How do I make my short term rental as passive as possible?

Most Popular Reply

Sergey A. Petrov
Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes
4y

It is either passive or active. You either continue putting in the hours or pay someone for their hours. Anything in between fails. Nordstrom (high end) lives on, Wal-Mart (low end) lives on, JC Penney and Sears with their “in the middle” business model have failed 

5Reply
See this reply in the discussion

34 Replies

Jump to latestLatest
  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    4y

    You’ve got to have a pretty good idea having gotten to 5? 

    A good PMS like hospitable, Pricelabs, resort clean, let it rip! 

    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    4Reply
  • Sami Ahmad
    Member since 2022 · 2 posts · 0 votes
    4y

    is hosttools a good PMS?

    0Reply
  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    4y

    There are 120 short term PMS. My opinion at this point they’re all pretty dang similar. 

    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    1Reply
  • Leslie Anne Morris
    Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    4y

    Many folks who self manage begin to hire help. Whether that be  virtual assistant or full on team members that’s fairly common. 

    0Reply
  • Jayson Cain
    Lender · Manhattan Beach, CA · Member since 2017 · 423 posts · 268 votes
    4y

    Utilize tech stacks to automate all your systems: check in, messaging, marketing, coordinating with vendors (cleaners, handymen, etc) 

    0Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    4y

    You have about 5? Have you already started losing track?

    3Reply
  • Joel Case
    Rental Property Investor · Ocean Springs, MS · Member since 2022 · 349 posts · 301 votes
    4y

    I plan to use Hospitable paired with TurnoverBNB for cleaners and a Schlage Encode lock which works with Hospitable to automatically generate and cancel door lock codes. Hospitable has a system that automatically responds to guest messages containing certain keywords. It will also send cleaners a message when you get a booking letting them know when you will need them and if there is a booking that same day. 

    3Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    4y

    Set up the correct systems and processes. Get a airbnb property manager 

    0Reply
  • Sergey A. Petrov
    Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes
    4y

    It is either passive or active. You either continue putting in the hours or pay someone for their hours. Anything in between fails. Nordstrom (high end) lives on, Wal-Mart (low end) lives on, JC Penney and Sears with their “in the middle” business model have failed 

    5Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Sergey A. Petrov

    Agree 💯 %

    You cannot automate a rental property and it’s needs - it needs human intervention, either the owner does it or pays someone to do it.

    7e investments53 Reviews
    WebsiteView Page
    1Reply
  • Joshua MessingerBusiness Member
    Property Manager · Poconos, PA · Member since 2020 · 443 posts · 264 votes
    4y

    Hey @Tina Chau! 

    I would make a list of all the things you can outsource vs. the things you would have the biggest trouble outsourcing and figure out if it would still be profitable for you for outsourcing those positions. From there figure out what would be the most expensive to outsource and what is the most worth your time. 

    Otherwise, look for good workers with experience in the industry and set up processes for everything needed to be outsourced. @Sergey A. Petrov said this one perfectly - It's either passive or active. 

    I hope this helped and if  you ever need anything don't hesitate to reach out! 

    -

    Josh 

    [email protected]484-986-5012
    1Reply
  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    4y
    Quote from @Chris Seveney:

    @Sergey A. Petrov

    Agree 💯 %

    You cannot automate a rental property and it’s needs - it needs human intervention, either the owner does it or pays someone to do it.


    I agree too. You either put your time into running a STR and make STR money. Or let someone else manage it and make STR money while you make LTR money on your STR.

    2Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    4y
    Quote from @Tina Chau:

    Hi, I have about 5 short term rentals and I'm wondering how do I make them as passive as possible without having to pay a property manager 25%?  


     Negotiate the PM to have 19% contract. Easy. I do it all the time.

    0Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    4y
    Quote from @Paul Sandhu:
    Quote from @Chris Seveney:

    @Sergey A. Petrov

    Agree 💯 %

    You cannot automate a rental property and it’s needs - it needs human intervention, either the owner does it or pays someone to do it.


    I agree too. You either put your time into running a STR and make STR money. Or let someone else manage it and make STR money while you make LTR money on your STR.


     pretty much my experience as well.
    In fact, this job is almost like making my property management company happy. 

    0Reply
  • Gregory MillerPro Member
    Investor · Rochester, NY · Member since 2016 · 8 posts · 3 votes
    4y

    Well, I only have 3 STR, so maybe I should be asking you for advice! however I have gotten some great tips from "Optimize your Airbnb" by Daniel Rusteen, specifically I now use price labs, hospitable, and I just signed up for noiseaware; it hasn't been a problem for me, but some other hosts in my neighborhood have had issues with loud parties etc, so I want to stay on top of that. I also hire cleaners and keep clear communication so I can make sure nothing falls through the cracks. I don't believe it will ever be totally passive because human nature being what it is, cleaners etc will start to cut corners if I'm not on top of it. The programs I mentioned will take care of 80-90% of the workload, but I do still monitor my communication so I can stay on top of any issues. Checkout Rusteens book, he does have some great tips.

    2Reply
  • Tina Chau
    OP
    Member since 2020 · 34 posts · 15 votes
    4y
    Quote from @Gregory Miller:

    Well, I only have 3 STR, so maybe I should be asking you for advice! however I have gotten some great tips from "Optimize your Airbnb" by Daniel Rusteen, specifically I now use price labs, hospitable, and I just signed up for noiseaware; it hasn't been a problem for me, but some other hosts in my neighborhood have had issues with loud parties etc, so I want to stay on top of that. I also hire cleaners and keep clear communication so I can make sure nothing falls through the cracks. I don't believe it will ever be totally passive because human nature being what it is, cleaners etc will start to cut corners if I'm not on top of it. The programs I mentioned will take care of 80-90% of the workload, but I do still monitor my communication so I can stay on top of any issues. Checkout Rusteens book, he does have some great tips.


    0Reply
  • Tina Chau
    OP
    Member since 2020 · 34 posts · 15 votes
    4y

    Hi Greg, how much time would you say you spend a week on managing your str's?  Thanks!

    0Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    4y

    @Tina Chau
    STR's are not passive unless you have a property manager or hire an employee in-house to manage your rentals on W-2.

    [email protected]614-412-4565
    Reafco-556 Reviews
    View Page
    0Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    4y
    Quote from @Paul Sandhu:
    Quote from @Chris Seveney:

    @Sergey A. Petrov

    Agree 💯 %

    You cannot automate a rental property and it’s needs - it needs human intervention, either the owner does it or pays someone to do it.


    I agree too. You either put your time into running a STR and make STR money. Or let someone else manage it and make STR money while you make LTR money on your STR.

    After reading through this forum threads the last two years, I think the above pretty well sums up the feeling of the most experienced participants? But, is there any way of making better than LTR money but less than STR money and utilize a manager? Co host?

    Private Mortgage Financing Partners, LLC
    WebsiteView Page
    0Reply
  • Madison Wilson
    Real Estate Agent · Austin, TX · Member since 2022 · 33 posts · 33 votes
    4y

    Hi Tina! I would see if you could find someone who is able to work remotely, and would accept a reasonable hourly rate or percentage of bookings to manage the property. I used to manage an AIRBNB property that remained booked about 80% of the year and it is a pretty time consuming job for even one property in high demand. But, remote workers are all the rage right now and I am sure you could find someone who has bit of experience that could relieve some of your responsibilities. Best of luck!

    0Reply
  • Villy Ellinger
    Real Estate Agent · Fort Walton Beach, FL · Member since 2018 · 219 posts · 275 votes
    4y

    @Tina Chau I completely agree with @Sergey A. Petrov . Yes, you can definitely automate as many of the menial tasks as you can with good PMS. Scheduling, accounting, etc all these can be "farmed out" / delegated to others. Lots of software out there. Btw, none of it is free and all of it requires some time investment to set up and become familiar with it. Getting actual human or virtual assistants is a good option too. But ... every time you higher another team member you don't necessarily make your business "hands off", you just shift the the focus of what you do. Do you directly deal with guests or do you deal with the people you hired? Hiring more people to be part of your business does add a different kind of work for you -- supervisory work. You are responsible for the work quality of all the people who work for your business. If they quit, get sick, mess up, you are responsible to the guest. As for automation -- it only goes to a point before it starts to affect guest experience and from there your rentals. Sending automated greeting messages or instructions is great. I do it. However, if a guests has a specific question and he/she gets a reply of "we'll be with you shortly, your call is very important to us", lol, that is no longer appealing to them. I own and manage vacation rentals because I actually enjoy owning my own hospitality business. So I'm a bad example, lol. I actually like that all the reviews on Airbnb mention me by name :-). 

    So, back to what kind of business you are trying to build. At some point, the cost of software and additional hired assistants, etc might approach the cost of a full-service management company. Same with the guest experience when the "personal touch" is gone. There is nothing wrong with using a full service property manager. For some people the "hands off" part is worth the expense. You will pay someone either way :-)

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Tina Chau:

    Hi, I have about 5 short term rentals and I'm wondering how do I make them as passive as possible without having to pay a property manager 25%?  


    Hire a rockstar Property Manager. 

    The DIY Landlord Book4.7247 Reviews
    WebsiteView Page
    1Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    4y

    @Tina Chau

    As mentioned, either to do a rental arbitrage or hire somebody to co-host/manage your AirBnB for you. 

    0Reply
  • Gregory MillerPro Member
    Investor · Rochester, NY · Member since 2016 · 8 posts · 3 votes
    4y
    Quote from @Tina Chau:

    Hi Greg, how much time would you say you spend a week on managing your str's?  Thanks!

    That's a tough question to answer because I have a regular "day job" and I generally keep airbnb logged in at my job so if a question comes in I can answer it right away, but outside of that *maybe* a couple hours.  Of course I do hire out cleaning and those ladies work a lot more hours than that!
    0Reply
  • Mike Dymski
    Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    4y

    This is the challenge of almost every small business owner.  The options:

    1 - start a business where you love the day-to-day work where it's not "work" to you

    2 - scale large enough to hire a manager(s)

    3 - systems and processes - these help to be "as passive as possible" but not passive (until you have scale)

    2Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free