With a presence in over 220 countries and more than 100,000 cities, Airbnb continues to grow at a staggering rate.
In relation to the platform’s expanding footprint, the need for a separate company or entity to handle Airbnb management is growing as well due to the numerous tasks and responsibilities associated with running a vacation rental.
With the increasing demand for vacation rentals, many real estate investors are cashing in on the Airbnb business model. Statistics show that the US housing market alone comprises more than 660,000 Airbnb listings, the highest number of any nation in the world.
However, many property investors lack the time or skills to manage their own Airbnb rentals. As a result, there is a great demand for professional Airbnb property managers, and starting an Airbnb management company can be a lucrative endeavor this year.
So, how much can you earn as an Airbnb rental property manager? According to Onlinedegree.com, the average annual salary for a professional property manager of Airbnb rentals could range from $36,700 to $57,810.
In this article, we will discuss what an Airbnb management company is, what being an Airbnb property manager entails, and how to start an Airbnb rental management company.
What Is an Airbnb Management Company?
An Airbnb management company primarily oversees or manages a property owner’s short-term vacation rental or listed properties. It takes care of the property’s maintenance, handles customer service and satisfaction, and makes sure everything else runs smoothly.
Airbnb management services can also include listing creation, advertising and marketing the rental property, guest screening, and price optimization. The ultimate goal of hiring a property management company is to provide your guests with an unforgettable experience. Getting 5-star reviews and generating more business should be on every host’s mind in the rental business.
For the busy property owner or host, hiring a property manager or an Airbnb management company allows them to delegate the day-to-day operations of their rental property. It allows them to focus on the overall goal of turning their vacation rentals into profitable sources of passive income.
Responsibilities of Airbnb Management Companies
Managing multiple Airbnb rentals entails a wide range of different tasks. It is important to be aware of them before deciding to start a management company for Airbnb.
Some of the responsibilities of an Airbnb management service for short-term rentals include:
- Listing rentals: One of the most important roles of property management companies is promoting homes on different vacation rental sites. Besides Airbnb, you can also list your properties on rental websites like VRBO, Booking.com, and Homestay.com. Listing rentals involves writing descriptions of the property and uploading photos.
- Pricing rentals: Pricing Airbnb rentals is not a one-off activity. If you want to maximize your revenue and Airbnb occupancy rate, you must continually adjust your prices based on demand. It means lowering prices during off-peak seasons and increasing prices when demand is high. Moreover, your Airbnb pricing strategy should be based on solid Airbnb data, such as the one available at Mashvisor.
- Communicating with guests: Running an Airbnb management company requires providing helpful, friendly, and prompt answers to potential guests to secure bookings. During their stay, guests will also expect a timely response to their inquiries. Failure to communicate effectively with guests could cost you in Airbnb reviews, which could mean losing future bookings.
- Managing junior staff: Your reception, maintenance, and cleaning staff are responsible for preparing the vacation homes before guests arrive. You are responsible for hiring, training, and assigning your staff to different properties.
- Reporting to homeowners: Airbnb hosts will want to know how many bookings they are attracting per year, quarter, or month. Also, they will be interested in knowing how much Airbnb revenue they are earning and how they are performing compared to the competition. The good news is that there is property management software that you can use to generate shareable reports for your clients.
How to Start an Airbnb Management Business
Starting an Airbnb management company requires a lot of dedication, effort, and passion. If you are willing to put in the work, success is guaranteed. Here are some Airbnb tips on how to get into Airbnb management:
1. Research the legal requirements
The legal requirements for becoming an Airbnb property manager vary from state to state. Take time to learn the legal and licensing requirements in the state where you want to set up your business. Some states will require you to obtain a real estate broker’s license first, while others only need a property manager’s license. In other states, you don’t even need any qualification or license to start an Airbnb management company.
2. Educate yourself
You might not require any formal education to start an Airbnb management company. However, it is important to have a thorough understanding of the Airbnb rental industry and the challenges involved. There are numerous real estate blogs, real estate podcasts, and other online resources where you can learn a lot about the vacation rental industry.
You could also take online courses and earn a Certified Property Manager (CPM) certification or Residential Management Professional (RMP) certification. The certifications can help prove your competence to property owners.
3. Choose a business name
The name of your Airbnb management company will be your identity for a long time. Therefore, be sure to choose a unique and memorable name that will make your company stand out from the competition. In addition, the name should be easy to spell for your customers.
Conduct a search at the registrar of companies to find out if there is anyone else using the same name. Don’t forget to search online to find out if the domain name and social media handles are available.
4. Set up your company
Once you settle on a suitable name, you need to register your short-term rental management company as a legal entity. First, you will need to choose a business structure. Your business structure will determine the paperwork you need to file, how much you pay in taxes, and your personal liability. The common business structures in the US are:
- Sole proprietorship
- General partnership
- Limited partnership
- Limited liability Company
- Business Corporation
Once you’ve decided what business structure works best for you, go ahead and register your company.
5. Create your property management strategy
Just like starting any other company, starting an Airbnb management company requires a plan. To create an Airbnb property management plan, as yourself the following questions:
- What software and tools will you use to manage your tasks?
- How will you deal with guest complaints and communications?
- How will you manage maintenance and cleaning tasks? Will you handle them yourself or outsource them?
- Will you handle check-ins yourself or will you outsource them to a third party?
- How will you promote homeowner’s listings in order to maximize occupancy?
- How much commission are you going to charge property owners?
- How regularly will you schedule home inspections?
6. Market to homeowners
To run an Airbnb management company, you need properties to manage. Once you have everything set up, you need to make property owners aware of your Airbnb property management company. There are several property management marketing strategies you can use to find people who need help with property management:
- Find clients online: Start by creating a website that outlines who you are and what kind of services you provide. Be sure to optimize your site to make it easier for your target customers to find it. Don’t forget to promote your Airbnb property management company on major social media sites like Facebook, LinkedIn, Twitter, and Instagram. You could even post an advertisement on a specialized site like CoHost Market, which aims at connecting property managers with homeowners.
- Talk to your hosts: If you use Airbnb regularly when traveling, talk to hosts and ask them if they need help with property management services. Even if they don’t currently, they might be able to refer you to someone else who does.
- Tap into your network: If you are currently an Airbnb host, you might know other hosts in your professional and social circle. Reach out to them and ask if they would want to hire you as a professional property manager.
7. Use vacation rental software to automate your tasks
When you scale your Airbnb management business, automation takes on greater importance as a way to improve overall operational efficiency. As you become responsible for more properties, not just your own, automating repetitive tasks becomes your greatest ally.
An Airbnb management software allows you to streamline your vacation rental operations, including managing bookings, messaging guests, and synchronizing calendars. It helps eliminate human errors, avoid confusion, and save time, allowing you to grow your business.
Starting an Airbnb management company might appear daunting at first. However, whether you want to manage properties in Airbnb Nashville, Airbnb Philadelphia, or Airbnb Atlanta, you can learn how to run a successful business. By following the tips on Airbnb property management listed above, you will significantly enhance your chances of success.
Managing vacation rental properties also requires taking care of all the taxes and maintenance costs that come with running one. To closely monitor your expenses, you can turn to Mashvisor and use its Airbnb calculator. You can use the calculator to determine the impact of such costs on your future cash flow and return on investment.
To start using Mashvisor’s Airbnb calculator and its other real estate investing tools, sign up for a 7-day free trial now, followed by a 15% discount for life.