Short-term rentals, or STRs, are a profitable business model for regular homeowners and property investors alike. Since Airbnb stormed onto the scene, renting properties short-term has become increasingly popular. This type of letting promises high growth and returns.
However, the nature of short-term rentals has changed in recent years. The COVID-19 pandemic, new regulations and the impact on housing markets mean that the rules have changed. Consequently, those looking to rent their properties as STRs need to know how to best manage their properties today.
In this article, we’re going to give you a complete guide to short-term rental property management. Whether you’re a beginner or experienced in short-term rentals, this guide is for you. We’ll cover what short-term rentals are. We'll also reveal the great benefits of short-term property management. By the end, you’ll be equipped with the know-how so you can create a profitable and successful short-term rental business.
Short-term rental property management refers to the process of managing STR properties. This includes apartments, houses, vacation homes, as well as more unconventional dwellings like RVs, Airstreams, camping/glamping tents and treehouses.
Short-term rentals require lots of time and energy to do well. And with the increasing need to remain compliant with new local regulations, short-term rental property management companies have become an increasing necessity for many.
Short-term rental management requires attention, lots of time, and effort. It requires attention to detail, swift communication, and good management. In short, high-quality guest experiences are crucial to short-term rental success.
Properties need to be well-maintained, safe, and enjoyable. They need to comply with local regulations. The pricing must be competitive and attractive. Well-managed STRs combine all these factors. As a result, effective STR management can have a huge impact on property earnings potential.
Firstly, let’s talk about some of the major benefits of short-term rentals. STRs can serve as extra cash on the side, as profitable and scalable businesses, or for paying off a mortage.
Here are some of the key benefits enjoyed by successful short-term lettings businesses.
STRs can bring in higher rental rates per day compared to long-term leases. They often outperform long leases. For example, it’s been revealed that if a short-term rental landlord has consistent bookings, they can expect between a 40-70% higher yield.
In high-demand locations, especially, such as tourist hotspots, vacation areas, and major cities, short-term rentals boast high-income potential.
Online STR platforms such as Airbnb provide property owners with global visibility. With limitless possibilities, property owners can attract guests from all over the world. This market reach beats that of traditional letting and can lead to increased occupancy rates.
Having guests stay for short periods leads to less wear and tear. Those renting STRs usually do so for short stays where they won't spend much time indoors. The most common reasons include weekend trips, vacations, and work.
Short-term lets come with the advantage of personal use. This flexibility gives property owners the freedom to block out dates to use their properties themselves.
Short-term renting allows you to use time to your advantage.. This allows you to capitalize. For example, you can stop leasing when rent prices in your area drop and resume when they rise. It also allows you to sell your property any time you get a great offer.
Many property owners rely on professional short-term rental management to keep their STR business running smoothly. With the increased time and effort it takes to get up and running today, it helps to get professional help. And given the associated risks and lengthening list of regulations, it pays to start off on the right foot.
Before you dive in and list your property, consider the following questions:
If you answered no to any of these questions, you’ll most likely want to consider hiring a professional short-term rental management company.
Now that you better understand STRs and what comprises STR management, we will now get into the specifics of how a professional short-term rental property management company can take the hassle out of hosting and increase your profits.
Marketing and advertising is a skill that doesn’t come naturally to everyone. It can be difficult, time-consuming, and costly.
While it might be assumed properties will start selling themselves, this is rarely the case. Instead, marketing and advertising make up a huge part of what makes a successful short-term rental business.
Many professional short-term rental companies will do the marketing and advertising for you. The best partner with Airbnb, where they can best optimize your listings and maximize your potential.
Many have experts designated to marketing and advertising their clients’ properties. They know how to design and deploy captivating ads. They can take photographs that highlight properties at their best. And they can enhance property listings.
Screening guest is one of the most important parts of letting your property. After all, every property owner wants guests who will respect their property and rules and pay on time. However, finding the ideal guests isn’t always easy.
Fortunately, professional short-term property rental management companies prioritize letting their clients’ properties to only the best guests. They will screen guests based on government documents provided to Airbnb. Furthermore, they will detect any red flags and prevent bad actors from letting their client's properties.
Guest management is one of the most difficult aspects of the STR business. Communication at various hours of the day. Constant availability to fix issues. Dealing with emergencies at all hours.
But a professional short-term rental management company will take care of everything guest management.
These companies will help keep things running like clockwork. A good STR property management company will have established relationships with maintenance workers, contractors, tradesmen, suppliers, and vendors. They’ll maintain open and responsive communication with guests. They’ll also deal with any issues or damage caused by your guests.
A STR property management company can help minimize the headaches of guest management.
Time is one of our most valuable commodities. While a STR business remains an attractive proposition, it is time-consuming. Even managing one property with all its various requirements can take away a lot of time.
By hiring a STR property management company, you alleviate pressure and free up time. By handing over the reins to professionals, you have fewer responsibilities. You reduce stress and free up time.
At the end of the day, renting your property as a short-term let is a business, and you want smooth, timely payments.
Not being paid on time can result in having to dig into personal finances when things go wrong. Chasing guests for late payments can cost valuable time and energy. Furthermore, it can cause stress and worry.
Fortunately, a short-term rental property management company will handle payments for you. They’ll ensure that you’re paid on time, every time. Professional property managers know the legalities and optimize the process to keep money flowing in when it should.
The short-term rental market continues to grow with no signs of slowing. Despite the negative effects of global travel and increased regulations, short-term lets are still popular.
Getting into STR lettings can prove a fantastic and highly profitable venture. But setting up and letting a short-term rental property isn't always simple or straightforward. There are many nuts and bolts to running a successful STR business.
Short-term rental management can help. As we've discussed, they can help in every significant aspect of STR management. Whether you have one property or a portfolio, with the help of an experienced short-term rental management company, you can build a successful STR business.
Place your property in the hands of experts and watch your income from it multiply
Maintenance, repairs & deep cleaning services arranged by us
Efficient 24/7 guest communication, with real people being there to answer everything to your guest and resolve all problems.