Operating a short term rental can be an easy way to generate additional revenue in your life or business. But is it the right additional revenue stream for you?
First, you need to decide how your unit is going to be managed. Are you going to manage it yourself? Will you handle the calendar and booking system, ensure it is cleaned between guests and be the first line of defense when guests have questions or problems?
If that sounds like more than you want to handle, you need to consider hiring a management company. Ask for referrals. Interview the different managers to find out what they do, what they charge, and what expenses come back to you. Find out about their vacancy rates and their advertising strategies. What is the process for guest questions and complaints? The company with the best rate for management may not be the best for your unit — you need to consider how the management company will impact the guest experience to encourage positive reviews, repeat business and referrals.
If you’re ready to take on the challenge of managing your unit yourself, read on. As the manager of your unit, you are a small business unto yourself… meaning you need to be prepared to address the obvious – booking and cleaning and maintenance, and also the background operations tasks, such as legal compliance, bookkeeping, taxes, and other necessary tasks that keep you in business.
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