It can be wise to have more than one source of income. Having a stream of passive income can give you something to lean on when you encounter financial setbacks. And one way you can create a source of passive income is by converting your property into an Airbnb.
While having an Airbnb property can definitely reap benefits, it can be challenging for some Airbnb hosts to find the time to manage and accommodate their guests. This is where Airbnb property management steps in.
Why Hire a Property Manager for Your Airbnb?
If you don’t have the time to deal with guests directly or if you live far from your Airbnb property, hiring a property manager can be a good call. A property manager can take some work off your shoulders by managing your bookings and payments for you. They can also market your rentals and handle maintenance and repair issues. Airbnb property managers are also equipped to handle guest complaints and troubleshoot other problems regarding your Airbnb property.
How Much Does It Cost to Hire a Property Manager?
The cost of hiring a property manager for your Airbnb will depend on the size of your property and the occupancy rate. Typically, Airbnb property managers would charge hosts by a percentage rather than a flat rate. This pricing model offers flexibility to property owners and can be beneficial for those only planning to use their Airbnb property on occasion.
For a full-time listing, you can expect Airbnb property managers to charge 15 to 30 percent of the nightly rate. But prices can change depending on the location of your property. For example, property managers would typically charge higher rates for mountain homes as they are usually found in more remote areas and need more maintenance.
The Property Management Contract
Aside from the amount you’re going to pay, there are other things you must consider before signing a property management contract. For example, you must check what restrictions the property management company will have for you as a property owner. Some companies may restrict property owners from entering their own property without first notifying the company. If this will be an issue for you, it’s essential to raise your concerns before signing away.
The property management contract should also clearly state the duration of the contract and terms for termination. Make sure you are comfortable with the length of the contract and satisfied with the termination clause. Be familiar with your rights to terminate the contract, especially if you are new to having a property manager. It would also help to avoid committing to a longer contract before seeing any results.
Liability is also something that should be clearly covered in the contract. You need to determine whether you’ll be covered for liability as some property management companies may not take responsibility for damage caused by cleaners, subcontractors, and other outsourced third parties. Protect yourself by ensuring a reasonable care cause is present in your contract.
Hiring a property manager for your Airbnb property can have a lot of benefits. They’ll be able to manage bookings and payments, handle maintenance issues, and deal with guest concerns and complaints for you. Just make sure the pricing is fair and that the terms are clear before signing the property management contract.
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