People often underestimate how much work goes into managing an Airbnb property as an Airbnb remote host or not on Airbnb platform with your own house rules. The login page will open in a new tab. They forget that they will be dealing with humans, and people can get very unpredictable sometimes. They also forget that they are in the hospitality business and that they can’t afford to make too many mistakes, or it will hurt their reputation and brand image.
If you own one or multiple Airbnbs with a real estate license and you feel like you're in over your head right now, don't worry. There's a strong chance you're not using all the tools and resources you could be, or that you need to be updated on certain management tactics and a good social media strategy for short term rental. Let's look at how you can make managing properties easier.
Outsource Whatever You Can
One of the keys to managing properties is to delegate as much as you can. Trying to do everything on your own is a bad idea for many reasons. Not only will you end up spreading yourself too thin, but you'll never be as efficient as the professionals. Especially professionals who are specialised in Airbnb’s and someone that can take professional photos.
First thing and important thing, you should never handle unless you only manage a room or a small house, is cleaning and maintenance tasks and some automate repetitive tasks. This demands way too much work like a full time jon and there’s a good chance that you won’t get professional results. It takes a lot of real time too which could be spent on things that truly matter if you are taking care of it.
There are tons of different Airbnb cleaning services by a cleaning company that can take care your Airbnb property out there, so we suggest you speak with a few if you're handling the work yourself because otherwise it can be time consuming. Good Airbnb cleaning services need to know the standards Airbnb guests demand and will get things right every fist time. They'll also be able to provide a cleaning service and other services quickly and on short notice, which is extremely important.
Work with a Property Management Company
If you want to deal with as little stress as possible, then it would be a good idea to work with an Airbnb property management company that manages Airbnb properties. They will not only keep everything in order, but they also know vacation rental industry standards and short term rental industry ones more than anyone and can boost your image as Airbnb hosts.
Do I need Airbnb property managers? This will depend on how many properties you own and how savvy you are. If you're not used to running multiple properties and struggle to keep up with maintenance and expenses, then it would be a good idea to hire an Airbnb property manager. It would also be a good idea if you're constantly getting negative reviews instead of good reviews and don't understand why. You will get more positive reviews with good guest communications.
UpperKey will make sure that your next guests have the best experience and will give you a clear view of your finances. We’ll also help with enquiries from prospective guests and help you project a professional image.
How much does Airbnb property management cost? It depends on Airbnb property management companies, but you can expect to pay around 20% of your short term vacation rental revenue in fees. It will be up to you to see how much margin you can give up while still being comfortable. Note that there will usually be fixed fees for every reservation, but these additional fees could be passed down to guests.
Learn How to Become an Actual Property Manager
If you'd rather manage your properties on your own, then you could learn how to be a property manager yourself. There are some courses like the VRMA Vacation Rental Management Certificate Program in a vacation rental software (or Airbnb management software) with some automated messages that will teach you how to be an Airbnb property manager even though it's geared toward regular seasonal short term rentals and long term rentals.
You'll learn for the first time in the best way how to manage your Airbnb like a successful business, and how to promote it as well. Taking an actual course will also introduce you to different Airbnb management tools and methodologies and teach you how to use them properly. This could help if you're currently managing using excel spreadsheets or pen and paper.
Another thing we would suggest is that you get some sort of formal Airbnb business education. Knowing about things like bookkeeping, Airbnb property management business , and accounting will go a long but good way. You could go for a MOOC or take a few modules at a community college. This will be more than enough to give you a foundation and will make managing Airbnb property much easier.
Learn How to Use Vacation Rental Accounting Tools
One of the main reasons why so many new Airbnb owners fail is because they don’t know how to manage their money properly. They then end up struggling with cash flow and might end up in tax trouble. A lot of new property owners also aren’t properly prepared for emergency expenses or disruption.
Therefore, you should get started by learning about different accounting tools for vacation rentals right now. What are the best accounting tools for Airbnb owners? FreshBooks, Topnotepad, or QuickBooks are all great options for managing cash flow, expenses, and for tax reporting for Airbnb, and they all have gentle learning curves. If you still feel like these tools are too complex for you, then you could always hire a bookkeeper or an accountant to manage your Airbnb rental property income. This will cost you, but it will also save you a lot of headaches as calculating how much you can actually earn with Airbnb can be complicated.
These are all things UpperKey could handle for you, however, so that’s one more reason to consider handing your successful Airbnb listing over to a third party or Airbnb concierge.
Keep Your Finances Separate
You shouldn't let your personal finances get mixed up with Airbnb revenue and expenses as you become a professional host. This will make property management much more difficult. You should have a bank account for your Airbnb account only and use a dedicated credit card or debit card to make all payments related to Airbnb activities.
We also suggest that you set up an LLC for your Airbnb. This will ensure that your personal assets are safe in case anything happens, but it will make your business more legitimate as well. There will be some tax benefits to running as an LLC too and it will make it easier to get a partner, financing, or investors.
Managing an Airbnb demands a lot of work, dedication, and discipline. Equip yourself with the right tools, surround yourself with the right people, and always be ready to learn if you want to be successful in this business.