How to change PM?

Question

For those who have used a PM and changed PM, what questions did you ask to evaluate the new PM? What factors were most important? i This particular PM and property I have had for two years. The main issues are: 1. gross revenue has been less than half the projections the PM initially provided and what is on AirDNA, and 2. gross revenue has dropped 30% from last year to this year despite me investing over $125K in improvements (new pool, new fire pit, new landscaping, new dog yard). In fairness, that could be due to disruption from all of the construction.

Our current PM has done a good job maintaining the property, but more and more I find myself having to get involved in day to day issues. A simple example is that they called to tell me the hose was left on in the pool. I live 500 miles away from this property. All I knew to do was to call the pool company (who the PM introduced me to) to see if it was them. It was. They went and turned it off. Not a big deal, but now I am getting 8 to 10 of these types of calls a month.

John Arena · Answer

Thanks all.

Drew Sygit · Answer

@John Arena you may want to review your property management contract in detail to understand what services you hire them to perform.

We find that many STR PMCs are NOT really PMCs, but are Guest service companies.

Meaning they solely focus on finding guests and responding to their needs.

Most also cover cleanings between guests, but don't handle maintenance.

Jonathan Greene · Answer

I was thinking your current PM was doing fine until I got to the end. I think they are confused as to what management is, but it's better they let you know than just hand you bills that you didn't know about. Your problem is likely in the data you relied on for your expected return and their experience. If you invested 125k into the property and they told you it would gross X and they are 30% below X, why are they saying it's happening? What value are they providing? You might be better with an experienced co-host and Airbnb expert and a handyman with cleaning crew.

William Sing · Answer

Hi @John Arena,

It sounds like you're experiencing some common challenges with property management that might warrant exploring other options. Evaluating a new property manager (PM) can definitely feel daunting, especially when you're 500 miles away. Based on our experience, here are a few key questions that could help you evaluate a new PM:

• Revenue Management & Forecasting: How do they set realistic revenue expectations? Ask for their track record with properties similar to yours and how they navigate disruptions (like renovations) while maximizing occupancy and revenue.
• Communication & Problem Solving: How proactive are they in handling day-to-day issues without needing to involve you? It’s a good idea to get specific about how they plan to address maintenance or operational issues independently, so you’re not getting those 8-10 calls a month.
• Marketing Strategy: How do they keep your listing competitive on platforms like Airbnb, VRBO, and others? It’s also worth understanding how they adjust pricing to adapt to changing market conditions and seasonality. A good PM should be on top of this and not simply ride out the market shifts.
• Technology & Reporting: What tools do they use to monitor guest interactions, maintenance, and property performance? Ideally, they should offer you a dashboard or portal where you can easily track performance and minimize the need for back-and-forth communication.

In your case, where revenue has dropped despite heavy investment, the marketing and revenue management piece feels particularly critical. A new pool and "instagramable" design updates should increase demand and pricing, but it’s all about how that’s being communicated to potential guests. The new PM should be focused on leveraging these improvements to your advantage.

Hope this helps! And remember, sometimes a new set of eyes can make all the difference.