In recent years, the idea of space-sharing and vacation rentals through sites like Airbnb has boomed, especially in the big global cities of the world. In such a fast growing market, many property owners are assessing the effort required against the potential returns of taking advantage of this wave.
While it can seem like a lot of effort and even bit of risk, many owners are reporting substantial profits off the back of short term rentals compared with long term. There is, however, a trick to mastering the short term market without having to lift a finger – use an Airbnb management agency.
Read on to find out the top 10 reasons why more property owners than ever are considering this option for their rental business.
1. MONEY, MONEY, MONEY
In certain cities, for example, London and Edinburgh, the difference between what you can earn in the long term let and the short term market can be astronomical. But if you don’t have the time or energy to become a host, then those are untapped earnings you will never receive.
In contrast, most management companies only charge a tiny fee compared to traditional estate agents. That means your costs go down while your profits go up – it’s a win-win situation.
2. OUTSOURCING MAKES THINGS EASIER
We commonly hear – “I’m away, I can’t manage my property” – but this shouldn’t be your excuse.
If you are someone who travels a lot for business (or pleasure) you may be able to earn a pretty penny on the side. The initial stumbling block is that when your house is vacant, you aren’t there to manage any bookings either. But an Airbnb management agency can help you with this!
Many part-time contracts allow you to come and go to your property as you please, but rent it out while you are away to maximize income.
3. SPEND MORE TIME DOING THE THINGS YOU ENJOY
For most, the main turn-off is the time commitment associated with becoming a host. The constant checking and replying to guests can turn into a second job – with some owners spending up to 40 hours per month on it.
For those that value their family time, it becomes a sacrifice most aren’t willing to make. Management companies exist to take over every stage of your listing and bookings themselves – requiring very little input from the owner.
That means you can put your feet up and watch the reservations come in without losing any precious family moments or having to work any harder than you already are.
4. REMAIN FLEXIBLE
Some owners struggle to make the transition to hosting on sites like Airbnb, because while they might not use the property all the time, they are unable to rent it out full-time because they still use it occasionally.
Short term renting allows you to let your property flexibly. Service the accommodation and make extra money while you’re not using it, but still continue to come and go as and when you need. A part-time Airbnb management contract would easily facilitate this.
5. IMPROVE YOUR CREDIT SCORE
If you’re thinking about a new home, an extension or renovation or even buying a vacation rental, extra earnings can increase your annual income significantly which will improve your chances of obtaining credit and loans. By using property management services, you reap all the benefits of additional income, without the hassle of cleaning and servicing your apartment.
6. PAY OFF YOUR MORTGAGE FASTER
If you’re looking for ways to pay your mortgage faster, renting your vacant property is a side hustle that owners can’t ignore!
Many hosts use the extra revenue to pay off debts, loans and even pay back their mortgage.
However, if you don’t have the time or resources to manage it yourself, using a management company can be the key to providing you with an additional income stream which will enable you to make those payments that bit quicker.
7. KEEP YOUR HOME SECURE
While many owners use agencies to earn some extra cash, others use them out of concern about their property’s security.
If you are going away for an extended period, it can be a worry to leave your home behind unattended. But as well as the benefit of making extra a few extra bucks, the consistent visitors and service people will mean your property will never be left under threat of burglars looking for an empty residence to target.
8. FUND YOUR TRAVELS
Everybody loves a vacation! But affording a dream trip can be difficult when there are bills to pay at home.
Property management agencies work with owners going traveling for a year, to people saving up for their sabbatical. So no matter what your plan is, you’re bound to find an agency that can help. Not only will you earn while you are away, but also given that the money will arrive directly to your bank account – you’ll have funds to spend during your trip, too!
9. BENEFIT FROM PROFESSIONAL PRICING STRATEGIES
Using a professional agency means you receive full breadth of their services – including price optimization depending on seasonality.
These expert revenue teams will benchmark your property against others, and adjust prices to make sure you are maximizing your profits.
In most cases, prices fluctuate depending on seasonality and demand. A good Airbnb management company will regularly change your price to reflect market demands and trends. They will have a wealth of data to rely on to ensure your property is priced correctly against competitors and the rest of the market.
10. RECEIVE PROFESSIONAL MARKETING HELP
When you use property management services, you can make sure you get the best marketing strategies for your property.
Much of that marketing job is getting professional photos taken and the description written. The other part is the ongoing communication with past, present and future guests.
In order to stay competitive, you need to be very responsive and reply to guests quickly to secure the booking. Airbnb management companies can provide you with the help you need to make sure you are in the best spot to maximize your income.