In theory, an Airbnb management arrangement seems straightforward. You pay a fee, typically a percentage of rental income over the year, and they provide a range of services like tenant acquisition methods, cleaning and maintenance resources, marketing and so on. However, there are so many management companies out there that it is impossible to say that every operation is exactly the same.
There has to be some variation between core services and fees, otherwise the competition would fall flat. So, what can you expect from an Airbnb Management company, and what sort of price can you expect to pay?
What is Airbnb Management?
Airbnb management is something that Airbnb hosts can spend money on to enable a better, more efficient service for their guests. These companies usually take care of the basic aspects of managing Airbnb properties like finding bookings, ensuring cleaning takes place at the right time, and other administration and organisational factors that might come up. They are highly useful for any host who wants to manage their property from afar, and what the relationship looks like, i.e., the level of input and autonomy, is largely up to you.
What are the key roles of management companies?
Confirming Bookings
Bookings are one of the most important factors of Airbnb hosting. It is vital that hosts find guests to book their property for all the calendar dates on offer, because this is how they make their money! For a novice with minimal experience, it is so easy to miss tricks and opportunities to bring in more bookings to your property. However, a professional business will include this as a part of the Airbnb management fee package.
Guest Relations
Guest relations covers things like arranging key collection, providing welcome instructions, stating the leaving guidelines and handling any concerns that crop up over the course of a booking. Customer care is an integral part of building a positive host reputation on the Airbnb platform, so this is a major bonus for anyone looking at enlisting these types of services. Airbnb management company fees will include some form of guest relations policy as a part of the setup, because people expect it.
Scheduling Cleaning
If post-covid life has taught short-term lettors anything, it is that hygiene and cleanliness are one of the most important things to look after when it comes to your Airbnb. There is an expected level of commitment to keeping an Airbnb thoroughly clean in between and prior to bookings. If this standard slips, your reviews will definitely plummet, and your reputation will take a big hit too.
Property Marketing
Creating a great marketing strategy is an essential but often challenging task for amateurs with a lack of experience. Having someone, therefore, to act professionally on your behalf can do wonders for your property. Advertising the vacation home is a no-brainer, as people won’t be able to book it if they don’t know it exists. Yet, there are ways to do this that tap into the target demographic far better than other non-professional routes. Posting about your property on Facebook, for instance, may get you a few shares and likes, but it will not bring in the big bucks, especially if you do not have the followers.
Maintenance and Security
Ensuring that your property lives up to a high standard and is properly secure is vital. Without these safety nets, your entire reputation and asset are at risk. Guests have the option of reporting a fault during their stay, and when this happens, a host is expected to provide a solution before they leave, especially for major faults related to plumbing or electricity. With the helping hand of a management business, this becomes a whole lot easier. The fault will be reported through the official Airbnb account and flagged immediately with the management company. If you pay for this part of the service, they will then act in your stead and produce some form of solution with the short-term tenant that works for everyone.
Fees and Charges Auditing
How do you know how much to charge for your Airbnb property? There are always options to figure it out, like market research, but entrusting this decision to a proactive third-party like a management company is often the best option that yields the best results. Airbnb is competitive, that’s not a big secret. A management company will price your property in line with all the latest trends and fluctuations across the globe, and it will be fair, reflective, and accurate.
Advice About Local Area Property Laws and Regulations
Ensuring your property meets all the local laws, regulations and policies is non-negotiable. If you don’t adhere to the expected standards, there is a risk you will lose your permit or licence depending on the area of operation. Short-term lets are restricted in lots of countries, and you must get to know what you need to do for your particular listing. A property manager is the best person to advise you on essential information like this.
How Much Do Airbnb Property Managers Charge?
When thinking about the average Airbnb property management fees, the real question to answer is what do Airbnb management companies charge? There is no set fee to speak of, but generally you may expect to see a charge of 10-15% of the total rental income for the year. Some services may charge a rate of 20% or above for premium services like guest vetting, hosting, linen replacement and a heavier rate of involvement. It all depends upon how much autonomy is afforded to the company in question, how involved the host is in terms of things that need to happen before, during, and between bookings, and the size or location of the property.
Secondly, there is sometimes also a fixed fee that is chargeable each time a booking is confirmed or complete. You will need to discuss this upfront with the company you decide to work with, as again, everyone has different standards.
Can Airbnb Manage My Property?
It makes sense to allow a professional to take some of the heat off the management side of things when it comes to your short-term rental property. Managing everything by yourself is often impossible and impractical too, and companies like Upper Key can make it so much more accessible and successful too.
Airbnb is not a management company, it is a lettings platform, but they do have industry links that are widely available to all its hosts. One thing they do provide is something called their Local Partner Scheme, which is worth knowing about for new hosts.
Local Partner Scheme
New hosts can take advantage of this Airbnb led agenda. It brings together veteran, top-rated individuals that know the ins and outs of running a property successfully. They are not a management company, but they will show you the ropes. It is still recommended that you invest in some style of external management in addition to this, but it is an effective way to get to know what is expected.
Airbnb management companies are extremely useful for a clear number of reasons. They not only make life easier for hosts in general but provide essential services to ensure the efficacy of individual listings too. There will be a fee to pay, which is usually between 10-20% for services like cleaning, maintenance, auditing and booking management.