Airbnb management companies are often engaged to cover a scope of duties, some of which includes: listing the property across OTAs (Online Travel Agencies: Airbnb, Booking.com, Expedia, etc.), handling booking enquiries, directly dealing with guests pre and post-stay. They usually make a range of 10% to 30% of the property’s booking profit, spanning from basic to full services; depending on how hands-off you would like to be when managing your own Airbnb property.
When you let an asset, by definition you are not available on-site, and therefore, the idea of delegating makes perfect sense. Before the general public was really aware of the management services offer, many owners managed everything themselves or had (more or less successfully) perfected their own management of their property with the help of their concierge, cleaner, neighbours or even friends. Even today, most customers who use the airbnb service do so because they want to let during the holiday season but they don’t feel like managing or organising the management of their asset. The other aspect of our work, which is frequently overlooked, because it is all too often neglected by management services themselves, is to create rental value.
Short start Management Pricing in Melbourne.
AirBnB management fees structure is designed to be very reasonable for both yourself and your guests. We charge a 15 per cent management fee, in return taking all the responsibility off the owner for the management and maintenance of the property.
There’s also a AirBnB cleaning charge that we bill direct to the guests, but endeavour to keep it as low as possible so that we don’t upset guests or price your property out of the highly competitive AirBnB market. The specific fee can vary, depending on the size of the property, and whether the provision of linen is part of the service. Regardless, guests will enjoy the hotel-like conditions of a properly stocked and painstakingly cleaned.
The benefit of this cost structure is that it takes the responsibility for the property right off your hands. It becomes a genuinely passive revenue-generating investment and allows you to simply enjoy the benefits of having the investment property. It will free you to focus your attention on your personal goals and interests
IS PROFESSIONAL AIRBNB PROPERTY MANAGEMENT WORTH THE COST?
Airbnb rentals are investment properties leased on the real estate market for short term accommodation. This implies that such properties are typically occupied by Airbnb guests for a night or a few days, but definitely no longer than a month/a couple of months. Anyway, due to the flow of guests, Airbnb rentals require a lot of maintenance. This includes cleaning after each and every guest and preparing the property for the next occupant. Additionally, supplies should be restocked and refilled, if needed. Further, the Airbnb host should be available for his/ her guests in case they need anything or have a question. In order to ensure better Airbnb reviews, many house investors take an extra step when renting out on Airbnb. This might be preparing a meal for the Airbnb guests or taking them on a tour in the area. Moreover, the Airbnb host will also have to deal with taxes, local laws, and regulations, placing and managing the property online and coordinating the schedule of visits. This sounds like a job for a full- time real estate investor, doesn’t it? Well, it is true: Airbnb property management requires a lot of work and effort in order to help you start making money in real estate. Nevertheless, there is another possibility of generating a great Airbnb rental income while being a part-time real estate investor. This can be achieved by leaving your property in the hands of professional Airbnb property management.
What are the Fees?
There are three standard models for short term rental management fee structures: the fixed, guaranteed, and percentage models. As we’ll explore below, each type of management fee structure has its pros and cons. There isn’t necessarily a better or worse one. It basically comes down to what’s right for you and your property. Fee structure #1: Guaranteed income Many property managers follow a guaranteed model. With this fee structure, the property owner is guaranteed a fixed monthly income, regardless of how often the property is rented. Any income above and beyond the homeowner’s guaranteed income goes to the property management company. This is great for property owners who want a stable and 100% passive income. High or low season, your investment will earn you the same income throughout the year. But for properties in some touristic hotspots, you could make less when compared to the commission or fixed-rate models. Fee structure #2: Fixed-rate There are some short term rental management companies that offer a fixed-rate fee model. The owner pays a flat fee that comes with a predefined set of services. The fee doesn’t change based on how many nights the property is booked a month. So for example, you may be charged $300 a month for handling bookings, and cleaning fees.
You can expect to pay anywhere from 10% to 30% for a Air Bnb Management company.