Tag: investing

Choosing the right property manager for your short-term rental (STR) is one of the most important decisions you’ll make as an owner. A great property manager can maximize your revenue, ensure five-star guest experiences, and protect your investment. A bad one? They can cost you bookings, damage your reputation, and leave you frustrated with poor communication and lackluster service.

I know this firsthand. When I first got into STRs, I made the mistake of not researching my property management company. I was referred to them and assumed they were great. Spoiler alert—they weren’t. Here’s what you should look for when shopping for a property manager:

1. Start With Referrals—But Do Your Research

If you have a trusted friend or fellow STR owner who recommends a property manager, that’s a great place to start. However, don’t just take their word for it—dig deeper. Look at their listings on Airbnb and VRBO. Read guest reviews. See how responsive they are to issues. A referral is a good lead, but due diligence is key.

2. Avoid Big-Box Management Companies

Large national companies may seem convenient, but they often lack the personal touch needed to optimise your STR’s success. I recently stayed at a property managed by a large company, and while the home was nice, the amenities were bare-bones. This lack of attention to detail can lead to poor guest experiences and lower ratings.

A smaller, boutique management company is more likely to give your property the attention it deserves. They tend to be more invested in their homeowners’ success because they don’t rely on volume—they rely on quality.

3. Check Their Airbnb Ranking

One of the easiest ways to gauge a property manager’s effectiveness is to look at their Airbnb ranking. If their properties are rated below 4.9 stars, proceed with caution. Anything lower means they’re on page 7, 10, or worse, which drastically reduces your visibility. If you can’t find their listings at all, that’s a red flag.

At a minimum, your property should be listed on Airbnb, or VRBO, and a direct booking site. If a management company isn’t prioritizing these, they’re not doing enough to market your home.

4. Ask About Guest Communication & Handling Issues

I recently spoke with an owner whose management company failed to inform guests about a major deck renovation. The result? A 3-star review, which dropped the property’s rating to 4.5 stars. This significantly hurt its ranking and ability to attract future bookings.

Ask potential managers how they communicate with guests about potential issues. Transparency is critical—guests appreciate being informed rather than surprised.

5. Pricing Strategy Matters—A Lot

Proper pricing is key to maximizing revenue. Some management companies use outdated pricing models or fail to adjust for demand, leaving money on the table.

Here are a few questions to start:

• What pricing software do you use? (They should have a dynamic pricing tool like PriceLabs, Wheelhouse, or Beyond.)

• How often do you analyze pricing data? (At least twice a week is ideal.)

• Do you set minimum stays for holidays and peak seasons? (For example, a three-night minimum for holidays is standard.)

6. Cleaning Standards & Fees

Cleaning can make or break your STR’s reputation. Low cleanliness scores on Airbnb or VRBO will push your listing down in search rankings.

When vetting a property manager, ask:

• Who do you hire, is it a company or individual? How do you avoid cleaning issues?

• How do you handle guest complaints about cleanliness?

Also, compare cleaning fees with other like properties. A previous management company I worked with charged an inflated fee and pocketed at least $50 per clean, on a 2BR – 2BA. High fees make your listing less competitive, which means fewer bookings.

7. Strong Owner-Manager Alignment Is Crucial

Your STR is an investment, and your property manager should treat it as such. There needs to be strong communication between you, the manager, and the cleaning team.

A large, impersonal company is unlikely to:

• Proactively monitor your home’s performance

• Adjust pricing to maximize revenue

• Communicate promptly with you or your guests

• Ensure your home is cleaned and stocked to high standards

A great STR manager is invested in your property’s success, just like you are. If you find one that prioritizes guest experience, pricing strategy, cleaning quality, and open communication, you’ll be on the path to a thriving rental.

Final Thoughts

Choosing a property manager isn’t a decision to take lightly. Your STR’s profitability and reputation depend on it. Do your homework, ask tough questions, and don’t settle for anything less than a top-tier, hands-on manager who treats your home like their own.

If you’re looking for a property management company that understands short-term rentals, prioritises guest experience, and ensures maximum revenue, let’s chat! At LJ Vacation Rentals, we specialise in personalised, full-service management to help your STR thrive.