Is it insane to manage your own STR?

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Is it insane to manage your own STR?

Kelly Cochran
Investor · Spokane, WA · Member since 2023 · 31 posts · 16 votes

Hey friends,

Really struggling with paying 25-30% of our gross to a property manager on our first STR.

I love all the details that go into AirBNB (decor, set-up, marketing copy, customer service), so the only things I can really see needing help with are:

1. 24/7 emergency response person

2. Lawn care

3. Great cleaning people for turnovers who I can trust

Is that worth 30%? 

Our STR is in a vacation town 40 min from us - we are very familiar with the area.

High season is all summer, then slows way down.

Thoughts? What am I missing?

TIA!

Kelly

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Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
3y

Yes. I’m insane. I have a bunch of them. 

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  • Keenan Fitzpatrick
    Flipper/Rehabber · Anchorage, AK · Member since 2017 · 223 posts · 177 votes
    3y

    There's a plethora of tools available to self-manage your STRs if you're under 10 units!

    0Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @Kelly Cochran-  as  proeprty isnt close by   using a PM  is likely the  way to go ......you might  try  self managing for awhile to  see how it goes  and  if  it  is a  nightmare - get the PM  on board ...if you can  manage  it easily - great !

    0Reply
  • Todd Goedeke
    Contractor · Sheboygan, WI · Member since 2016 · 921 posts · 266 votes
    3y

    @Kelly Cochran Places to look for co host:

    1. Facebook Marketplace, place ISO or look for people offering handyman services

    2. Your local church

    3. Golf course, senior league

    4.Local RE club, woodworking club

    5. Retired or active travel agents

    6.  Bartenders who tell jokes, older ones

    0Reply
  • Todd Goedeke
    Contractor · Sheboygan, WI · Member since 2016 · 921 posts · 266 votes
    3y

    @Bonnie Griffin Kaake I had prefaced earlier that I was referring to the ability to use cost segregation to offset W-2 earnings or self employment income for high income earners.

    There is no advantage to using cost segregation for 6-7 figure earned income earners unless they can use bonus depreciation to offset income immediately.

    0Reply
  • Account Closed
    Denver, CO · Member since 2020 · 15 posts · 18 votes
    3y

    I'd say is insane to not manage your own STR! You need two key players - a cleaner and a handyman. Since you'd be managing remote, I encourage you to do your due diligence and find a cleaner that truly cares about your property. You may have to pay them a little extra but it will be completely worth it. You need someone who will take inventory every turnover and is able to constantly provide updates on things around the house that may go "missing" or need fixing. Which takes me to the handyman part , you need someone reliable who is can make themselves available at a times notice. It may take some time to set up but you will be rocking and rolling in no time!!! Best of luck! Cheers.


    3Reply
  • Josh Kristoff
    Investor · Neptune Beach, FL · Member since 2023 · 6 posts · 2 votes
    3y

    You can definitely manage STR's (one or more on your own). Our team of partners (two husband wife teams) started out this way and eventually built our own management company. We quit all four of our W2's and invest/manage full time now. It was totally doable as a side hustle but the interruptions (during W2 work meetings, dinner, playtime with kids) over guest issues was a lot. At first, this is tolerable and it's really fun, but then it wore on us. We saw an opportunity to invest and manage (added construction and RE brokerage to the family of businesses).

    There are professional managers (aka a company) and accredited investors (meet crieria). Neither of these means you manage well or invest smart.

    A few starter tips: invest in VA's when you are answering too many messages (and train them), build relationships with maintenance/housekeepers (backbone of your ops), develop simple systems that keep everything in order.

    Always best to know what goes into that 20-30% commish before you blindly start paying it so you'll know exactly the questions to ask, or business to build, when you are having success (or want your dinners and kid homework help time back). Some of the best run STR's are "mom and pop" operators.

    So don't give it away until you know it's the right thing to do, there's a lot of margin to keep in your pocket. Good luck!

    1Reply
  • Bonnie Griffin KaakePro Member
    Real Estate Consultant · Denver, CO · Member since 2021 · 666 posts · 389 votes
    3y
    Quote from @Todd Goedeke:

    @Bonnie Griffin Kaake I had prefaced earlier that I was referring to the ability to use cost segregation to offset W-2 earnings or self employment income for high income earners.

    There is no advantage to using cost segregation for 6-7 figure earned income earners unless they can use bonus depreciation to offset income immediately.

    Many high income earners like STRs for that exact reason. Often it is a spouse that puts in 100 hours in a year managing the STR (and more than anyone else) which makes it active rather than a passive investment. As an active investment with the material participation, the benefits of cost segregation and bonus can be taken against their W2 income. 
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    1Reply
  • Melissa Nash
    Rental Property Investor · Orange County, CA · Member since 2016 · 740 posts · 529 votes
    3y

    You can do it 100%- If I can do it, you can do it. I self manage 6 properties + co-host another and I spend no more than 20 min a day on all 7 of them. I am not kidding! You just need the right systems set up, and its all automated and then you just adjust and tweak. You got this! I am sending you GIRL POWER and positive energy and vibes! :) 

    3Reply
  • Connor Dahl
    Member since 2020 · 12 posts · 10 votes
    3y
    Quote from @Todd Goedeke:

    @Connor Dahl you can receive the tax benefits of cost segregation and bonus depreciation thru active management . You can always switch the following year to being a passive investor and still continue to take straight depreciation on the types of property you did not take bonus depreciation on.

    Correct. If you are an active real estate professional, which is easier to achieve "managing" your own STR, you can decrease your tax burden on your active income, such as your W-2 income.

    0Reply
  • Kelly Cochran
    OP
    Investor · Spokane, WA · Member since 2023 · 31 posts · 16 votes
    3y
    Quote from @Todd Goedeke:

    @Kelly Cochran Places to look for co host:

    1. Facebook Marketplace, place ISO or look for people offering handyman services

    2. Your local church

    3. Golf course, senior league

    4.Local RE club, woodworking club

    5. Retired or active travel agents

    6.  Bartenders who tell jokes, older ones


     This list cracks me up, especially #6. ;)

    0Reply
  • Kelly Cochran
    OP
    Investor · Spokane, WA · Member since 2023 · 31 posts · 16 votes
    3y
    Quote from @Melissa Nash:

    You can do it 100%- If I can do it, you can do it. I self manage 6 properties + co-host another and I spend no more than 20 min a day on all 7 of them. I am not kidding! You just need the right systems set up, and its all automated and then you just adjust and tweak. You got this! I am sending you GIRL POWER and positive energy and vibes! :) 


     Are you in the same city as your listings, Melissa?

    0Reply
  • Kelly Cochran
    OP
    Investor · Spokane, WA · Member since 2023 · 31 posts · 16 votes
    3y
    Quote from @Josh Kristoff:

    You can definitely manage STR's (one or more on your own). Our team of partners (two husband wife teams) started out this way and eventually built our own management company. We quit all four of our W2's and invest/manage full time now. It was totally doable as a side hustle but the interruptions (during W2 work meetings, dinner, playtime with kids) over guest issues was a lot. At first, this is tolerable and it's really fun, but then it wore on us. We saw an opportunity to invest and manage (added construction and RE brokerage to the family of businesses).

    There are professional managers (aka a company) and accredited investors (meet crieria). Neither of these means you manage well or invest smart.

    A few starter tips: invest in VA's when you are answering too many messages (and train them), build relationships with maintenance/housekeepers (backbone of your ops), develop simple systems that keep everything in order.

    Always best to know what goes into that 20-30% commish before you blindly start paying it so you'll know exactly the questions to ask, or business to build, when you are having success (or want your dinners and kid homework help time back). Some of the best run STR's are "mom and pop" operators.

    So don't give it away until you know it's the right thing to do, there's a lot of margin to keep in your pocket. Good luck!


     Thanks, John! Any tips on finding those good house cleaners and handymen? Also, how did you manage after-hours "emergencies" with your guests?

    0Reply
  • Josh Kristoff
    Investor · Neptune Beach, FL · Member since 2023 · 6 posts · 2 votes
    3y
    Quote from @Kelly Cochran:
    Quote from @Josh Kristoff:

    You can definitely manage STR's (one or more on your own). Our team of partners (two husband wife teams) started out this way and eventually built our own management company. We quit all four of our W2's and invest/manage full time now. It was totally doable as a side hustle but the interruptions (during W2 work meetings, dinner, playtime with kids) over guest issues was a lot. At first, this is tolerable and it's really fun, but then it wore on us. We saw an opportunity to invest and manage (added construction and RE brokerage to the family of businesses).

    There are professional managers (aka a company) and accredited investors (meet crieria). Neither of these means you manage well or invest smart.

    A few starter tips: invest in VA's when you are answering too many messages (and train them), build relationships with maintenance/housekeepers (backbone of your ops), develop simple systems that keep everything in order.

    Always best to know what goes into that 20-30% commish before you blindly start paying it so you'll know exactly the questions to ask, or business to build, when you are having success (or want your dinners and kid homework help time back). Some of the best run STR's are "mom and pop" operators.

    So don't give it away until you know it's the right thing to do, there's a lot of margin to keep in your pocket. Good luck!


     Thanks, John! Any tips on finding those good house cleaners and handymen? Also, how did you manage after-hours "emergencies" with your guests?

    In many cases just plan on churning through a few of each: housekeepers and handymen, until you find one that works well. Put the onus on yourself to extend clear expectations so you're not the reason they were unsuccessful. Some cleaning apps have marketplaces where you can find teams. Our PMS, Uplisting, offers Turno (a cleaning app) for free with our subscription - we haven't found teams through this yet but you can. There are facebook groups, nextdoor groups...

    After hours emergencies: well, document/know your water shutoffs and electrical panel locations for example. That way you can direct them. "Emergencies" are a wide range (wifi not working, etc are emergencies but not really - you are in hospitality now @Kelly Cochran so people expect you to deliver. We initially dealt with those interruptions ourselves, now we have a VA team that provides coverage on a lot of those needs - we still do a lot of training/QA/process building to improve that guest communications team.

    0Reply
  • Melissa Nash
    Rental Property Investor · Orange County, CA · Member since 2016 · 740 posts · 529 votes
    3y
    Quote from @Kelly Cochran:
    Quote from @Melissa Nash:

    You can do it 100%- If I can do it, you can do it. I self manage 6 properties + co-host another and I spend no more than 20 min a day on all 7 of them. I am not kidding! You just need the right systems set up, and its all automated and then you just adjust and tweak. You got this! I am sending you GIRL POWER and positive energy and vibes! :) 


     Are you in the same city as your listings, Melissa?


     No, I am not. they are all far, and one is a 12 hr drive away.  :) You just need the right systems and its totally doable! 

    0Reply
  • KiKi ChaseBusiness Member
    Real Estate Agent · Indianapolis, IN · Member since 2022 · 184 posts · 75 votes
    3y

    In my opinion, no! But, I totally understand how it can be overwhelming. Sometimes, handing your STR over to a property manager (the right one), can take a lot of the stress off of you. I highly recommend finding a local Airbnb PM and making sure they have the systems in place to take care of your property, and do it the right way. My fiancé and I own a local STR property management company, and use dynamic pricing, direct booking, and all the things to make sure our owners are making the most money they can. I would say that is imperative to keeping a good Airbnb, and making sure you have the right PM for the job.

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  • Lauren Endres
    Real Estate Agent · Member since 2022 · 15 posts · 10 votes
    3y

    I think you are fine to manage your property especially if you know the area, a lot of times this gives a more personable experience, once you get to three or more properties Id consider finding a management company. Just focus on pushing the reviews and gaining repeat customers, that is what the main benefit of management companies are for. Here are some tools that will help save time and keep you organized. (Ive got a whole spreadsheet if you'd like me to send)

    Essential Tools:

    1. Property Management:
      1. Hospitable
      2. Guesty
      3. SmartBNB- notifies cleaners when bookings check in and out
    2. Dynamic Pricing
      1. Price Labs
      2. AirDna
        1. Raise pricing Weekends and Holidays/ Local events
        2. Lower rates in middle week
        3. Last minute discounts
        4. Stay aware of market trends

    Hope this helps! - Lauren 

    1Reply
  • Julie Nealey
    Member since 2022 · 94 posts · 22 votes
    3y

    I love managing my AirBnB myself and I am not local to my AirBnB. I have a wonderful handyperson that is local that I can rely on in emergencies. I have a landscaper, pool maintenance, pest control, phenomenal cleaners and back up cleaners etc. I also have an electrician and plumbing company that I use exclusively that if I call, they help me very quickly.  

    I do not see the need to hire a property manager for my place and I like getting to know my guests as well, so all in all, I can't justify the cost. I completely understand that others may not feel the same as me. I think it all depends on your comfort level. 

    0Reply
  • Christian Lacayo
    Property Manager · FL · Member since 2023 · 8 posts · 2 votes
    3y

    Depends on how busy of a life you have. Also your property management company is charging WAY too much. My company only charges 15%.

    0Reply
  • Carlos Alfaro
    Member since 2023 · 1 post · 0 votes
    3y
    Quote from @Melissa Nash:

    You can do it 100%- If I can do it, you can do it. I self manage 6 properties + co-host another and I spend no more than 20 min a day on all 7 of them. I am not kidding! You just need the right systems set up, and its all automated and then you just adjust and tweak. You got this! I am sending you GIRL POWER and positive energy and vibes! :) 


     Hi Melissa, can you please share with me your systems that you're leveraging to make this all possible?


    I've seen several options from different posts, and still have too many decisions to make, and I am just trying to manage 1 STR.


    Thank you!

    0Reply
  • Todd Goedeke
    Contractor · Sheboygan, WI · Member since 2016 · 921 posts · 266 votes
    3y

    @Lauren Endres would you recommend the same process( using similar aids) to people that they could or should sell their real estate without a real estate agent?

    To people who want to manage their own STVR , I ask at what cost? 
    As an investor looking for passive income which option should I choose:A. Lease my STVR on a triple net basis to a management firm paying a guaranteed rate of 20% Cash on Cash, 25% downpayment. B. Manage property myself hoping to earn 25%+ Cash on Cash.

    If you are not earning better than 25% Cash on Cash for a self managed STVR you are valuing your time very low and have nothing better to do.

    0Reply
  • Todd Goedeke
    Contractor · Sheboygan, WI · Member since 2016 · 921 posts · 266 votes
    3y

    @John M. another way of looking at it is what % ConC return do I need guaranteed from a lease to be a passive investor.

    Professionals value their time more than earning 5%-10% extra ConC. If you already have a million $ it’s passive investments that are most attractive. There are only so many hours in a day. Why spend that time working on a business when one can be spending time with family, on a hobby or doing God s work.

    1Reply
  • Joan Winchell
    Member since 2023 · 2 posts · 0 votes
    3y

    It's completely doable! I am a local Realtor and professional Co-Host in Panama City Beach/30A for Self Managing Owners. I have my own rentals and others that I Co-Host. I take care of the small stuff and fill in the blanks when the owners can't do it. Find a local Co-Host and save $$$$.

    0Reply
  • Travis Rasmussen
    Realtor · Murrieta, CA · Member since 2016 · 373 posts · 203 votes
    2y
    Quote from @Kelly Cochran:

    Hey friends,

    Really struggling with paying 25-30% of our gross to a property manager on our first STR.

    I love all the details that go into AirBNB (decor, set-up, marketing copy, customer service), so the only things I can really see needing help with are:

    1. 24/7 emergency response person

    2. Lawn care

    3. Great cleaning people for turnovers who I can trust

    Is that worth 30%? 

    Our STR is in a vacation town 40 min from us - we are very familiar with the area.

    High season is all summer, then slows way down.

    Thoughts? What am I missing?

    TIA!

    Kelly


     Nope, I do it remotely here in North Idaho for my properties in Florida. You just need a great "boots on the ground" person. Usually, your cleaner.

    0Reply
  • Todd Goedeke
    Contractor · Sheboygan, WI · Member since 2016 · 921 posts · 266 votes
    2y

    @Travis Rasmussen consider hiring a co host/manager to do your marketing, direct bookings. Pay them 10% of all bookings they generate direct.

    0Reply
  • StacyA McBainPro Member
    Real Estate Agent · Boise, ID · Member since 2015 · 193 posts · 70 votes
    2y

    My #1 piece of advice from former time, spent DIY managing my STR…

    First confirm that you have a reliable and available cleaner whom you trust to do your turnovers really well. “Really well” would mean notifying you if something is amiss, and possibly handling it on the fly. (I.E. Letting you know the couch seam split, but running to the nearby store to pick up matching thread and stitch it to get it through the next stay, or advising that the number of wine glasses has dwindled below an acceptable amount).

    With one core, dependable person, I don’t think it’s insane at all. I do think it’s a part time job and all the great advice about co-hosting also can provide you vacation coverage when needed. 

    I had family living across the street so they let me know when my dependable cleaner turned absentee, and I ran over there dressed for the office and got that place cleaned just in time. An exterior security system could automate that awareness. It’s helpful to know what kind of car the cleaner drives. 

    0Reply
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