When you become an Airbnb host, there are a lot of things that you are responsible for.
You have to make sure your property is clean and ready for guests, handle any customer service issues that may arise, and make sure your listing is up-to-date.
All of this can be a lot of work, especially if you are already busy with other aspects of your life.
That’s where Airbnb property management comes in. Property managers are third parties who are hired to manage a real estate investment’s operations.
So, how much does Airbnb property management cost?
The average Airbnb property management fee is about 20-30% of the rental income. So, if you are making $1,000 per month in rental income, you can expect to pay $200-$300 per month for property management services.
This article will discuss the Airbnb property management fees, is it worth hiring one, the benefits of hiring one, and how to hire a property manager.
Let’s get started.
What is an Airbnb property manager?
An Airbnb property manager is a professional who manages the day-to-day operations of an Airbnb rental.
They are responsible for tasks such as scheduling cleanings, guest communication, listing management, and more.
Property managers typically charge a percentage of the rental income, which is why their fees can vary.
Now that you know how much Airbnb property management costs, let’s discuss how much you can expect to pay in Airbnb property management fees.
How much does Airbnb property management cost?
Most Airbnb property management companies charge a percentage of the rental income. A commission-based model is the most common way that these types of businesses operate. This means that the company will take a cut of the rental income earned each month.
The average commission rate is around 20-30%. If you’re earning $5000/month in rental income, the management company will take $1000-$1500.
An Airbnb property management will typically be a percentage of your total earnings for the month, not profit. This also does not take into account your other expenses for operating the rental, such as mortgage interest, insurance, utilities, etc.
While this may seem like a lot, it’s important to remember that a property manager is responsible for a lot of work. They will handle everything from marketing the listing to dealing with guests, to scheduling cleanings for the property.
Hiring a property manager can be a great way to take some of the stress out of being a landlord. They should also help you to maximize your rental income by making sure that your property is always rented out and in good condition.
If you’re thinking about hiring a property manager, be sure to do your research. Ask for recommendations from friends or other landlords, and read online reviews. You should also make sure to negotiate the service and make sure you’re getting a fair price.
Other fees:
There are a few other fees that you should be aware of when hiring an Airbnb property management company.
- Set-up fee. This is a one-time fee that is charged when you first start working with a property management company.
- Monthly service fee. This is a charge that is assessed each month for the property management company’s services.
- Vacancy fee. This is a fee that is charged when there are no guests staying at the property.
- Visit fee. This is a fee that is charged when the property manager needs to come to the property for any reason.
Now that you know all about Airbnb property management fees, let’s talk about the benefits of hiring a property manager.
Benefits of hiring an Airbnb property manager
There are a few benefits of hiring an Airbnb property manager.
First, it can take a lot of the work off of your plate. If you’re working full-time or have a family, it can be tough to find the time to manage an Airbnb rental.
A property manager can handle all of the day-to-day tasks, so you can relax and enjoy the rental income without having to worry about the property.
Second, a property manager can help you to maximize your rental income. They will make sure that your listing is always rented out and in good condition.
Third, a property manager can deal with difficult guests. If you have a guest who is being disruptive or is causing damage to the property, a property manager can deal with them.
Fourth, a property manager can provide local knowledge. If you’re renting out a property in a city that you’re not familiar with, a property manager can be a valuable resource.
How to hire an Airbnb property manager
If you’re thinking about hiring an Airbnb property manager, there are a few things to keep in mind.
You’ll want to ask for recommendations from friends or other landlords. Since the property management company will be in charge of your property and its operations, you’ll want to make sure that you’re working with a reputable company.
Be sure to read online reviews to get an idea of what other people’s experiences have been.
When you’re ready to start talking to property management companies, be sure to negotiate the service. Be sure to ask about other fees, such as set-up fees, monthly service fees, vacancy fees, and visit fees. You’ll want to know this upfront so there are no surprises later on.
Get a few quotes from different companies and compare the services that they offer. Make sure to ask about the experience of the property manager and whether they’re familiar with the area where your rental property is located.
Take your time when choosing a property manager. This is a big decision, and you’ll want to be sure that you’re working with a company that you can trust. You’ll also want to make sure they’re a company with plenty of trusted local contacts like plumbers, cleaners, electricians, and so on in case there’s ever an emergency at the rental property.
Is it worth hiring an Airbnb property manager?
The decision of whether or not to hire an Airbnb property manager is a personal one.
There are a few things to consider when making your decision.
First, how much time are you willing to spend managing the property? If you’re not interested in dealing with the day-to-day tasks, then it might be worth hiring a property manager.
Second, how much rent are you hoping to earn? If you’re looking to maximize your rental income, then a property manager can help you to do that.
Third, are you comfortable dealing with difficult guests? If you’re not interested in dealing with guests who are disruptive or cause damage to the property, then it might be worth hiring a property manager.
Fourth, do you have local knowledge of the area where the rental property is located? If you’re not familiar with the area, then a property manager can provide valuable local knowledge.
One last consideration is the property you plan on renting out. If you are renting out a spare room, it’s likely not worth hiring a property management company compared to if you were renting out an entire vacation home in the mountains.
Take your time to weigh the pros and cons of hiring a property manager. This is a big decision, and you’ll want to be sure that you’re making the right choice for your rental property.
I’ve personally considered hiring a property manager many times for my Airbnb property. However, many of the jobs that a property manager does, such as scheduling cleanings and dealing with guests, I am more than capable to do myself.
I live close to my rental property, so I am comfortable dealing with any issues that may come up.
And, since I am familiar with the area, I don’t feel like I need a property manager to provide local knowledge.
Ultimately, most Airbnb properties don’t require that much work once they’re operating so, for me, the cost of hiring a property manager doesn’t justify the amount of work they would be doing.
The deciding factor was the cost. While the fees can vary, you can expect to pay around 20-30% of the rental income for a property manager’s services.
For me, that’s a lot of money.
I would rather keep that money and use it to improve the property or save for future investment.
Bottom Line
The cost of hiring an Airbnb property manager can vary, but you can expect to pay around 20-30% of the rental income.
Before making a decision, weigh the pros and cons of hiring a property manager. Consider how much time you’re willing to spend managing the property, how much rent you’re hoping to earn, and if you’re comfortable dealing with difficult guests.
For me, the cost was the deciding factor. I would rather put in the minimal effort required to operate my Airbnb property myself and keep the 20-30% management fee.
