Fort Walton Beach , FL · Member since 2018 · 13 posts · 1 vote
Hey Folks,
I'm sure the answer varies by market and experience, but I wanted to see what advice some of you may have when considering professional management and STR.
Here is the situation:
I am purchasing a 2BR/2BA condo in Destin, FL with deeded beach access. I will be utilizing it as a primary residence this September but I will have most of the high season (March-September) to generate STR income before I move in.
I have spoken with one property manager that I trust and who I have worked with before as a customer, his rate is 22%.
I have two single family properties that I manage on my own, but I am relatively inexperienced.
Bottom Line: Is a property manager a good choice to maximize value in the most popular booking period?
Investor · Beaverton, OR · Member since 2017 · 5 posts · 9 votes
8y
If done properly, self managing an STR will require very little time and effort and can increase your ROI dramatically. The key is putting the right team in place and managing bookings efficiently. First, hire a house cleaner that you trust and pay him / her well above market rates. This is an investment that will pay HUGE dividends, as this person will be your daily "boots on the ground." Second, hire a local handyman to be on call in the event something goes wrong at the property. Third, have backups for each of these two resources in case one were to fall through. And last, be willing to manage the bookings yourself via airbnb, homeaway or the like. This will involve 2-5 emails per guest.
With the right team and an efficient, self-managed, booking process, I think you will find that property management fees will have to be pretty low (I suspect lower than 22%) to make financial sense.
Real Estate Agent · Park City, UT · Member since 2016 · 113 posts · 112 votes
8y
I agree with the masses, self manage, especially since you are close. With airbnb and homeaway, it's very easy to get a rental booked consistently. From there it is just creating systems for when you get a booking: notify your cleaner of departure date, send your guest a welcome packet with directions, how to get into property and pertinent information. As long as the guest gets all the information they need (and more) there will be little reason for them to call and bother you before or during their stay. I always like to give them more information...including good food delivery options, best restaurants, things to do while in town, best place to rent gear (skis in winter, bikes in the summer) Good luck, STRs can be an amazing wealth generation tool
Rental Property Investor · South Lake Tahoe, CA · Member since 2016 · 65 posts · 41 votes
8y
@Ryan Smith Sure! If you are using the Airbnb platform, co-hosting is one option for when need help managing a vacation rental, either short term/part time/full time. I should mention, I am also a full-time co-host for 2 listings in my area. In your case however, if you have the time, I would still recommend self-managing your own home, at least at first, so you can get a feel and a sense for the industry and managing. Similar to hiring a property manager, what you get, and don't get, is up to you and the co-host, as you will negotiate whats expected or required before you agree to have them help manage your vacation rental. It's really all dependent on the level of service you require. In my case, I take care of the communication side of things: sending schedules & changes to the cleaning folks and spa techs, scheduling handymen, service calls, and routine cleaning and maintenance. I field all guest inquires, questions, reservations, & problems, leave reviews, and communicate with airbnb. I'll do basic handyman fixes and repairs since I am relatively handy. For one of my clients, since actually I started out designing the home, I am also in charge of any design decisions and creating purchase orders for anything needed inside or out of the home. What I don't do: collect or refund money, make purchases, pay vendors, check-in guests in person, or cleaning.
Specialist · FL · Member since 2017 · 139 posts · 88 votes
8y
@Ryan Smith another option would be to hire a manager on a month to month contract until you get your team setup. Better to make some money than no money. Hiring a good housekeeper sounds easy in every post but it normally takes alot of firing/hiring to find the right person. Some cleaners only know cleaning and that's it so you'll definitely have to be hands-on in the beginning until you feel comfortable being hands off.