should I host myself or hire a management group for 25% fee? I don't live in my host city

[Richard2914]

I am new to hosting.  I have a 3 bedroom house in Phoenix AZ.  I will be out of town and considering hireing a management group.  However, the fee is 25%!  What should I do?  Any other options?  What should I do?

[Mike-And-Jane0]

@Richard2914 The first thing to do is understand what the 25% is a percentage of. Is it the fee paid by the guest? Is it the money paid to the host after the host fee is paid? Or is it something in-between. There is a huge difference her as whatever fee is paid it comes off the hosts income post host fee! Also does it also get paid on the cleaning fee?

The next thing to understand is what is covered by the fee. The big thing here is cleaning/laundry and I doubt it covers that.

Next to consider is how they will set up the listing. Most management companies insist that they must list the property (rather than ups making them a co-host). This effectively locks you in as all the reviews go with them and it is hard to time a changeover to a new management company if there are outstanding bookings. If you do go down their route make sure the contract is clear as to what happens when your relationship ends.

Your other option is to find a local co-host/cleaner. It will be cheaper but there will be issues of coverage if they are sick or on vacation.

Finally look at the economics. With Airbnb taking 15+%+tax, the management company taking 25% +tax? Cleaners taking $XX per stay, will a short term rental ever make money????

Hope this helps 

[Fred13]

@Richard2914 A Co-host at first is harder to find, but makes more sense in the long run. Reason? Management companies do not 'custom' to your listing, but go about their business oftentimes with too general of a management formula. And nowadays with such competition, a listing may require a bit more  of an 'individual' approach. As to price, work backwards; define a competitive price according to your market, then define what you be happy with paying you + co-host cost+cleaning cost =  is it covered by the competitive price?

[Paula]

Hi @Richard2914 , there are very insightful comments and questions from Mike and Fred. Have you made a decision about hiring a management group or not?

Please keep us posted.

[Michael7318]

I have two houses in HIlton Head SC and i live in Southern Calif,  i have been able to manage them from a distance with little problem.

really you need a reliable cleaning company,  who will do laundry as well.  That helps quite a bit,

you need a local handyman and have an electrician. plumber and HVAC that you can depend on.

Those are main things,   Pool service if you have a pool,  if you need yard person.

I do make trips out to check things out in person every so often,  I have done this for about 5 years but i am planning to move out their full time as i dont want to be in S Calif any longer and being on site does take all the stress away.   Also have one in Savannah so i will be close to all three.

But 25 percent i dont think financially it makes sense

Just my opinion.

Michael