Air Bed and Breakfast (Airbnb) is one of the most promising businesses today. According to research, Airbnb hosts in the U.S. can make at least $924 a month. This depends on the location, the services you provide, the quality of your home and how frequently you rent out your place.
Running an Airbnb is more than just renting out your property. Like any other business, to get a good ROI and deliver excellence, you need to manage your property well. This is why you need an Airbnb property management company.
If you are in the vacation renting or Airbnb business, here are several reasons why you need a property management company.
Professional Property Maintenance
Taking care of a property is very challenging, especially if you have another job or business to handle. If you choose to take care of your Airbnb alone, you should be ready to dedicate enough time to it and handle all the stress that comes with property management.
Property managers have enough experience in the field and will ensure your property is fit for occupation at all times. They will handle everything, including:
- Finding contractors
- Handling repairs
- Scheduling maintenance services
- Handling emergencies such as HVAC emergencies
With a property manager, you will have less stress, and you will not have to spend a lot of time taking care of property maintenance issues. You will have time to spend with your family and also take a vacation.
Additionally, your guests will have a point of contact where they can forward all their complaints, questions, and concerns and get an immediate response.
Help With Marketing
Airbnb property managers can also help in marketing your business. Since their goal is to help your business grow, they can use their network to market the property.
They will also maintain a database of the guests and targets and use it to market the property. Note that marketing can be very challenging without the right help.
Since property managers already know how to market in today’s digital age, they will also offer effective marketing services. This will help you get guests and increase your occupancy rates.
Help with Legalities
Professional property managers offer a lot more than maintaining the property. They will also help you understand your legal requirements. This will ensure you do things right and avoid any issues or losses.
Some of the legalities they will help you with include:
- Drawing up rental contracts
- Abiding by your state or local laws
- Upholding the legal safety standards and inspections
- Witnessing contracts, especially for long-term stays
- Managing and collecting Airbnb fees
With a property manager, you will get help and legal advice that relate to vacation rental management. This includes what to do when a guest fails to pay for their stay.
An Airbnb Property Management Company Handles Administrative Tasks
Running an Airbnb is very involving. Unlike apartment rentals, you will have to deal with different guests almost every week constantly. Depending on your location, season and the number of properties you have, you may not be able to handle all the bookings smoothly.
Since property management companies have several employees, you will get professional help to handle all administrative tasks. This includes:
- Making and booking reservations
- Managing the booking calendar
- Handling cancellations
- Handling refunds
- Handling check-in and check out
Other administrative tasks include preparing a welcome pack for the guests, collecting feedback, handling social media pages, responding to reviews and more. Since such administrative tasks are a vital part of running an Airbnb, the company will ensure your business runs smoothly and efficiently.
Airbnb is all about hosting guests for an overnight stay. Some hosts also include breakfast and other housekeeping services. Like a hotel, you will need to ensure that the house is clean and ready for the next guest.
Housekeeping services include
- Changing bed sheets
- Changing towels
- Cleaning the property
- Replacing amenities and toiletries
If you offer breakfast, you also need to ensure that it is prepared on time. Many first-time hosts are unable to offer these services perfectly and ensure customer satisfaction. A good Airbnb should have very high standards of cleanliness.
To maintain your Airbnb, have a competitive advantage and make a profit, you need to ensure that your property is very clean and tidy. You also have to pay special attention to hidden places such as pillows, linens and mattresses. This requires a professional.
Airbnb property management companies are not new to the industry. They have well-trained staff who can ensure the property is clean and the guests are comfortable at all times. This will help attain customer satisfaction and encourage repeat business and referrals.
When you list your property on Airbnb, you are definitely going to make money. The amount of money you make will depend on the quality you offer and how often you rent out the property.
Regardless of the income you generate, you will have to pay taxes. This means proper booking. Suppose you choose to manage the property alone and have no accounting experience. In that case, you may have to hire a professional to handle your bookkeeping, invoices, insurance and taxes.
Since Airbnb is a business according to the IRS, you may also have to file a Form 1099-K if you make more than $600 in a year. The form will help you determine and report how much income you receive. As you file your returns, you also need to deduct expenses such as
- Repairs to the property
- The property rent or mortgage
- Cleaning service
- Utilities your guests use during their stay
- Property insurance
Without the right professional, you may fail to make these deductions. However, since property management companies offer all-inclusive services, you will not need to hire any other professional to help you run the business.
Though hiring Airbnb property managers also comes at a cost, you may end up spending less and still save a lot of time. Additionally, property managers generate monthly or annual reports.
You will be able to know how well your business is doing and make the right decisions for your business.
How to Choose a Property Management Company
Now that you have known the advantages of having an Airbnb property manager, the next step is knowing how to choose the best property manager for your Airbnb. Since they will be handling your business directly, you need to take your time and choose a manager you can trust. Here are some of the things you should consider when looking for a property management service.
Start with the Basics
It is crucial to know how long a company has been in business, its reputation, the number of properties they are managing and more. Get to know their reputation in the industry and the number of similar businesses they have successfully handled.
If possible, ask for referrals and read online reviews about the company. You also need to know more about their staff to determine if they have professional staff.
Consider Their Communication Skills
How a company responds to your questions and concerns will also determine how they handle the guests. Also, it is crucial that the manager you hire can keep in touch with you as often as possible.
This way, they will be free to inform you of any emergencies or challenges they may run into as they manage your business. Before you hire a property manager, you have to ensure that they understand your goals and needs and can help you meet them.
Learn How They Handle Emergencies
Emergencies such as plumbing emergencies, accidents, HVAC emergencies and more can happen. Since your guest will be staying on your property for 24 hours, the management company you hire should also be available round the clock.
They need to have an emergency contact person and a plan of how to handle such emergencies quickly and efficiently.
Check Their Services
It is futile to hire an Airbnb property manager and still hire other service providers such as housekeepers or a bookkeeper. The best management company should be all-inclusive.
Since you don’t have to worry about the day-to-day running of your Airbnb property, you need to ensure the manager you hire can offer the best. This will give you peace of mind and also help your business grow.
Know Their Costs
It is also essential to consider the costs of having a property manager and what’s included in it. Some companies may charge you extra for marketing. The best property manager will give you upfront costs and also a breakdown of what you are paying for.
Assess the services a company offers and only pay for what you need. Remember, even if it may be cheaper to take care of some of the services on your own, paying for all services will ensure you remain stress-free.
Find the Right Property Manager for Your Airbnb
Hiring the right Airbnb property management company is crucial. Since the company you choose will ensure your business runs smoothly, your guests are happy and you continue to offer quality, ensure you choose the right company for your business.
At Emperor Management LLC, we are a full-service property management company that specializes in short-term or vacation rentals. We will provide all the services you need and help your business grow. If you are ready to take your Airbnb business to the next level, contact us today and learn more about our services.