Yes, it is possible to manage your own short-term rental... but there are a lot of details you may not have considered. While it's very doable for some people to handle all of these tasks on their own, it's enough to give most people heartburn. This post won't go into detail for each item (stay tuned for future blog posts on these topics), but it is a definitive list of all of the things you'll need to think about before you take the leap.
What you'll need to start a short-term rental
A place to rent
Properly furnished for a specific amount of people to surpass their expectations You need to acquire the property you want to turn into a vacation rental. You might already own it or you might be looking to buy something. Either way, it's not as simple as putting some furniture and housewares into the space and plastering it up on the listing sites. You must think strategically to maximize your nightly rate. How many guests can you comfortably host? How will you create space for all of them to live and sleep? What amenities might they need? How much should you invest in the furniture and amenities as to not under- or overspend?
Camera(s) Your property should have at least one exterior camera at the front entrance (and perhaps other public/exterior areas of the house - but not an area where guests would reasonably expect privacy, like in a backyard). Our camera systems record and are backed-up 24/7, so we can refer to past footage if needed. We can monitor cameras from an app, and easily give access to homeowners for peace of mind that their properties are being taken care of.
Noise detection (Noiseaware) (optional) This small device doesn't record sound, but it can tell you if the decibel level goes over a certain amount for a prolonged period of time. This allows you to proactively reach out to extra-loud guests, thereby preserving your relationship with neighbors. It shows vacation rental skeptics that we really do care about hosting respectful guests.
WiFi lock If you invest in only one piece of technology for a vacation rental, make it a WiFi lock. Set personalized lock codes for various desks for an app. Deactivate lock codes. See comings and goings of guests based on when they lock and unlock. And never deal with another missing key. WiFi locks make self-checkins possible, all hours of the day and night.
WiFi thermostat (optional) Save big money by investing in a WiFi thermostat. Not only can you set a low temp for your AC or a high temp for your heater (to prevent guests from turning your unit into a hot yoga studio or a giant refrigerator), you can also adjust the heating/cooling remotely. So if you see a guest checked out and left your AC set to 68, you can reset it to 75 from an app.
Local rental permit (depending on where your property is located) Check your local ordinances to determine whether or not you need a local rental permit. This usually requires registering your unit as a vacation rental and paying some kind of fee. These permits typically need to be renewed regularly (e.g., yearly), so don't forget to renew so you're never in violation. Do not attempt to fool the system here and avoid getting a permit. It's not worth the few bucks you'll save if your city or town shuts you down.
Listings on Airbnb and VRBO (at a minimum)
Copy that differentiates you from the competition Writing your listing isn't as easy as it sounds, especially when a blank page is staring back at you. The best copy is personal. Don't try to write something that will please everyone, from families with small children to wild bachelorette parties to church missionaries. Imagine one customer in your mind and write your listing to that person.
Market research (AirDNA) (optional) How much should you charge per night? What amenities should I provide? What amenities can I skip on? How much competition is in the area? How do they position their properties? How long should I make my minimum stay? How long should I make my maximum stay? Market research is key to understanding how much your property can command.
Photos (professional photos recommended) There's nothing worse than a listing with dark photos of crappily-made beds, askew blinds and clutter. Not everyone is a great photographer, even with the most powerful new smartphone in one's hands. For more info about professional photo shoots, see our blog post on the topic. But trust us on this one - this is one of the best start-up investments you'll make for a vacation rental.
Guidebook/rule book for guests (Hostfully Guidebooks) How do I turn on the spa? What are the checkout procedures? What day is the trash pickup? There are so many things you know as a homeowner that your guests have no idea of. Guidebooks are a great resource to help guests navigate staying in your place. They help automate operations so guests don't contact you to figure out how to use the Roku-enabled TV - they can refer to the step-by-step directions in your guidebook instead. Time (and money) saved. Our guidebooks also contain recommendations for local restaurants, shopping, and attractions.
Pricing (PriceLabs) The worst thing you can do is set a nightly rate and forget it. You could be leaving thousands of dollars on the table if your nightly rates aren't being constantly optimized. However, that's hard to do for a regular person. Enter AI pricing (we use PriceLabs for the properties we manage). PriceLabs reviews how much competitors are charging (including hotels), as well as seasonality and local events and happenings that might be driving demand.
Guest screening service (optional) One of the main sources of heartburn for hosts is the prospect of getting a bad guest in their place. In our experience, bad guests are few and far between - most people just want to have a nice vacation and feel like they're getting what they paid for. We provide that (and more), so most of the time, our interactions are positive. However, there are some predictors of a bad guest that a guest screening service can flag for hosts - low star-ratings from other hosts the guest has stayed with, a criminal background, etc. This type of service can't guarantee you'll avoid bad guests altogether, but it can certainly provide peace of mind.
Property management software (Hostfully) Even if you're just managing one vacation rental, in our experience, a PMS has been a game-changer. A PMS can automate many manual processes, like guest communications/reminders and cleaning crew scheduling, which ensures fewer snafus, like double-bookings or missing a cleaning in between guests (yikes!).
Team
Cleaning crew Treat your cleaning crew like your most prized business partner and you're almost guaranteed great business success. The cleaning crew can make or break your vacation rental's reputation. Take a look at some of the lowest star ratings on VRBO or Airbnb and you'll likely see poor cleanliness as the driving factor - and with good reason! Your cleaning crew should do a turnover cleaning between every single stay. They will also be your scout who's in your unit regularly - reporting on damage, maintenance needs, supply needs, etc. Also, schedule a deep clean a few times a year! That way, the cleaning crew can spend a bit more time on the areas they don't normally get to, whether it's baseboards, blinds, etc.
Linen and laundry services All property managers handle linen and laundry services differently. Some don't provide linens at all (putting the burden on guests to bring their own). Some require hosts to use property manager-provided linens. Some allow hosts to use their own preferred linens and they launder them as part of the cleaning turnover process (or take the dirty laundry out to be laundered at a laundromat). Whatever path you choose, we recommend passing the extra cost of laundering to guests, either built into the cleaning fee or listed as a separate fee.
Toiletry and amenity package for guests Similar to the effect cleanliness of the unit can have on guest satisfaction, toiletries and amenities are also big drivers of perceived value. While most hotels are still giving out small bottles of shampoo and conditioner and a small bar of soap, vacation rental managers are giving out much more robust packages, which could include paper towels, toilet paper, trash bags, dish soap, laundry soap, cleaning supplies, and more. Your cleaning crew will leave out the prescribed number of items for each guest stay. Don't forget to lock up your stock in an owners closet or else guests will drain your supply faster than you'd like.
Boots on the ground host If you don't live close to your rental property, you'll need someone you can trust who does, so you don't have to drive 6 hours to deal with an unexpected issue. We've previously used care.com to find folks who provide personal services, like running errands or personal assistants. We pre-pay them for a set number of hours, and as they get close to running out of hours, they let us know and we pay them for the next set of hours. All "boots on the ground" employees will want to operate differently - it's up to the host or property manager to find the best way.
Handyman Just because you can unclog a sink or fix a broken screen door doesn't mean you should drive 6 hours to your property to do it. Find a local handyman who can do just about anything and responds quickly - guests often expect same-day service on broken things. You will probably also need to find separate experts in HVAC, electricians, appliance repair, plumbing, pest management, etc.
Landscaper/pool company/etc. (if applicable) If your property has a yard, you'll want to have a crew come out at least once a week (during high growth season) to mow, weed, and spray whatever sprays you need sprayed. Even better if you can have them come on the same day each week, so you can proactively tell guests when to expect the crew on-site. Depending on the size of your pool, you probably need to have it professionally cleaned at least once a week. Plus, pools spontaneously need repairs for broken heaters, filter replacement, out-of-whack water chemicals, etc.
Bookkeeping/accounting Bookkeeping software isn't fun, though some people seem to love it. But it is essential for keeping track of expenses and income. For property management services, like us, it's non-negotiable that we keep track of how much revenue is coming in so we can pay-out the property owners we work with exactly what they have earned. Keeping good records leads to a higher level of trust and transparency between property manager and property owner. Bookkeeping software also keeps track of taxes (because Uncle Sam will not be so forgiving if you underpay on taxes simply because you kept poor financial records). Having an account for bookkeeping software is one thing, however. Actually inputting your records appropriately is another - which is why we also recommend working with a bookkeeper and an accountant, particularly those who specialize in short-term rentals.
Operations and marketing
LLC (to protect yourself and your assets) This isn't the most glamorous part of setting up a short-term rental, but it is important. Setting up and registering a business under which you run your short-term rental is essential for making sure you protect yourself and your personal assets. In other words, if something bad happens at your house, your guests can't come at your personal belongings. I'm not a lawyer and this isn't legal advice. It's a common business practice.
Digital mailbox If you have an LLC, you'll want a business address (rather than sending business mail to your unit). Therefore you'll need to sign up for a digital mailbox service. This provides you with a business address and a place that can receive mail for you. They can digitize your mail or even forward it to your home address, if you'd like.
Registered agent A registered agent is a person or business entity that is appointed to receive legal documents on behalf of a business. The registered agent must be a resident of the state in which the business is registered, so keep this in mind if you live in a different state than where your property is located (and your LLC is set up).
Separate business bank account (Relay) Please please please set up a separate business bank account before you start spending or receiving money. A business bank account allows you to keep business and personal finances separate, which is very useful when tax time comes around.
Business credit card (Southwest Chase) Not every business requires a credit card, but it can be useful to have one if you're going to be spending a fair amount on furnishings. It's also helpful to have recurring business payments on a credit card (rather than having to pay bills each month). We've racked up so many points on our Southwest Chase Visa that we get great deals when flying on Southwest Airlines and can use our points for travel and other expenses.
Website (optional) If you are especially tech-savvy and have experience in building websites, why not create one for your vacation rental? That way, you can drive direct bookings and save on the fees that Airbnb and VRBO charge guests and hosts. However, if the thought of building a website gives you heart palpitations, it's not imperative.
Social media channels (Facebook, Instagram) (optional) Same as with your website - if you're a skilled social media content creator, it can be fun and rewarding to create social media accounts for your short-term rental, but this isn't for everyone.
Google listing (optional) Same as with your website, having a Google listing can drive direct bookings.
Insurance Don't assume that your regular homeowners insurance policy will cover anything that happens if you're operating a short-term rental. You'll need liability and property insurance. Only some insurance companies will work with short-term rental owners.
Ongoing tasks after you open:
Coordinating turnovers between team members Running a vacation rental can be mildly unpredictable. You can start the week without bookings and end the week with 2-3 stays you need to manage. That means you must always be on the lookout for new bookings, and work to communicate those bookings with your team. That means alerting your cleaners and anyone else who needs to be involved with turnovers.
Guest communication This includes not only existing guests, but also prospective guests. We get inquiries from prospective guests asking all kinds of things - how big is your pool and how deep is it? How close are you to Universal Studios? Can I do an early check-in on this day? Can I have a discount? While we can automate much of the guest communication (pre-check-in instructions, etc.), there are some communications that must be handled as one-off requests.
Property maintenance We have a whole checklist of items we need to have our team attend to on a regular basis - changing smoke detector batteries, changing the hvac filter, scheduling septic tank maintenance, etc. This is the un-glamorous part of running a vacation rental, but taking care of these things proactively mean we spend less time handling emergency issues if the smoke detector starts chirping or a guest calls to alert us that the remote control batteries are dead.
Inventory management This includes making sure we have enough supplies for guest (and place reorders when needed), as well as ensuring furnishings are in good working order.
Pay taxes If you don't find them first, they will find you. I promise you that.
File annual taxes Gross.
Constantly enhancing the guest experience Many property managers are content to set and forget as much as they can, but The House Kee is obsessed with optimizing and making sure each guest is happier than the last. No review we've ever gotten has been a surprise to us - we do a digital check-in on each guest to make sure they're happy. Usually they are, but even if there's a small issue - we didn't have an air pump to fill up pool floaties - we'll do what we can to remedy it (we sent one via Amazon Prime the next day).
If you're still passionate about owning a short-term rental but don't want to be responsible for everything on this list, contact us. The House Kee is your solution to top-notch short-term property management services.
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