Should I hire a property management company for my STR?

Question

Hi all,

I am doing my first long-distance Airbnb property in West Palm Beach and I am wanting to get everyone's thoughts on whether or not they would recommend hiring a property manager. I live in Austin, TX, so I wouldn't be able to respond to emergencies, but also know how much having a property manager might cut into my profit potential.

Would love to hear feedback from anyone who has thoughts on this!

Thanks,

Daniel

Collin Hays · Answer

I own a property management company, and I always recommend self managing if you have the time and will to do it right. It's a part time job. If you have the time, and don't get paid at least that much doing something else, then I recommend it. Yes, there are automations that can help you, but no automation takes care of a brand new bee hive under the front deck, or the air conditioner that broke down when it was 95 degrees out. If those things aren't taken care of, and quickly, you just kissed goodbye 3-4 nights of rent straight away.

And just because you self manage doesn't mean you make more money. We took on a client about 18 months ago who is an attorney in Philadelphia. He and his wife self-managed, and they averaged about $15,000 a year on their rental. But they are both professionals, and calls about stopped up plumbing or a snake in the dryer (we've had calls on both of these things in the last two weeks) sometimes come at very inconvenient times. He wasn't real keen on the idea of giving up 25% of this rents to pay us.

Like we do everyone, I offered him a 6 month test drive for no fees whatsoever. Well, we booked $21K in that six months, which already paid him more than what he had done on his own in a full year. This year, it's on track to do around $43K, meaning low $30s net to him.

Even assuming he could do $43K on his own, is it worth his time to spend 5-10 hours a week screwing with a vacation rental to pocket another $800 a month? Not to him.

But if you are a DIYer, there's all sorts of ways you save money. Mow your own lawn, change your oil, iron your shirts, bathe your dogs. It's all a matter of what your time is worth.

Luke Carl · Answer

This question is asked 200 times per day just read the forum and ask more specific questions. We are here to change your life but you have to help yourself first.

John Underwood · Answer

Short Answer is NO.

Long Answer is H*ll No

Really long answer:

You can easily self manage from your phone using the Vrbo and Airbnb apps. Get a great local cleaning company to handle your cleanings and turnovers and you can manage from anywhere with your phone with minimal time.

Austin Drew · Answer

@Daniel Tisdale I have a couple STR's in WPB if you have any questions on getting it off the ground happy to help.

Joshua Strickland · Answer

You can always add one later if you don’t like self managing. I’d give it a try up front though.

John Underwood · Answer

Read through this forum for tons of advice on how to furnish your STR and what with.

Wale Lawal · Answer

Most landlords hire a property manager for the following reasons:

1. To avoid time-consuming tasks:

2. To avoid the hassle of coordinating maintenance

3. To avoid a vacant rental and the effort of finding new tenants

But because this is a STR I would recommend giving an app a try as @John Underwood recommended.

Here is a couple I found from just a quick google search. I haven't used any of them, but with a little bit of research, I hope you find the right one for you.

https://www.investopedia.com/b...

Daniel Tisdale · Answer

Thanks @John Underwood. Any resources or tips on how to best go about making sure I have a checklist of the items needed to be successful? I am working on furnishing the place and know that the next steps would be to get professional photos and start building my listing out online.

Thanks,

Daniel

Thanks,

Daniel

Should I hire a property management company for my STR?

Should I hire a property management company for my STR?

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