1) What does an Airbnb (short-let) management company actually do?
- Marketing and guest acquisition i.e. management of all advertising on holiday and short let marketplaces like Airbnb.com and Booking.com to fulfil guest bookings.
- Management of reservations, check-ins, check-outs, and everything in between 24/7, all year round.
- Professional cleaning services, some similar to “hotel” experiences e.g. thorough cleaning between stays, toilet paper rolls, nice smelling aromas, fresh towels & sheets, fully stocked soaps, shampoos and conditioners etc. and a fully equipped kitchen.
- Repairs & maintenance management.
- Buying and repairing broken items.
- Regular pricing review to maximize returns.
- Optional cost-effective in-house interior design makeovers, which drags properties to their full glory so they can achieve maximize returns.
- Be transparent and report your property’s progress regularly to keep you informed.
Airbnb management companies like CTRL Booking, basically handle everything… in return for a fee, of course, but the profits generated from the average Airbnb / short-let typically cover the fees and still beats by a lot the traditional long-term tenancy returns.
2) How much do Airbnb management companies cost?
The starting price for Airbnb management services vary between 10%-15% of the rental income, but some charge up to 40% for more premium packages.
Almost all the management services will offer standard and premium packages, so the cost will depend on how much you’re willing to pay combined with how much of a service you require.
Here at CTRL Booking, we have packages covering from 15% to 30% depending on the type, location and condition of your property.
3) Does Airbnb offer property management services?
Nope. If they did, external management services probably wouldn’t exist.
Airbnb don’t directly provide management services, and I doubt they ever will, yet they encourage it, so you’ll need a third-party management company like CTRL Booking if you want your short-let fully managed. For now, Airbnb just provide a platform for hosts and guests to create bookings and process payments, the rest is outside of their scope.
4) Do I need an Airbnb management service?
No, of course not. Just like regular long term tenancy, landlords don’t need a letting agent for fully managed letting services.
However, they are a super convenient solution for landlords that don’t want to deal with any of the headaches that notoriously come with managing rentals, especially if:
- You have no or little time to spend on the business
- You live far away from the property. Although, some hosts do successfully manage their Airbnb rentals remotely, but a trustworthy friend or cleaner, available between reservations, is crucial in this case.
- You are not willing to put in the effort of a routine research in order to keep your listings constantly up to date and competitive.
We normally tell regular long-let landlords not to bother with management services (because it’s usually a massive waste of money), but we have a completely different opinion when it comes to landlords that short-let, because they, by definition, have a much higher tenant-turnover, which means there’s a lot more work involved e.g. servicing, maintenance, guest check-in and checkout, cleaning etc. So it generally makes much more sense for Airbnb landlords to use management services.
5) Will Airbnb management companies earn me more money/rent?
Potentially, yes. In fact, most likely they will, and for a couple of reasons:
- They do their research to optimize the price per night and then adjust that figure in line with demand to maximize monthly occupancy rates.
- It’s in their best interest to achieve the highest rent possible and minimize void periods, because that ultimately means they will earn more commission from you. They are constantly monitoring the market rates to ensure maximum returns.
- They specialize in making compelling adverts to maximize enquiries i.e. they will use professional photos, optimize descriptions etc. using social media websites and other promotional methods.
- As mentioned, some of the management companies offer guaranteed monthly revenue regardless of void periods.
- They will syndicate your property advert across several marketplaces like Airbnb & Booking and manage all the listings and enquiries without delay.
6) Will an Airbnb management company achieve a better occupancy rate?
Probably. Mostly for the same reasons I mentioned for why they’re likely to make you more money!
7) What happens if your Airbnb guests cause damage?
Airbnb management companies should check the property before and after each guest, so they will notify you if there any damages. They also have their own maintenance team that can quickly resolve issues if needed.
Feel free to contact us if you have any questions!