Best Airbnb Property Management Companies Have to Offer
The best Airbnb management companies specialize in providing end-to-end Airbnb management services, and It’s a more exciting time than ever to be a host on platforms like Airbnb and VRBO. Whether you are an investor hoping to make a greater return on investment (ROI) or sharing your home to make extra income when you’re away there are lots of opportunities to monetize your short term rental. As many hosts realize before or during the listing process, there is specialized knowledge as well as recurring day to day management that comes with Airbnb rentals.
The search for the best vacation rental management company is one that is highly personal, and depending on what a host is looking for, the best Airbnb management company could be different from one homeowner to another. Afterall, you are trusting one of your biggest assets (your home) with this company. You want to make sure that their philosophy, approach, knowledge, and service quality is aligned with your expectations.
There are different types of management companies, and each one has certain benefits and downsides. The largest vacation rental management companies offer a level of credibility and stability that can be reassuring to someone renting out their home on Airbnb for the first time. On the other hand, a co-host that only operates a few properties near you and lives locally can offer more personalized service which is comforting in its own way. In between these two examples, there are also medium sized Airbnb property managers that can often strike a great balance between personalization, experience, and resources. When a current or future Airbnb host does their research, a strong understanding of their own needs and personality can help narrow down which firm is the best Airbnb management company for them.
Regardless of the size of the team, there are certain things that every Airbnb investor or host should ask about when determining which company to work with. The following areas should be considered when selecting the best vacation rental management companies.
Dynamic Pricing
One of the most common questions that owners want to know is focused on the Airbnb earnings estimate or investment calculator. Assuming the guest experience is strong, the biggest determining factor of revenue is the approach to dynamic pricing. As the vacation rental industry entered into the mainstream in the mid 2010’s, many companies emerged that promised hosts algorithms that could outperform Airbnb smart pricing. While technology and machine learning are enablers, they are not yet complete replacements for those hoping for the highest return on investment (ROI) on their home. The best airbnb management companies have pricing analysts that leverage cutting edge technology to understand and adapt to demand trends as they apply to the specific home or apartment. Every property is unique, so while proven analytical frameworks can be applied, the specific property characteristics must be understood to achieve the maximum level of top line revenue.
Guest Experience
The best pricing strategy and top revenue managers in the world can never overcome a less than ideal guest experience. In fact, a company that is able to provide a five star guest experience with basic pricing capabilities can outperform a more analytically savvy company with a weak service level. Vacation rentals as a real estate investment can outperform traditional real estate cash flow because of the value added through hospitality. Every market has its low season, and while a poor review score might generate high rates during peak demand, the occupancy rate will get hit hard during the off season and the annual cash flow will be impacted. Even the best Airbnb property management companies in the world will experience a situation at some point where something doesn’t meet a guest’s expectations. When interviewing Airbnb management companies, it’s best to ask about how they react to these situations. Anyone can communicate well with a happy guest, the ultimate test of the best Airbnb manager company is the ability to turn an unsatisfied guest into a repeat customer for life.
Client Communication
The biggest source of frustration clients of Airbnb management companies have is the lack of client communication. Most clients don’t want to be informed of every single thing that happens, if they did then they would likely be managing it themselves. But there are certain things that are very simple and non negotiable when it comes to managing client’s properties.
Responding to client emails or phone calls in a timely manner and proactively communicating about things that are important to the specific client. Trust is the foundation of any relationship between a client and an Airbnb manager, and that trust is developed and maintained through good communication. The largest vacation rental property management companies often struggle to provide a personalized client experience. The super small companies often provide good communication but lack the resources and sophistication to optimize revenue. That’s why when searching for the best Airbnb management companies near me it’s important to ask about all areas of the operation and get into specifics. At the end of the day, when it comes to your short term rental you want a company that views the relationship with you as more than just a number.
Guest Screening
Perhaps the most overlooked area of short term rental management by owners researching is guest screening. Many owners ask about guest screening, but it’s not an area they dive deep into because of their own lack of knowledge within the industry. However, understanding the specific approach to guest screening is one of the most important parts of getting into business with an Airbnb property management company. Airbnb grew fast because it was able to instill trust in its host community through reviews of (not from) the guests themselves. But as the company went mainstream, it lost control over the screening and its reputation suffered through bad press. While the extreme situation of major theft or damage is extremely unlikely, things like minor damage or neighbor noise complaints can occur without a proper screening framework. Every short term rental is different, and the approach to guest screening needs to be tailored to the specific property. The risks present in a small condo hotel on a busy tourist road are different than with a luxury multi-million dollar property in a highly residential area. The approach to screening needs to match the context of the specific property.
Full Scope of Airbnb Management Services Offered
Just like every property has different needs, owners have different needs as well. It’s common for owners to want the best full service Airbnb property management services as most don’t want to be involved in the process. However, some owners want to manage certain aspects of their property themselves. If an owner lives nearby, they might want to manage the maintenance and / or cleaning themselves while the short term rental manager does the listing management, pricing, guest screening, guest communication, and other online components of the operation. In this case, the company doesn’t have to be local and the emphasis should be on finding a firm with the highest degree of knowledge and online skills. In other cases, a host is able to manage the listing themselves but needs the best Airbnb property management company near them to handle the maintenance, cleaning, and on the ground guest experience. Generally, a host can negotiate a management commission or fee with a company if they are handling certain responsibilities themselves.
So there you have it! Lots to think about and ask when selecting the best company for you. If you’d like to learn more feel free to book an appointment.