Short-term Rentals, or STRs, have revolutionized the traditional mode of generating income for many homeowners, owing to sites like Airbnb and Booking.com who have made the process easier. Though its benefits cannot be argued, managing it effectively to acquire profit is another challenge altogether. For a single property, self-managing would work wonders. But if you plan to scale up, you will come across numerous guest inquiries and cleaning and maintenance issues. That is where a property management company can jump in and handle your property’s profit.

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What are STRs

Before answering the aforementioned question, let’s understand the term “short-term rentals.” Sometimes also referred to as holiday homes, STRs are any piece of property, be it an apartment, house, or cottage, that can be rented out to guests over a short period of time. Many rent it out for weeks, a couple of days, and rarely for more than a month. It benefits a number of travelers, tourists, business travelers, and remote workers all those looking for flexible accommodation during their stay. 

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How do STRs work

STRs work in a very simple way. The initial steps might appear to be complex, no doubt; but later property owners need to list their rentals on platforms like Airbnb or Booking.com. Guests browse, book, and pay online for the rental that catches their eye. Property owners or property managers follow check-in guidelines, cleaning, maintenance, and guest communications to ensure a great trip. Throughout the stay, they assist the guest with queries and handle their check-out as well.

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While these steps might sound manageable, they require constant attention and expertise to maximize income and occupancy rates—something a property management company does exceptionally well.

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But is STR for you?

STRs, though a great source of income, require more than just listing your property on Airbnb and handling guest queries and check-ins. It requires commitment and adherence to laws and regulations. Commitment of any sort, time or effort, is required when running STRs. These include committing to guests in their queries, cleaning, and maintaining the property regularly. It is important that you follow the local regulations as well. Let’s say you want to rent out a holiday home in Dubai, you would need to follow the local regulations of Dubai in order to gather income, resolve issues, and provide guests with a memorable experience. 

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Managing STRs also include keeping a keen eye on furnishing. The better the furnishing the more positive reviews and booking requests you will get. A well-decorated and comfortable room that carries all the essential furnishing can make your holiday home stand out. We have our essentials; a comfortable bed, sofa, seating, and dining area that can help make the stay better. Decor and styling are important too. Anyone can set up a room or home, but it takes extra effort to turn into a comfortable one. And lastly, amenities; make sure you furnish your home with a Smart TV, Wi-Fi, kitchen appliances, and toiletries for an exceptional guest experience. 

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If you are able to do this, and more, then a holiday home would be an amazing way for you to gather income. 

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Why do guests prefer holiday homes over hotels?

Well STRs do more than just provide a place to stay. A hotel offers a room, rarely an open space; STRs offer entire homes and apartments, an open space. Hotels rarely offer a homely feeling but STRs is personalized and offers the guest with a homey feeling. STRs are also affordable for longer stays and can be easily accessible as compared to hotels. Hotels provide you with the basics: a bed, a TV, a working bathroom with towels, and a mini fridge. STRs offer that and more: a working kitchen with appliances, a laundry space, spacious bedrooms, and open outdoor space. 

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Sure, you can own a property and rent it out long-term. And why wouldn’t you? It offers less hassle over cleaning and maintenance, handing over the responsibilities to the tenant. But on the other hand, it offers up to 40% lower return on investment, less flexibility by locking you on a specific timeline, and tenant risk where evictions and property damage can be hard to recover.

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We have gone through an extensive overview of STRs, what they stand for and whether it is a good way option for you. Let’s now answer the question we asked first:

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Should STRs be self-managed or should you trust a Property Management Company?

Property Management Companies, as the name suggests, manage STRs on behalf of the owners. Their expertise lies in handling STRs and guest communications, ensuring that you receive positive reviews and credibility. Other than guest communication, they also handle pricing, listing, cleaning, maintenance, check-ins and check-outs, and even reviews. They handle your property for you in exchange for a percentage of your rental income.

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You might be thinking, isn’t that going to add a dent to my income? The answer is no. Property management companies are specialists in the field, they know all the nitty gritty details that go into handling STRs and can bring about a positive outcome. They might even suggest or introduce profitable changes that can benefit your property and you. They don’t take over the property, they take over the responsibility and they charge a small fraction of your revenue to cover their costs and make a profit. 

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In addition, STR companies are well equipped with worldclass tools and services like AirDNA, PriceLabs, Property Management Systems such as Hostaway or Guesty and use professional guest management services like Reseption.

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Still not convinced? Let’s break it down. Some of the many aspects of STRs are: time commitment, guest experience, maintenance, marketing and pricing.

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In short, Property management companies:

1. Save time and eliminate stress of the homeowners by handling all the nitty gritty.
2. Contribute to market your listing through their expert lens and increase occupancy.
3. Ensure smooth operations of your property by adding professional support. 
4. Handle guests experience from start to finish on their behalf

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Property management companies don’t waste your time. As an STR owner, whether you have a few or more, you can use the expertise of a property management company to ensure that you reach your goal. You can spot a good property management company by seeing their values, how they communicate with you, and assessing their commitment to ensuring a great client experience. Take that burden off your shoulders and trust a company to handle the nitty gritty while you sit back and relax.

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Repurpose This Content for Your Website

We created this blog to help property managers educate property owners on the value of professional short-term rental management. If you find it useful, you're welcome to repurpose this content for your own website—just be sure to credit Reseption and include a backlink to our website: www.reseption.com.

If you need guest support solutions to enhance your rental business, reach out to us—we’d love to help!