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Vetting Airbnb/Vrbo Property Managers

ttyh

Elite
Founder
Joined
Dec 1, 2020
Messages
1,545
Does anyone have experience vetting property management companies for short term property rentals? Exploring the possibility of turning a residence into a business and if we do this, we would be living out of town, about four hours away, and unable to take on the tasks associated with property management on a day to day basis.

I just began the process of looking into local managers and want to see if there is a knowledge/experience base here to draw from. Anyone?
 

quickfeet

Get Steppin’
Founder
Patron
Joined
Feb 19, 2021
Messages
3,144
We have rules. But I’m interested as well. Is it worthwhile to buy a vacation property and let it be run by a company as an Airbnb when your not using it for the tax write off, or is that just too much trouble?

1616599858341.jpeg
 

TopHook

Overlord
Joined
Jan 9, 2021
Messages
5,498
on top of the vrbo fee that would be another 10%. I have a situation like you and we do it remotely. Just need to find a cleaning lady.
 

ttyh

Elite
Founder
Joined
Dec 1, 2020
Messages
1,545
on top of the vrbo fee that would be another 10%. I have a situation like you and we do it remotely. Just need to find a cleaning lady.

Yeah, trying to figure out the fees associated with such an arrangement and whether or not there are alternative options. So your experience is a property manager skims ~10%? That seems relatively high, but still think it could be profitable based on numbers I am running.
 

Mmal7777

Elite
Founder
Joined
Jan 9, 2021
Messages
424
Does anyone have experience vetting property management companies for short term property rentals? Exploring the possibility of turning a residence into a business and if we do this, we would be living out of town, about four hours away, and unable to take on the tasks associated with property management on a day to day basis.

I just began the process of looking into local managers and want to see if there is a knowledge/experience base here to draw from. Anyone?
I own a property management company on 30A. I’m happy to talk with you. Let me know what questions you have?
 

TopHook

Overlord
Joined
Jan 9, 2021
Messages
5,498
Yeah, trying to figure out the fees associated with such an arrangement and whether or not there are alternative options. So your experience is a property manager skims ~10%? That seems relatively high, but still think it could be profitable based on numbers I am running.
10% is standard.
 

Mmal7777

Elite
Founder
Joined
Jan 9, 2021
Messages
424
Yeah, trying to figure out the fees associated with such an arrangement and whether or not there are alternative options. So your experience is a property manager skims ~10%? That seems relatively high, but still think it could be profitable based on numbers I am running.
Typically 10% for long term and 20% for short term.
 

TopHook

Overlord
Joined
Jan 9, 2021
Messages
5,498
For individuals VRBO takes 5-8% depending on the time of year. For PM companies it’s a yearly fee of $499. I do this for a living.
Are you speaking of the website or the actual management company? Last I checked which was a while ago, granted, it was 10.
 

ttyh

Elite
Founder
Joined
Dec 1, 2020
Messages
1,545
For individuals VRBO takes 5-8% depending on the time of year. For PM companies it’s a yearly fee of $499. I do this for a living.

So I can expect vrbo/airbnb to take 5-8% for the listing and a property management company to take 20% for tending to the short term rental? What is the typical difference in rental time from short term vs long term?

What is included in the SLA for the responsibilities of the PM? I would want a walk down of the property for damage assessment, including but not limited to: pool equipment, furniture, flooring, electronics, furniture, etc. Would also expect a house cleaning between each visitor and changing and laundering sheets and towels.

Are my expectations realistic? Are there any potential pitfalls I need to be aware of that would need to be addressed when executing an agreement wit a PM company?

Sorry to bombard with questions and thanks for your input. Invaluable coming from a professional.
 

Mmal7777

Elite
Founder
Joined
Jan 9, 2021
Messages
424
Are you speaking of the website or the actual management company? Last I checked which was a while ago, granted, it was 10.
I’m sure different areas have different standards but if you start at 10% then you are really starting at 6.5% when you factor in CC fees.
 

Mmal7777

Elite
Founder
Joined
Jan 9, 2021
Messages
424
So I can expect vrbo/airbnb to take 5-8% for the listing and a property management company to take 20% for tending to the short term rental? What is the typical difference in rental time from short term vs long term?

What is included in the SLA for the responsibilities of the PM? I would want a walk down of the property for damage assessment, including but not limited to: pool equipment, furniture, flooring, electronics, furniture, etc. Would also expect a house cleaning between each visitor and changing and laundering sheets and towels.

Are my expectations realistic? Are there any potential pitfalls I need to be aware of that would need to be addressed when executing an agreement wit a PM company?

Sorry to bombard with questions and thanks for your input. Invaluable coming from a professional.
I will answers these questions when I get back to a computer. It would take me an hour to do this on a phone
 

Mmal7777

Elite
Founder
Joined
Jan 9, 2021
Messages
424
VRBO offers special deals to property management companies. Most property managers pay a flat fee every year to be on their website. They do charge the guests an additional fee though. We pay $499 per year per property we have listed.

All of the things you listed should be done by the property management company. You will also be assigned a property manager that will be in charge of maintaining your house. I would be sure to ask how old your PM is and how long they have been in the business. This person is the one who is truly taking care of your home. It is a burn out job and PM's come and go quickly.

Your expectation are realistic but you need to factor in additional fees from property managers. A lot of companies will nickel and dime the hell out of you. We actually have a minor maintenance program that covers most of the day to day things like air filters, batteries, smoke detectors, resetting routers, rehanging towel bars and pictures. There is a yearly fee for this service. You will also want to make sure they have 24/7 housekeeping and maintenance services. That doesn't mean they will come out to sweep your floors or change a bulb at 2:00 in the morning, but you want to make sure they have some one on call for emergencies.

If you will DM me your email address, I will send our new owner's information booklet that covers all the services we provide
 

SwooshNole

Lurker
Joined
Jan 8, 2021
Messages
4
We Airbnb two listings and renovating a house for our third. Currently live 2 hours away. We just have a lawn guy who also does our trash and a maid service, which we found on our own. We typically check the house ourselves every month and restock. If anything breaks, we just call a contractor.

4 hours may be to far to stay away through?
I read 3 different Airbnb groups on Facebook and it seems like 10-30% is what people say they pay or charge for short term rental management.
 

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