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What are some hidden costs in your Airbnb Administration?

Short-term property management in Melbourne is equivocally, also known as Airbnb management. Not only does it cover the basics of property management similar to long-term rental, but the duties are at a higher volume of frequency that comes with the higher turnover of guests. The hefty bits are not just at the start and finish, but think the beginning and end of each guest stay. It is no wonder more Airbnb hosts are now opting to outsource for a hassle-free investment yield plan. A good Airbnb property management company brings its know-how and experience, giving you the peace of mind that comes with knowing your investment is in good hands.

Airbnb management companies are often engaged to cover a scope of duties, some of which includes: listing the property across OTAs (Online Travel Agencies: Airbnb, Booking.com, Expedia, etc.), handling booking enquiries, directly dealing with guests pre and post-stay. They usually make a range of 10% to 30% of the property’s booking profit, spanning from basic to full services; depending on how hands-off you would like to be when managing your own Airbnb property.

Choosing to go with a specific Airbnb management company requires a fair bit of research; you have to pin down a company that will make this whole process stress-free while delivering the highest rental return. It would do well to read between the lines (of your stipulated contract) to make sure there are no surprises at the end of the month when you receive your report!

Missing out on opportunity cost

The more time you spend managing your Airbnb, the less time you have to look for other potential properties to buy or other business opportunities – you lose out on time to enjoy life.

Opportunity cost comes into play here; everything you do means you can’t do something else at that given moment. If you can find a quality management company, that can undoubtedly save a lot of time and money. Thereafter, consider how suitable your Airbnb management plan is; the right way is to determine what your goals for your investment property are. At Roomerang, we tailor custom solutions for all types of clients.

End-to-end service: Usually a 12-month termed contract covering all end-to-end services. Perfect for overseas investors who need all aspects looked after.

Flexible with no lock-in: Clients go from 6 months to 12 months of Airbnb property management, flexible rental cycles to match your lifestyle and property goals.

Mixed use: Long and Short-term rental management to optimise occupancies and make substantial returns in peak months.

On-demand use: Your property, your terms. Earn more from your property all year round, or if you want the freedom of being able to stay in your property as often as you like.

Getting charged a callout fee on all things big and small

At Roomerang, we pride ourselves on building a strong operations team to cater for unlimited callouts for absolutely no fee at all. A top performing Airbnb management company is responsible for keeping the property in tip-top condition, this is no easy feat with the high volumes of turnover and at the same time, maintaining a professional housekeeping standard.

The property manager may deal with ad hoc guests requests, noise complaints and in rare cases, handling emergencies. They are also in charge of performing preventative maintenance to ensure the property is well-kept, keep your guests happy and attract new bookings. A good Airbnb property management company often have an extensive network of reliable plumbers, electricians, carpenters and other contractors for more specialised issues.

Storing your keys in lockboxes and key safes

Trying to meet travelling guests with their continually moving schedule is one of the most time-consuming and finicky parts of Airbnb management. While undeniably a convenient and cheaper way to use lockboxes for your guests to administer a self-check-in and out process, it is highly unsafe as there’s no way to physically screen them. Leaving your keys out unattended in an alleyway is hardly a secure solution, opening yourself up to risks and prowling vandals. Not to mention, they are now deemed illegal by The Melbourne City Council.

With the influx of fraudulent bookings made with stolen credit cards these days, one can never be too sure. Here are also some good practices to adopt during pre-arrival:

Vet your Guests: Your Airbnb property management company should have a consistent vetting process, including running identity checks against credit cards and government-issued IDs. This can decrease your chances of fraudulent bookings and loss of booking income.

Collecting a security bond: This can be included in the T&Cs and making sure it has all the necessary clauses to protect your property. It is also a good fail-safe for contingencies.

KeyNinja, a 24/7 key delivery service: Designed for Airbnb hosts and management companies. These fellas do good work to meet Airbnb guests for verification and personalised check-in experiences.

Not investing in furnishing and styling

Guests are paying for comfort. They also love to document their experiences on social media and styling is where you can tip the scales your way. At Roomerang, we believe a functional and stylishly set up space can go a long way. As part of our onboarding process, the styling team offers a free consultation where we assess the property, make affordable adjustments and up the ante. There is a myriad of things to tick off when getting your property Airbnb-ready, one of which is making sure the space has all the makings of a top performing Airbnb.

What property managers and Airbnb hosts often overlook are the repercussions of making do with sub-par furnishing. Nothing makes a potential guest turn the listing off faster than a ratty looking bed frame or couch. Investing in core furniture pieces will, in turn, bring about a good night’s rest and great reviews. Finding the right piece of furniture paired with the right accent pieces will also make for enticing photos, land more eyeballs and drive more bookings. This is something a lot of Airbnb hosts miscalculate with the initial outlay versus long term benefits.

Perfecting your Airbnb rental returns can be a time consuming and convoluted process. It requires constant tweaking and improvements, being on-trend and receptive to market movements. If you do choose to outsource, it is also essential to align your investment goals with the right Airbnb management company to circumvent constraints and sunk costs.

Book in a time with one of our specialists to find out what type of management plan will best fit your goals for your Airbnb investment property. Alternatively, hop onto our form and we will get back to you in a jiffy.

Related Tag: Short Term Property Management Melbourne

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