Many vacation rental investors resort to professional help for the management of their properties in order to save time, boost performance, and make remote investing possible. When choosing the most appropriate model for their needs, hosts are faced with two main styles of management: half service vs full service Airbnb management.
What Half Service Airbnb Management Is
Half service Airbnb management refers to a professional short term rental property management model that helps hosts automate, streamline, and improve the most time-consuming and tedious aspects of owning and running an Airbnb business.
At the same time, the owner remains involved in the management process and retains control over the operations, development, and growth of their business.
Typical Customers for Half Service Airbnb Management
The half service management of Airbnb properties is suitable for those who invest close to home, who have some free time, who have experience in hospitality or at least possess the necessary skills to deal with different guests and vendors, and who would like to participate in the decisions and processes concerning their vacation rental.
Before opting for this style of professional management, it’s important for owners to understand that they would need to allocate time to their property (though less time than DIY Airbnb hosts) and perform various tasks, mostly related to getting their rental ready for listing, coordinating housekeeping responsibilities, inspecting the property, and maintaining it.
Thus, half service Airbnb management is not the ideal option for investors who are hoping for passive income from real estate. It’s also not a good choice for those who invest away from home as it might require significant travel to the property to ensure that everything is going as expected.
Pricing for Half Service Airbnb Management
Half service Airbnb property managers typically charge between 10% and 15% of monthly revenue including cleaning fees. While this sounds like a very reasonable and affordable price, it’s important to remember that hosts need to be actively involved in the management of their properties as services are only partial.
Moreover, some half service managers might charge additional fees for extra services that are not included in the standard package.
Services by Half Service Airbnb Management
Typical services included in the half service management of vacation rental properties include:
- Listing and distribution on major booking channels like Airbnb, Vrbo, and Booking.com as well as on more niche websites such as Hopper, Homes & Villas by Marriott International, and Misterb&b
- Continuous listing optimization for Airbnb SEO
- Professional photography
- Airbnb dynamic pricing and revenue management
- Marketing and advertising including content and SEO, social media, email, and paid ads
- Around-the-clock guest communication and support
- Reservation management
- Check-in and check-out coordination via the best Airbnb smart locks
- Guest review collection and management
- Tax collection and remittance to owners
- Property damage and general liability protection
Meanwhile, short term rental managers who provide only partial services do not offer:
- Interior design and furnishing
- Help with short term rental licenses and permits
- Housekeeping, though some offer help in finding cleaning services
- Regular inspections
- Maintenance and repairs coordination
As you can see from the list of missing services above, with half service Airbnb management, there’s plenty that’s left to the owner. That’s why this option is viable for those who don’t mind being active in the management of their property and who have the necessary time and skills.
Popular Half Service Airbnb Management Companies
The main half service providers in the Airbnb management industry are:
- Evolve: Evolve helps more than 30,000 hosts whose properties are located in hundreds of markets across the US. The company offers the main services expected from a half service Airbnb manager and can connect owners with local small businesses that provide cleaning, restocking, inspection, and maintenance services. Evolve charges a fee of 10% of rental revenue for the Core plan and 15% for the Plus plan that offers a suite of extra tools on top of what’s included in Core.
- RedAwning: RedAwning works with over 20,000 short term rentals in multiple areas of the US market focusing on beaches, mountain and ski resorts, large cities, and luxury destinations. They provide all basic services in addition to helping owners build and launch their own vacation rental website for direct bookings. RedAwning partners with PriceLabs for dynamic pricing and with Turno for cleaner management. The property manager takes a fee equivalent to 10% of bookings.
All in all, half service management helps Airbnb hosts save a lot of time in the day-to-day tasks and operations while also allowing them to increase bookings and enhance revenue through dynamic pricing, professional marketing, and faster communication.
That’s why it’s a great option for owners who would like to be in control of the management of their property and who would like to keep a bigger share of revenue to themselves but who don’t mind doing some of the legwork.
What Full Service Airbnb Management Is
Full service Airbnb management is the professional management of short term rental properties by a third-party company that covers everything that’s needed for the successful operations of a vacation rental business.
Unlike half service managers, full service managers take full control over all processes and tasks so that investors can enjoy passive income and optimized performance. From the point of view of owners, this passive strategy comes with loss of control over Airbnb business operations.
Typical Customers for Full Service Airbnb Management
Full service Airbnb property management is ideal for different types of hosts including those who own properties out of state, those who don’t have qualifications and don’t desire to work in the hospitality business, those who have a full-time job and limited time availability, and those who would like to earn passive income from their real estate investments.
This approach allows investors to boost profit as in many cases the best short term rental markets are not where one lives, and with full service management you can easily invest a few miles away from home.
Airbnb hosts who consider this option should take into consideration the fact that they will have only limited control over their vacation rental property. Most day-to-day decisions and long-term strategies will be decided on and implemented by the property manager. Having said that, the best companies in the industry align their strategies with the priorities and the expectations of the property owners.
Pricing for Full Service Airbnb Management
Typically full service Airbnb property managers charge between 25% and 40% of monthly rental income, but there are fees outside this range as well. The exact rate usually depends on the market, the property type, the provided services, the monthly rate, and the Airbnb management agreement duration.
This means that owners need to part with a significant portion of their revenue, but in exchange they receive comprehensive management, passive income, and improved performance which means that the actual cash flow might remain the same or even go up.
In addition to the monthly management fee, sometimes hosts need to pay extra fees for additional services such as design and furnishing, professional photography, linen provision and laundry, amenity maintenance, and Airbnb insurance. The range of these can vary widely.
Some companies charge onboarding fees and early-termination fees though that’s not the norm in the short term rental management industry.
Services by Full Service Airbnb Management
The work conducted by full service vacation rental management companies aims to take over all necessary tasks and responsibilities.
The services provided by full service Airbnb management companies include:
- Interior design and furnishing (not always)
- Getting properties ready for listing and welcoming guests
- Smart router and smart lock installation (not always)
- Legal support for licensing and permitting (not always)
- Professional photography services
- Access to short term rental insurance, usually through a partnership with an insurance company (not always)
- Listing creation, optimization, and distribution on major and minor short term rental websites
- Marketing and advertising on the company website and using a wide range of digital strategies
- Dynamic pricing for revenue optimization
- 24/7 guest services and communication before, during, and after stays
- Guest screening
- Check-in and check-out coordination
- Booking management
- Cleaning, laundry, and restocking supplies between guests
- Landscaping and lawn, hot tub, and pool maintenance (not always)
- Inspecting properties
- Identifying, coordinating, and checking maintenance works
- Lodging tax collection and remittance to owners
- Accounting support
- Financial reporting
The exact standard and additional services vary from one company to another. Thus, owners need to get a clear understanding of what they will receive and how much they will need to pay before deciding on an Airbnb manager.
Popular Full Service Airbnb Management Companies
The best Airbnb management companies in the US market are:
- Summer: Summer is the top-ranked full service vacation rental management company that covers everything from design and furnishing, all the way to insurance and maintenance. Summer-managed properties outperform at least 95% of comps in each market. Summer fees start at only 20% of booking revenue excluding cleaning fees, with no additional charges. Interior design and furnishing services start at $10,000.
- Vacasa: Vacasa is the largest short term rental management company in North America, working with over 44,000 properties in 400 destinations. Vacasa aims to offer end-to-end management, with optional services charged separately. Vacasa fees are not specified as quotes are custom. In their reviews, hosts who have worked with Vacasa discuss rates that are consistently above 25% and sometimes reach 45% of monthly revenue.
- Casago: Casago manages around 5,000 vacation rentals in 60 popular destinations. Services are relatively comprehensive but do not include design, furnishing, HVAC maintenance, pest control, snow removal, and annual maintenance for garage doors, windows, and gutters. The company does not offer any information about the pricing structure before analyzing a property.
- Air Concierge: Air Concierge offers end-to-end management of Airbnbs rented out on a nightly basis as well as for 30, 60, 90, or more days at a time. Air Concierge covers most services expected from a full service provider with the exception of cleaning and maintenance. The fee ranges between 10% and 25%, depending on the contract duration, the stay duration, and the property type, as well as an onboarding fee and a substantial early-termination fee, reaching $7,500 for 1-year agreements.
- SkyRun Vacation Rentals: SkyRun Vacation Rentals is a full service short term rental manager present in multiple cities in 15 US states. The company works with small and large rentals that cater to different types of guests. The main services missing from the company portfolio are design and furnishing, tax collection and remittance, and insurance. Pricing is customizable with no typical range suggested by SkyRun.
Full service management allows Airbnb hosts to make money from real estate passively while resting assured that their property is in the hands of professionals, which leads to better performance and more revenue. That’s why this is such a popular option among beginner and part-time investors as well as investors with multiple properties.
Differences Between Full Service and Half Service Airbnb Management
While both types of short term rental property managers aim to help hosts earn more income in an easier way, there exist some significant distinctions between the two models.
The main differences between full service vs half service Airbnb management include:
Host responsibilities
Half service management allows hosts to manage their properties more effectively but does not eliminate the need for them to be involved, unlike full service property management. The former automates tasks and streamlines processes, while the latter takes over the bulk of responsibilities from owners.
For instance, with companies like Evolve and RedAwning, investors still need to get their properties ready for listing, obtain and regularly renew licenses and permits, find housekeeping solutions, and figure out property maintenance. With Summer, Vacasa, and Casago, owners can largely lay back and enjoy their passive income.
Host control
When hiring a half service manager, the owner remains in charge of their business, while they lose control over it when working with a full service Airbnb manager.
With Evolve and RedAwning, hosts decide who cleans their property, what supplies are offered, and what property fixes and improvements get prioritized.
With SkyRun and Casago, rentals are prepared between guests and maintained as deemed necessary by the company.
At the same time, Summer - a full service Airbnb management company - makes sure that all work is aligned with host requirements and their expectations are even exceeded.
Fees
Airbnb management fees are lower for half service providers that charge 10-15% of monthly revenue. However, hosts still need to account for additional services like housekeeping and maintenance, so the rates become comparable to the fees charged by full service managers. Among full service management companies, prices are very different. Summer fees start at 20% of booking revenue, while Vacasa fees sometimes go above 45%.
Results
All in all, full service Airbnb management companies are better equipped to significantly improve property performance. They have more control over processes and can apply professional hospitality services in all aspects.
For example, Evolve helps owners earn an average of 18% more revenue, while Summer makes sure that rentals perform better than a minimum of 95% of similar listings in each market.
Analysis of the key differences between the two styles of managing short term rentals can help a host find the right solution for their needs.
Pros and Cons of Half Service Airbnb Management
The half service management of short term rentals comes with important advantages and disadvantages that hosts need to be aware of when deciding if this is the right strategy for them.
The main benefits of hiring a half service Airbnb manager over a full service one include:
- Business operations automation and organization
- Time savings
- Boosted performance
- Higher revenue
- Control over business decisions and growth
- Lower management fees
- Keeping more of the monthly income
The most considerable drawbacks of half service property management comprise:
- Need to be actively involved on a regular basis
- Basic hospitality skills required
- Inability to invest away from home
- Sharing revenue with the manager
Looking at the pros and cons of this model, it could be a good fit for hosts who own one or few properties, do not work a 9-to-5 job, invest nearby, and want to retain control over their Airbnb business.
Pros and Cons of Full Service Airbnb Management
End-to-end Airbnb management offers major pluses as well as some minuses. That’s why owners need to carefully consider this strategy before opting in.
The most important advantages of full service management are:
- Passive income
- No personal involvement in day-to-day operations
- Improved performance
- Increased monthly income
- Opportunity to invest in any market
- Ability to scale up
- No need for specific skills and experiences
The biggest disadvantages of end-to-end short term rental management include:
- Lack of control over business processes
- Risk of ending up with an incompetent property manager
- Giving up a major part of revenue
- Need to perform certain tasks, such as filing taxes
Comparing the pros and cons of full service vacation rental managers shows that this is a viable option for the owners of large rental portfolios, remote investors, hosts with full time jobs, and anyone else who is searching for passive income in real estate.
Bottom Line
A comparison between half service vs full service Airbnb management shows that both are viable and beneficial options for different types of investors. Those who are happy with running their own short term rental business but need help in streamlining and facilitating processes should consider the half service model. Meanwhile, hosts who don’t mind giving up control in exchange for passive income should check out the top vacation rental management companies in their market.
