tech to enable bookings, initiate in-field management, and elevate guests’ experience.
Homeowners can expect the following services from AvantStay:
- Property listing on 50+ Airbnb sites
- Guest vetting and bookings management
- Interior design investment
- Cleaning and maintenance
- Smart technology, such as digital locks, security cameras, and noise sensors
Founded in 2016, AvantStay stands out from its competitors since it offers its homeowners a Vacation Club Membership. It allows members to use travel credits at their homes or other properties. They also have a Good Neighbor Policy, where they work with your neighbors to address concerns.
Compared to other Airbnb property management companies, AvantStay’s pricing is quite high. You can expect the company to charge between 25% and 40% of your monthly Airbnb revenue. The property management fee doesn’t include restocking supplies, repairing broken items, or replacing linens.
This company may not be the best option for beginners since it mainly focuses on large and high-end rental properties. In addition, your annual rental revenue needs to be at least $100,000. AvantStay also doesn’t accept properties with less than four bedrooms.
Homeowners who wish to have their properties managed by AvantStay need to sign a single or multi-year contract. Note that the contract restricts you from blocking some time off to use your property.
7. Awning
Awning is a full-service Airbnb property management company that offers property owners all the necessary tools to find, purchase, furnish, and operate a vacation rental property. Compared to other companies on this list, Awning is known to have more availability, lower pricing, and better reviews.
You can expect the following management services from Awning:
- Preparing your Airbnb: The company handles the licensing and compliance with local Airbnb laws and regulations. You’ll also get a vacation rental guidebook and suggestions for property automation. The team hires a professional photographer to take high-quality photos of your property.
- Listing and marketing: Awning’s team then posts your listing on multiple vacation rental sites and optimizes the listing to boost performance. They also handle the marketing to ensure hosts experience high occupancy rates.
- Strategic pricing: The company follows a dynamic pricing strategy to help you maximize the peak seasons and encourage more bookings when the market is dormant. Awning also adjusts the nightly rate when there are any local events, such as festivals.
- Guest experience: Awning handles guest inquiries, check-ins, check-outs, and stay support. Property owners receive Airbnb calendar management to allow them to block dates for personal use.
- Maintenance and restocking: Awning manages a team of local cleaners who ensure your Airbnb rental is cleaned after every booking. The agency ensures supplies are restocked, broken items replaced, and laundry handled.
- Amenities maintenance: The company also maintains your lawn, hot tub, and pool at an additional fee, which is billed directly to the property owner.
Awning’s Pricing
Awning’s pricing starts at 15% of the collected revenue. Property owners must approve additional expenses that exceed $250. Unlike many Airbnb property management companies, Awning sends the collected earnings to the host and an invoice for the fees.
This company also offers Airbnb design and furnishing for an added fee if you’re looking to upgrade, convert, or set up your rental properties. The cost ranges from $15,000 to $50,000, depending on the size of the property.
The best thing is that Awning doesn’t have minimum requirements to have your property managed by them.
How to Manage Your Own Airbnb Property
At this point, we’ve already seen what qualities you should look for when hiring an Airbnb property management company, We’ve also provided you with a list of some of the popular management agencies today.
But what if you want to manage your Airbnb property yourself?
Let’s look at five essential pointers to help you succeed in Airbnb property management:
Automate Management Tasks
The truth is that owning and operating an Airbnb rental requires a lot of administrative work. You could easily spend days or weeks on the same tasks, yet you could automate them. Simply ensure you have the right tools to make your work easier.
Here’s a list of some Airbnb management software tools to help you automate guest communication, bookings, and your calendar:
- Guesty for Hosts
- Hostaway
- Wishbox
- Lodgify
- Mashvisor’s Dynamic Pricing
Stay on Top of Your Finances
As an Airbnb host, you need to realize that the responsibility of handling finances is now on your shoulders. Airbnb rentals tend to incur additional costs, such as cleaning services or toiletries, compared to long term rental properties.
First of all, you need to track your expenses. You don’t want your expenses and spending to eat into your profits. An automation software solution can give you a clear picture of your income, expenses, and cash flow.
Also, have different bank accounts for your personal and business expenses. A business bank account will save you money on deductions you might have missed and time that you could have spent preparing taxes.
Price Strategically
There are many factors that determine your success as an Airbnb host. Getting the price right is one of them. For beginners, it can be a tricky affair.
Basically, your nightly rent should give you an edge over your competition. It shouldn’t be high enough to scare your market off to your competition. Similarly, it shouldn’t be too low that it leaves you with no profits after paying for expenses.
But setting nightly rates that are slightly lower than the market price can be a huge advantage when starting out. Remember, your main focus at the beginning is to gain positive reviews to give you enough traction. Once you have enough reviews, you can raise your rent to boost profits.
How do you get to know the fair nightly rate?
Mashvisor’s Airbnb Comps
Airbnb comps are the best bet to know the fair nightly rate to charge. These are simply other comparable properties located within the same neighborhood. Airbnb comps must be as similar to your property as possible.
The comparable properties will give you an idea of what they charge so you can determine how much you should charge as well. There’s no need for you to search for Airbnb analytics and enter the data into a spreadsheet for analysis.
Mashvisor gives you access to readily available Airbnb comps with just the click of a button. You can start your property search with our Property Finder. With the Property Finder tool, you can find a rental property that you wish to invest in based on your financial situation and investment goals.
Once you’ve found your desired property, you can click on its address to go to the relevant property analytics page. You can then click on the Rental Comps and Analysis tab, where you will see a list of both long term and Airbnb rental comps.
The Airbnb rental comps will show you the following data:
- Monthly Airbnb rental income
- Airbnb nightly rate
- Airbnb occupancy rate
- Address
- Distance from your property
- Percentage of similarity to your property
- Airbnb ratings and reviews
With our Airbnb data, you don’t have to worry about accuracy or reliability since it’s gathered from reliable sources, such as Airbnb and Vrbo.
Mashvisor is your best bet when you want to manage your own Airbnb property. Sign up today and begin your 7-day free trial.
In every property listing published on Mashvisor, you can find a list of Airbnb comps similar to the property you’re looking at.
Take High-Quality Pictures
Your Airbnb property photos will always make a huge difference when listing. Your guests will be more attracted when your photos show them what you’re offering.
While you might be tempted to take the photos yourself, remember that you don’t want to be a jack of all trades and a master of none. Hire a professional photographer who understands essential aspects of photography, such as lighting.
Before taking the photos, use the following tips to prepare your property:
- Clean the house thoroughly
- Ensure it’s well lit
- Add some decorations, such as wall art
- Shoot from every corner and from a high angle
- Take three or more pictures of every room
Craft Great Descriptions
Your Airbnb listing description is an essential factor that influences the number of bookings you receive throughout the year.
While it might be tempting to dump every single detail in your description, you need to focus on making it detailed and informative without being too wordy. Deliver the most notable features and amenities in concise paragraphs that are easy to read.
Operating an Airbnb rental on your own can be challenging, especially for new hosts. With the above tips, we hope you can learn a thing or two that will help ensure your future success.
Key Takeaways
Airbnb rentals are a lucrative way to invest in real estate. One aspect of Airbnb rentals that is often overlooked is property management. Managing properties involves a lot of skill and hands-on experience. As a beginner without much experience or one who desires to invest passively, managing the property yourself may not be an option for you.
This is where Airbnb property management companies come in. While many companies make many promises, you need to know what to look out for when hiring one. Some good qualities of a management agency include effective communication and value-based pricing. They must also possess local industry expertise.
If you desire to manage your Airbnb rental property yourself, learn how to automate tasks, price strategically, take professional photos, and write great descriptions.
Also, use Mashvisor’s tools to help you find lucrative Airbnb rental property investments and Airbnb comps.
Book your demo today and see how our tools can help you make smart investment decisions.