Appropriate compensation for consultation services

[Kenny McCarty]

I currently self manage some very successful short-term rentals. A property management company has approached me to partner with them so that they can start managing short-term rentals in addition to the long-term rentals that already manage.

Their role would be the boots on the ground dealing with turnover and maintenance and I would handle pricing and guest interactions. If it matters, these would be very high end rentals with potentially very high maintenance guests.

My question is: how would you go about structuring this type of partnership and what would be fair compensation?

I, personally, would like to grow my business and at the point I am at, I basically need to start a property management company to accomplish this.

Seems like a win-win scenario if properly structured.

Any input would be greatly appreciated. Thanks!

[John Underwood]

So STR property management is typically around 30%. If you could get 10% and they keep 20% I think that would be a good arrangement for you. You are able to do all your work from a computer and they have the hard stuff. Your work is still very important to running the business and making it successful.