How to Hire an Airbnb Property Manager

Hosting is a full-time job that requires you to be available 24/7. Without the right tools and resources, you could feel like you're stuck in a hamster wheel of never-ending property management tasks.

If you've listed your vacation rental on Airbnb and it seems to be taking up a lot of your time and effort you're probably thinking about hiring an Airbnb property manager.

Here's a look at everything you need to know.

What is an Airbnb Property Manager?

An Airbnb property manager is a professional or a property management business engaged in overseeing and handling the daily operations of an Airbnb rental. Their primary role is to ensure the property is well-maintained, guests have a positive experience and the property owner achieves a good return on investment.

These managers can handle everything from marketing the property and guest communication to cleaning and maintenance.

What is the Role of an Airbnb Property Manager?

In the vacation rental industry, there are a host of operations and tasks (pun intended) that property managers need to do for property owners on a day-to-day basis.

In general, the key tasks of an Airbnb property manager are:

Listing management

Creating and optimizing property listings on Airbnb and other platforms to have competitive rates and attract more guests.

Pricing strategy

Implementing dynamic pricing strategies to maximize occupancy rates and revenue.

Guest communication

Handling all guest inquiries, booking requests and providing support throughout their stay.

Check-in and check-out

Coordinating check-in and check-out processes including key exchanges, payment processing and property inspections.

Cleaning and maintenance

Ensuring the property is clean, well-maintained and stocked with essentials between guest stays.

Reviews and feedback

Managing guest reviews and feedback to maintain a positive reputation of guest experience and improve future bookings.

Legal compliance

Ensuring the property complies with local laws and regulations regarding short-term rentals.

What are the Pros and Cons of Hiring an Airbnb Property Manager?

You might feel like you need some boots on the ground especially if you own multiple properties or live far from your rental. Here are some pros and cons of hiring a property manager.

Pros of hiring an Airbnb property manager

Saves time

A property manager handles all the day-to-day tasks, freeing up your time for other activities.

Expertise

Professional managers have experience and industry knowledge that can help optimize your rental's performance.

Local presence

A local manager can handle emergencies and on-site issues more effectively if you live away from your property.

Cons of hiring an Airbnb property manager

Cost

A property manager could cut into your rental income, making it an expensive hire, especially during peak season.

Loss of control

Depending on how your contract with the property manager was worded you could end up with little to no control over your property and its management.

Varying quality

Not all property managers are equally skilled or reliable and finding a good one can be challenging.

A Breakdown of Common Airbnb Property Management Fees

Airbnb property managers, especially professional Airbnb management companies tend to charge extra for certain tasks, some may require one-time payments and others monthly.

The property management fee breakdown below can help you get started.

Initial setup fee

There may be a charge for registering with a property management company. You might be charged a fee for paperwork, advertising on booking sites, and inspecting the condition of your Airbnb rental property.

Guest placement fees

The property management company will charge you a placement fee if it finds you guests for your Airbnb rental property. A guest screening fee and check-in/check-out fees could be included in this fee. This is usually charged as a percentage of the rental fee.

Vacancy fees

The Airbnb property management agreement could have a clause that says a fee will be charged for vacancies. This could be a fee per vacant unit or a one-time fee that is paid upfront.

Maintenance fees

Airbnb property maintenance involves tasks such as ensuring all appliances are in working order, including Wi-Fi, air conditioning, electrical appliances, heating, water systems, etc.

Understanding Airbnb's maintenance process is important if you own an Airbnb property. Here is a list of questions you could ask during the recruitment process of a property manager to help you to determine if the property management fees are justified:

• How long does it take for a standard repair job to be completed?

• Do they outsource maintenance? If so, what type of work is outsourced?

• Is the company staffed internally?

• Can guests reach an emergency number?

• At what point do they need your input?

Cleaning service fees

Your cleaning fees will vary depending on the size and location of your rental. While some property management companies include cleaning fees in their fixed rate, others charge them separately.

When analyzing cleaning fees, here are some factors you need to consider:

• How is the cleaning fee calculated?

• What is the turnaround time?

• Are there cleaning checklists in place?

• Will they be able to get the rental cleaned between guests without losing bookings?

Property Management Fee Structures

Guaranteed model

A guaranteed fee model ensures that your income remains stable throughout the year. You will receive a fixed amount of money from a property management company whatever the season might be. You still earn money even if you have no bookings. However, with this model, you won't be able to capitalize on any surges in demand or capitalize on the peak season.

Fixed-rate fees

Many Airbnb property management companies charge a flat fee for a set of services. No matter how many nights the rental is booked, the fee does not change. In addition to the fixed monthly fee, these companies will charge you extra for services such as maintenance, marketing and check-in.

If you choose this fee structure, read the contract carefully, negotiate and have them add some of the extra services to the monthly payment.

Commission-based

This is the most commonly use fee structure. With this model, the Airbnb property management company takes a percentage of your monthly earnings. The charges will vary based on the location of the rental property and the services offered.

The percentage tends to range between 25-50% of the rent collected. Negotiate this fee structure with the property management company so that as many services as possible are included.

How Do You Find the Best Property Manager for Your Airbnb Property? 

Finding the right property manager starts with detailed research and decision-making. Here are ways to go about it:

Research and referrals

Consider calling other property owners who outsource property management to learn what services they receive from the company. Alternatively, you could inquire through any Facebook group or a LinkedIn forum for references.

Verify if there have been any issues or problems with their management company and if so, how these issues have been handled. The more you know what you're getting into, the more likely it is you'll hire the best property manager.

Company ratings

Visit their Facebook page to get feedback from real customers and check their Google Business Profile and Yelp reviews. Make sure you read each review thoroughly and don't just rely on the rating.

Interview more than one

Talk to more than one manager so that you have a basis of comparison regarding services, fees and approach.

Consider their communication skills

Effective communication is critical. Make a note of how long they take to respond to your the tone they use and their language skills in the local language. They need to be attentive and articulate in their communication. Look for a company that builds its strategy around guest satisfaction and responsive guest communication. This will demonstrate how the company will handle your potential guests.

Hostaway as an Alternative

Hostaway is an innovative, feature-rich vacation rental software offering deep channel integrations and support. It provides hosts with the flexibility of the most advanced solutions while being user-friendly.

With Hostaway's help, you should be able to automate almost all tasks you'd ideally need a property manager without having to pay exorbitant fees out hefty commissions. Here are all the ways it works for you:

Management

Take care of guest communication, bookings, payments and more with intelligent automation that helps you save time on tasks.

Centralized dashboard

Manage all your listings from a single platform — including channel management and synchronization.

Dynamic pricing

Using Hostaway's dynamic pricing tool is a great pricing strategy, enabling you to get the best prices based on market demand and competition.

Analytics and reporting

Generate detailed reports and analytics on your property's performance to make important decisions.

Scalability

Hostaway promotes growth and you can scale Hostaway to whatever size property portfolio you're growing.

Cost-effective

Often, property management software is less costly than a full-time property manager as you're only charged a monthly fee.

Third-party integrations

Hostaway is home to the largest marketplace in the short-term rental industry, offering over 200 tools with direct integrations to grow your vacation rental business and rental income.

Finding the Right Balance for Your Vacation Rental Success

Managing a vacation rental is no small task, especially if you aim to maximize occupancy, comply with local laws and provide an exceptional guest experience. Hiring a property manager or partnering with one of the best Airbnb management companies can alleviate much of the workload, offering expertise in revenue management, guest communication and payment processing while ensuring your property adheres to regulations.

For those seeking a more hands-on approach, a robust short-term rental software solution like Hostaway which is used by property managers and Airbnb management companies alike, offer an efficient alternative. By automating essential tasks, you can manage your property like a pro without the added costs of traditional property management fees.

Get in touch with one of our product experts by scheduling a demo call at your preferred time to discover how Hostaway can level up your short-term rental operations or property management services.