Managing short term rentals effectively comes down to picking the right method for your property. Property owners typically have three main options: managing everything themselves, hiring a traditional property management company, or choosing an Airbnb management service company that specializes in listings across multiple platforms. Each option has its pros and cons regarding how much money you can make, how much time you need to spend, how guests feel about their stay, and how you can grow your rental business. In this article, we’ll look at these different strategies, share some recent industry trends and expert opinions, and explain why choosing the right management approach can greatly impact how well your short term rental performs.
Self-Management (DIY Short Term Rental Hosting)
Self-management means you take care of everything related to your short term rental, like an Airbnb, by yourself. This includes making the listing, talking to guests, and handling cleaning and repairs. This hands-on approach is often used by people who have just one or two rental properties and prefer to be directly involved. While self-managing gives you complete control over how your rental runs, it also takes a lot of time and effort. Here are some advantages and disadvantages of managing a short term rental on your own:
Benefits of Self-Management:
- Increased Earnings:
When you manage your rental property yourself, you don’t have to pay management fees or commissions, which means more of your rental income goes directly to you. For example, by taking on the management role, you could keep most of the money you earn from renting out your property, aside from some necessary fees and expenses. This DIY approach can potentially lead to higher profits, but it works best if you are organized and efficient in managing the property. - Complete Control Over Your Property:
As the owner, you get to make all the important decisions regarding your rental. This includes setting prices, choosing which guests to accept, and creating house rules. You have the freedom to tailor the guest experience to your liking, whether that’s adjusting nightly rates or deciding when to use the property for yourself. Many property owners enjoy this level of control and the chance to add their personal touch, like greeting guests personally or leaving small welcome gifts. - Building Personal Connections with Guests:
When you manage your property directly, you have the opportunity to communicate with your guests and establish a friendly relationship. Many property owners find that this personal touch can lead to better reviews and encourages guests to return. By responding to guests’ needs in your own way, you can create a warm and inviting atmosphere that helps your property stand out. When done right, this personal approach enhances guest satisfaction.
Disadvantages of Self-Management:
- Time Commitment:
Running a short term rental, like an Airbnb, often feels like a full-time job, even when it’s just one property. You have to attend to guest questions, bookings, cleaning schedules, and any issues that come up, which can be quite demanding. Research shows that an average host might spend about 10–15 hours each week managing just one rental. Late-night texts from guests, arranging last-minute cleaning, or fixing a broken appliance can add to the stress. This level of involvement can lead to burnout, especially during busy seasons.
- Maintaining Quality:
Providing a great experience for guests consistently is tough when you’re doing everything yourself. If you’re managing a rental on your own, even one small mistake—like forgetting to clean a room thoroughly or taking too long to respond to a guest—can lead to a bad review, which can hurt future bookings. It’s difficult for one person to keep everything up to the high standards expected by guests. If you’re managing multiple properties by yourself, the challenges increase, making it even harder to maintain quality.
- Diverse Skills Required:
As a host, you need to handle many different tasks at once—like marketing the property, helping customers, setting prices, and even doing minor repairs. To be successful, it’s important to understand things like how to improve your listing’s visibility online and how to set competitive prices. Not everyone is skilled in these areas, which can lead to errors or missed opportunities. Learning all of this takes time and experience, and you often have to learn through trial and error.
- Challenges of Scaling Up:
If you want to grow your rental business and manage more properties, doing everything by yourself can become overwhelming. While managing a single rental may be manageable, taking on several—like five—can quickly become overwhelming to handle alone. Most hosts find that trying to do all the management themselves becomes impractical as they expand. If your goal is to have multiple rentals and maximize your earnings, managing each one solo may hinder your growth.
In short, managing your own property gives you full control and saves you from paying management fees, but it does require a lot of your time and effort. This approach can be very satisfying for those who love being hands-on and can dedicate the necessary time and energy to hosting. However, many hosts find that doing everything themselves can turn into a constant job. As one expert noted, “You’re always the go-to person,” which means you’re responsible for handling every guest’s needs, coordinating cleaning, and taking care of any maintenance issues. If you find your time is more valuable or if you’re thinking about expanding, it might be wise to consider getting some help.
Traditional Property Management Agencies
Traditional property management agencies are companies that help landlords manage their properties. They have been around for a long time, mainly handling long-term rentals, but many now also manage short term rentals, like those on platforms such as Airbnb. These agencies work in a more traditional manner: they take care of everything related to managing a rental property for a fee and usually have experience in maintaining the property and dealing with tenants.
When you hire a traditional property manager, you can reduce your involvement in managing your rental. They take on responsibilities like talking to guests, handing over keys, organizing cleaning services, and collecting rent. This can make life easier for property owners, but it’s worth noting that the way they operate and the results they achieve may be different from specialized short term rental services. Let’s explore the advantages and disadvantages of using a traditional property management agency:
Advantages of Traditional Agencies:
- Easy Management:
When you hire a property management company, they take care of everything for you. You won’t have to answer questions from guests during dinner or rush to fix a broken faucet. This is especially helpful for busy or remote property owners who want a hassle-free experience. The agency steps in to handle guest requests, clean between stays, and keep the property in good shape, allowing you to earn rental income without constant involvement. - Expert Care for Your Property:
Property management firms are usually experienced in taking care of homes and interacting with guests. They know the ins and outs of the local rental market and can help you stay on top of any laws or regulations. A local agency can make sure your rental is following all the rules, such as permits and safety standards. Plus, they often have connections with reliable workers for repairs and cleaning. This expertise can help you keep your property in great condition and avoid mistakes that someone new to renting might make. - Reliable Processes:
Many property management companies have established ways to check guests, manage check-ins, and handle payments. They tend to provide a steady and reliable experience for owners. Some even offer guaranteed rent or fixed monthly payments, which can provide financial stability. They focus on keeping your property occupied and well-maintained, which is appealing for those who want to protect their investment. While they may not promise the highest earnings, they aim for consistent income and preserving your property, treating it almost like a long-term rental. - Personal Touch for Owners:
Since many property management businesses are smaller and local, they often provide a more personal experience. For instance, a company based in Chicago prides itself on a supportive atmosphere, giving property owners individual attention. You might regularly communicate with a specific property manager, creating a trusting relationship. This can be reassuring for those who prefer a human touch rather than dealing with a larger, tech-focused company.
Disadvantages of Traditional Agencies:
- Understanding Property Management for Short Term Rentals:
When you manage a property for short term rentals, like those on platforms like Airbnb, there are some important things to consider, especially regarding how much you pay for management services. - Management Fees Impact Your Earnings:
All property managers charge for their services, but the fees can vary quite a bit. Traditional property managers usually focus on long-term rentals—those where tenants stay for several months or a year. Their fees typically range from 6% to 12% of the monthly rent. However, short term rentals, which involve many guests coming and going each month, can lead to higher fees because the work is more intensive. Some managers might charge higher percentages or add extra fees to cover their extra work. Others may offer flat monthly fees or charge for each booking. Whichever way you look at it, these costs will take a chunk out of your earnings. It’s important to find a management service that actively works to maximise your rental income. Sometimes, paying a higher percentage can be worth it if they help you make more money overall, but if they’re not working hard for you, that could mean losing out on potential income.
- Marketing Expertise Matters:
Traditional property managers are good at maintaining properties, but they might not have the specialized skills needed to market short term rentals effectively. One crucial tool that expert managers use is called dynamic pricing. This means they adjust rental rates based on demand to help boost income. While traditional agencies may list your property on a couple of websites, expert short term rental companies will often list it on multiple platforms and regularly update prices to attract more guests. Because of this, a traditional manager may not be able to secure as many bookings or charge premium rates, simply due to their less dynamic approach. - Focus on Guest Experience:
When it comes to customer service, standard property management can sometimes treat rentals more like a traditional business rather than focusing on hospitality. While basic cleanliness and key handover are important, a dedicated short term rental manager is likely to go the extra mile. They might enhance the guest experience with thoughtful touches such as stylish décor, welcome gifts, and prompt responses to inquiries. If a manager doesn’t pay attention to these details, guests may not feel as valued, which can lead to fewer positive reviews and repeat bookings. - Contracts and Flexibility:
Often, traditional property management companies require you to sign longer contracts or agreements that can be difficult to change. For instance, if you want to use your vacation home for a personal trip, a traditional manager might not allow that without pushing back because they see it as lost income. Many owners feel that they have less control over their property in these situations. With a traditional agency, you may not get to see how they’re handling day-to-day decisions, and they might not keep you updated on marketing efforts or any guest-related issues.
Traditional property management companies offer a balanced option for property owners. They provide professional help with managing properties and take care of daily tasks, which can be a big relief. However, this convenience often comes with fees that can reduce your overall profits, meaning you might not make as much money as possible from your property. This setup can be great for owners who value ease and want to avoid the small details of rental hosting.
On the other hand, specialized companies focused on managing short term rentals, like those listed on Airbnb, are becoming more popular. These companies usually offer services that are specifically designed for short term rentals and might deliver better results. It’s important for property owners to think carefully about whether a local management agency is equipped to boost their rental income or if a dedicated short term rental manager would be a better choice.
Airbnb Management Services Company
Full-service Airbnb management companies are experts in managing short term rentals, taking care of all the important details for you. These companies focus specifically on vacation rentals and use their knowledge and technology to ensure your property does well. You might have heard of companies like KozyGuru, Vacasa, or Evolve, as well as local firms that specialize in Airbnb management.
When you choose to work with a full-service management company, you essentially hand over the keys to them, and they take care of everything. This includes creating an appealing online listing for your property, taking professional photos, updating rental prices based on demand, promoting the listing on different platforms, communicating with guests at any time, arranging cleaning and maintenance, restocking necessary supplies, and handling guest feedback after their stay. Think of them as your “super-host,” supported by a team and special software to help manage everything.
Here are some key benefits and drawbacks of using this type of service:
Advantages of Full-Service Airbnb Management:
- Maximizing Income and Occupancy:
One of the biggest advantages of hiring a specialized Airbnb manager is that they can help owners make more money. They use advanced tools and their expertise to improve how well your rental performs. For example, they adjust prices based on demand, so you can make more when lots of people want to stay and stay competitive when fewer people are looking. They also promote your property on different booking websites like Airbnb, Booking.com, and Vrbo, which means more people will see it.
As a result, you can expect higher occupancy rates and overall earnings compared to managing everything yourself. In fact, data shows that professionally managed Airbnb properties can earn 20-40% more than those managed by their owners. Full-service companies work hard to keep your property rented year-round, like hotels do, while casual hosts tend to rent out their homes only occasionally. So, although you pay a fee to these managers, your overall income can still increase thanks to more bookings and higher rental rates. - Enjoying Convenience with Hands-Off Ownership:
This approach is the easiest for property owners, requiring very little of their time. A management company takes care of everything, so it’s like a totally passive investment. This is especially helpful for busy people or those who live far away from their rental property. As one expert mentions, full-service management is “perfect for busy property owners or those with many properties,” allowing for worry-free management.
You won’t have to deal with late-night phone calls from guests—the management team is there to help 24/7. Many owners appreciate that they can earn rental income without spending much personal time, aside from maybe looking over monthly reports.
It’s interesting to note that most Airbnb hosts typically spend 10–15 hours a week managing their listings on their own. With a management service, all that time is freed up! This means you can get back hundreds of hours each year—essentially, you’re hiring a professional to handle everything so you can focus on what matters to you. - Making Guests Happy:
short term rental management companies specialize in providing great experiences for travelers. They understand that satisfied guests are likely to leave positive reviews, which can boost future bookings. To ensure a fantastic stay, these companies often go above and beyond. This might include professional cleaning with high-quality bedding, welcome gifts or local guides for guests, quick responses to questions, and easy check-in processes—sometimes even using keyless locks for convenience.
Many of these managers also offer extra services, like arranging rides from the airport, providing support any time of the day or night via phone or text, and having staff available to quickly help with any issues that arise. This typically leads to happier guests. They enjoy the cleanliness and reliability of a hotel paired with the cozy feel of a home.
Experts say that properties managed by professionals often receive more five-star reviews because of the quality of service they offer. And those better ratings do more than just make the owners feel good—they also help the property appear higher in search results on platforms like Airbnb, which brings in even more visitors. In short, a full-service management company can really enhance your property’s reputation and the experience for your guests, something that can be tough for individual owners to achieve on their own. - Ability to Grow for Different Properties:
If you’re thinking about owning several short term rental properties or already have a few, working with a full-service management company can make things a lot easier. These companies have systems in place to handle many properties in different locations, allowing you to manage your entire portfolio with just one contract. This means you can buy more rental homes without taking on extra work – the management company takes care of the details for you.
This approach helps investors grow their rental businesses confidently, knowing that each new property will be efficiently managed. Many real estate investors and larger companies choose specialized management firms for this reason. For example, KozyGuru takes care of hundreds of properties and is expanding its reach globally. By using a service like this, individual property owners can add more rentals while still enjoying the same amount of free time they had with just one property.
Additionally, these management services often provide simple, clear reports, summarizing all your properties in one place. This makes things easier when tax season comes around or when you’re reviewing how your investments are performing. - Understanding Short Term Rentals: Keeping Things Simple
Short term rental rules can change frequently, and it’s important for property owners to stay informed. Full-service companies are experts in these regulations and can help property owners avoid legal issues. They handle necessary tasks like getting city permits and paying taxes, so owners don’t have to worry.
Because these companies focus solely on rentals, they know the latest trends that guests are looking for. For example, many companies now use smart locks for easy entry, devices that monitor noise levels to prevent parties, and tools to screen guests for safety. They also make sure rental listings look their best by using professional photos and engaging descriptions.
By partnering with a professional team, property owners can improve their chances of success in a busy market. One property management company from Australia highlighted that outsourcing to experts can lead to better pricing, effective marketing, and smooth day-to-day operations, ultimately resulting in higher occupancy rates and increased earnings.
Disadvantages of Full-Service Airbnb Management:
- Management Fees and Profit Sharing:
When it comes to hiring a company to manage your Airbnb, one of the biggest downsides is the cost. Full-service management companies usually take a bigger cut of your earnings compared to traditional long-term property managers. Their fees usually range from around 15% to 30% of what you earn from rentals, and in some cases, it can even go as high as 30-50% for premium services. This means a significant portion of the money you make will go to the management company.
While these companies can help you earn more money overall, it’s important to remember that you won’t keep all the money that guests pay. You should carefully calculate your potential earnings and see if the added revenue makes up for the costs. Additionally, some companies might charge extra fees for setting up your account or getting supplies ready, although others, like KozyGuru, offer straightforward commission-only options. Ultimately, if you decide to use a management company, your profit from each booking will be less than if you managed the property yourself, since you are paying for their help and expertise. - Loss of Certain Control:
When you choose to hire a full-service management company for your property, you’ll need to be okay with giving up some control over day-to-day decisions. The management team typically handles things like setting rental prices, deciding which guests to accept, and maintaining their own standards for your property. If you’re someone who likes to carefully choose each guest or make changes to your property as you go, this might feel a bit limiting.
For instance, you might prefer to have longer rental stays, but the management company may fill your calendar with many shorter bookings to increase occupancy. They might also allow pets or short weekend stays, which you wouldn’t typically permit. These decisions are now up to them. Even though they usually discuss your major preferences with you at the beginning, you’ll be taking a more hands-off approach after that.
This reduced control is a normal part of using a management service, especially one that operates on a large scale with set practices. You’ll need to trust their judgment; for example, if they lower prices during a slower season, you have to believe that that’s a good strategy. This can be difficult for some property owners, especially at the start. However, a reputable management company will communicate with you about overall strategies and welcome your feedback when appropriate. Trusting someone else to run your property as a business does take some getting used to. - Choosing a Reliable Property Management Provider:
The short term rental market is booming, which means many new management companies are entering the scene. However, not all of these companies provide the same level of service. One big risk is picking a management service that promises a lot but doesn’t deliver. If you’re not managing the property yourself, a bad manager might neglect your home or offer poor service to guests, leading to unfavorable reviews that can ultimately harm your property’s reputation.
That’s why it’s essential to do some research before choosing a management company. Look at their track record and read reviews from other owners. Check out their current listings to see what guests are saying about their experiences and how the company deals with any problems that arise. Sometimes, a management company might focus solely on making as much money as possible, while you may prefer a service that emphasizes hosting well-screened guests. This difference in priorities can create tension.
Fortunately, the best Airbnb management services aim to please both property owners and guests. Reading client testimonials or success stories can give you confidence that you’re selecting a trustworthy company. Ultimately, since you’ll be relying on someone else to manage your property, it’s crucial to choose the right partner. - Agreement Commitment: When working with full-service companies, you’ll usually have a management agreement, similar to what you’d find with traditional agencies. The details of these agreements can differ. Some companies might require you to commit for a specific length of time, while others might allow you to work on a monthly basis. It’s important to read and understand the contract, especially how you can end the agreement if you need to and whether there are any restrictions on using other companies to manage your property at the same time. While this isn’t necessarily a deal-breaker, it’s something to keep in mind since you’re entering a partnership with the company.
When it comes to managing a rental property on platforms like Airbnb, many property owners find that full-service management services offer the best way to maximize earnings while minimizing the hassle. While these services come with a significant fee and less personal control over the property, many owners see it as a worthwhile investment, especially if they view their rental as a business rather than just a hobby.
Recently, there has been a noticeable increase in owners choosing professional short term rental managers to help them succeed in a competitive market where guest expectations are high. Full-service management is becoming a popular choice because it brings professional expertise and advanced tools to manage the property effectively—something that individual owners may struggle to achieve on their own.
Recent Trends and Industry Insights in Short Term Rental Management
The short term rental market is experiencing some exciting changes in 2024. More people are looking to book these types of rentals, leading to high occupancy rates and increased profits. This trend is prompting property owners to consider professional management services to help them make the most money from their investments.
The way short term rental management operates has changed quickly over the last few years. Some important trends and insights highlight why picking the right management method is crucial now more than ever.
- Growing Popularity of Short Term Rentals:
The vacation rental market is becoming more popular than ever. As travel restrictions from the pandemic ease up, more people are looking to rent places for their trips, especially through services like Airbnb. In the U.S., for instance, there was a 10.7% jump in the number of people wanting short term rentals in 2023 compared to the previous year. On average, about 55% of these rental properties are booked, though the best ones often do much better.
This increasing interest is encouraging more property owners to enter the rental market. However, this also means that there is more competition among hosts to attract guests. Simply listing a home on Airbnb no longer guarantees bookings. The most successful hosts are those who actively manage their prices and provide memorable experiences for their guests to take advantage of the rising number of travelers. - Making Hosting More Professional:
The trend of professional hosting in short term rentals is on the rise. Many homeowners who began as casual hosts are now stepping up their game by using professional tools or hiring experts to manage their properties. Recent industry data shows that more and more Airbnb listings are handled by people who own multiple properties or by professional property managers rather than just individuals renting out one home.
This shift doesn’t mean that individual hosts are disappearing; however, it does indicate that guests’ expectations for quality and service have increased. Guests are now looking for experiences that feel more like staying in a hotel, even when they choose an Airbnb. Professional management teams are meeting many of these higher standards.
Experts in the rental industry have noticed that professional property managers are able to keep their listings booked throughout the year and earn significantly more money per property compared to casual hosts. This is largely due to their experience and the resources they have at their disposal.
For homeowners looking to remain competitive in this changing market, it’s becoming increasingly important to embrace professional management techniques. They can do this either by learning how to manage their properties better or by hiring a professional service to handle everything for them. - Technology and Smart Management in Short Term Rentals:
One major trend in short term rental management is the growing use of technology. Property owners and managers are now using a variety of helpful tools to make their lives easier. For example, there are systems that help set prices based on how busy a market is, making it possible to charge more when demand is high, just like hotels do. Many bigger management companies have their own special tools, while others use popular services to determine the best rates each day. Even independent hosts are starting to embrace these technologies.
These advancements allow property owners to manage their listings more effectively, whether they have a handful or hundreds of properties. Automation tools can take care of guest communications and other tasks, making the process smoother and less time-consuming.
The takeaway is that staying updated with the latest technology is essential in today’s rental market. More owners are turning to professional property management services and tech tools to gain a competitive edge. - Rising Guest Expectations in Short Term Rentals:
As the world of short-term rentals continues to grow, guests are starting to expect more from their stays. Nowadays, it’s normal for guests to want quick replies to their messages, spotless cleanliness, reliable Wi-Fi, smart TVs, smooth self-check-in options, and little comforts like coffee and toiletries—similar to what they would find in hotels. These expectations are important because they can greatly influence guests’ reviews.
Hosts who can’t respond quickly or who rush through cleaning may find themselves at a disadvantage compared to properties that are professionally managed and offer hotel-like cleanliness and support. An expert insight highlights that good hospitality is key to receiving positive reviews and making money. In simple terms, great hospitality leads to great reviews, which can result in more earnings.
It can be challenging for individual hosts to consistently meet these high expectations. This is why many are turning to full-service management, as it’s difficult for one person to provide that level of service for all guests. - Understanding Regulations for Short Term Rentals:
In many cities around the world, local governments have created rules for short term rentals, like those you see on platforms such as Airbnb. These rules can include things like needing permits, paying specific taxes, and having limits on how many days you can rent out your property. Keeping up with these regulations is now an important part of managing a rental property.
Some property owners choose to hire professional managers to help with these legal requirements. These managers can ensure that your property is properly registered, meets safety standards, and that all necessary taxes are paid on time. For many owners, having professional assistance makes navigating these local laws much easier and less stressful.
As regulations continue to change, having an expert to guide you can be crucial in avoiding fines or even having to close your rental down. With rules getting stricter, it’s essential for property owners to pay attention to legal compliance and consider getting help from traditional or full-service property management professionals.
To sum up, the short term rental market is becoming more competitive and complicated. As a result, many property owners are either improving their own skills or seeking help from professionals. One property management company highlighted that the benefits of renting out properties usually make the effort worthwhile, especially when working with experts who can make the process smoother. With these changes ahead, property owners should think carefully about how they will manage their rentals in 2025 and beyond.
Choosing the Best Approach for Short Term Rentals
When it comes to managing a rental property, you have a few options: you can handle it yourself, work with a traditional property management company, or choose a specialized service for short term rentals. Managing the property yourself can work well if you have the time and enjoy dealing with guests, but it does require a lot of effort. If you’d rather take a step back, a traditional property manager can help you, especially if they understand the ins and outs of short term rentals and know how to maximize your profits.
For many property owners, partnering with a specialized service like KozyGuru is the best choice. They focus on short term rentals and are really good at helping you earn more money through effective marketing, smart pricing, and excellent guest support. KozyGuru will take care of all the details needed to make your property successful, including setting the right prices, listing your property on different platforms, communicating with guests, and arranging cleaning services. This way, you can enjoy the benefits without all the stress.
KozyGuru has a solid track record, with their properties enjoying about 82% occupancy and generating great revenue. Plus, their commission structure is straightforward and free from hidden fees, so you know exactly what to expect. You’ll also receive regular updates through an owner portal, keeping you in the loop about how your property is performing.
As KozyGuru continues to grow, they’re becoming a trusted partner for rental property management. If you’re looking to increase your earnings while putting in minimal effort, KozyGuru offers a top-notch full-service solution, letting you enjoy easy income without the hassle.
Another great thing about KozyGuru is our commitment to keeping owners informed. You’ll have access to an owner portal where you can see updates about your property, so you never feel left out. They already manage hundreds of properties in different cities and even countries, proving they can handle your needs no matter how many rentals you have. With a recent year-over-year growth of 34% in the number of properties managed, KozyGuru has built a strong reputation with property investors. By choosing us, you’re aligning with a leader in the short term rental market.
In summary, for property owners who want to make the most money with minimal hassle, going with a full-service Airbnb management company is the way to go. KozyGuru stands out in this area, thanks to their effective strategies, focus on guest happiness, and dedication to maximizing your return on investment. Letting KozyGuru manage your property means you’ll have a reliable partner in success, allowing you to enjoy passive income while your guests and your finances are well taken care of.
Reach out to KozyGuru today and let us elevate your Airbnb business!