Do You Need a Property Manager?
BY MIKEL HUBBARD
FORMER HGTV PRODUCER | CO-FOUNDER, THE HOST CO |
OWNER, TIMES EIGHT PROPERTY & DESIGN
Yes! Or maybe.. no! While we can’t make the call for you, we can tell you the full pros and cons (or really benefits and major downfalls) so you can make your own informed decision. Read on!
CHECK YOUR LAWS
Before we even get into it, some municipalities REQUIRE property managers or at least someone that can be onsite within an hour. If you’re someone who travels a lot or lives far from your Airbnb, this can be impossible.
The case for YES! I WANT TO HIRE A PROPERTY MANAGEMENT COMPANY
Property management companies are by and large great. You don’t have to do anything and they mail you a check… sort of. There’s always going to be stuff you as an owner need to deal with, but they will bear the brunt of the work handling bookings, getting things repaired and managing cleans.
There are companies that have sprung up including Vacasa, Pillow and Guesty that specialize in just that. Expect to pay 10-20% of your home’s overall revenues and get specific. You shouldn’t be paying management fees on top of taxes and cleaning fees. If you are, make sure you’re passing that along to the guest. Ten to twenty percent may not seem like a lot, but it also may be your profit margin and if you’re not making money, would this be a better long term rental?
Also, if you’re never there, insist that your property manager spends a night or two in the home. No one will tell you the bathroom outlet is broken or the pot handles are falling off unless you or someone who really cares about this house stays there.
I WANT TO GO IT ALONE!
If you have the time, being your own property manager is relatively easy. You’ll deal with a handful of texts or emails per week. You’ll also get that inevitable emergency call that the bathroom is flooded, or the lights are out, at least once a year (it always seems to happen when we’re on vacation for some reason). But… dealing with that means you’ll pocket that 10-20% that property management companies charge.
And to be honest, no property manager knows your home like you do.
Managing your own property, you will really get to know how it’s used, what’s not working and how to improve it. Regular guest feedback will allow you to stay on top of things.
If you do go it alone, we recommend having a great cleaner who can be your eyes and ears, receive packages and make shopping runs for you. Also have a rolodex of electricians, plumbers, handymen and landscapers who you can call on in a pinch to do the rest.
What has your experience been with property management? Have you ever changed your tune? Let us know in the comments!