The financial benefit has become clear to some investors that short-term rental (STR) properties can offer a more lucrative real estate approach then long-term renting to tenants. But STR’s are not for every investor! In fact, getting your first property purchased, updated, staged and listed to welcome your first guest can usurp a lot of valuable time and has many possible obstacles. This certainly is not a passive business model either. Instead, running an Airbnb rental requires daily availability for check-ins and communication with guests for inquiries and bookings, being consistently “on alert” for emergencies and damage control, as well as routine weekly visits for trash day and re-stocking. So, before considering purchasing or converting a home unit into a fabulous short-term property, one should strongly consider hiring a specialty property management team.
To help you alleviate stress while you await your first booking income checks, we’ve listed our top 5 reasons for why we think you’d want to hire a professional property management team to host or co-host on your behalf.
1. The Property Formula
Finding the “sweet spot” between price, property style, location and your return on investment can be supremely challenging and is not guaranteed for any house. That’s why a professional STR property manager ought to be able to provide you some upfront answers and estimates to these STR questions. Since many property managers are also real estate brokers (as required by law in many states now) they should have added expertise for how and why your short-term rentals will or won’t perform, which neighborhoods are better than others and what repairs and staging will do for your bottom line. Remember that your asset must fall within the right price bracket or you risk losing much of your ROI too a costly monthly mortgage, repairs or utility fees. A bigger home isn’t necessarily better either, even if it falls in your budget since you must consider the cost of repairs, furnishing, décor and guest needs.
2. Higher Profits & More Free Time
With listings most likely continuously being added near your STR, competition stiffens. Having a property manager will keep you afloat with latest trends, events, and updates, while they also tend to the properties regular needs. Inventory, cleanings, repairs and spontaneous guest requests can quickly add up to a considerable time investment that a professional team is skilled to accommodate on a daily basis. Ask how your property management team handles emergencies, and what systems they already have in place, such as automated systems for communication, check-ins and who will be taking out the trash, shovel after it snows and cleaning the unit. A Property Management team should be equipped to tend to the guest and property’s needs, which in return keeps reviews high and attracts in more bookings!
3. Maintenance and Repair
It is not convenient to have to drive an hour across town to check on reported issues or read every review to see guest suggestions. A professional team should have a good network of vendors if or when things go wrong like frozen pipes, glass in the garbage disposal, mice, eletricity goes out, the list goes on. Some property managers will get estimates for your property and oversee maintenance projects.
4. Staying up to date (Taxes & Legislation)
A professional should also be able to help you keep up with short-term rental legislation for your area and direct you to the right way to stay legit. There are numerous laws to abide by including local permitting, state and federal taxes to be aware of.
You could be leaving money on the table if you aren’t pricing your rental correctly and since every home is unique it can be challenging to price your home accordingly. Additionally, it can be extreemly time-consuming to regularly update the pricing of your rental by season, holiday or events in town. A professional will be able to price your STR and better balance occupancy rates with adjusted prices.
For information about our Rentalpreneur coaching or Real Estate services /STR property management services in Indianapolis or nationally, please contact us at info[at] rentalpreneur.com
by Lexa Foy & Rachel Prince