After buying a short term rental property, it's important to find the right person or company to manage your investment property so you can maximize revenue and profit. The management of vacation rentals is handled by an Airbnb manager. This is a broad term that can refer to a number of different individuals or firms that take care of the day-to-day operations of short term rentals either professionally or not. An Airbnb property manager can be responsible for a wide range of tasks including but not limited to designing and furnishing the property, listing it and distributing it on booking channels, marketing and advertising the listing, communicating with and supporting guests, managing bookings and reservations, handling maintenance and taxes, and more.
In this article, we'll cover all the different types of vacation rental property managers, including:
- DIY Airbnb Managers: This refers to owners who manage their own property.
- Co-Host Airbnb Managers: An arrangement for sharing the management responsibilities.
- Professional Airbnb Managers: This means hiring an individual who specializes in the management of short term rentals.
- Local Airbnb Managers: These are individuals or companies managing Airbnb properties in a single market.
- National Airbnb Managers: These are large-scale companies that work with short term rentals in multiple markets across the country.
- Virtual Airbnb Managers: These individuals or companies take care of Airbnb management tasks that can be done from a distance, never visiting the actual property.
- Full-Service Airbnb Managers: These short term rental property managers handle all tasks associated with owning and managing an Airbnb.
- Half-Service Airbnb Managers: These vacation rental managers focus on a selection of services that can be streamlined and automated.
- Other Models: There are a myriad of other short term rental management solutions that owners can adopt based on their unique situation and needs.
Keep reading for a description of each of the most popular kinds of Airbnb property managers along with their responsibilities, how they work, what situations they are best for, their costs, and main pros and cons.
What Does an Airbnb Manager Do?
An Airbnb manager ensures the smooth and profitable operations of a short term rental property, whether it's listed on Airbnb, Vrbo, or another vacation rental listing website. In other words, the role of an Airbnb manager is not strictly limited to managing properties that are marketed on the Airbnb platform but rather includes the management of all vacation rentals, regardless of their type and distribution method.
Their exact tasks depend on the type of manager (individual vs company), the management mode (half-service vs full-service), the skills and capabilities of the manager, and the exact agreement with the property owner.
In general, vacation rental managers are responsible for:
- Getting properties ready for being listed and welcoming guests including interior design, furnishing, and obtaining short term rental licenses and permits
- Covering the day-to-day tasks related to owning a short term rental such as marketing, guest communication and management, cleaning and housekeeping, and accounting
- Taking care of the property like providing Airbnb insurance, conducting regular inspections, and arranging maintenance
- Boosting the property performance through dynamic pricing, advertising, guest review management, and management cost savings
As Airbnb property managers can take on so many different roles, it's important for short term rental investors to find the exact model and manager that makes the most sense for their needs and preferences.
DIY Airbnb Manager
Being a DIY Airbnb manager is one of the most popular methods for taking care of vacation rentals among first-time investors with a single listing who have chosen to invest close to home. This means that the owner themselves is managing the property, holds full responsibility for the success of the business, and does not share revenue and profits with anyone.
Responsibilities of DIY Airbnb Managers and How They Work
Before deciding to be a DIY manager for your investment property, keep in mind that this can easily turn into a full-time job, especially if you achieve a good occupancy rate. Moreover, this model becomes particularly demanding as you add more properties to your investment portfolio and even moreso if you expand to markets away from home.
The main responsibilities of homeowners who manage their own short term rentals include:
- Designing and furnishing the property
- Getting necessary business registrations, permits, and licenses based on local short term rental regulations
- Obtaining short term rental insurance
- Listing the property
- Optimizing the listing for Airbnb SEO
- Additional marketing and advertising
- Setting up a pricing strategy
- Communicating with guests before, during, and after their stay
- Serving as an emergency contact
- Handling check-ins and check-outs
- Cleaning, restocking supplies, and housekeeping between guests
- Inspecting the property before guests to make sure everything is ready
- Collecting and managing guest reviews
- Maintaining and repairing the property
- Collecting, reporting, and remitting taxes to relevant authorities
This Airbnb management model is quite straightforward. Once you've purchased an investment property, you need to prepare it for guests with the help of the best Airbnb furnishing services or not (depending on your skills and budget) and start listing it for rent. This option makes a lot of sense if you live close to your investment and you have some free time.
The key factors for the success of this strategy is to invest close to where you live, to be able to allocate time to this job, to have basic personal and organizational skills, and to get access to the best Airbnb management software tools. The latter will help you streamline and automate operations to boost results while saving lots of time and effort.
In terms of costs, DIY property managers don't need to pay monthly property management fees. Some potential costs include professional fees for cleaners, accountants, tax consultants, and maintenance staff as well as software subscription fees.
Who Should Be a DIY Airbnb Manager
Becoming a short term rental property manager for your own business is best for:
- Homeowners occasionally renting their home to guests
- First-time investors with a limited budget
- Hosts with a single listing
- Investors buying a property close to home
- Those without a demanding full-time job
- Full-time investors ready to devote all their time to growing their Airbnb business
Pros and Cons of a DIY Airbnb Manager
Being a DIY Airbnb property manager brings unique advantages and disadvantages.
The pros of managing your Airbnb property on your own include:
- Full control over your property and all business decisions
- Opportunity to maximize performance based on your own efforts
- Complete knowledge of your business performance at all times
- No Airbnb management costs
- No revenue sharing
The cons of being a DIY Airbnb host are:
- Daily commitments and support
- Lack of experience that might undermine the performance of your property
- Need to hire and coordinate the work of a team
- Need to obtain various software tools
- Fees to be paid for professional support
All in all, becoming a DIY manager can work out for investors who want to be personally involved in the success of their business and who have the necessary time and qualifications. With the help of available software, this option is absolutely feasible but still requires a certain level of dedication.
Co-Host Airbnb Manager
Another person who can manage a short term rental is an Airbnb co-host. This refers to an individual who partners with the owner to work together as co-hosts. A co-host might have ownership in the property, but it's not required. This can be a friend, relative, fellow investor, investing partner, or anyone else who is not a professional, certified vacation rental manager and who helps you take care of your business.
Responsibilities of Co-Host Airbnb Managers and How They Work
There is no traditional, fixed structure for the responsibilities of an Airbnb co-host. The exact tasks and requirements depend on the agreement between the two or more co-hosts. The potential pool of responsibilities includes everything that a DIY Airbnb host needs to do, listed above, or it might be something as limited as coordinating check-ins and check-outs and acting as an emergency contact.
In case you decide to enlist the help of a co-host Airbnb manager, it's crucial to agree on the responsibility distribution between the two of you and put this in writing.
The main factors for the success of this strategy is to find a dedicated, responsible, and capable co-host. Another factor is to sign a written agreement that serves as the basis for your partnership, allocates responsibilities, and specifies compensation or profit sharing terms.
With regards to costs, how much you need to pay a co-host short term rental property manager depends on their tasks and your agreement.
Who Should Use a Co-Host Airbnb Manager
Working with a co-host is the best option for:
- Part-time investors who need some support on the ground
- Remote Airbnb investors who'd benefit from presence in the market
- First-time Airbnb hosts who can learn from the skills and experience of the co-host
- Hosts with multiple listings who need an extra pair of hands
Pros and Cons of a Co-Host Airbnb Manager
Having a co-host to help you manage your short term rental property comes with some benefits and drawbacks.
The pros of working with an Airbnb co-host include:
- Flexible partnership model to get the best fit for each situation
- Having some say in the business
- Potential to expand your investment portfolio
- Retaining a major part of the Airbnb income
The cons of sharing Airbnb management responsibilities are:
- Loss of some control over business decisions
- Risks associated with finding a bad co-host
- Time commitment required
- Sharing the revenue with another person
- Cost of software tools
Finding someone to co-manage a vacation rental is a good option for investors who want to be actively engaged in the management of their property but don't have the required time or skills. Once again, getting hold of the right tech tools is crucial to speed up processes and improve performance.
Professional Airbnb Manager
A professional Airbnb property manager is an individual or an employee of a company who manages short term rental properties for a living. Some U.S. states even require professional Airbnb managers to hold a real estate license. In other cases, they take property management courses to acquire the necessary qualifications and skills. In all situations, they're experts on your local vacation rental market and professionals in the hospitality industry.
Responsibilities of Professional Airbnb Managers and How They Work
The duties of a professional vacation rental property manager can vary depending on their specialty and the needs of the property owner. Usually individual property managers are quite flexible and willing to adapt their business model to the exact requirements of the host, while large-scale companies are more rigid in the solutions that they provide.
Overall, professional management can include:
- Interior design and furnishing
- Meeting all legal and tax requirements to operate a short term rental business
- Listing and marketing
- Guest communication and management
- Housekeeping
- Maximizing revenue
- Property maintenance
- Reporting to the owner
Before finding someone to manage your Airbnb professionally, go through a diligent research and vetting process to ensure that you're hiring the right person who will take good care of your property and your guests. It's crucially important to sign a written agreement that clearly states the rights and responsibilities of each party as well as all fees.
With respect to cost, a professional manager charges between 10-45% of monthly revenue including all guest fees, depending on the services they provide, the property type and size, and the generated income.
Who Should Use a Professional Airbnb Manager
Hiring a professional to manage your second home is the right fit for:
- Those investing away from home
- Investors looking for passive income from real estate
- Part-time investors with another full-time job
- Owners with zero hospitality skills and experience
- Investors with large portfolios of multiple listings
Pros and Cons of a Professional Airbnb Manager
Using a professional to manage your short term rental has major advantages and disadvantages that need to be taken into consideration.
The pros of hiring a professional Airbnb manager or company include:
- Professional care for your property
- Potential performance boost
- Access to industry discounts for various services and products
- Potentially zero time involvement
- Passive income
- No need for additional staff and software
The cons of working with a professional include:
- Losing control over many/all management decisions
- Risk of hiring a bad property manager
- Paying hefty fees
Having a professional manage your vacation rental can be a great idea if you invest out of state, have multiple properties with complex needs, or simply want passive income from your second home. The key is to hire the right person or firm that will truly care for your property as if it's their own.
Local Airbnb Manager
Professional property managers fall into one of two main categories in terms of market operations, and the first one is local Airbnb managers. A local manager is an individual or a company that works only in a limited market, which can be a single state, county, city, or even neighborhood in large markets. This manager is an expert on the area, design requirements, seasonality trends, and everything else that goes into the successful management of short term rentals.
Responsibilities of Local Airbnb Managers and How They Work
The exact responsibilities of a local short term rental property manager depend on whether they provide half-service or full-service support, to be discussed shortly. They can offer all the services that go into the management of a property rented out on a short term basis or a selection of them.
In most cases, local property managers take care of:
- Ensuring the property is ready for listing
- Listing, distribution, and advertising
- Managing bookings
- Managing guests
- Preparing the property for guests
- Inspecting the rental
- Maintaining the home
- Collecting and remitting taxes
- Submitting regular financial and performance reports to the owner
Since this is a professional property manager, the same rules apply to this vacation rental management model as above. You have to find a reliable professional with strong experience in managing short term rentals in your local market. It's a good idea to talk to local hosts who have worked with your selected manager to confirm their professionalism and qualifications. In addition, make sure to sign a clear short term rental management agreement.
Fees range from 10% for half-service providers to 45% for high-end full-service managers.
Who Should Use a Local Airbnb Manager
Finding a local manager is the best option for:
- Part-time and beginner investors without experience in the STR and hospitality industries
- Those looking for passive investments
- Hosts with a number of listings in the same market (to benefit from discounts)
Pros and Cons of a Local Airbnb Manager
Hiring a local Airbnb property manager has some positives and negatives.
The pros of this vacation rental property management solution include:
- Access to local expertise
- Access to professional-level services
- Performance improvement
- Passive real estate investment strategy
- No need for tools and vendors
The cons of working with a local property manager are:
- Giving up control over your business
- Paying property management fees of up to 45% of revenue
- No possibility to use the same manager for multiple listings if they are located in different markets
In general, finding a local manager is recommended for the owners of a few listings within the same area or anyone else who'd like to earn passive income from real estate while benefiting from a more personalized approach targeted to local trends.
National Airbnb Manager
The second type of professional short term rental property managers is national. These are companies that operate through local branches in different states and cities across the U.S. Some of them work as a network of local managers united by the same franchise. They have knowledge of best practices in the vacation rental management industry at the company level, while local operators are also familiar with their respective market. They benefit from corporate governance and guarantee of meeting standards.
Some popular names of companies that manage Airbnbs across the U.S. include Summer, Awning, Vacasa, and SkyRun Vacation Rentals.
Responsibilities of National Airbnb Managers and How They Work
National Airbnb managers can be half-service or full-service property managers, which is the main factor determining their level of engagement. Many nationwide Airbnb management companies have proprietary data collection and analysis tools as well as their own app for communicating with and reporting to owners, so you might need to learn a new platform.
Common duties of national property managers include:
- Getting and maintaining properties ready for guests
- Marketing and advertising
- Calendar management
- Guest communication and management
- Housekeeping
- Coordinating preventive maintenance and repairs as needed
- Tax management
- Reporting to owners
When looking for the best company to manage your property, keep in mind that some of them require annual contracts which can be hard to get out of. Others work with monthly agreements so that owners can opt out in case they are not fully satisfied with the quality of services.
In the process of searching for a national Airbnb manager, you should check company websites, read customer reviews, and preferably talk to owners in your market who have worked with the company that you select. The level and quality of services of national companies can vary widely from one market to another, so it's important to vet the local branch.
Once again, national property managers typically charge a percentage of rental revenue that can be anything between 10% and 45%.
Who Should Use a National Airbnb Manager
National short term rental property managers are the best choice for:
- Investors with listings in multiple markets (to take advantage of discounted rates)
- Hosts who'd rather work with a large company than a small enterprise or an individual
- Passive income seekers
Pros and Cons of a National Airbnb Manager
Large vacation rental managers bring their own pluses and minuses.
The pros of hiring a national property manager for Airbnb comprise:
- Commitment to best practices and quality standards
- Corporate guidance and checks
- Ability to work with a single company in case you invest in different markets
- Passive income
The cons of working with a company that operates nationally are:
- Little to no control over your Airbnb business
- Potential lack of local expertise
- Less personalized services
- Significant management fees
- Need to learn how to use a new software for communication and tracking performance
Having a large, national company manage your short term rental usually works best for owners with multiple properties in different states and cities. Before diving in, explore your property management agreement in detail and make sure that all considerations are taken care of.
Virtual Airbnb Manager
Another type of property managers for Airbnb rentals are virtual service providers. These are companies that take care of the requirements of short term rental property management that can be done virtually or remotely. This mode of operations significantly limits their scope of work as a lot of things in hospitality need to be done in person.
Responsibilities of Virtual Airbnb Managers and How They Work
In most cases, virtual Airbnb managers are responsible for:
- Listing rentals on top websites and distributing across multiple booking channels
- Marketing and advertising including SEO, content, email, social media, and paid ads
- Dynamic pricing and revenue management
- Booking management
- Guest communication and support
- Check-in and check-out coordination (via smart locks)
- Tax collection and remittance
- Short term rental insurance including property damage and general liability
- Reporting to hosts
Meanwhile, Airbnb property owners or their on-the-ground team need to take care of housekeeping, emergency issues, and maintenance. This solution allows hosts to retain some control over their business but also requires more active engagement than hiring someone who does all the work.
Before you decide to work with a virtual property manager, it's a good idea to read online reviews of their work and to consult with hosts who have used similar services. It's important to know exactly what to expect, what quality you will receive, and how much you will have to pay.
In most cases, virtual Airbnb property managers charge 10-15% of monthly revenue.
Who Should Use a Virtual Airbnb Manager
Airbnb hosts who may benefit from the services of virtual managers include:
- Investors who have some free time or have already built an on-the-ground team for most services
- Hosts looking to automate and streamline many of their processes
- Owners who want to participate in the management of their property
- Investors with poor analytical and organizational skills
Pros and Cons of a Virtual Airbnb Manager
Hiring a virtual property manager can come with some major advantages and disadvantages.
The pros of having a virtual manager for your Airbnb include:
- Use of the latest technology to boost performance
- Automation of many processes and tasks
- Strong dependence on data
- Personal engagement in the management of your vacation rental
- Lower costs than full-service management
The cons of getting virtual help are:
- Only partial services
- Risk of overreliance on technology and automation
- Need to hire and coordinate a team of local vendors
- Monthly fees
In conclusion, short term rental investors who need help in streamlining their work and support in certain aspects can consider hiring a virtual manager for their property. This is not a good option for those searching for hands-off investments.
Full-Service Airbnb Manager
The most popular option among busy Airbnb investors is hiring a full-service short term rental property management team. This can be an individual or a company that provides comprehensive services and takes care of everything that's needed to operate a vacation rental property business. With this solution, investors can enjoy passive income, while the performance of their property gets professionally optimized.
Summer, the top-ranked full-service Airbnb management company in the U.S. market, does things differently from everyone else. The company applies strict selection criteria when deciding which properties to work with to ensure that it can provide top-notch services in each case that consistently exceeds host and guest expectations. Summer works with different types of short term rentals that make at least $50,000 in annual revenue. Summer-managed properties perform better than a minimum of 95% of comparable listings in each market. Meanwhile, fees are between 15% and 25% of monthly revenue excluding cleaning fees for comprehensive services.
Some other full-service Airbnb managers include Casago and Air Concierge.
Responsibilities of Full-Service Airbnb Managers and How They Work
The duties of full-service vacation rental property managers include:
- Design and furnishing (optional)
- Getting short term rental permits and licenses (optional)
- Setting up a smart home including Airbnb smart locks and wifi
- Staging and professional photography
- Listing and optimization
- Marketing and advertising
- Setting up a pricing strategy
- Revenue optimization
- Booking calendar management
- 24/7 guest support
- Host communication
- Cleaning, changing linens, and restocking supplies between guests
- Regular property inspections
- Maintenance arrangement and coordination
- Tax collection and remittance
- Financial reporting to the owner
When hiring a full-service Airbnb manager, you transfer all decisions and responsibilities to this manager, so it's an absolute must to choose the best service provider available in your market. Research different names, interview a few property managers, talk to local hosts, and carefully choose the one that makes the most sense for your property and your needs.
In terms of pricing, full-service Airbnb property managers charge between 25% and 45% of monthly rental income.
Who Should Use a Full-Service Airbnb Manager
Full-service short term rental property management is the right fit for:
- Those who invest away from home
- Those who have no experience in hospitality
- Investors with no free time
- Owners of multiple listings
- Hosts looking for optimized passive income
Pros and Cons of a Full-Service Airbnb Manager
Working with a full-service property manager is associated with considerable benefits and some potential drawbacks.
The pros of hiring a full-service manager for your short term rental include:
- No work for you
- Fully passive income
- Potential to optimize performance
- Access to comprehensive, professional services for hosts and guests
The cons of opting for full-service management are:
- No say in the management of your property
- Higher Airbnb management fees
Generally speaking, the full-service Airbnb property management solution is right for remote investors who have full-time jobs and do not want to be involved in their property business. The key to success is to hire a company that you can fully trust based on proven experience and performance.
Half-Service Airbnb Manager
Yet another option is to hire a half-service property manager. As opposed to full-service, half-service Airbnb management focuses on tasks and services that can be largely automated and performed remotely. This makes half-service managers similar to virtual managers though the former might be a bit more involved on the ground. In any case, hosts remain responsible for some duties which can be both good and bad, depending on your preferences.
Popular companies include Evolve and RedAwning.
Responsibilities of Half-Service Airbnb Managers and How They Work
The duties of half-service short term rental property managers concentrate on automation and streamlining and include:
- Listing creation and optimization
- Distribution and marketing
- Dynamic pricing
- Revenue optimization
- Guest communication
- Guest guides
- Check-in and check-out arrangement
- Guest review management
- Vacation rental insurance
- Tax collation and remittance
- Connecting owners with local vendors (optional)
When hiring a half-service vacation rental management company, you need to understand the exact responsibilities they will take over and what is left for you. You also have to decide whether you will do the remaining work on your own or hire a team of local contractors including cleaners and maintenance staff. Signing a written contract with the property manager is a must.
In terms of fees, this type of Airbnb managers usually charge 10-15% of monthly rental income.
Who Should Use a Half-Service Airbnb Manager
Half-service Airbnb managers are usually the best solution for:
- Investors who buy locally and need some help
- Hosts who'd like to boost results
- Remote investors with teams on the ground
- Owners who'd like to be personally engaged in business decisions and operations
Pros and Cons of a Half-Service Airbnb Manager
Half-service property management can come with some positives and negatives.
The pros of this model are:
- Splitting work and control
- Professional help in the management of your property
- Automation for processes and productivity
- Affordable fees
The cons of working with a half-service Airbnb property manager include:
- Some work left for owners
- Giving up some control
- Monthly fees
In a nutshell, half-service Airbnb property management is a feasible solution for those who invest close to home and need support in streamlining processes. This is not an option for investors who simply want to enjoy passive income.
Other Airbnb Management Models
While the solutions outlined above cover the most popular models of Airbnb management, there are still some other options left for owners.
Alternative Airbnb manager solutions include:
- Real estate agent: Some agents specialize in working with investors and are able to provide different services such as marketing, housekeeping, and maintenance. Usually these services are delivered via a team of local vendors.
- Landlord: If you practice Airbnb arbitrage, you might be able to get your landlord to help you manage your short term rental in exchange for a fee. They know their property and the local market so they might be better at finding necessary help than you.
- Virtual assistant: This is slightly different from working with a virtual Airbnb manager who usually specializes in services for short term rentals. However, you can find a virtual assistant on Fiverr or another similar platform who performs specific tasks assigned by you. They are likely to charge less than a virtual property manager but might need more guidance.
- Neighbor or family member: Without officially instating them as a co-host, you can get help from family or neighbors if you invest remotely or when you are out of town.
- Local university student: You can find a university student with good interpersonal and organizational skills to do things like welcoming guests, housekeeping, or simple maintenance jobs.
- Investment partner: If you buy properties with partners, you can split the property management work among yourselves.
- Local Airbnb management team: Some hosts build teams of local experts and service providers such as revenue managers, marketers, cleaners, and handymen. This is similar to hiring a professional property manager, but the main difference is that you have to coordinate the work of your team members.
- Software tools: If you decide to manage your Airbnb on your own, you can automate a lot of the work with the help of various tools such as an Airbnb channel manager, multi-calendar, unified inbox, automated messaging, dynamic pricing tool, and more.
Basically, when it comes to the management of your short term rental, you can get as traditional or as creative as you want. Finding the solution that fits your needs is possible as long as you outline your requirements and preferences, and put some effort into the initial research and vetting process.
Bottom Line
There are many different ways to manage your short term rental property, each with its own pros and cons. Vacation rental owners can choose between becoming a DIY host, finding a co-host, hiring a local or national half-service or full-service professional Airbnb manager, or building their own hybrid model. The key is to be familiar with your property and its needs, to know your preferences and capacities, and to choose the best option for your scenario.
