The complete guide to short-term rental property management
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.
What is short-term rental property management?
While short-term rentals continue to be profitable, the market is still adapting. The fact is, the market has been shaken, and it is still reeling from the effects. What’s more, regulatory changes demand more attention from hosts.
Whether you’re new to the short-term rental market or seasoned in short-term lettings, it’s crucial you understand the market’s current implications so you can make the most from hosting your properties.
The pandemic
The COVID-19 pandemic crippled global travel. Many Airbnb hosts watched their reservations plummet. Although travel has resumed in most areas, patterns have shifted. Popular destinations like major cities and areas with high population density are seeing fewer visitors.
However, there’s been a surge in interest in remote and off-the-beaten-path listings. There’s a renewed interest in these short-term rentals as people seek more distant and unique experiences.
Market saturation
In the early days, Airbnb was highly profitable for many. Hosts reaped incredible, compounding profits because of limited competition. But with increased awareness of how lucrative it can be, the number of people listing their properties has soared.
Consequently, the market has become saturated in some areas. This has led to stiffer competition. Many hosts are having to lower their prices, offer extras, and more to continue to rent their properties and make a profit.
Local regulations
Many cities around the world have imposed new regulations on short-term rentals. This is a side effect not only of the pandemic but of a global housing crisis.
There have been many different approaches taken. The kinds of regulations imposed depend on the country and city. Some examples of new or reformed regulations include permit requirements, nightly taxes, and limiting the number of days a property can be rented annually.
It’s paramount that hosts are up to speed with local laws and regulations. It’s important to understand how they may affect your ability to host your properties, potential profit and future growth.
The benefits of short-term rentals
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.
1. High-income potential
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.
2. Great market reach
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.
3. Less wear and tear
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.
4. Personal use
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.
5. Start and stop anytime
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.
Could you benefit from professional short-term rental management?
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:
- Do you have enough time and availability to offer exceptional guest experiences?
- Do you live close to your rental property?
- Are you contactable throughout most of the day?
- Is your property currently in suitable condition and includes the necessary amenities?
- Is your property in a desirable location, such as a vacation destination or close to a city center?
If you answered no to any of these questions, you’ll most likely want to consider hiring a professional short-term rental management company.
5 great benefits of using short-term rental property management
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.
1. Taking care of marketing and advertising
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.
2. Finding ideal guests
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.
3. Guest management
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.
4. More time, more flexibility
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.
5. Ensuring you are always paid on 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.
In conclusion
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.
Maybe you are interested in
Short term rental management
Place your property in the hands of experts and watch your income from it multiply
Maintenance & Repairs
Maintenance, repairs & deep cleaning services arranged by us.
24/7 Guest Communication
Efficient 24/7 guest communication, with real people being there to answer everything to your guest and resolve all problems.
Frequently Asked Questions
No more late-night calls and emergencies. We handle all guest communication for you. From before your guest’s arrival to during their stay and after their departure, Keybee manages communications, 24/7/365-including those late-night surprise messages. You don’t need to check and reply to any of your messages. We check and respond to all messages for you.
- Proactive guest communication before, during and after their stay, with real people who understand the real problems that can arise who always provide guests with an outstanding communications experience.
- Answering guests’ phone calls around the clock and responding to guest messages the fastest in the industry.
At Keybee, we’ve developed a pricing tool that ensures you don’t leave money on the table. Our income-maximizing pricing algorithm uses supply/demand, events, and seasonality, among other critical measures, to get you the best rates. As a result, your rates will fluctuate daily and will differ on weekdays and weekends. The algorithm is also highly customizable. For example, we can enforce minimum nightly rates and specific prices for particular dates.
Using the power of data analytics, we’ve studied millions of Airbnb transactions and know what features, discounts, and other pricing options bring your listing to the top of the search results. A high ranking means increased visibility, more bookings, and higher earnings.
Full income transparency
Keybee provides full income transparency. Monitor what you’ve earned and when you would be paid using our dashboard. Payouts are released by each platform fast and direct into your bank account within 48 hours of bookings. No more middlemen!
Your listing is your passport to a higher income! We create a listing for you that stands out from the competition and publish it across all major hosting platforms. The listing(s) and account(s) are yours to keep.
The listing will include a description of your property’s space, neighborhood, getting around, house rules, and more. Our specialized copywriters know what keywords to use to rank your property higher in search results.
All listings are optimized for each platform’s algorithm for the best rankings and performance possible. Ranking optimization gets your vacation rental properties consistently viewed and booked, earning you more. Keybee achieves this through knowledge of what matters for the best performance on each platform.
Retain complete ownership
While we manage and optimize your listings, you retain all ownership. Photos, reviews, and descriptions stay on the platforms even if you decide to manage the listing without Keybee. And you can see all your earnings in real-time, any time inside the app.
Keybee uses its intelligent channel manager for all your short-term vacation rental properties. It seamlessly synchronizes property characteristics, pricing, and calendars in one unified system. As a result, cross-channel issues are minimized, and reservations are maximized.
- View all your property availability dates and reservations in Keybee’s unified calendar.
- Quick cross-platform updates, so everything stays up-to-date.
- Optimal pricing across all platforms.
- Increase your property’s outreach and occupancy rate by listing it on all major platforms for you.
We know how important a thorough guest screening is. Therefore, Keybee runs comprehensive automated checks coupled with human screening whenever necessary. Due to human screening, you can rest assured that your properties are in good hands!
Our systems detect if potential guests have previous reviews and validated government IDs on each platform.
- If government ID has not been provided in the platform, potential guests are automatically notified to provide it in time for their stay.
- Real people, not machines, detect red flags, such as large crowds and party risks.
- Avoid and reduce costs from damages and fraud.
- Feel safe and relaxed knowing experts handle your properties.
No need to worry about the safety of your keys and no need to worry your guests will need last-minute help locating your property – we take care of it all for you. We make it simple and secure for your guests to obtain the keys via an easy-to-access lockbox near your property.
As a result, your guests are left satisfied, which results in better reviews.
We offer and arrange additional services, such as maintenance, repairs, and deep cleaning (charged separately). So pick and choose the service of your choice, and we’ll handle the rest.