Become an Airbnb Manager: What if I told you that you can make money from Airbnb without owning a property, will that make you happy? Well, I’m imagining you shouting YES!!! With that big grind on your face.
After our last article on How to make your first one million Naira as Airbnb Host, it occurs to us that you might want to venture into this hospitality industry which has proven to be a very lucrative way of making money but don’t really have the property to register as an Airbnb host. Just count yourself lucky to have come across this guide as we promise to break it down step by step on how you can manage an Airbnb property.
In the real estate industry, vacation rental ownership has proven to be a great way to generate additional income. However, there is still debate as to whether owners and investors should take over the management of vacation rentals or whether they should hire a professional.
An overview-Become an Airbnb Manager
The vacation rental industry is growing rapidly and Very fast. The industry currently generates $ 57,669 million, according to new research from Statista.com. An annual growth rate of 6.4% is expected, which corresponds to a market volume of USD 74,005 million by 2023.
This data shows how big and robust the market is for vacation rental management! And with the increase in Airbnb rental properties in recent years, you can expect the demand for Airbnb property management to continue to grow in the years to come. If you want to become an Airbnb property manager someday, now is a good time to get started. But how do you get started?
This guide is everything you need to know to become an Airbnb vacation rental property manager. We’ll show you what it takes to manage Airbnb rentals, the tools to get started, and the best beginner tips for good property management. So, without further ado, here are the 6 steps to starting a real estate career in Airbnb property management.
#1. Understand the Vacation Rental Industry
As with any other business, you cannot be successful without at least knowing the basics of the business. However, no formal training is required to become an Airbnb property manager, and many only get this role with a high school diploma.
What you need is a thorough understanding of how the vacation rental industry and Airbnb work. If you haven’t already, the first step to becoming an Airbnb property manager is to get this knowledge now.
Ideally, you should have experience as an Airbnb host yourself. If you’ve ever hosted and managed your rental on Airbnb yourself, it will prove to future customers that you know what you’re doing. In addition, you will be better prepared to anticipate problems, identify potentially problematic customers, and resolve common issues.
However, if you don’t have the experience, you can learn more about the rentals industry and how Airbnb works through tutorials and online courses. There are many out there to help you get a solid foundation for what you need to know.
For example, you could take marketing classes to learn how to expand your reach and get more bookings, and a business class to learn how to run a business, keep records, and file taxes. This will help increase your credibility as an Airbnb property manager.
Before you start, know where Airbnb hosts are investing in short-term rentals. With this information, you’ll know where to find customers looking for management assistance.
#2. Create a Maintenance Management System
Managing short term rental properties means you will have guests coming in and checking out repeatedly. Of course, one of the many roles of property managers is to check the property before the arrival and after the clients leave.
Rental managers also need to perform maintenance from time to time to ensure the properties remain in tip-top condition. This is important to ensure the satisfaction of your customers and your guests. For example, imagine guests throwing a party and destroying the rental unit before they left. Nobody will be happy to enter the rental in such a state.
For this reason, an Airbnb property manager should never postpone maintenance or wait for multiple inquiries from the owner before solving the problem. The best short term rental property managers also work with a dependable maintenance team to provide quality services on their behalf.
Your team should include cleaners, plumbers, and electricians, among others. These people ensure that the Airbnb properties you manage are in good condition at all times.
#3. Put Together a Vacation Rental Marketing Strategy
Advertising and marketing vacation rentals to attract potential customers is one of the most important jobs of a property manager. Today, Airbnb and other short-term rental platforms have millions of listings, increasing competition among Airbnb hosts.
Because of this, future clients will want to see is how you plan to get bookings and maximize their Airbnb occupancy rates.
Hence, you need to have a basic understanding of real estate marketing strategies and techniques.
Hence, the next step in becoming an Airbnb property manager is a marketing plan that will attract Airbnb customers to the vacation rentals you manage.
First, write an attractive list that will increase the chances of high utilization and positive cash flow. Consider investing in the professional photo, video, and branding services to highlight the rentals you manage. Plus, for vacation rental marketing, you have to go beyond the listing page.
That’s why successful Airbnb rental managers use both social media and SEO to reach the desired tenant group.
If you are unsure of how it works, we highly recommend researching real estate marketing before you start managing short term rentals.
#4. Invest in Property Management Tools
If you are just start Airbnb property manager career and you have few rental properties under your control, with some hard work and some spreadsheets you can manage them.
However, this becomes impossible once you add more properties to your management. Say for instance, how will you do 30 check-ins and cleanings in one day? It is best to think about it early on in order to prepare yourself and your business for growth and expansion.
The best solution to this is to use property management tools that allow you to automate and stay organized.
Modern vacation rental managers rely on technology to run their businesses more efficiently. There are many high-tech tools that make Airbnb rentals easy to manage, from smart locks to software programs that make it easy for guests to be rated, billed and reviewed. You can also find vacation rental software that allows you to sync your calendars from multiple platforms and manage multiple Airbnb accounts for free.
Using these tools not only makes your life as a property manager more efficient, but it also gives you a competitive edge to keep growing.
#5. Outline Your Guest Management Strategy
One of the skills every property manager should have in managing traditional and vacation rentals are exceptional customer service. This is how successful Airbnb property managers stand out from the crowd. Customer service that goes way beyond that is a big selling point, especially for Airbnb customers. A guest management strategy means that your services should be available to guests and meet their needs at all times during their stay.
Expect your guest to have something to ask or complain about. You should be able to respond to these unforeseen requests in a timely manner. For example, how do you deal with a situation in which the guest has lost the keys to the holiday home and cannot enter? A good Airbnb property manager will have an eventuality in this and other scenarios. In addition, the most successful property managers have automation software solutions to manage communications with customers.
In addition, Airbnb customers value good customer service and express it through positive reviews. This in turn helps in getting more bookings and increasing cash flow, which definitely makes your customers happy. As you can see, customer service is probably one of the most important skills for successful Airbnb property management. So don’t take it as an afterthought!
#6. Set a Reasonable (But Competitive) Price
The last thing you need to become an Airbnb property manager is a pricing strategy. Typically, property managers take a percentage cut of the rental rate secured by the actual host. A number of online sources suggest between 10-25%.
While some think that charging the lower price will attract more customers, it doesn’t. Customers base their decisions on the quality of the services provided by property managers, not the price. So if you offer the lowest price it will warn Airbnb guests that you are not offering top-notch service.
There are many variables to consider in order to set the right price. As mentioned earlier, it is primarily about the type of services you offer. Of course, you shouldn’t be charging for services you don’t provide. Instead, look at your experience and the unique selling propositions that you can offer and set your price accordingly.
You should also consider the local market and the other short term rental managers in your location, seasonal demand, as well as current events. Ultimately, you need to set a reasonable price that you believe will return you the value of your services.
Some Tools for Airbnb Property Management you will need
In order to make your business “shine”, you need some professional help. Yes, we are talking about Airbnb property management tools. it gives a competitive advantage in the race for Airbnb bookings. Curious to find out what Airbnb property management tools we are talking about? All you need to do is to keep on reading!
#1. Heatmap Analysis tool:
The first Airbnb property management tool on our list is the Heatmap Analysis tool.
This is one of the must-have real estate investment tools that make it easier to find properties with positive cash flow.
For example, heat map analysis is a great tool for this purpose. This tool allows any investor to quickly select a short term rental property visually rather than spending hours comparing the numbers.
This real estate investment tool categorizes neighborhoods according to performance, Airbnb occupancy rate, the capitalization rate, and list prices.
#2. Predictive Analytics tool
Another great example of indispensable real estate investment tools are predictive analytics tools. Using such Airbnb property management tools eliminates the need for spreadsheets.
This saves the Airbnb property manager’s time. In addition, the information is predicted based on historical statistics on real estate investments. Because the information is presented positively, Airbnb property managers can make smarter decisions about property investments.
#3. Property Management Platforms
It is clear that managing Airbnb properties is a strenuous activity. However, with the right property investment tools, the job of an Airbnb property manager can become much more efficient. There are many property management platforms out there that can make managing Airbnb rentals easier.
For example, Hostaway is a platform that allows the owner to get more Airbnb bookings and increase their income. In addition, this platform facilitates communication between guest and host.
#4. Airbnb property management Support Apps
Of course, it’s important to talk about great real estate investment tools that will help get positive Airbnb reviews, increase Airbnb usage, etc. There are also plenty of support apps out there to help the Airbnb business thrive. Some of them include:
It is difficult to manage a lot of rental properties and give the keys to every new tenant. This is not even possible if Airbnb rentals are managed out of state. That’s why there is a great app that allows you to open the door for your tenants without your presence. In addition, you can allow certain people to simply open and close the door with their smartphone. Lockitron is one of those who made this possible.
Dropbox and Google Drive:
The ability to store and access information anywhere, anytime is a must have these days. Dropbox and Google Drive allow you to save your contracts, payment details, short-term rental photos, and more.
Microsoft Office package:
We all know the power of Microsoft Office tools. Microsoft Excel and Word can help anyone with an Airbnb calculate finances, write notes, and write strategies. In order to become a homeowner, the use of such tools is beneficial.
Everyone plans to get rich from owning an Airbnb. However, sometimes it gets difficult and you need professional help.
How to Build Value for Your Guests as Airbnb Manager
Vacation rental marketing doesn’t end after someone has booked your short-term rental property – but also during their stay AND after they leave. The more values the vacation rental offer, the easier it will be for real estate investors to get referrals, repeat customers, and positive reviews that will ultimately increase your bookings!
There are 3 ways to evaluate rental properties:
#1. Upgrade your interior design:
If your decor is out of date, you will have a hard time getting reservations. Your guests should stay in your rental property because they WANT it, not because all the other vacation rentals in the area are already booked. Make sure everything in the property is in good condition. Plus, new furniture doesn’t have to be expensive – you can find attractive pieces at IKEA or Craigslist. Make sure you have a nice and comfortable environment for guests to enjoy their stay.
#2. Excellent customer service:
One of the biggest differences between vacation rentals and hotels – for guests – is the personal nature of this business. As a real estate investor, you don’t know your guests, so you have to earn their trust. The best way to do this is by using the customer service. Show your guests that they can easily contact you when they need to, that you are open to communication, and are available for quick answers and feedback on phone calls.
#3. Memorable Customer Experience:
Successful short term rental investors charm their customers with great experiences that encourage them to book again in the future. Start with the basics – vacation rentals should have good quality toiletries, clean towels, clean bedrooms, etc. Simple things like a fancy espresso machine or a welcome gift basket will also go a long way. Also let them know which local activities or restaurants they find interesting and enjoyable.
There are many ways to make money in real estate. The growing popularity of Airbnb and other short-term rentals in the US real estate market has opened up opportunities not only for real estate investors but also for property managers. There is a strong demand for rental managers today, and industry experts predict national growth over the next few years. So if you are looking for a lucrative real estate career, become an Airbnb Property Manager!