20-year-old landlord trying to understand STR property management
Member since 2024 · 4 posts · 1 vote
20-year-old landlord trying to understand STR property management
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Member since 2021 · 47 posts · 42 votes
4moWhy would you manage STRs for 5-10% when you could manage long term for the same? There's a reason STR managers charge much higher rates. It is a lot of work.
23 Replies
- Member since 2021 · 6 posts · 5 votes4mo
I think a lot of newer STR owners underestimate how operational the business becomes once scale or guest expectations increase. From the outside it can look passive, but hospitality/customer service starts becoming a real factor pretty quickly. What made you start looking more seriously into STRs vs sticking with traditional rentals?
- Member since 2024 · 4 posts · 1 vote4mo
I have been looking into starting a property management company for short term rentals for a few different reasons.
1)Lowest barrier to entry in terms of Real Estate Broker licensing.
2)I believe that I may be able to offer the property management service at a lower cost than incumbents.
Thank you so much for your response. If you have time would you mind if I pick your brain about the property management space? - Member since 2021 · 47 posts · 42 votes4mo
Why would you manage STRs for 5-10% when you could manage long term for the same? There's a reason STR managers charge much higher rates. It is a lot of work.
- Member since 2024 · 4 posts · 1 vote4mo
Quote from @Grant Woodward:
Why would you manage STRs for 5-10% when you could manage long term for the same? There's a reason STR managers charge much higher rates. It is a lot of work.
Unfortunately in the states we want to operate in you need a real estate broker license, which can take 2+ years to get. Short term rentals however don't have that barrier to entry.
- Member since 2021 · 47 posts · 42 votes4mo
Quote from @Arman Mokhlesi:
Quote from @Grant Woodward:
Why would you manage STRs for 5-10% when you could manage long term for the same? There's a reason STR managers charge much higher rates. It is a lot of work.
Unfortunately in the states we want to operate in you need a real estate broker license, which can take 2+ years to get. Short term rentals however don't have that barrier to entry.
That's interesting. I didn't realize some states made a distinction between short term and long term property management when it comes to licensing requirements. I'm fairly certain that is not the case in the state I operate in, but I can understand why you'd look more to short term if that's the case in your state.
I agree with other comments that you will likely not be profitable at 5-10% unless you offer very limited services.
- Member since 2021 · 6 posts · 5 votes4mo
Makes sense. I think a lot of people underestimate how operational STRs become once guest expectations and scale increase. From the outside they can look passive, but hospitality/customer service seems to become a huge factor pretty quickly.
I’m still researching the space heavily myself, but one pattern I keep noticing is that the operators who perform best seem much more systems-focused than most people realize early on.
Are you thinking about managing locally first or eventually trying to do it remotely?
- 4moAndrew SteffensBusiness MemberTampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
As a PMC owner of 10 years with 65 or so current doors and 200+ managed over the years:
1 - Most of my clients are either not local and/or very busy professionals. They do not have a desire to manage themselves.
2 - Not sure how you plan to successfully turn a profit on 5-10%. To have good employees and tools you will lose money at this rate. Business 101 is to try to have 30% margins, 20% is tough, 5-10% for full service is impossible in my opinion.
As a Broker who sells STR's to clients:
1 - Most are currently hiring me for limited service. This allows enough material participation to qualify for accelerated depreciation.
2 - Some still hire full service at 20% or so.
3 - A few choose to self manage, most of them (including 1 just yesterday) decide to hire me in the future.
Hope this helps, best of luck to you!
Vacation Rentals of Florida53 Reviews- Investor · Providence, RI · Member since 2017 · 3 posts · 1 vote2d
Hi Andrew! I came across your reply while researching STR property management and what I could expect from hiring a manager vs self managing. I really appreciate the info you provided in this response. I have a couple follow ups questions if you don't mind.
What is limited service and how much does this typically cost vs full service?What is included in limited service?
And for the people that decide to self-manage to start, after how long do they typically self-manage before they decide to hire you instead?Thank you!
- 4moJ CastroBusiness MemberLender · Florida · Member since 2025 · 673 posts · 240 votes
Hi @Arman Mokhlesi, welcome to BP!
This is a good question, and you’re thinking about it the right way—because with STRs, the decision to hire a manager usually has less to do with age or experience and more to do with scale, systems, and pain tolerance.
When owners usually hand it off
Most STR owners don't hire a property manager just because they want to. They do it when one (or more) of these starts to break:
- Time load becomes unmanageable (guest messages, turnovers, pricing, maintenance coordination)
- They are no longer local
- Multiple properties make systems messy
- Occupancy/revenue becomes inconsistent due to lack of optimization
- Burnout from being “on call” 24/7
The tipping point is usually not one bad experience—it’s the realization that the business has turned into a customer service operation, not a passive investment.
What managers still don't do perfectly
Even good STR managers tend to struggle with:
- Protecting margins the way an owner would (over-spending on vendors or upsells)
- Maintaining the property like it’s their own equity
- Strategic pricing nuance in volatile markets
- Fast communication during true emergencies
That said, the best ones do solve consistency and operational stress very well.
Why self-managing owners stay hands-on
Most self-managing owners fall into one of these buckets:
- They want to maximize cash flow (management fees can add up fast)
- They don’t trust third-party execution yet
- They prefer control over guest experience and property condition
- They’re still in the learning phase and optimizing systems themselves
But the biggest reason is usually simple:
They feel like they can still handle it without it breaking their time.The fee question (5-10%)
If STR management truly dropped to 5–10% full service, it would absolutely shift behavior—but not entirely.
At that point:
- More “passive investors” would outsource immediately
- Operators would still hesitate if trust/execution wasn’t proven
- High-performing owners would still self-manage for margin optimization
Because in STRs, price is only part of the equation—control and revenue performance matter more.
The real dividing line
Owners don’t really decide based on age or experience. They decide based on whether they want to run:
- A hospitality business (guest experience, operations, systems), or
- A real estate asset (cash flow, appreciation, minimal involvement)
Both are valid—but they require different mindsets.
At 20 years old, you actually have an advantage here: you’re early enough to test both models before locking into one system permanently.
- Member since 2025 · 1 post · 0 votes4mo
I self-manage my portfolio for now, but once I hit a certain number of doors, I plan on hiring a managing company for it. This is because as of now, it doesn't take enough time to justify me giving up 8-10% of my rents. My goal is not to be a landlord, my goal is to be financially stable and free, so I can enjoy my life however I feel fit. So I would just ask yourself, does the time it takes me to manage this portfolio justify me giving up X amount of dollars. Does managing the portfolio slow you down? Does it prevent you from living your life how you want? Etc.
- Property Manager · Cyprus · Member since 2026 · 12 posts · 4 votes1w
Do you manage short-term or long-term rentals?
- 4moJim ThomasPro MemberProperty Manager · Orlando, FL · Member since 2025 · 27 posts · 6 votes
Our company manages short-term vacation rentals in Florida, near the tourist district, which is not for the faint of heart. Most people only see the nightly rates and occupancy numbers, but they never see the nonstop operational grind behind the scenes. Large vacation homes with arcade machines, bowling alleys, pools, and theaters are expected to function perfectly 100% of the time while guests are in the property. One broken game, Wi-Fi outage, or pool heater issue can instantly become a guest complaint or a bad review. Success in this business depends heavily on systems, documentation, and strong software because if something is not documented, it might as well never have happened. We spend an incredible amount of time taking photos, tracking maintenance, and documenting every detail to protect both the property and the management company. Then comes the monthly process of reviewing owner statements, correcting charges, reconciling expenses, and answering questions line by line. Even the terminology has changed over the years, with many companies now calling it a commission structure instead of a management fee. Meanwhile, long-term rentals operating at 8% to 12% management fees can sometimes look far more appealing because they come with significantly less stress and fewer moving parts. Vacation rental management often feels like running a hotel, maintenance company, customer service center, and accounting office all at once. The reality is that this business requires constant problem solving, fast response times, and the ability to stay calm during chaos. Some days you question why you are even in the property management business at all. But for those who survive it, there is also a strange sense of pride in handling the pressure and making it work.
“Life’s journey is not to arrive at the grave safely in a well-preserved body, but rather to skid in sideways, totally worn out, shouting, what a ride.’”
- 4moMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
Well, I haven't seen any STR PM charge less than 20% and PMs in my area want closer to 40% for full service management.
I might as well just burn a pile of cash right in my driveway while yelling at the turkeys to get offa my deck...
- 4moJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
No one has a bigger vested interest in your success than you do.
That and the PM fees that I save are why I self manage.
- Member since 2026 · 73 posts · 24 votes4mo
Arman the fact that you are asking this question at 20 already puts you ahead of most people who get into STR without ever thinking it through. Really impressive.
My honest answer — self manage as long as you possibly can. The learning you get in the first two years is irreplaceable and no property manager can give it to you.
Here is what self managing actually teaches you:
How to communicate with guests quickly and professionally. Response time is everything in STR. A guest who gets an answer in 10 minutes leaves a five star review. A guest who waits two hours leaves a three star review. You learn that lesson fast when it is your listing and your rating on the line.
How to set expectations before check in. The best STR operators over communicate before arrival — house rules, check in instructions, local recommendations. Guests who feel informed do not call you at 10pm with questions.
How to handle complaints without losing your composure. Every STR host gets a difficult guest eventually. Learning how to respond professionally and resolve issues quickly is a skill that compounds over your entire career.
How to read your own numbers. Occupancy rate, average nightly rate, cleaning fees, platform fees, net margin. You will never truly understand your business until you have managed every dollar yourself.
Build your local resource network early — a reliable cleaner, a responsive handyman, a locksmith for emergencies. That team is your foundation.
Self manage. Learn everything. Reinvest every dollar back into the portfolio while you are young.
You can absolutely do this Arman!
- 4moDan H.Pro MemberInvestor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
I do not want a job as a property manager or in the hospitality business. My time is way more valuable than that.
If the underwriting does not work with a PM/co-host then the underwriting does not work.
I am fortunate to have rockstar co-hosts at reasonable prices in the markets I STR invest or want to STR invest.
I also question the wisdom of self managing for a couple/few units. There is a large learning curve. Are you achieving maximized income. Pricing, OTAs, guest relations, cleaners, maintenance, PMS, owner relations, etc. it is a lot to know and do if you have a few STRs of fewer. It is easy for to say as I have rockstar co-hosts that are cheap (San Diego) or reasonable (sierras).
Good luck
- Member since 2026 · 11 posts · 6 votes4mo
@Arman Mokhlesi I'm 20yrs old with a wife and two kids and I'm trying to start rentals and I've been studying for awhile but still don't understand like the paper work, loans, or rentals fully. How did you start? What did you do? What was the first rental you bought? I'm trying so hard to buy my first one but I don't understand what I need to do step by step, it's hard to learn on YouTube and things like that.
- Atlanta · Member since 2022 · 706 posts · 634 votes4moi would pick up Avery Carls book, Short term rental, long term wealth. Its a good starting point
Quote from @Acacio Abbott:
@Arman Mokhlesi I'm 20yrs old with a wife and two kids and I'm trying to start rentals and I've been studying for awhile but still don't understand like the paper work, loans, or rentals fully. How did you start? What did you do? What was the first rental you bought? I'm trying so hard to buy my first one but I don't understand what I need to do step by step, it's hard to learn on YouTube and things like that.
- Member since 2021 · 6 posts · 5 votes4mo
If I were doing it all over again from the start, I’d focus heavily on understanding the fundamentals. Financing, underwriting, operations, and guest experience. A lot of people underestimate how operational STRs really are.
The good news is you’re asking the right questions early, which puts you far ahead of many people that are jumping in blindly.
- Investor · Pacific Northwest · Member since 2026 · 531 posts · 298 votes1w
Arman, the thread is already giving you a pretty useful signal: several experienced operators are telling you that 5–10% for true full-service STR management is hard to make work, because the workload is much closer to hospitality operations than traditional property management. At the same time, owners are still complaining about trust, responsiveness, documentation, margin control, maintenance, pricing, and owner reporting.
That’s where I’d spend your time before deciding what percentage to charge.
Break the operation into its actual components: guest communication, pricing, turnovers, maintenance coordination, emergency response, bookkeeping/reconciliation, owner reporting, and property oversight. Then measure the labor and cost required to execute each one well. You may find that the opportunity isn’t “full service for less,” but a much more deliberate service model where owners can hand off the parts creating the most operational drag without paying for things they still want to control.
The other thing I’d track obsessively is state: what happened, who handled it, what it cost, what the guest was told, what the owner approved, and what still needs attention. One operator in this thread basically described the business as a hotel, maintenance company, customer-service center, and accounting office running simultaneously. That complexity is where a young operator who builds excellent systems early can create a real advantage.
This is very close to how our system looks at operating businesses—map the work first, then decide what should stay human, what can be systematized, and what the economics actually support. Feel free to reach out if you want to compare notes while you build the model.
- Rental Property Investor · Lakeland Florida · Member since 2026 · 9 posts · 7 votes6d
Worth saying upfront that I'm on both sides of this. I own STRs in Florida, four of them in one Clearwater building, and I manage for owners in Florida, South Carolina and Georgia. So discount the fee part accordingly.
The handoff usually isn't about door count. It's distance, or it's the cleaner. Distance meaning you can't get there in two hours when something breaks. Cleaner meaning you've got one and no backup, and the first Saturday she's sick you find out the whole operation was one person deep. That's what pushes people, not hitting some number of units.
What managers don't do well, mine included some weeks: statements where you can't tell gross from owner net. Pricing left on the tool's defaults, because buying PriceLabs isn't a pricing strategy, the value is overriding it for the things the software doesn't know about. Maintenance markups nobody disclosed. And attention drifting to whichever unit earns the most, so the shoulder-season property goes quiet.
On fees, do the math before you decide 8% sounds good. Say a unit grosses $60k over 50 stays. 8% is $4,800 a year, $400 a month, about $96 a stay. That $96 covers pre-arrival messaging, booking and paying the cleaner, mid-stay problems, the turnover inspection, restock, calling a vendor, handling the review and the accounting. Plus somebody picking up at 2am when the lock dies. Nobody staffs that for $96.
So if you see full service at 5-10%, either it isn't full service and you're still doing the physical work, or the money is coming from a spread on cleaning or linen or maintenance, or it's someone new buying doors below cost who will raise the fee later. Ask where the rest of the revenue comes from and get the answer in writing. Half-service and co-host deals at 10-15% are a real product, just know you're keeping the cleaner, the vendors and the phone.
But no, cheaper wouldn't change my answer. I've never heard of anyone firing a manager over the percentage. They fire them because they can't tell what happened to the money.
Since you mentioned management and not just STR: the work that earns the fee happens before the first booking, confirming what that parcel is allowed to do. Not the city, the parcel. And recorded documents beat the zoning map. Four of my units are in a Clearwater building where the commercial zoning would allow nightly stays and the condo declaration sets a seven-night minimum. The declaration wins. Confirm any of this with your own city or county, including anything I've said.
Last thing. If you're asking about 5-10% because you're thinking of getting into management on price, I'd think hard about that. The hard part isn't finding owners who want a discount. It's having enough cleaners that Saturday doesn't fall apart.
— Glen, Furlow Stays
- 11hMelissa HaworthBusiness MemberReal Estate Agent · The Panhandle | The Emerald Coast | Panama City Beach | Destin · Member since 2017 · 257 posts · 99 votes
From what I see with STR investors, the decision usually comes down to time, distance, and whether the owner enjoys the hospitality side of the business.
Self management can make sense when the owner lives nearby, has reliable cleaners and maintenance contacts, and is willing to handle pricing, guest communication, reviews, and unexpected issues. A manager becomes more valuable when the owner lives out of state, owns multiple properties, or no longer wants the rental controlling their schedule.
I would not make the decision based on the management percentage alone. A lower fee is only valuable if the manager can protect the guest experience and produce strong results. I would want to understand exactly what is included, who controls the listing and reviews, how pricing is handled, how quickly guests receive responses, and whether there are maintenance markups or additional fees.
At 5 to 10 percent, I would look closely at what “full service” actually means. Trust and execution matter more than the advertised rate because weak management can cost far more than the fee it saves.
- Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes10h
I self managed an STR it was very easy. Use an app that automates cleaning, automate tenant codes and it runs itself. The biggest thing is having a great cleaner. I messed up my cleaner early on and it really costs me on some reviews. If did it again would do cleaner tests beforehand. Overall though see no reason to pay a manager unless you have a dozen units or so.
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