8 Reasons to Work With an Airbnb Management Firm
The short-term vacation rental industry has exploded over the past years, and the explosion has no real end in sight. Each month, new rentals are entering the market, offering anything from basements and log cabins to RVs and cottages—even penthouses and tree houses! Some owners enter the market as a side hustle, while others quit their day jobs to tackle full-time property management. Some discover that they love dealing with the day-to-day details associated with having a rental business, but many are finding that outsourcing the responsibilities to a third party allows them to lighten their personal workload and still maximize profits. Here are eight ways working with an Airbnb management firm can benefit your rental business.
1. Work Less, Make More
Similar to other investments, the real estate market has great potential to generate considerable income with minimal hands-on labor. Recently, we are seeing that short-term rentals have the potential to generate significantly more than conventional real estate options (long-term rentals or even houses located in appreciating neighborhoods) on a month-to-month basis. And if you own real estate in a larger city, your earning potential is even greater. With an Airbnb management firm, you are able to sit back and earn passive income while someone else does all the work for you.
If you are considering renting out your primary residence while you are away traveling, or if you are interested in renting out a vacation home that only gets used occasionally, hiring a management firm still has its perks. A management firm works around your schedule, giving you top priority for the dates you wish to occupy your own home or vacation home, and filling in the unoccupied dates with short-term rentals.
2. Get More Free Time
How many times have you heard someone say, “If only there were more than 24 hours in the day?” If there is one thing that the average person wants more of, it’s time. If you find that you are a property owner who is too busy to actually enjoy being an Airbnb host, or if you find that an email from a potential renter is just one of thousands waiting for you in your inbox, a management firm could be the answer. Focus your time and energy on the aspects of your life that you love, and outsource the rest.
3. Improve Your Credit Score
In general, the more ways you can borrow money and pay it back in a timely manner, the higher your credit score soars. If you are toying around with the idea of investing in a new home or diving into owning a vacation rental, earning additional money by renting your current space can help make that idea a reality. Consider this cycle: Increase your income by renting out your current living space -> increase your credit score -> borrow additional money at lower percentage rates -> invest in a vacation home -> further increase your income -> repeat.
4. Decrease Interest Payments
Using an Airbnb management firm allows you to effortlessly earn money from a property you own but perhaps rarely use. This additional income can be put towards your mortgage or car payments, reducing the lifetime of the loans and subsequently reducing overall payments. Not only are you reaping the benefits of an increased income from your rental, but you’re also saving money in the long run by paying your loans off quicker.
5. Keep Your Home Safely Occupied
If you are planning on being gone from your home for an extended period of time, maintaining some degree of occupancy in your house should be of high priority. Leaving your home vacant for weeks or months can allow for unwanted guests (humans or rodents!) to make themselves at home. Despite technological advances in security systems, self-timed lights, etc., there’s no security like actually having wanted bodies staying in your home. When you hire a management firm, professional managers will be in and out of your house on a regular basis, ensuring that all aspects of your house remain intact and functioning properly, and that the house is always “guest ready”—whether for your next renter or for you when you make your way back home.
6. Save! Save! Save!
Have you dreamed of quitting your job and traveling the world for an extended period of time? Have you thought about taking a sabbatical from work to hit the mental reset button, but despaired that those dreams would never be a reality because you are financially tied to your income each month? By hiring a management firm to rent your house/studio/basement for you, you can trade in your work income for passive income (especially during peak tourist seasons), freeing up your life from fiscal constraints and allowing you to pursue your dreams. Want to contribute more to your children’s college fund? Thinking about starting that addition to the house you’ve always wanted? Want to keep one parent home in order to better raise your children? These can all be realistic goals with the help of additional passive income.
7. Leave It to the Professionals
If you’re intrigued by the thought of renting out your home, but the idea of becoming a property manager doesn’t appeal to you, you may find yourself struggling to maximize your property’s potential. Leaving the management aspects to professionals who have spent years learning the ins and outs of property rental can set you up for success. With access to professional maintenance and cleaning companies, as well as industry know-how on price optimization services, you’ll be able to maximize your profits.
8. Market Research and Strategies
Most property management companies are equipped with expert marketing tools and techniques, as well as knowledgeable staff that are well-versed in industry best practices to ensure your listing is successful and prosperous. With professionals who can help you write effective descriptions of your property, coordinate state-of-the-art photo shoots of your home and deal with the day-to-day interactions with customers and potential clients, you are able to sit back and enjoy your newfound income.
Diving into the short-term rental industry should not be an intimidating prospect. If you have a primary residence that has an extra room or wing to accommodate renters, or if you are looking to travel for pleasure or business and want to take advantage of your vacant home, there are ways to rent your space without investing a lot of your time. Put your properties to good use by partnering with an Airbnb management firm.