If you’ve decided to have someone else manage your short-term vacation rental property, you have two primary options: hiring a property manager or co-host your property with an industry expert. Both choices have their merits, but in this article, we will delve into why co-hosting might be a superior alternative to the traditional property management route. From dynamic pricing to owning your listing, we’ll explore the key advantages of co-hosting and why it can lead to a more successful vacation rental experience.
1. Cost-Effective Management
One of the most compelling reasons to opt for co-hosting is cost-effectiveness. Most property managers charge a flat fee of upwards of 25% across all the properties they manage. The result? Many times the higher-end properties end up subsidizing the lower performing properties. If you have a 5 or 6 bedroom vacation property with a strong potential for performance, you’ll end up paying larger fees overall than a smaller property.
2. Own Your Listing
Most property managers insist on listing your property under their account on sites like AirBNB and Vrbo. They own the listing, and if you discontinue services with them, they’ll remove your property from these platforms. That means, you’ll lose any value you may have achieved during the contract period including 5-star reviews, search relevancy, branding, and potential for repeat business. Co-hosting allows you to maintain control of your property’s listing. When you work with New School Hosting, you remain the owner, and any reviews or gains in search rankings remain on your profile even if we stop working together.
3. Dynamic Pricing
Most Property Managers only deviate from typical pricing on a seasonal basis. New School Hosting utilizes analytics software to set dynamic pricing. We are constantly seeking the highest price available while not sacrificing occupancy rate. That means more opportunities for higher revenue performance.
4. Higher Guest Satisfaction / Better Reviews
There is an inverse relationship between the number of properties a company manages and the average rating those properties receive from guests (source: AirDNA). Smaller operations and co-hosts provide more personal attention, usually from more skilled operators, compared to employees at large property management companies who are less invested in the success of the property.
5. Flexibility in Contract
Generally, co-hosting agreements provide more flexibility for the owner than property management contracts. This can give you the opportunity to “test drive” a co-host and see if they are delivering the value promised. If not, it’s easy enough to move on because, as mentioned earlier, you own your listing.
6. Direct Access to Co-host
Most co-hosts will be available to their clients as often as is reasonable. While property management companies likely will assign you an account manager, this may not be the person who is actually interacting with guests, and may also not be the ultimate decision maker when it comes to aspects of the relationship you may need to discuss. When you work with a co-host, you’ll have direct access to the person who is accountable for the performance of your investment.
In Conclusion
While property management companies offer convenience, co-hosting a short-term vacation rental provides a multitude of advantages that can lead to greater profitability, enhanced guest experiences, and more control over your property. From cost savings to personalized guest interactions, co-hosting empowers property owners to take a proactive approach in maximizing the potential of their vacation rental investment. So, if you’re considering the best way to manage your short-term vacation rental, seriously consider co-hosting – it may just be the superior choice for your property.