How Can a Management Company Succeed in Managing AirBnB Rentals?
With the upward trending of AirBNB and VRBO, I am looking into finding out more about how a management company can turn the management of those types of units, and those types of investors, into a viable business model.
We currently manage 750+ single family units in the San Antonio, TX market and 200+ units in West Palm Beach, FL. We have created numerous management plans that go from top to bottom - but focused on the traditional owner of 1+ single family homes renting them out to long term tenants. If we can figure out and perfect the flow of operations (and the pitfalls) - we can possibly create a program to manage units designated for AirBnB and VRBO.
Questions:
1) What would a management company charge an owner / investor to manage the home for them?
2) Finding a long term monthly estimate in our market is fairly easy, but what pricing model do you use for a unit like AirBnB and VRBO where the turnover is constant? In other words, what mark up is expected? (Assumption is you price it in line with other AirBnB's)
EXAMPLE: If a home goes for $1,500 per month as a "regular" rental ($50 / day) - what should that be for a weekend rental rate per day?
3) The staffing overhead to manage such constant turnover of units has to be tremendous. When my family and I stayed in a VRBO two years ago in Ruidoso, NM - the company there was johnny on the spot awesome with service. That level of service eats up a lot of time, and is very stressful long term for the company. Constant churn = constant ways to screw up. If outsourced with internal staffing - expensive!
EXAMPLE 2: Your reliable maid service of several years fails to show up to clean a quick turnover rental home. New VRBO resident shows up to a dirty unit. Uh oh! Owner gets wind - fires management company. Imagine renting a home out 5 times a month for 3 days each - for 12 months. That is 60 turnovers!!! Clearly this would cause a lot of stress on the staff.
Would love to hear some dialogue or be pointed in the right direction as to where this concept of managing VRBO's and AirBnB rentals for 3rd party owners is working - and how it works!
Take care!
