Wondering whether it’s worth investing in a property manager for your Airbnb?
After all, you could do the work yourself and pocket a few hundred dollars extra. But what you might not know is this — NOT having a property manager can be costing you more than you’re saving.
While you’re hustling every hour of the week trying to keep your investment property clean, checking in guests, and doing all these other management tasks — another property owner is spending time with their family and just watching their money roll in.
In the end, that other person will be earning more money and living a happier life.
No, the difference isn’t that they chose a property in a better area or that they’re just ‘lucky’. The difference is that they have decided to outsource their lower-value tasks (or automate them) in favour of spending time doing things that matter.
This could mean spending more time with family or friends, studying the market for new investment opportunities, or working on another side hustle in their spare time.
But with that said, before you can make a decision, you have to know exactly what a property manager can do for you.
What A Property Manager Can Do
Hiring a property manager can decrease your time spent doing menial tasks such as:
- Changing your sheets
- Checking the keys
- Cleaning the bathroom, bedroom, and furniture
- Inspecting the property for damage
- Ensuring all electrical goods are switched off when guests leave
- Securing the property by inspecting doors and windows
While these might sound like quick and easy things to do, the average Airbnb host spends 2-5 hours preparing for a guest turnover (making the property ready for the next guest). But on top of that, there is the time spent communicating with guests, which can take up a few hours.
Airbnb property managers handle all these time-consuming tasks. For example, at OptiNest, we handle the basic property management tasks required to turnover guests, provide 24/7 support so you don’t have to spend hours answering questions, and we even help style your property to maximise your Airbnb listing performance (leading to more bookings, better rates, and positive reviews).
But apart from handling the boring stuff, having a property manager for your Airbnb can actually increase the money you earn from short-term rentals.
How A Property Manager Can Increase Your Rental Income
One major factor that determines your rental income is your occupancy rate.
After all, no matter how expensive your rent is, you’re not going to earn a cent until a guest books it and pays that deposit.
Ideally, you’d want your Airbnb to be occupied by a paying guest 100% of the time. But this isn’t possible due to multiple factors.
Some factors influencing your occupancy rate include:
If your property isn’t being rented out at the proper rate, you’re not going to have it booked out as often. While artificially hiking up your prices might increase how much you earn this month, it’ll damage your long-term rental income.
You need to find a sweet spot that makes your property appealing (i.e., people browsing Airbnb think it’s ‘good value’). One essential step to achieving this is to research your competitors.
- Finding out how much other Airbnb owners are charging in your area
- What a property like yours can demand in rent
- Determining any differentiating factors your property may have
While there’s more to competitor research than this, these are enough to get you started.
Find out how many properties similar to yours are charging in your area. Charge slightly less and get some traction for your Airbnb listing. This way, you’ll increase your booking rate and hopefully generate more positive reviews. Later on, you can increase this price and work on differentiating your listing to maximise your rental income.
The location of your investment property can impact your occupancy rates. For example, some locations are better suited for summer holidays and others might be better suited for popular local events.
Understanding your location and what makes a guest decide to visit the area is a key component to increasing your occupancy rate.
For example, you don’t want to optimise your listing for summer getaways when people actually visit your location for business conferences. This would be a mismatch between the marketing of your property and the existing market demand.
Do your research and find out why people come to visit your area. Maybe it’s a hotspot for tourists, there’s a popular annual event, or it’s a growing trend for a certain demographic.
Social proof is one of the most powerful ways to boost your Airbnb occupancy rates.
Before booking, a potential guest wants to know if the place is clean, if the owner is nice, whether it’s convenient to get to places, and so much more information. It’s one thing to say yourself that your home is clean, but it’s another for a verified guest to leave an ecstatic review detailing their amazing stay in your property.
Be considerate. Your guests are trusting you with their stay and just one bad experience can make their trip a disaster. Keep this in mind and do whatever you can to help them have a good time. Hopefully, this will turn into a positive review and help you as well.
Having an optimised Airbnb listing is one of the best ways to boost occupancy rates.
Just like having good reviews, potential guests want to have easy access to all the information necessary to make a decision. One important factor that many new Airbnb hosts overlook, is photography.
High-quality photos that accurately depict your property are essential. While over-promising your property might lead to more initial bookings, it’ll increase your cancellation rate and lead to negative reviews — harming your income in the long run.
On top of photos, there are other ways to optimise your listing, including:
- Search optimisation
- Listing titles
- Positive reviews
- Regular updates
- Instant booking availability
- And so much more…
Have a look at your property photos. Do they look up to standard? You want your photos to be higher quality than your competitors, show more information, and create a deeper connection with your guests.
How a property manager boosts your occupancy rate:
At OptiNest, our property management services help you develop a complete Airbnb short-term rental strategy that is designed to help you create a passive income.
This means we take into consideration your location, competitors, and pricing. But on top of that, we give you the tools necessary to accumulate 5-star reviews. Features such as 24/7 customer service for guests, hotel standard housekeeping, and professional styling to optimise listing photos — these are everything you need to make your investment property and journey with Airbnb a success.
On top of that, we use automated systems to decrease the time spent to turnover guests. This further decreases vacancy rates and maximises your earning potential.
Do you want to spend more time with your friends and family, earn more money from your investment property, and have a professional guide you through your Airbnb journey?