"Should I hire a manager/co-host?"

That's a great question! By the end of this article, you will have an answer, so keep reading!

How much does a property manager cost me?

Most property managers operate on a percentage of your gross revenue (what you bring in for every reservation). From our current market analysis, management fees can range between 8%-28%.

WHAT A RANGE! 🤯

If the price is only 8% - that must be the best option, right?!
Woah, slow down tiger. . . lets dive deeper. Property managers can service you at varying levels.

First, lets look at the Pros and Cons of outsourcing property management and/or cohosting:

Pros of working with a property manager/cohost
(services vary by company/host)

1. Someone is answering guest communications for you and following up on guest inquiries to maximize bookings (hopefully it's timely)

2. Someone is managing your pricing for you (hopefully they know your market)

3. Someone handles the configuration of your listing and Someone handles coordination with a cleaner

4. Someone (or you) handle issues when they go wrong and configures door lock codes

5. Someone (or you) remit your taxes

Cons of working with a property manager/cohos1

1. Limited or NO control of your listing

2. Limited or NO control of your pricing

3. Limited or NO control of your calendar

4. Limited or NO visibility into guests staying at your property

5. Faulty property upkeep practices
   

Determining your Needs

The above "Pros" list plenty of variance -its important you know how many moving parts there are !

The results are what matter most, consider more than only the price.

When interviewing property managers, its important to understand who will provide you the best results possible. Most importantly those results must align with your goals.

Lets start with some key considerations to determine if partnering with a cohost or manager is right for you.

1. Categorize Your Intentions

First, its important to pinpoint your intent. Entering into a new investment takes all shapes and sizes. For some, it may be strictly for an investment, and for others it may be an outlet to escape to every few weeks. Everyone is different, so what category fits you best?

How do you plan to leverage your property?

• Strictly Investment - It's all about the numbers.

• Personal Use - I want to use it and offset costs.

• Investment + Personal - I like the money and the travel!

2. Identify Your Goal

Second, you must start to consider the financial aspect based on your intention.

Do you need to fully cover property costs?

• Yes - covering all property expenses is important to me.

• No - covering all property costs is not a requirement.

3. Review the Financials

Third, reviewing property financials will help you evaluate your budget and how much you can spend working with a manager or cohost.

Evaluating your property financials should be done in two steps:

3.1 What are your total property expenses each month?
(Including all items such as mortgage, electric, fuel, taxes, HOA, landscaping, etc)

Example: Mortgage + Utilities = $1,800/mo

3.2 How much revenue will your property generate each month?
Estimating the amount of revenue your property will bring in each month can be tricky, we recommend websites such as AirDNA or STRInsights to make an assessment.

Example: Total Gross Revenue: $2,200/mo

3.3 Can you afford a property manager or cohost?
Now its time to shop around to find a partner that meets your goals. Seeing that you'll generally spend between 15% - 25% for a full-service manager, in this example you may be paying anywhere between $330 - $550 per month.

Seeing that you'll also need to include basic items such as toilet paper, paper towels, and other soft items (which could range between $35-75/month) the above deal is a BUST 😖.

Example: Revenue ($2,200) - Property Expenses ($1,800) - Manager ($440, avg.) = -$40 😟

"What can you afford to give up before it doesn't align with the goal?"

So, what are your options?

Self-managing and fully automating your operations

Self-managing is not as challenging as it seems, especially if you partner with the experts at Hostlabs to make it happen. Learn to manage and fully automate your business while paying zero property management fees!

Working with a specialty or local property manager

Partnering with a local or boutique manager can ensure your property is tailored to your ideal guests. A successful partnership will often set you back between 15% - 30% of your gross revenue.

Bringing in the big guys

There are a handful of national companies that will manage your property with mixed promises - but beware! Make sure to do your due diligence to ensure they align with your goals.

• Evolve - takes 10% of the revenue. This may sound tempting at first, however be sure to understand your responsibilities in the relationship!

• Vacasa - takes between 18-28% of the revenue. That's expensive, can you afford it ?

Need help with deciding the best option for you? ...

Hostlabs to the rescue!

Managing and automating your rental portfolio to create consistent 5-star experiences, without the stress, is possible! If giving up a hefty management fee doesn't sound appealing, its great that you've taken the time to read this article.

Getting caught in a bind and not meeting your numbers each month doesn't make short-term rental investing fun.

Thats why the experts at Hostlabs help operators manage their portfolio and bring it to full automation - so you can enjoy passive income while keeping management fees right in your pocket.

Sounds too good to be true?

Speak with a hostlabs expert and start automating your rentals todays !

Life-changing effects of running a streamlined and efficient operation

Once your short-term rental operations are running how you want them to be, there will be possibilities you didn't know existed. Your time frees up, you can relax or find more deals. All because - time is in your hands!

Its time to reclaim your time and focus on growing your business and continue providing a 5-star guest experience!