Should You Use A Property Management Company For Your Short-Term Rentals?

Navigating the Challenges of Short-Term Rental Management in Calgary

Running a short-term rental property is exciting. You can be your own boss and generate a good profit. But this industry also has its share of challenges. A property manager’s work never ends — from maintaining and cleaning rentals to guest communication, optimizing listings, dealing with check-ins and check-outs, completing site inspections, and so on. There’s always something to do which can turn the entire process from exciting to overwhelming and exhausting. 

A short-term rental property management company can alleviate the stress of running your rental by eliminating the burdens. Many handle rental listings from start to finish so you can focus more on doing things you love and less on unexpected repairs, being available 24/7 for guests, and endless paperwork. 

Below are some common challenges short-term rental property owners face.

The Cleaning Conundrum

Cleaning and maintenance are the most essential features of a short-term rental business. However, these tasks can be challenging and extremely time-consuming for hosts, especially when they have full-time jobs and other hosting responsibilities.

The Importance of Cleanliness

Guests expect pristine accommodations and a comfortable experience; anything short may invoke negative reviews and decreased bookings.

To Hire or Not to Hire Cleaners

Hiring professional cleaners can ensure pristine conditions and allow you to focus your time on other aspects of your short-term rental business, elevate your guest experience, and earn positive reviews and repeat bookings.

Here are some pros and cons of hiring professional cleaners:

Pros:

• High-quality cleaning standard
• Saves time and effort
• Elevates guest experience
• Reduces the risk of negative reviews

Cons:

• Finding a dependable and reputable cleaning service
• Added expense

Booking Dynamics

Short-term rental property owners have their share of booking challenges — from ensuring they fill up every day to managing checkouts, dealing with early check-in requests, and the hassle of one-night rentals. 

Maximizing Occupancy Rates

A strong short-term rental marketing strategy can help boost your revenue. Here are some tips to ensure consistent bookings throughout the month and get you through the struggle of filling weekdays vs weekends:

• Strategic online placement: List your property in front of the right audience, at the right time, and on the right channels.
• Resonate with your audience: Vacationers, families, business travellers, couples, and even digital nomads choose listings that evoke emotions or align with their needs and desires — portray your message through stunning imagery and word craftsmanship.
• Stop the scroll: Everybody scrolls, but what makes them stop and click? Knowing how to make your listing pop will ensure it isn’t overlooked.

The One-Night Rental Dilemma

One-night rentals give you double the work in 2 separate one-night stays than in 1 two-night visit. Not having a minimum night restriction can also lead to shorter bookings, increased calendar gaps, higher maintenance costs, and more chances of parties and guest complaints. 

Property managers often use minimum stay restrictions to manage bookings during different booking windows and seasons. For example, they may optimize their occupancy during high-demand periods by setting longer minimum night restrictions. This strategy helps fill the calendar and reduce costs and workload associated with cleaning, maintenance, booking, and communication.

Laundry Logistics

Short-term rental owners must launder the towels, pillowcases, bedsheets, tablecloths, and all other linens to make the property presentable, welcoming, and hygienic. They may do the cleaning themselves or outsource this task to a laundry service, which can be costly but efficient. 

In-House Laundry Solutions

Doing your laundry in-house is convenient if you have multiple reliable washers and dryers to do the job in the shortest time possible. However, many domestic-style washers and dryers can’t keep up with demand, slow things down, and require frequent repairs. 

Outsourcing Laundry

Many property managers outsource laundry to a local linen service or use a nearby laundromat. While this service increases costs, property owners can get more laundry washed in less time, providing convenience, efficiency, and thoroughly cleaned linens. 

Managing Guest Expectations

Guest expectations are consistently rising. From managing check-outs to dealing with requests for early check-ins, managing client satisfaction can be overwhelming.

Check-In and Check-Out Timings

Many guests arrive at their destination early to make the most of their getaway. Usually, they only want a place to drop off their luggage and freshen up before heading out again. While it’s a reasonable request, it may be impossible for you to grant it, especially if it’s a last-minute request between guests. 

Providing clear communication about early check-in policies and establishing boundaries in your house rules and property descriptions can help minimize this stress. 

Property Wear and Tear

Short-term rental owners can expect normal wear and tear — not damages resulting from tenant abuse or neglect. While normal wear and tear is your responsibility to fix, such as minor dents in hardwoods, snags in carpets, or minor upholstery stains, blatant property damage could result in guest fines. Regular maintenance and property inspection can help you catch minor issues and protect future guests from an unpleasant experience. 

Seasonal Shifts in Demand

Thriving short-term rental property owners understand fluctuating supply and demand trends and the importance of offering dynamic seasonal pricing to help capture bookings during reduced-demand periods. Here are some strategies to attract guests during off-peak seasons:

• Use dynamic pricing to boost slow demand
• Maximize your visibility through strong channel marketing
• Offer flexible policies to enhance guest interest
• Stay on top of local events and holidays
• Give guests a reason to choose your property

How To Identify Experienced Candidates For Airbnb Property Management

So, what criteria should you look at when hiring a property manager? The following checklist can help you along your quest to find a trusted property management company.

Proven Experience with Marketing Vacation Rentals

Airbnb management companies must know the ins and outs of marketing short-term vacation rentals, including the tried-and-true marketing strategies for boosting your guest list:

• Search engine optimization (SEO) to put your short-term rental listings in front of more people.
• Posting on various rental sites, even those outside of Airbnb, such as Flipkey.
• Using other marketing channels like email or SMS.

Knowing What Services Are On Offer

An Airbnb short-term property management company completes your tasks for you, ranging from:

• Choosing rental rates according to local market demand
• Marketing with professional photos and online listings
• Guest screening and selecting ideal tenants
• Completing home repairs, cleaning, laundry, and maintenance
• Ensuring legal compliance with federal housing regulations
• And much more

Responsiveness To Customer Feedback

Positive reviews and guest feedback are paramount to new and repeat bookings. Ensure any property manager you hire can manage guest reviews and reply accordingly. For example, if you receive a negative review indicating ‘poor communication’, your property manager should respond promptly and suggest corrective actions to improve guest services, from opening up more contact lines to answering guest inquiries more promptly.

Knowledge of the Local Area

A vacation short-term rental manager who knows the area makes it easier to answer guests' questions about local restaurants, amenities, attractions, and rules and regulations. This knowledge extends to understanding the local real estate market and deciding how to price the property at different times of the year.

Reasonable Property Management Rates

Services always come with a price, and while most short-term rental management companies are worth the cost, it’s good practice to look into how the business model works. Do their fees align with industry benchmarks?

Most property management services charge between 40% of the overall revenue, but the figures often vary.

Likewise, how are the rental management fees charged? Airbnb can either run on commission or on a fixed model where the manager is guaranteed a certain monthly amount. Communicate with your chosen property manager to work out the details.

The Takeaways: Should You Use A Property Management Company?

Choosing the perfect property management for short-term rentals is about finding one that:

• Has previous experience in the vacation rental business
• Offers the specific services you need, like cleaning, maintenance, laundry, guest inquiries, home staging and setup, and more
• Can maximize occupancy rates, especially during seasonal shifts in demand
• Is responsible for guest feedback, managing their expectations, and improving their experience
• Knows the local area and can provide recommendations
• Is priced within your budget

Are you a property owner looking for a short-term rental management company in Calgary? Consider partnering with Aisling Baile. 

We specialize in short-term vacation rental management for various platforms, from Airbnb to Booking.com, Expedia, Vrbo, and more. Our turnkey Airbnb property management service puts all the fun back into owning a vacation rental property. 

Get in touch to learn more.