Hosting Airbnb rentals seems to be one of the top ways to earn passive income nowadays. With many people traveling around the world, they’d need a safe place to stay in a foreign place. Instead of camping in expensive hotel rooms, travelers may enjoy staying in hotel-like rentals for an affordable price, thanks to Airbnb.
How Could An Airbnb Management Service Help?
Just like in hotel accommodations, renters would look for 24/7 professional customer support, property maintenance, and other menial services that come with rentals. If you have full-time jobs and other responsibilities, these tasks could be time-consuming, if not stressful. Thus, you may need to hire an Airbnb property management company, which could help you with the following tasks:
- Monitoring your nightly and occupancy rate
- Maintaining your property so it’d be clean and ready to use
- since they’re knowledgeable about how it works
- Offering round-the-clock customer support
- Handling upgrades and repairs on your property
In short, hiring a management service for your Airbnb property could give you more ‘me’ time. But how could you choose the right Airbnb management company?
Tips On Choosing The Right Airbnb Management Company
Although the above-said benefits of hiring an Airbnb property management service could be true, hiring the wrong company may overturn the benefits. This is why an online search might not be enough. You have to exercise due diligence to ensure you’d be working with a reliable company so you can increase your Airbnb earnings.
To help you with this, consider the following tips before hiring a property management service:
1. Choose The One With Transparent Reporting
Since your Airbnb property investment would give you passive income, it’s important to know how well your rental performs. That way, you could ensure you’re getting the most out of your property or you could solve or prevent any problem that may be causing low earnings. As such, you’d need to choose a company that would provide daily, weekly, or monthly performance and financial reports.
These reports have to be comprehensive, showing the progress of your Airbnb property. This includes transaction histories, payouts, occupancy rates, and other vital information that lets you understand how well your rental is doing.
You may also want to ask the Airbnb property management company for samples of reports they provide to their clients. By doing this, you could verify that they’re transparent when doing business.
2. Check Their Pricing Structure
Aside from reporting, the company has to provide a pricing structure for all of its services. It’s crucial to ask them all the fees included to avoid paying for hidden costs in the future. It may also be best to respectfully ask them if they have hidden charges. If none, try to ensure this appears in your contract to avoid possible disputes in the future.
Generally, there are two pricing structures for the management of Airbnb property: commission basis and a flat rate per month. At HomeHost or any other Airbnb management company, you could ask for a pricing structure based on the services you need. You could easily contact and discuss with them the best pricing option for your property.
A commission rate is when the property management service takes a percentage from your monthly earnings. Depending on their pricing structure, the commission may range from 12% to 40%.
On the other hand, under a flat rate per month, the company would charge you a fixed price no matter how much you earn. Even if you get many bookings, you only have to pay the contract price. This means more profits for you. However, you may earn less after paying for the company service if you have lesser bookings.
As already mentioned, some may have hidden charges. So it’s best to ask them other costs on top of their monthly management fees. These may include initial listing, professional photography, or setup fees.
3. Ask For Their Professional Licenses And Certifications
No matter how appealing the website of a property management company is, it’s still best to check for their licenses and certifications. Reputable companies would gladly show you their portfolio reviews, training certifications, and licenses to back up their claims.
When you hire a property management service with the right certification and license, you could ensure they’re professionals and have not just taken property management courses online. Although these courses may hone their skills, they may not be enough to guarantee their expertise in the area. But with a certified and licensed property manager, you could be sure they have attended training, events, and meetings to keep their skills up to date.
A certification or license would also mean they’ve passed the test the state requires before they could manage a property. The state won’t usually issue a license or certification without ensuring the applicant understands how property management works. They must have in-depth knowledge of leasing properties, rules, safety precautions, insurance, laws, and the other ins and outs of managing rentals.
Thus, if the property management company has licenses and certifications, you’d somehow be assured they could handle the paperwork and regulations concerning leasing properties. This is because they’ve undergone and passed a series of tests and courses before being issued the certification and license. These tests cover marketing, accounting, real estate, and other vital knowledge in property management. With this, your Airbnb business would be in good hands as, chances are, the company knows what they’re doing.
4. Verify Online Reviews
You could also consider online reviews and the company’s ratings. Try to check if they have a reputable online presence as this means they provide quality service. Good feedback more likely indicates that the company is passionate about their service. On the other hand, negative reviews may be a red flag, especially if they outweigh the positive reviews.
Usually, positive ratings are given because their previous clients have gained earnings because of their services. If the property management company has done excellent work, there would likely be more bookings and higher occupancy rates. This would also prompt the clients to share their positive experiences with the company.
You may want to check third-party reviews from reputable review sites to ensure they’re providing unbiased ratings. These review sites are more likely to research property management companies and verify ratings and feedback from previous clients to create informative review articles.
Or you could visit their website as companies usually have a page where previous clients leave testimonies about them. You could also check the ratings on their social media accounts. By knowing how previous clients view these companies, you would know what to expect from them.
There are many Airbnb property management services you could check online, but their quality of service may differ. You could greatly benefit from their services by hiring the right one for your Airbnb needs. It might be best to consider the tips above so you could ensure you’re working with a reliable property manager, which may result in increased earnings.