Palm Beach QLD 4221, Australia
info@abmgc.com.au
+61 400 721 439
Do you own an investment property and wonder how hard it could be to manage your own Airbnb listing? Maybe you’re already managing your property and enjoying it, and now you’re curious about managing properties for others. Or perhaps you don’t own property yet but are considering managing Airbnb properties as your first step into real estate.
We totally get it. Hi, I’m Sam, Co-Owner of Airbnb Management Gold Coast. My business partner Ryan moved from Melbourne to the Gold Coast, Australia and decided to rent out his Melbourne property on Airbnb while temporarily renting on the Gold Coast. He quickly ran into issues due to sloppy property management. The cleaners were unreliable, and the management company, despite their slick website and impressive marketing, lacked the personal touch.
This led Ryan to take control and manage his property himself. A year later, he wondered, “How hard could it be to manage other properties?” That’s where I came in. With a background in Marketing and Business Development and having recently started my own agency, Ryan turned to me to figure out the customer acquisition side. Ryan, a roof plumber sweltering through the Gold Coast’s hottest summer, dreamed of working from his laptop anywhere in the world. Spoiler alert: That didn’t happen in the first year. Although he managed a dream surf trip, the constant need for guest and client communication left little time for relaxation.
Ryan and I teamed up to start this new venture. I took on the website and marketing, tackling the tech stack for property owner acquisition and management, while Ryan managed the properties, ensuring each one received a personal touch. It was a slow start—we took two months to land our first client, and we definitely had to ‘fake it till we made it.’ But that client is still with us today!
Nearly two years in, we’ve faced a lot of trial and error, from tweaking our website to encourage inquiries, to testing different software, adjusting our commission structures, and sorting out unforeseen issues. We’ve worked hard to find reliable cleaners, photographers, and other contractors.
I’m proud to say we now manage over 20 properties, generating a combined annual gross revenue of $1 million. We’ve learned quickly and kept all our clients happy, reaching a point where we can choose which properties and owners we work with, thanks to constantly improving our systems and processes.
But enough about us, let’s get started..
Understanding the Business..
What is Airbnb/Short Term Rental Property Management?
Airbnb property management involves overseeing short-term rental properties on behalf of their owners. You’re responsible for everything from creating listings and managing bookings to ensuring a smooth guest experience and maintaining the property’s upkeep. Your goal is to take the hassle out of short-term rentals for property owners while maximising their revenue potential.
Why Now is the Time to Start
The short-term rental market has exploded in recent years, with platforms like Airbnb and VRBO transforming how people travel and book accommodations. Post-pandemic, demand for unique and professionally managed vacation rentals has skyrocketed. As more property owners look for passive income streams, professional management services have become invaluable. With the right knowledge and strategy, there has never been a better time to start an Airbnb management business.
Key Stats:
- The global vacation rental market is expected to reach $113.9 billion by 2027.
- Airbnb hosts earned a combined $22 billion in 2020 alone.
Getting Started
Research & Setting Up
Before diving in, it’s crucial to understand your local market. Research your area to identify property demand, competition and potential clients. Key points to explore include:
- The types of properties that perform well (beachfront homes, urban apartments, etc.).
- The average nightly rates and occupancy rates for short-term rentals.
- Common pain points property owners face (e.g., guest management, cleaning, communication).
Once you understand the market, focus on the foundational steps:
- Business Structure: Register your business as a Company, LLC or sole proprietorship, depending on your goals and legal requirements in your region.
- Licensing and Permits: Ensure you’re compliant with local regulations, including short-term rental permits, tax registration, and insurance.
- Taxes: Understand the tax implications of managing short-term rentals, including any VAT or local taxes.
Building Your Brand
Your brand is how potential clients and guests will perceive your business. Here are the steps to building a professional and trustworthy brand:
- Business Name: Choose a name that reflects professionalism and trust. It should be easy to remember and relevant to your business.
- Example: Coastal Retreat Management, Urban Stay Solutions.
- Website and Social Media: Set up a clean, informative website that showcases your services, testimonials, and contact information. Use platforms like Facebook, Instagram, and LinkedIn to build your online presence and engage with potential clients.
- Logo and Design: Invest in a professional logo and branding materials to make your business stand out.
Services to Offer
What Services Do You Provide?
Airbnb property management is more than just listing a property and welcoming guests. It includes a wide range of services that relieve property owners of the day-to-day responsibilities of managing a short-term rental. These services might include:
- Property Listing Creation and Optimisation: Writing compelling descriptions, taking high-quality photos, and optimising the listing to maximise bookings.
- Guest Communication: Handling all guest inquiries, booking confirmations, check-ins, and reviews.
- Cleaning and Maintenance Coordination: Ensuring the property is cleaned and maintained between stays, with regular inspections and professional cleaning services.
- Dynamic Pricing: Using pricing tools to adjust nightly rates based on demand, seasonality, and competition.
- Review Management: Monitoring and responding to guest reviews, which directly impact future bookings.
- Revenue Reporting: Providing monthly reports to property owners, outlining their earnings and any expenses incurred.
Optional Add-Ons
To increase your revenue and provide premium services, consider offering the following add-ons:
- Professional Photography: High-quality images can significantly boost bookings. Offer this as a one-time service or a recurring service for property updates.
- Luxury Experiences: Partner with local providers to offer guests unique experiences, such as private chefs, guided tours, or personal concierge services.
- Staging and Interior Design Consultations: Help owners improve their properties’ appeal with professional design consultations.
Acquiring Clients & Properties
How to Find Your First Properties
Acquiring your first few properties is often the hardest part of starting an Airbnb management business. However, there are several proven strategies to build your portfolio:
- 1. Google Business Profile: A well-optimised GBP is one of the most effective tools for acquiring local clients. Many property owners search for Airbnb property managers in their area, and ranking high on Google can be a huge advantage.
- Cold Outreach: Reach out to property owners via email or social media. Introduce yourself, explain your services, and offer a free consultation.
- Networking: Join local property investment groups or attend real estate meetups to connect with potential clients.
- Online Listings: Search for Airbnb properties that are underperforming in your area. Contact the owners with suggestions on how you could improve their listing and boost their revenue.
- Referrals: Ask your first few clients for referrals or offer a discount for referred clients. Word-of-mouth is a powerful tool in this industry.
Key Agreements and Contracts
Before managing any property, it’s essential to have a clear and detailed contract with the owner. This will protect both parties and set clear expectations. A management contract should cover:
- Commission Rates: Typically 10-25% of the total booking revenue.
- Property Management Fees: Outline additional fees for cleaning, maintenance, and guest services.
- Terms and Conditions: Specify the length of the agreement, cancellation policies, and any liability clauses.
- Owner Obligations: Require owners to carry adequate property insurance.
Setting Your Fees and Pricing
How to Price Your Services
Setting the right price for your services is crucial to ensuring profitability while remaining competitive. Here are a few pricing models to consider:
- Commission-Based Fees: Charge a percentage of the total booking revenue, typically between 10-25%, depending on the level of services you offer.
- Flat Rate Fees: For specific services, such as cleaning or guest check-ins, you can charge a flat fee (e.g., $100 per check-in, $200 per cleaning).
- Premium Services: For services like photography, dynamic pricing, or luxury concierge, consider charging an additional fee.
Managing Cash Flow
Managing your cash flow is critical, especially in the early stages of your business. Ensure that your operational costs (cleaning, maintenance, marketing) are factored into your pricing and commission structure. Reinvest a portion of your profits into growing the business by upgrading software, increasing your marketing efforts, or expanding your team.
Managing Properties
The Day-to-Day of Managing Airbnbs
Managing Airbnb properties involves daily tasks like guest communication, cleaning coordination, and pricing adjustments. To ensure smooth operations:
- Automate Guest Communication: Use tools like Hostaway or Guesty to automate guest messaging and notifications. Set up pre-arrival emails, post-departure follow-ups, and reviews.
- Task Management: Use task management software to automate cleaning and maintenance schedules. Ensure that all tasks are completed on time to maintain a high-quality guest experience.
- Calendar Syncing: Ensure your properties are listed on multiple platforms like Airbnb, Booking.com, and VRBO, and use a calendar sync tool to avoid double bookings.
Automation Tools
Automation is your friend when scaling your Airbnb management business. Some essential tools include:
- Property Management Software (PMS): Manage bookings, tasks, and communication in one platform.
- Dynamic Pricing Software: Use tools like Wheelhouse or PriceLabs to optimize pricing based on market trends and demand.
- Channel Managers: Integrate with Airbnb, Booking.com, and other booking platforms to keep your calendars in sync.
Scaling Operations
As you acquire more properties, you will need to streamline operations to maintain quality. Hire a reliable team of cleaners, handymen, and virtual assistants to handle the growing workload. Create standard operating procedures (SOPs) for guest communication, check-ins, and cleaning to ensure consistency across all properties.
Marketing & Scaling Your Business
Marketing Your Airbnb Management Business
To acquire clients, you need a solid marketing strategy. Here are some key tactics:
- Local SEO: Optimise your website to appear at the top of search results for terms like “Airbnb property management [City Name]”.
- Google and Facebook Ads: Run targeted ads to property owners and real estate investors. Highlight the value of professional management services and how you can help them maximise their rental income.
- Networking with Real Estate Agents: Partner with local real estate agents to gain referrals. Many real estate agents have clients who purchase investment properties but don’t want to manage them themselves.
Growth Strategies
As you grow, it’s important to streamline your processes. Invest in property management software, automate as many tasks as possible, and create a scalable infrastructure. You can also expand by offering services in new locations or partnering with other Airbnb managers to co-manage properties.
Tools & Resources
In order to manage multiple properties efficiently and ensure smooth operations, the right tools are critical to your success. Automation, organisation, and streamlined processes will allow you to scale without losing control over the day-to-day management tasks. Below are some must-have software solutions to help you run a successful Airbnb management business:
1. Short Term Rental CRM – Click Here
Your Short Term Rental CRM will be the backbone of your business operations. It’s designed to streamline the client acquisition process and centralize communication with both property owners and guests. Here’s how it helps you:
- Lead Generation & Tracking: Manage potential property owners from the first point of contact. Use the CRM to store leads, track interactions, and follow up with potential clients who are interested in your services.
- Onboarding New Properties: Once you’ve secured a new property, the CRM allows you to easily onboard it by tracking all necessary documents, contracts, and owner preferences in one place. Automate the onboarding process with email templates, checklists, and timelines, ensuring nothing falls through the cracks.
- Client Management: As your business grows, keeping track of each property owner’s needs and the specific details of each property becomes challenging. A Short Term Rental CRM centralizes this information, making it easy to retrieve at a moment’s notice.
2. Hostaway/Guesty: All-in-one property management software that integrates bookings, guest communication, and task management.
3. PriceLabs: Dynamic pricing tool that adjusts your rates in real time based on market demand.
4. Canva: Design tool for creating beautiful listing photos, social media posts, and marketing materials.
Need More Help??
I created a course that breaks down all of these points in easy to follow tutorials. The course includes some of our business management templates and a few other tips and tricks. Click Here.
