Managing a short-term rental (STR) property, like an Airbnb or Vrbo, can require a lot of knowledge and preparation. Luckily, we pride ourselves on the extensive knowledge and experience it takes to successfully manage a STR. Let's break down the basics;
Legal and Financial Setup: Firstly, you'll want to consult with a good attorney who can advise you on the best legal entity to help shield you from liability, while simultaneously structuring a tax strategy to plan for the future. For example, owning several properties under a single LLC could expose all properties to risk if there is a lawsuit, so they should each be kept separate to reduce liability. Also, for tax purposes, different types of entities may be more advantageous than others when it comes to selling the property after it's value has appreciated. Familiarize yourself with local regulations and tax requirements to ensure your property complies with safety and accessibility standards. Obtain insurance coverage specifically designed for short-term rentals, as a regular landlord policy may not be sufficient. You should also come up with a budget and financial plan in this stage to avoid any difficulties down the road. Property Preparation: With your ideal guest in mind, choose a theme and decorate the property attractively. Install security features like locks, alarms, and outdoor lighting. Opt for sturdy furniture pieces that will hold up to wear and tear while matching your themed ambiance. While it may be tempting to cut costs on furnishing and decorating, keep in mind that you are aiming for exceptional guest experiences that will garner positive reviews and ultimately keep people coming back. You can consider security deposits or damage protection options in case of mishaps. Ensure the property is clean, well-maintained, and fully equipped with things like toiletries, Wi-Fi, and kitchen essentials. Little things like a coffee maker, crockpot and light snacks go a long way in showing hospitality and improving the satisfaction of your guests.
Pricing Strategy & Marketing: Research the local market and competitors to set competitive prices. Use sources like airdna.com and adjust pricing based on demand, seasonality, and special events. Create an appealing and accurate listing on the rental platform and include high-quality photos and a detailed description. Go the extra mile to highlight amenities or local attractions that your guests may be interested in. Promote the property through social media and online channels.
Booking: Respond promptly to guest inquiries and messages and vet potential guests by reviewing their profiles and reviews, or use instant booking settings if desired. Establish a fair and consistent cancellation policy and communicate it clearly to guests during the booking process. Provide clear instructions to ensure a seamless check-in and check-out process and provide guests with emergency contact information in case issues arise. You can also provide a welcome guide with house rules and local recommendations.
Continuous Improvement:
Arrange for regular cleaning and maintenance between guest stays and address any repairs or issues promptly. You can solicit feedback from guests to identify areas for improvement and use feedback to enhance the guest experience. Regularly assess your property's performance and make adjustments as needed. Keep detailed records of income and expenses and set aside funds for taxes and property maintenance. Stay informed about changing local laws and regulations regarding short-term rentals to ensure compliance.
Managing a short-term rental property requires active involvement and attention to detail. The goal is to provide a comfortable and enjoyable experience for guests while maintaining the property's profitability and compliance with regulations.
Reach out today and ask us about our property management services...