Short Term Rental Property Management: Ultimate Guide

Short term rental property management can easily turn into a full-time job, especially if you own a number of properties. Many investors turn to professional short term rental property managers who make real estate investing a passive strategy and allow for investing out of state, and may also boost the performance of the property and increase revenue.

This guide covers everything that investors need to know about short term rental property management, from what it is and how it works, all the way to how much it costs and what the best companies in the industry are.

What Short Term Rental Property Management Is

Short term rental property management comprises all the tasks and responsibilities that an owner, a host, or a professional need to complete in order to operate a successful Airbnb business. Short term rental properties - or vacation rental properties and Airbnb properties - are homes that are rented out on a nightly or sometimes weekly basis. They are different from long term rental properties that are rented out on a monthly or annual basis.

Managing a vacation rental starts with getting the property ready for listing and welcoming guests, which includes designing and furnishing the space, securing a smart and secure home, getting all required licenses and permits, and purchasing a short term rental insurance.

It continues with listing the rental, marketing it to the widest audience possible, managing pricing and revenue, supporting guests, inspecting the property, and maintaining it. Finally, it also covers collecting and remitting taxes, analyzing performance, and always looking for ways to make management more efficient and performance better.

This list of tasks is quite different from the work of long term rental property managers. Being a short term rental property manager is a very dynamic job that requires daily interventions and coordination of the work of multiple team members to achieve guest satisfaction, to reach the results that hosts expect, and to maximize your own commission.

There are two broad types of short term rental property management: half-service and full-service. Following are the main differences between them.

Full-Service Short Term Rental Property Managers

Full-service short term rental property management is the more popular option. This refers to the end-to-end management of a vacation rental property by a professional so that the owner does not have to interfere. In a way, a full-service Airbnb manager acts as the owner representative in front of guests, authorities, and contractors and as the connection between guests and hosts.

This solution allows investors to invest passively in real estate, without having previous experience, while retaining a full-time job, and choosing profitable locations away from home. Moreover, with the help of full-service management, investors can grow their portfolios without being overwhelmed with day-to-day tasks.

Popular names in the full-service short term rental property management industry include Summer, Vacasa, Casago, Air Concierge, and SkyRun Vacation Rentals.

Half-Service Short Term Rental Property Managers

Half-service short term rental property management is an alternative to the full-service option that helps owners streamline and automate their work without giving up control over their vacation rental business. This approach focuses on putting the most time-consuming property management tasks, such as marketing and guest communication, on auto-pilot.

Typically, half-service vacation rental management works best for investors who own a property close to home, have free time, and have some experience in hospitality.

The best-known half-service short term rental property managers are Evolve and RedAwning.

Common Short Term Rental Management Services

First, we start with the services that are covered by the vast majority of full-service property managers and by many half-service Airbnb managers. They form the core of the vacation rental property management business, and no short term rental can operate without them.

The most common services provided by short term rental property managers:

On the Ground Services Provided by Airbnb Property Managers

Ensuring the property is ready: Property management companies need to check if the property is ready to operate as a vacation rental and welcome its first guests before being listed for renting.
Professional photography: Most managers have in-staff photographers or partner with real estate photography companies to provide professional photos of the interior and the exterior of the property. High-quality photos are key in vacation rental marketing as they play a crucial role in the Airbnb SEO algorithm and in potential guest choices.
Housekeeping: Property management teams clean, change and wash towels and sheets, and restock guest supplies between stays. Someone also checks that everything is up to standard before the next guest arrives.
Property inspections: Regular property inspections, conducted usually twice a year at least, check the condition of the rental. In this way, issues get figured out right away and fixed before turning into major repairs that cost thousands of dollars.
Preventive maintenance: The best property managers apply preventive maintenance to avoid future problems with the property.
Emergency repairs: Vacation rental management companies address emergency issues related to electricity, plumbing, and others. Usually they have a team that can troubleshoot the problem, contact a local contractor, and supervise their work.

Behind the Scenes Services Provided by Airbnb Property Managers

Creating a listing: Short term rental managers create customized listings on their website and on top booking channels. They include a listing title and a listing description featuring popular keywords, high-quality photos, and pricing among other critical details.
Listing optimization: Each listing gets optimized for its platform and according to the performance of local comps. Property managers ensure that listings are always updated and accurate.
Listing distribution: Airbnb managers distribute listings on multiple short term rental websites and apply various marketing strategies to get as many eyes on them as possible.
Marketing and advertising: Short term rental marketing and advertising includes Airbnb SEO, Google SEO, content marketing, social media marketing, emailing listings to the property manager’s list of repeat customers, and paid ads on Google and social media.
Dynamic pricing: Vacation rental managers apply dynamic rental pricing that is based on their proprietary data or third-party short term rental data. The pricing strategy takes this approach to achieve the best balance between nightly rates and occupancy.
Cost optimization: Property managers benefit from industry discounts which get transferred to the property and the owner to lower the cost of operating a short term rental business. This helps boost cash flow and profit.
Revenue management: It is the prime concern of property managers to increase revenue via optimal daily rates, strong Airbnb occupancy rate, and cost savings. Managers benefit through higher commissions and hosts through higher income.

Guest Experience Services Provided by Airbnb Property Managers

Guest screening: The best short term rental property management companies check guests before approving their bookings to ensure that they will not cause more property damage and other problems than expected.
Around-the-clock guest communication and support: Property managers employ both proactive and reactive communication strategies. They send all information that guests need prior to their stay, and remain available 24/7 for any guest questions and concerns before, during, and after bookings.
Booking calendar management: Airbnb managers make sure that booking calendars and reservations are synced across listing platforms to avoid double bookings and other issues.
Check-in and check-out coordination: They provide guests with all the information that they need to smoothly enter and exit the property. Some property managers even welcome guests in person, but this is typically done by local, small-scale companies.
Guest review management: Property managers send follow-up emails a few days after a guest checks out to ask if everything was alright and to ask for a review. Some property managers even review guests to encourage them to review the listing.

Additional Short Term Rental Management Services

Besides the core services listed above, many short term rental property management companies offer extra services. In some cases, these are included in the standard package, while in other cases they are selected and paid separately.

Such additional services provided by short term rental property managers include:

Interior design and furnishing: Some property managers specialize in short term rental design and furnishing services that are specifically tailored to guest expectations and needs, local market demands, and property specifications. Usually services can be partial (refreshing an already furnished property and adding more decor) or full (starting from scratch) and help boost the performance of the vacation home.
Smart home device installation: Most managers install smart locks and sometimes branded wifi routers and networks to ensure the safety of guests and properties and to provide remote check-ins and check-outs.
Airbnb amenity design and installation: Top Airbnb managers help owners choose the most appropriate amenities that will have the biggest impact on revenue, plan their location and features, and get them installed. This includes both indoor amenities (movie theaters, game rooms, etc.) and outdoor amenities (pools, hot tubs, etc.).
Short term rental licenses and permits: The best service providers help owners get and renew the necessary permits and licenses to ensure that the vacation rental business is on the right side of the law. Each US market has different, sometimes very complicated short term rental laws and regulations, and investors without legal background can easily be at a loss.
Vacation rental insurance: Certain property managers partner with the best Airbnb insurance providers to offer insurance policies targeting the specific needs of short term rental properties. Typically this includes property damage, general liability, and loss of rental income.
Tax collection and remittance: Some half-service and full-service short term rental managers collect industry-specific taxes from the fees paid by guests and remit them to the host. Such taxes include transient occupancy tax (TOT), lodging tax, sales tax, and others.
Offering Airbnb experiences: Sometimes Airbnb management teams go above and beyond to provide concierge services and experiences to guests. This helps boost rankings on listing platforms, attract more reservations, and generate more positive reviews. Some common examples are local tours, access to tourist attractions, food or wine tasting, cooking lessons, and local art courses.
Amenity maintenance: The best managers perform regular maintenance of hot tubs, pools, and other amenities to guarantee their smooth operations.
Landscaping: Some property management companies take care of landscaping through their own team or contractors. After all, how the property looks from the outside is the first impression that guests get.

Services Not Covered by Short Term Rental Property Managers

Finally, there are certain tasks that are not performed even by the top names in the industry, so they remain the responsibility of the owner.

Services not covered by STR property managers include:

Major renovations: While some Airbnb property managers perform interior design and furnishing services, in general they don’t get involved in large-scale remodeling and renovation projects. Usually this kind of work is handled by short term rental design, furnishing, and renovation companies like STRCribs.
Paying utilities: Utilities remain at the name of the property owner, and it is their responsibility to pay the bills. The good news is that most utility bills can be paid automatically with the proper setup.
Paying various taxes: While some property managers might collect and remit TOT, they do not deal with property tax, rental income tax, and other business taxes.
Paying mortgage: Mortgage payments remain the responsibility of the host.

How Much Short Term Rental Property Management Costs

Most property managers run a commission-based pricing model, meaning that they charge a percentage of the monthly income. The standard range of short term rental property management fees is between 25% and 40% of monthly revenue, including cleaning fees and other extra fees. However, there are sizable variations that depend on multiple factors.

The main determinants of the total cost include:

Management model: Half-service costs less than full-service.
Company: Each company has its own pricing model and structure.
Market: More luxury markets might require higher fees to offer the same level of service.
Property type and size: Larger, luxury properties frequently benefit from discounted rates as they generate more revenue.
Average stay length: Some companies charge lower fees for extended stays due to the decreased marketing expenses and the less frequent cleaning, laundry, and restocking.
Monthly income: The more money a property makes, the lower the commission, on average.
Length of the property management agreement: Annual contracts usually offer discounted rates compared to monthly contracts.
Basic services: The more services a property manager offers as part of their standard package, the higher their rates.
Additional services: Extra services inflate the total cost of short term rental management.

In most cases, property managers charge a monthly fee as a share of revenue and additional fees for extra services that might be a set amount or a percentage.

Monthly Fees

The monthly Airbnb management fee covers the day-to-day responsibilities of the manager that are needed to run the business. The specific tasks vary from one company to another, which drives different rates too.

Most full-service short term rental property managers charge 25-40% of monthly income, with some exceptions. For example, Summer fees start at only 20% of revenue excluding cleaning fees for comprehensive services. Meanwhile, hosts report that Vacasa fees exceed 40% in some locations.

At the same time, half-service property managers, such as Evolve and RedAwning, charge an average of 10% of revenue though variations are possible to account for differences in services.

Additional Short Term Rental Property Manager Costs

In addition to monthly fees, many vacation rental management companies charge extra fees for optional, yet important services.

The most common additional fees include:

Onboarding fees: Rarely property managers charge a one-time onboarding fee equivalent to a few hundred dollars.
Interior design and furnishing: This starts at around $8,000 for studios and can exceed $50,0000 for 4-bedroom houses.
Smart home devices: Some companies provide smart locks and smart wifi routers for free, while others charge a one-time installation fee.
Linen provision and laundry: Companies like Vacasa charge separately for providing the necessary towels and sheets and washing them between guests.
Airbnb insurance: This is paid separately as some properties already have a short term rental coverage, and the terms can vary widely for those that don’t.
Amenity maintenance: While it is an absolute must to keep amenities in top shape to continue attracting guests and generating 5-star reviews, some property managers ask for an additional fee to do that.
Repairs and fixes: When managers need to arrange and coordinate emergency repair works, they naturally charge the owner for the cost. Usually property managers can approve amounts up to $200 or so on their own, while they need the authorization of the investors for larger sums.
Early-termination fees: A few Airbnb managers impose hefty fees for canceling management agreements before the deadline. Notoriously, Air Concierge has a $7,500 early-termination fee for 1-year contracts.

Before deciding to work with a certain short term rental property manager, an owner needs to understand what services are included in the standard package and what services are offered additionally as well as the exact fees associated with both. It’s a must to have this information in writing to avoid unpleasant surprises.

In terms of fee payment, typically property managers collect booking revenue and other fees from guests on behalf of hosts. At the end of the month, they calculate and withhold their fees and transfer the owner payout to the host.

Short Term Rental Property Management Restrictions

While using a professional short term rental property manager makes things easier for hosts, it also brings a number of restrictions and limitations that owners need to comply with.

The most common short term rental property management restrictions include:

Limited personal use: Short term rental property management companies usually allow owners to block their property for personal use for only up to a certain number of days per calendar year, in most cases 60 days. Moreover, hosts need to pay the cleaning fee after every time they use their property.
Restrictions on bringing reservations from other sources: Some property managers do not allow hosts to bring guests from other sources different from their own channels.
No control over most business decisions: While hosts can ask about and try to influence things like listing, pricing, and marketing, they lose control over the main decisions regarding their investment and its performance.
No say in the choice of smart lock: Most companies use their preferred smart lock brands and models without asking owners about their preferences.
Tax preparation: Property managers do not prepare taxes on behalf of rental owners.
Mortgage payments: Companies do not make mortgage payments on behalf of property owners.

Pros and Cons of Short Term Rental Property Management

Having a professional manage your Airbnb rental property is very different from managing it yourself. There are major advantages and disadvantages to be considered when choosing the right short term rental management solution.

Pros of Hiring a Short Term Rental Property Manager

The most important benefits of professional property management include:

Passive investment and passive income
Possibility to own an entire rental property portfolio
Ability to invest in remote markets with more affordable property prices and better ROI metrics
Access to professional hospitality services
Access to a network of local vetted vendors and contractors
Access to an Airbnb Superhost account
Better daily rates
Higher occupancy rates
Revenue growth
Cost savings (due to access to industry discounts)
More diverse marketing options
Ability to take time off and go on vacation
Ability to use your own property (albeit somewhat restricted)

Cons of Working with a Short Term Rental Property Manager

The most considerable drawbacks of hiring an Airbnb manager comprise:

Loss of control over major business decisions
Loss of significant share of revenue (sometimes exceeding 40%)
Possibly low-quality services resulting in underperformance
Competing with other rentals over the attention and the focus of the property manager
Restricted use of your property for personal reasons
Difficulty canceling the short term rental property management agreement

Finding a Short Term Rental Manager

With so many options out there, finding the right short term rental property management company is not easy. Unfortunately, many industry actors promise the moon only to fall short of their promises as soon as they onboard a property.

That’s why hosts need to put extra care in selecting the best Airbnb manager for their property and their needs.

You can usually find the right STR manger in the following ways:

Consult with your real estate agent: If you’ve just bought an investment property to rent out on a short term basis, the first person to ask for recommendations on the top property manager should be your agent or broker. Most agents who work with investment properties have wide networks of various professionals, including vacation rental managers.
Search online: As a next step, you can do a simple Google search on the best short term rental property managers in your local market. You are likely to find multiple listicle-style articles that compare multiple options available to hosts in your location, outlining the services and fees and highlighting the pros and cons of each company.
Connect with local hosts: You should look for existing short term rental property owners that operate in your area. This can be done via online real estate investing forums, in-person real estate meet-ups, or simply asking around. Investors are usually happy to share their knowledge with beginners and to offer support to those who are now taking their first steps in the real estate business.
Check out local top-performing listings: You can also identify the listings with the highest average ratings and the most 5-star reviews on Airbnb and other booking platforms. Seeing the host will give you a good idea of the most successful property managers in the local market as Airbnb management companies list properties under their brand name to benefit from their Superhost status, multiple reviews, and strong ratings.

Once you’ve done proper research, you should shortlist 2-3 companies that seem to be the best short term rental property managers in your location. As a second step, you should study them in more detail to identify the one that best matches the needs of your property and yourself as an owner.

How to Choose a Short Term Rental Manager

You should try to set up an in-person interview with a representative of each company. Alternatively, aim to speak on the phone or have a video call, at the very least. That’s much more efficient than chatting online or exchanging emails.

In addition, you must insist on obtaining a copy of the short term rental property management contract which you can review carefully before formally hiring the company and signing the agreement.

The main aspects of the STR property management process to keep an eye on include:

What are the standard and additional services covered? It needs to be clear exactly what services your rental and you will receive from the property manager. You should aim for a bullet point list of all core services to be performed on a monthly basis as well as extra services to be provided continuously or as needed.
What are the monthly fees and additional costs? Moreover, you need to be perfectly clear on the fees that you will have to pay to the company and how they will be calculated and withheld. Make sure that the pricing structure is outlined in the written contract to avoid hidden fees down the road.
What is the projected revenue boost? You should compare the financial projections of each shortlisted company to choose the one that can improve your cash flow and profit the most. After all, you are looking to hire a short term rental property firm in order to make money from your investment.
What are the terms and duration of the contract? You need to understand the length of the agreement, the renewal conditions, and whether you can opt out if needed. It’s important to have the freedom to cancel services should you not be 100% satisfied with their quality without having to pay an unreasonable fee.
What is the size and market coverage of the company? You should check out whether the shortlisted property managers are local providers with small portfolios or nationwide firms with thousands of properties under management. Both come with pros and cons, so you should go for your personal preferences. Local property managers tend to provide more unique, boutique-style services which guests enjoy, while larger companies benefit from corporate standards and supervision.
What does the listing performance look like? You should go online and look for listings on Airbnb and other websites that are managed by your selected managers. Their overall ratings, the number of positive reviews, and the overall quality of the listings will tell you a lot about the trustworthiness of the company that manages them.
What do customer reviews look like? Another thing to do is to find out the average ratings of these companies on third-party websites like BBB and Trustpilot and also read through individual reviews by both hosts and guests. In this way, you can see whether they keep the promises they make on their website and deliver high-quality services.
What is the feedback from local hosts? Once again, local short term rental property owners are a valuable source of information as they can tell you about their experiences with these vacation rental managers.
Are other customers available to talk? You should ask the companies to connect you with existing customers so that you can ask about their experiences directly. If a property manager is hesitant to put you in touch with hosts, that’s a big red flag.
What is the value for money? Finally, you should aim to select the Airbnb property manager that offers the best value for money as the result of the most comprehensive services at affordable rates.

Best Short Term Rental Management Companies

Managing short term rental properties requires keeping track of many complex tasks and duties that are executed best when managed by a professional. We’ve compiled this list of the best Airbnb property management companies based on, among other factors, operational excellence, services offered, and value for money.

The best Airbnb property management companies in the US market include:

Summer

Summer is the top-ranked short term rental property management company across the US market as it delivers truly full-service management at fees that start at only 20% of booking revenue, exclusive of cleaning fees. As a result of its thorough operations, Summer-managed properties perform better than 95% or more of comps in each market.

Summer services include everything from interior design and furnishing, through listing and revenue management, to specialized insurance and maintenance. The cost of design and furnishing - headed by a New York-based interior designer with 10+ years in residential and commercial design - starts at $10,000 and is determined by the property size, the number of rooms, the quality of furniture, and the level of service.

Summer has the capacity to operate short term rentals nationwide, and the company selects locations where it can guarantee the expected excellence. Moreover, the property manager has strict selection criteria so that it works only with rentals where it can consistently exceed guest and host expectations. Only short term rentals that generate a minimum of $50,000 in annual revenue might qualify.

Vacasa

Vacasa is the largest short term rental property manager in North America. While it’s known for its full-service management, the company offers partial services too. It also works with long term rentals, but Airbnb management remains at the core of its operations.

Vacasa does most of the tasks needed to run a vacation rental business, but some services - such as the linen program and property protection - are charged additionally. Vacasa does not help with design, furnishing, and amenity installation.

Vacasa property management fees depend on the market and the property and are not disclosed on the company website. Reviews by owners reveal that they are generally between 30% and 40% but sometimes even higher.

Awning

Awning is another short term rental property management company that also works with some long term rentals. The company has the capacity to offer generally comprehensive services.

Awning property management covers diverse services, including design, furnishing, and insurance. One red flag though is the small number of online reviews by customers to double check the company reputation.

In terms of cost, Awning fees start at 10% of revenue, but this covers only partial services.

Evolve

Evolve is the best-known half-service vacation rental manager in the US. They help hosts who want to remain engaged in the management of their short term rentals automate tasks in order to save time and improve performance.

Evolve focuses on things like listing, marketing, dynamic pricing, guest support, managing reviews, and collecting and remitting taxes. The company can connect hosts with local small businesses that offer additional services, such housekeeping and maintenance.

Evolve charges a universal fee of 12.5% of monthly income.

Short Term Rental Management FAQs

What do short term rental property managers do?

Short term rental property managers take care of vacation rentals instead of owners. They perform all day-to-day tasks that are needed to operate an Airbnb business. These include but are not limited to listing, daily pricing, marketing, supporting guests, cleaning, restocking, and maintaining the home.

What is full-service short term rental property management?

Full-service short term rental property management refers to an Airbnb management model that provides all the services that such a property requires. It allows owners to sit back, relax, and enjoy passive income.

What are the best short term rental property management companies?

The best short term rental property management companies are those that offer the best value for money. Summer is the top Airbnb manager in the US market as it provides full-service management at industry-low rates.

How much are short term rental property management fees?

Full-service fees typically range between 25% and 40%, while half-services fees are around 10% of monthly revenue, on average. Rates might differ based on location, property size, rental income, and scope of services. Additionally, some property managers impose extra fees for additional services.

Should I hire a short term rental property manager?

Whether you should hire a professional manager or manage your property yourself depends on a few factors that include the location of your investment compared to where you live, your time availability, experience, skills, and preferences. If you invest close to home and have a part-time job, you can consider being a DIY Airbnb host. If, alternatively, you invest remotely or have a 9-to-5 job, you should probably work with a property management company.

How do I find the best short term rental property management company?

Finding the top property manager is a multiple-step process that requires diligent research and detailed analysis. You should look for a company that is reliable, has a strong reputation, offers the services you need, and charges reasonable fees.

Bottom Line

Professional short term rental property management came about for a reason: It allows investors to seek after profitable opportunities in remote markets, to keep their full-time job, and to make money from real estate with no previous experience and skills.

However, the industry is as diverse as it gets, and not all Airbnb managers are the same. When selecting the best company to hire, property owners should focus on the provided services, the associated fees, the performance of properties managed by the firm, and the reviews of existing and past customers.