The vacation rental industry is growing fast. Very fast, as a matter of fact. According to new research data from Statista.com, the industry currently generates $57,669 million in revenue. This revenue is expected to see an annual growth rate of 6.4%, resulting in a market volume of $74,005 million by 2023. This data shows just how large and robust the market is for vacation rental management!
And with the increase of Airbnb rental properties in recent years, you can expect the demand for Airbnb property management to continue to increase over the coming years too. Hence, if you’re aiming to become an Airbnb property manager one day, now is a good time to enter the industry. But how can you get started?
This guide will provide you with all you need to know about how to become a property manager for Airbnb vacation rentals. We’ll show you what it takes to manage Airbnb rental properties, the specific tools you’re going to need when you get started, and the top tips for beginners to achieve good property management.
So, without any further ado, here are the 6 steps to starting a real estate career in Airbnb property management.
#1. Understand the Vacation Rental Industry
Just like any other business, you can’t succeed without knowing at least the basics of this field. However, to become an Airbnb property manager, no formal education is required and many achieve success in this role with only a high school diploma.
What you do need to have is a deep understanding of how the vacation rental industry and Airbnb work. Therefore, if you don’t have that already, the first step to becoming a manager of Airbnb properties is to obtain this knowledge now.
Ideally, you should have some experience as an Airbnb host yourself. If you have already hosted on Airbnb and managed your rental property yourself, you’ll prove to future clients that you know what you’re doing. In addition, this will help you be better prepared to anticipate issues, identify potentially problematic guests, and deal with common problems.
If you don’t have the experience, however, you can educate yourself about the vacation rental industry and how Airbnb works through online tutorials and courses. There are many of them out there which will help you develop a solid foundation on what you need to know.
For example, you can take coursework in marketing to learn how to expand your reach and get more bookings and a course in business to learn how to run a business, maintain records, and file tax. This will help you increase your creditability as an Airbnb property manager.
Another important thing to learn before you get started is where Airbnb hosts are investing in short-term rentals. With this information, you’ll know where to find clients looking for management help. To get more insight into this, read: 8 Best Cities for Airbnb Investment in 2019.
#2. Create a Maintenance Management System
Managing short-term rental properties means that you’re going to have guests repeatedly checking in and out. Of course, one of the many tasks of property managers is to check the property before guests arrive and after they leave. Managers of vacation rentals have to also perform maintenance every now and then to make sure the properties stay in perfect condition.
This is important to ensure both of your client’s and guest’s satisfaction. Imagine, for example, having guests who had a party and trashed the rental property before they left. No one will be happy walking into the rental in such a condition.
As a result, an Airbnb property manager should never leave maintenance as an afterthought or wait until receiving multiple inquiries from the property owner before resolving the problem.
The best short-term rental property managers also work with a reliable maintenance team to provide high-quality services on their behalf. Your team should include house cleaners, plumbers, and electricians among others. These people will make sure that the Airbnb properties you’re managing are tip-top for every check-in.
#3. Put Together a Vacation Rental Marketing Strategy
Advertising and marketing vacation rentals to attract potential guests is one of the most important duties of a property manager. Today, Airbnb and other short-term rental platforms have millions of listings, which is increasing the competition among Airbnb hosts.
This is why one of the first things future clients will want to see is how you plan to get bookings and maximize their Airbnb occupancy rates. As a result, you need to have a basic understanding of property marketing strategies and techniques.
Therefore, the next step to becoming an Airbnb property manager is to have a marketing plan that would attract Airbnb guests to the vacation rentals you’re managing. Start with writing an appealing listing that will increase the chances of maintaining a high occupancy rate and positive cash flow.
Consider investing in professional photography and videography services, as well as branding services to help rental properties under your management stand out. In addition, marketing vacation rentals means you must go beyond the listing site. This is why successful Airbnb rental managers utilize social media as well as SEO to reach the desired group of tenants.
If you don’t know how this works, we highly recommend you start learning about real estate marketing before you start managing short-term rentals. To give yourself a head-start, read this guide on Marketing Vacation Home Rentals to Increase Bookings!
#4. Invest in Property Management Tools
When you first become an Airbnb property manager and you’ve only got a few rental properties under your belt, you can manage them with hard work and a few spreadsheets. However, this becomes impossible once you start adding more properties to your management.
How will you handle 30 check-ins and cleanings in one day? It’s best to start thinking about this at an early stage so that you are preparing yourself and your business for growth and expansion. The best solution for this is to utilize real estate property management tools that allow you to automate and stay organized.
Modern vacation rental property managers rely on technology to run their businesses more efficiently. There are many high-tech tools that make it easier to manage Airbnb rentals from smart locks to software programs that assist with pricing, invoicing, and guest screening. You can also find vacation rental software that will synchronize your calendars from multiple platforms and manage multiple Airbnb accounts for free.
Make sure to check out the 5 Best Tools for Airbnb Property Management!
Using such tools not only makes your life as a real estate property manager more efficient, but they’ll give you a competitive advantage to keep growing as well. For example, Mashboard is an online software that helps Airbnb property managers communicate with their clients and find the best properties for them to grow their business.
Sign up for Mashboard now to take your Airbnb property management career to the next level!
#5. Outline Your Guest Management Strategy
One of the skills that every real estate property manager needs to have when managing both traditional and vacation rentals is amazing customer service. This is how successful Airbnb property managers set themselves apart from the crowd.
Customer service that goes above and beyond is a great selling point, especially for Airbnb guests. Having a guest management strategy means your services should be available to guests and their requests at any time during their stay.
Expect short-term guests to have something to request or to complain about. You should be able to respond to such unscheduled requests in a timely manner. For example, how will you handle a situation where the guest has lost the keys to the vacation rental and can’t get in?
A good Airbnb property manager will have a contingency in this and other scenarios. Furthermore, top-performing property managers also have automation software solutions in place to manage communication with guests.
Also, Airbnb guests appreciate good customer service and express this by leaving positive reviews. In turn, this helps in getting more bookings and increasing cash flow which will definitely make your clients happy. As you can see, customer service is probably one of the most important skills for successful Airbnb property management, so don’t treat it as an afterthought!
#6. Set a Reasonable (But Competitive) Price
The last thing you need for becoming an Airbnb property manager is a pricing strategy. Typically, vacation rental managers take a percentage cut of the rental rate secured by the actual host. A number of sources online suggest anywhere from 10-25%.
While some think that charging the lowest price will attract more clients, that’s not the case. Clients base their decisions on the quality of the services that property managers provide – not based on price. Thus, offering the lowest price indicates to Airbnb property owners that you don’t provide top tier services.
In order to set the right price, you need to take many variables into consideration. First, as mentioned, is what type of services you offer. Naturally, you shouldn’t charge for services that you do not offer. Instead, look at your experience, what unique selling points you can offer, and set your rate accordingly.
You also need to consider the local market and what other short-term rental property managers in your location charge, seasonal demand, as well as current events. In the end, you have to set a reasonable price that you feel confident will get you back what your services are worth.
The Bottom Line
There are many ways to make money in real estate. The increasing popularity of Airbnb and other short-term rentals in the US housing market has created opportunities not only for real estate investors but for property managers as well.
Today, there’s a great demand for managers of vacation rentals and experts in the industry predict to see a nationwide growth over the upcoming years. Therefore, if you’re looking for a lucrative real estate career, consider becoming an Airbnb property manager!
Mashvisor will provide you with the necessary tools to help you efficiently connect with your clients and find the best Airbnb rental properties for them to buy and you to manage!
To start your 7-day free trial with Mashvisor and subscribe to our services with a 15% discount after, click here.