Airbnb property management is the process of managing the daily operations of an Airbnb property on behalf of the owner. Read on to learn more. The process includes handling guest communication, bookings, cleaning, maintenance, and maximizing revenue. The goal is to provide a seamless hosting experience while ensuring the property is well-maintained and profitable. Airbnb property management can be done by the owner themselves or through a professional Airbnb property management company.
Table of Contents
- What Is the Role of an Airbnb Property Manager?
- What Are the Requirements for Becoming a Property Manager?
- What Are the Average Earnings for Airbnb Property Managers?
- How Do You Get Started as an Airbnb Property Manager?
- Next Steps in Becoming an Airbnb Property Manager
- Frequently Asked Questions
If you’ve been an Airbnb host for a time and have had success, you may be looking to add more vacation rental properties to your portfolio. You might even want to start your own Airbnb property management company and provide Airbnb management services to other real estate owners. Becoming an Airbnb property manager can be a rewarding career choice. The short term rental sector is expanding, so now is a great moment to start a company that provides property management services. It’s a low-risk, low-investment venture with the potential to be tremendously profitable.
What Is the Role of an Airbnb Property Manager?
You should be aware of the responsibilities that come with Airbnb property management services before deciding to change occupations. While it can be a very gratifying and profitable professional path, it is not for the faint of heart. You can anticipate putting forth a lot of effort, especially as you progress. An Airbnb property manager’s responsibilities include:
Developing Ties With Property Owners
A property manager can develop ties with property owners by demonstrating their expertise, reliability, and professionalism in managing properties. They can also establish a good reputation through word of mouth and referrals from satisfied clients. In addition, they can use various marketing strategies to showcase their services and attract potential clients. Building trust and a strong working relationship with property owners is crucial for a successful property management partnership. Effective communication, transparency, and delivering results are key factors in developing long term ties with property owners.
Confirming Reservations and Engaging With Visitors
A property manager is responsible for confirming reservations and engaging with visitors to ensure a seamless hosting experience. It includes promptly responding to inquiries, providing accurate and detailed information about the property, and facilitating the booking process. Once a reservation is confirmed, the property manager should provide the guest with all the necessary information. They include check-in instructions, house rules, and contact information for emergencies. During the guest’s stay, the property manager should be available to address any questions or issues that may arise.
Cleaning and Maintenance Work Is Scheduled and Managed
As part of their responsibility, a property manager schedules cleaning and maintenance work to ensure that the property is well-maintained and ready for guests. It involves developing a schedule for routine cleaning tasks such as dusting, vacuuming, and changing linens. Additionally, it includes scheduling more in-depth cleaning task,s such as deep cleaning and carpet cleaning. Maintenance work may include regular inspections of the property to identify any issues that need to be addressed. It involves scheduling repairs and replacements for appliances, furniture, or other items as needed.
Managing Check-Ins and Check-Outs
A property manager is responsible for managing check-ins and check-outs to ensure a smooth transition for guests. This involves communicating with guests before their arrival to confirm their expected time of arrival and provide them with check-in instructions. The property manager should also be available to answer any questions the guest may have before or during their stay. On the day of check-in, the property manager should be available to greet the guest, provide them with a tour of the property, and answer any last-minute questions. During check-out, the property manager should inspect the property for any damages or missing items and ensure that the guest has left the property in good condition. They should also collect keys and other items provided to the guest and arrange for any necessary cleaning or maintenance work before the next guest’s arrival.
Listings on Airbnb and Other Rental Sites
A property manager’s responsibility is to list the property on Airbnb and other rental sites to increase visibility and bookings. It involves creating a detailed listing that showcases the property’s features, amenities, and location, as well as high-quality photos that accurately represent the property. The property manager should also set competitive pricing based on market trends to attract guests. In addition, they should regularly update the listing to reflect any changes in the property or pricing and respond promptly to enquiries from potential guests. They may also use marketing strategies such as social media, email marketing, and paid advertising to increase exposure and attract more bookings.
What Are the Requirements for Becoming a Property Manager?
Airbnb property management requires a combination of hard and soft skills. Here are some examples of both:
- Knowledge of laws and regulations: A property manager should know local, state, and federal laws related to rental properties, such as building codes, zoning laws, and landlord-tenant laws.
- Financial management: They should have knowledge of basic accounting principles and be able to manage financial transactions related to the property. The financial transactions include rental payments, security deposits, and maintenance expenses.
- Maintenance and repair: They should know basic maintenance and repair procedures to ensure that the property is well-maintained and any issues are addressed promptly.
- Technology: They should be proficient in using technology platforms such as Airbnb, property management software, and communication tools. It is to effectively manage the property and communicate with guests and property owners.
- Marketing and pricing: They should know market trends and be able to set competitive pricing strategies and effectively market the property to attract guests.
- Communication: A property manager should have excellent communication skills to effectively communicate with guests, property owners, and vendors.
- Customer service: They should have a strong customer service orientation to provide guests with an excellent experience and handle any complaints or issues that arise.
- Problem-solving: They should be able to quickly and effectively solve problems that arise during a guest’s stay, such as maintenance issues or booking problems.
- Flexibility and adaptability: They should be flexible and able to adapt to changing circumstances, such as last-minute changes in guest bookings or unexpected maintenance issues.
- Attention to detail: They should have a keen eye for detail to ensure that the property is clean, well-maintained, and free of safety hazards.
- Time management: They should be able to effectively manage their time and prioritize tasks to meet deadlines and ensure that the property is ready for guests.
- Empathy: They should have empathy and be able to put themselves in the guest’s shoes to understand their needs and concerns.
- Leadership: They should be able to effectively manage a team of cleaning and maintenance staff.
Is a Real Estate License Required to Run Airbnb?
The requirement for a real estate license to run an Airbnb varies, depending on the laws and regulations of the property’s location. In some places, you may need to obtain a real estate license or a specific type of permit to operate short term rentals like Airbnb. In other areas, there may be no such requirement. It’s important to check the local laws and regulations in your area to determine whether you need a real estate license or any other type of permit to operate an Airbnb. Some cities or municipalities have specific rules regarding short term rentals, including requirements for obtaining permits, paying taxes, and meeting certain safety standards. If you are unsure about the specific regulations in your area, it may be helpful to consult with a local real estate professional who is familiar with the rules and regulations governing short term rentals.
What Are the Average Earnings for Airbnb Property Managers?
The Airbnb property managers’ earnings are mostly determined by the Airbnb management fees you charge your homeowners. Property management firms may charge anywhere from 10% to 50% of a homeowner’s earnings. The earnings for Airbnb property management can vary widely depending on several factors. The factors include the location of the property, the type of property, the number of units managed, and the level of services provided. An Airbnb property manager’s average pay is roughly $57,810, or $28 per hour, according to research by Online Degree. Depending on your business, you can make more or less than the said amount. According to data from Glassdoor, the average salary for an Airbnb property manager in the US is around $50,000 per year. However, the figure can range from $30,000 to $80,000 or more, depending on the factors mentioned above. In addition to a base salary, many Airbnb property managers also receive additional income through commissions or fees charged on bookings. It also includes bonuses for meeting certain performance targets or maintaining high occupancy rates. It’s worth noting that earnings for Airbnb property managers can be highly different. It depends on the level of competition in the local market, the quality of the properties managed, and the demand for short term rentals in the area.
How Do You Get Started as an Airbnb Property Manager?
Here are the seven steps to entering the Airbnb property management space now that you know what the job entails:
1. Learn About the Vacation Rental Industry
To be successful in Airbnb management, you need to gain a deep understanding of the industry. It’s important to understand how Airbnb and the entire vacation rental industry work. Just like any business, you need to know the basics, at least. If you feel you’re still lacking the required knowledge to manage an Airbnb business, now is the best time to work toward acquiring it. Previous experience as an Airbnb host can be helpful in your journey to becoming a vacation rental property manager. Your future clients are more likely to trust you and secure your management services if you’ve hosted and managed an Airbnb rental property before. Also, you are more equipped to anticipate and handle property issues, potentially problematic guests, and legal and regulatory concerns. As a novice property manager, you can build on and expand your existing knowledge by reading relevant books and blogs, enrolling in online courses, and taking tutorials. For example, signing up for a social media marketing course will help you learn how to expand your network, promote your business online, and secure more guest bookings. A business management class will teach you the ins and outs of running a business, including recording transactions, maintaining financial records, and filing the required taxes.
2. Look for Co-hosting Possibilities
After becoming more knowledgeable about the Airbnb business model, the next thing to do as a prospective Airbnb property manager is to acquire clients. To put it another way, you’ll need to discover homeowners that require hosting assistance and are seeking co-hosts or property management services. You can look for these hosts in a variety of ways:
- Use your existing connections. If you’re an Airbnb host, there’s a good chance you know other hosts. Begin by inquiring about co-hosting or employing you as a vacation rental property manager.
- Look for clients on the internet. Look for homeowners who are looking for an Airbnb property manager online, in addition to folks you already know. You can post a request for Airbnb hosts on your local Facebook group. Alternatively, you may place an ad on a specialized website like CoHostMarket, which connects property owners with managers.
- Speak with the hosts you are staying with. If you occasionally use Airbnb as a visitor, there’s no reason you shouldn’t strike up a conversation with your hosts and inquire if they need assistance with Airbnb management.
3. Persuade Property Owners to Hire You
Once you’ve found a few hosts who appear to be interested in the Airbnb property management services you provide, you’ll need to convince them that you’re the best option. Numerous property management organizations have been in the Airbnb business for decades, managing hundreds of vacation rental properties over the years. Why should property owners entrust you with their assets? It’s a plus if you’ve hosted an Airbnb before. After all, providing an exceptional visitor experience will be a key part of your job as a vacation rental manager—something that individual hosts must also achieve. So, when pitching potential clients, don’t forget to show them some of your glowing testimonials. There’s no better way to show that you’re a fantastic host than by allowing your Airbnb guests to speak for themselves. Make sure to specify if you’re an Airbnb Superhost. If you have no prior experience as an Airbnb host, though, you may find it more difficult to convince new clients to trust you. It’s not impossible; a positive attitude and a business mindset can take you far. You will, however, need to brush up on your vacation rental sector expertise and demonstrate that you are eligible for the position. You can achieve this by taking a property management course, for example. To get the first couple of gigs, you may have to cut your rates, but don’t let it stop you. You’ll start getting referrals and be able to charge greater fees as soon as you have some real-world expertise.
4. Create a Plan for Your Guest Management Strategy
Amazing customer service is one of the abilities that every real estate property manager requires while managing both standard and vacation rentals. It is how the most successful Airbnb property managers distinguish themselves from the competition. Above-and-beyond customer service, especially for Airbnb visitors, is a huge selling feature. Your services should be available to guests and their demands at any moment during their stay if you have a guest management strategy. Expect short term visitors to have a wish list or a list of complaints. You should be able to reply quickly to such unannounced inquiries. How will you handle a case when a guest has misplaced the keys to the vacation property and is unable to enter? In this and other instances, a smart Airbnb home manager will have a backup plan. Additionally, top-performing property managers use automated software solutions to manage guest interactions. Furthermore, Airbnb visitors value excellent customer service and express their gratitude by submitting favorable reviews. As a result, you’ll be able to secure more reservations and increase your cash flow, which will make your clients very happy. As you can see, providing excellent customer service is one of the most critical talents for effective Airbnb property management, so don’t overlook it.
5. Formulate a Business Strategy
It’s the same as beginning any other business when it comes to Airbnb property management. A strategy is required. So, before you go all in, think about how you’ll handle other people’s possessions—as well as how you’ll scale your operations, which is likely the most challenging component to figure out. Then, in the form of a business strategy, put everything down on paper. The following elements should be included in your Airbnb property management business plan:
- Check-ins will be handled in what way? Will you do your in-person meet-and-greets or hire someone to do them for you? How do you persuade homeowners who aren’t currently using Airbnb self-check-in to get smart locks installed?
- What is your plan for cleaning and maintenance? Will you handle them yourself or hire someone else to do it?
- How are you going to market your listings for homeowners? How do you improve bookings and maximize occupancy for your clients so that they stay with you and refer you to their friends?
- Are you covered with comprehensive landlord insurance coverage?
- Finding out how to improve your Airbnb ranking is a smart place to start.
- Next, you’ll need to promote your homeowners’ listings on various booking platforms as well as their vacation rental website, in addition to Airbnb.
- Create a social media plan for vacation rental marketing on Instagram and Airbnb listings promotion on Facebook.
- What will you say to your visitors? How will you save time by using Airbnb messaging templates and tools?
- How much will you charge your business owners in commission?
- Depending on what is included in their services, Airbnb management providers can charge anywhere from 10% to 50% for each booking.
6. Use Vacation Rental Software
Using such technologies will not only make your job as a real estate property manager easier, but it will also provide you with a competitive advantage in terms of expansion. You’ll discover that using Airbnb management software and other automation tools is the key to efficiency as you grow your Airbnb property management company. You’ll see an even larger need to save time by automating repetitive operations once you start managing other people’s homes, not just your own. You need to figure out a way to automate the most time-consuming components of vacation rental property administration. They include guest communications, rate adjustments, and channel calendar updates. Another useful vacation rental tool is an Airbnb profit calculator. The calculator helps determine the future performance of a vacation property based on several metrics. The metrics include Airbnb rental income, cash on cash return, cap rate, and Airbnb occupancy rate. It allows users to set the right rental price and calculate potential returns based on seasonality. Notable examples of such software include AirDNA and the ever-reliable Mashvisor.
Mashvisor’s Airbnb Calculator
Mashvisor’s Airbnb investment calculator is a tool designed to help real estate investors analyze the potential profitability of a property as an Airbnb rental. The calculator uses a variety of data sources and predictive analytics to estimate the potential revenue, expenses, and occupancy rates for a given property. The Airbnb calculator will provide a detailed analysis of the potential earnings and expenses associated with renting the property on Airbnb. Some of the key metrics provided by the calculator include:
- Expected monthly rental income
- Occupancy rate
- Airbnb rental expenses (such as cleaning fees and service fees)
- Monthly cash flow
- Return on investment (ROI)
- Cap rate
The Airbnb calculator also comes with many additional features, including a listing analysis tool that allows you to compare the potential earnings of different properties side-by-side. It also includes a heatmap tool that shows the average Airbnb occupancy rates and rental prices in different neighborhoods. It can be a useful tool for real estate investors who are considering purchasing a property to rent out on Airbnb. Short term rental owners can get detailed insights into the potential earnings and expenses associated with this type of investment. Start your 7-day free trial with Mashvisor to make your Airbnb property management service easier.
7. Decide on a Fair (Yet Competitive) Price
A pricing strategy is the last thing you need to become an Airbnb property manager. Vacation rental managers typically take a portion of the rental rate negotiated by the real host. According to a variety of websites, the percentage might be anything from 10% to 25%. While some people believe that charging the lowest price will bring in more customers, this is not true. Clients make judgments based on the quality of the services provided by property managers, not on pricing. As a result, charging the lowest fee tells Airbnb hosts that you don’t deliver top-notch services. Many elements must be considered while determining the appropriate price. The first is, as previously stated, the type of services you offer. You should not, of course, charge for services that you do not provide. Instead, consider your experience and the unique selling features you can provide before determining your rate. You should also think about the local market and what other short term rental property managers in your area charge, as well as seasonal Airbnb demand and current events. Finally, you must determine the cost of your services that you are satisfied with. To determine the cost of your services, you can use Mashvisor’s new Dynamic Pricing tool.
What Is Mashvisor’s Dynamic Pricing Tool?
Mashvisor’s Dynamic Pricing tool is a feature designed to assist real estate investors, specifically those interested in short term rental properties such as Airbnb. The tool provides intelligent pricing suggestions based on actual Airbnb market data and insights. The tool is part of the platform’s larger real estate investment software suite that uses data and analysis to identify lucrative traditional and Airbnb properties in a matter of minutes. It is possible to get a price recommendation from Airbnb. But the problem with that is Airbnb’s recommended price and price predictor features skew towards maximizing occupancy instead of revenue, so hosts who rely on it often leave money on the table. Meanwhile, the Dynamic Pricing tool recommends daily rates that will help maximize your rental income. The suggested rates are based on supply and demand, base market price, seasonality, and historical data. After reviewing the prices, you can integrate and sync them with the listing platform.
Next Steps in Becoming an Airbnb Property Manager
Overall, entering the Airbnb property management space is great if you want to work in the vacation rental sector, pursue a lucrative career path, and prefer to work on your schedule. If you want to be an Airbnb property manager, look for co-hosting opportunities, persuade homeowners to hire you, develop a business plan, and use vacation rental software to automate repetitive activities. The last part is crucial since it will help you to operate more efficiently and scale your company. From pricing to guest communication and channel management, a robust automation platform can help you cover all the basics.
Final Thoughts on Airbnb Property Management
The rising popularity of Airbnb and other short term rentals in the US housing industry continues to generate opportunities for property managers, as well as real estate investors. Today, there is a high demand for Airbnb property management, and industry analysts foresee a widespread growth in the next few years. Managing an Airbnb property can be a lucrative and rewarding venture. By providing exceptional guest experiences, maintaining high standards, and staying on top of local regulations, you can attract more bookings. To become an Airbnb property manager, start by researching local laws and regulations, creating a detailed business plan, and investing in high-quality amenities and furnishings. It is also crucial to communicate effectively with guests and prioritize their needs throughout their stay. With dedication, hard work, and attention to detail, anyone can succeed as an Airbnb property manager and build a thriving business in the hospitality industry. Therefore, if you are considering becoming an Airbnb property manager, now is the best time to do it.
Frequently Asked Questions: Airbnb Management
We try to answer some of your pressing questions about entering the Airbnb property management space.
Is Managing an Airbnb Worth It?
Yes, it’s worth it to manage an Airbnb as it comes with several advantages. Some of its advantages include the ability to set your rental rates, the opportunity to meet people from all over the world, and the potential to earn higher profits compared to long term rentals. Additionally, Airbnb provides hosts with a platform to advertise their properties and connect with guests, making it easier to reach a global audience.
Do Property Managers Clean?
It depends, property managers typically do not clean individual units or apartments unless it is explicitly stated in their job responsibilities. In such cases, tenants are generally responsible for cleaning their own living spaces.
The Bottom Line
There are many ways to make money in real estate. The increasing popularity of Airbnb and other short-term rentals in the US housing market has created opportunities not only for real estate investors but for property managers as well. Today, there’s a great demand for managers of vacation rentals and experts in the industry predict to see a nationwide growth over the upcoming years. Therefore, if you’re looking for a lucrative real estate career, consider becoming an Airbnb property manager!
Mashvisor will provide you with the necessary tools to help you efficiently connect with your clients and find the best Airbnb rental properties for them to buy and you to manage! To start your 7-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.