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If you want to run your own Short-Term rental, more power to you; however, have you thought about how much effort, money and time goes into managing it? Did you know that according to the SBA, 30% of businesses fail in the first 2 years and 50% in the first 5? Read on and you’ll see why.

Why management?

Some people are all about the DIY and others are hands-off, but management is actually for both! Setting up and running a Short-Term rental operation is expensive, time consumin, and requires a lot of knowledge. If you’re hands-off, this makes management seem like the obvious choice, but what if you’re the DIY type?

Often enough, trying something for the first time provides insight and lessons learned, but often ends with failure. Short-term rentals are no exception. Just to start, a few things to consider include: customer service, taxes, regulations, cleaning, liability, marketing, IT, and finance. Additionally, the combination of these operational elements commonly take hundreds of hours to learn, set-up, and run. Doesn’t that sound like a lot to handle? 

What goes into management?

Now that you know the risk self-management comes with, let’s go more in depth about what “management” actually entails.

Listing + Marketing

Before management even comes into play, you need to get your listing up and running. This means taking professional–level pictures, creating captions, creating descriptions, setting up message templates, entering additional property information, and more. If you want to make the most out of your opportunity, this process needs to be repeated for multiple platforms! In fact, listing is one of the most important steps as it creates a first impression for anyone looking to book your beautiful properties. 

Finance

You may have heard the death and taxes saying and it’s no different when it comes to STRs. Many states, counties, and cities have specific taxation rules surrounding not only sales, but STR in general. Before becoming operational, make sure to look into these! Once you’re up and running, some platforms will require additional payment processing using services such as Stripe.

Customer Service

Next up, customer service. Many hosts often overlook how critical this aspect of their operations can be! Starting with messaging, be sure to have a prompt response time when guests reach out with questions. Once they book (if you have responded quickly enough) you’ll want some templates and automated messaging to make communication easier. Another critical part of customer service is in the preparation for a guest’s arrival. Do your best to make sure the property is clean and ready to go.

Legal

Unfortunately, stuff happens. Some platforms such as Airbnb and HomeAway have built in insurance for hosts, but these policies can be tricky. It’s best to play it safe and get STR specific coverage through a provider like Proper. Also check your area’s rules (in addition to taxes) regarding lodging operations. You may have to print out safety signs, have first aid kits, and more.

All in all, running a short-term rental can be both incredibly difficult and incredibly financially rewarding. If it sounds exciting to you, visit us at awayagents.com to get started!