Consistent 5-star guest experience and high occupancy rates is not easy to achieve. It requires strong operational, technical, and governance expertise. While having a short-term rental property can be rewarding, there’s a reason why property management services are in demand. Here are a few things that you might want to consider when choosing your hosting partner.
Their approach to guest relations
The property manager you choose will represent your property to your guests. Every guest is different. Some are easy going and simply expect their questions to be answered while others require a more hands on approach and expect a highly personal touch.
This is why it’s important to understand how your Airbnb property manager does guest communications and their style of governance. Do they operate in a centralised customer support structure or do they have small teams that know their properties and guest details? Do the incentives of their guest team depend on reviews and property performance or is it simply based on them fulfilling a certain function? How good and consistent are their reviews?
Their knowledge of the market landscape
Numerous property management companies provide basic cleaning and maintenance services, but it doesn’t necessarily translate to good short-term rental property handling. One of the most valuable things a good property management firm should have is a solid grasp of the market and booking trends. Quality Airbnb management companies ensure that their clients’ properties are booked regularly and this entails data-driven marketing programs. Not only will a quality Airbnb management company keep your property in pristine condition, they’ll increase your revenue and improve your ratings on Airbnb or other platforms as well. By following their professional recommendations, you should be able to have a competitive edge and increase your chances of standing out amongst the rest.
Their pricing strategy
There are two elements to think about when it comes to an Airbnb manager’s yield management strategy.
First is how they charge their clients or their management fee, and the other is how they set the price for their clients’ listings. For the former, find out what business model they use when charging property owners. Some charge a monthly flat-rate, meaning they’ll charge you the same rate regardless if you had bookings or not, while others operate on a commission basis and will only take a certain percentage of your short-term rental earnings depending on the scope of their service and how many bookings you had for the month. Remember that monthly commissions can range anywhere from 12% to 40% and while it’s nice to get a more affordable service, quality is still what makes your short-term rental business sustainable in the long run.
The second thing you should learn more about is the property management firm’s pricing strategy for your listing. What do they look out for and what considerations do they have when deciding the best nightly rate for your property? Are they solely basing it on your competitors’ rates or are they also seeing other trends such as incoming festivities, public holidays, and market developments? Are they continuously finding ways on how they can optimize and position your property so you can also elevate your nightly rate? A quality firm will be able to do all these and more.
The quality of their reports
As a customer, you should be able to have full access to your property’s financial results. You should be able to view your past earnings and if it’s been improving or declining in the past months. How much have you paid your property management firm in total? How has your booking rate improved when you signed up with them? Quality Airbnb management companies will have these ready for you and might even provide a dashboard where you can see all these in real time. The key thing to gauge is how transparent they are being. If you have to constantly ask for updates before you can get any real answers, that might be a sign that it’s time to look for a new property management service provider. Having access to how your property is performing is crucial as it’s also a telling sign of how good they are with managing clients’ properties.
As the short-term rental market continues to grow, hosts are now faced with more competition than ever before. A successful Airbnb management service is vital to making hosts’ lives easier by making the process of managing a short-term rental property more streamlined. Do your research and read customer reviews before deciding on which company to go for. By being proactive in your decision-making process, you up your chances of getting good results that your guests will be happy to pay for.
If you want to get personalised assessment and recommendations, feel free to schedule a call with one of our property consultants here.