Should I Hire a Management Company for my Short-Term Rental?

I was recently asked by a client if we managed short-term rental properties.  Although I have been a co-host in the past, we currently do not provide this service.  During the conversation I began to wonder what would be the roadblocks for someone to manage their own rental.  There are the simple reasons, such as distance from the owner and the time required to manage the property.  But perhaps it for some the fact that they simply lack the knowledge or experience to know if it was the right fit?  Based on the fact that property managers can charge anywhere from 8% - 25% depending on your rental, it is a major issue that you should carefully consider.

A short-term rental is considered less than 30-days of rental.  A long-term rental is any rental over 30-days  I consider any rental over 6 months to be an "extended rental," although they are legally considered to be a long-term rental.  You should know that in California any rental over 30-days is legally considered to be a long-term rental and that your renter is legally considered a "tenant."  This means landlord-tenant laws apply and you could possibly require a legal eviction in order to remove someone from your rental property.   I cannot stress enough the importance of learning the landlord-tenant laws.  The information is available online and anyone considering being a property manager, whatever the type, should read them and learn the law.

I've provided a short checklist of what I believe are the top things you need to be able to manage your own short-term rental on your own.  Obviously, there is more involved than just the items listed below, but these will help you make a more informed decision as to whether you want to be your own property manager.
    

1.  A RELIABLE HOUSEKEEPER...OR TWO
Your short-term rental will need to turned over between guests and your ratings are dependent upon the state of your property.  You should have a trustworthy housekeeper who knows exactly what you expect.  I provide my housekeeper with a room-by-room checklist (photographs included) of what needs to be done and how the property should be staged for guests.  I also pay my housekeepers well, as I do not want to be second to another one of their clients who needs their home cleaned.  Give your housekeeper as much advanced notice of the days you need help.  As far as I'm concerned there is nothing more important than providing your guests with a clean and sanitary rental.   This is the one area that guests will not be willing to excuse when giving you a host rating.

2.  A BACK-UP INVENTORY
If you are turning over guests frequently, you will need a back-up inventory of amenities.  This could be anything from sheets to shampoo.  The last thing you want for your housekeeper is for them to discover torn or stained bedding with no alternative option.  

3.  TIME TO RESPOND TO BOOKINGS
If you are managing your own rentals, you will need to respond to your bookings in a timely fashion.  Many sites rate your hosting status based on response time.   This is often 24 hours, but I recommend within a few hours of bookings.  If you fail to respond to inquiries you can easily lose potential bookings to another host who responded back to your guest before you did.

4,. AN EMERGENCY CO-HOST 
If you are planning to go out of town or have a property that is located more than an hour away, you should seriously consider finding a co-host or neighbor who can be your emergency contact.  I recommend finding more than one person who you can call if you have an emergency in your home.  You cannot expect a guest who is on vacation to manage your rental property issues, even if they were the cause of the damage.  

5.  A RELIABLE HANDY MAN
As a property manager, you'll experience clogged toilets, water issues, and other damage to your property.  You'll need to have someone local to your property that you can call out for repairs or inspection.  As a rule of thumb, you should always have a budget set aside for repairs of you home.  You should also make sure that whoever does your maintenance can accept a credit card payment or a check in the mail as payment in the event you are unable to get to the property.  You should set this arrangement up ahead of time so that you're not negotiating for repairs while your guest is waiting for a home repair issue to be resolved.

6.  TIME BETWEEN BOOKINGS
If you are not close to your rental property, make sure you allow plenty of time between bookings.  There can be unexpected things that arise after having a guest check out (damage, odd odors, unavailable housekeeper, etc).  If you turn over a property the same day, you could find yourself unable to have the home ready for an upcoming guest.  By allowing yourself more time (1-2 days in between bookings), you will avoid having that problem.  

7. A SMART PHONE
I know this seems common sense, but it has to be said.  That handheld computer is an absolute necessity to respond to bookings and guest messages in a timely fashion.  You should also enable all push notifications on your rental app so you get the message notifications from the site and your guests.

8. A HOUSE MANUAL
You should have a house manual for your guests.  The manual should walk them through your home and provide important house and emergency information.  What should they do if the garbage disposal does not turn on?   If they get locked out of the bathroom?  Where is the fire extinguisher?  Remember, many of your guests will be from different countries and they will need this information.  You overachievers may even want to have it translated into other languages.

9.  A KEYLESS LOCK
The idea of having to have someone meet your guests every time they check-in is not always possible.  Most landlords and hosts have families, jobs, or other responsibilities.  The benefits of having a keyless lock go beyond the convenience of exchanging keys with guests.  You can also change the lock code after every guest.  This ensures the security of your guests.  

10.  EXTERIOR CAMERA / DOORBELL WITH CAMERA
I know some people may find this a bit intrusive, but I find that having a camera (exterior only) of my property adds another level of security for both my guests and my rental.  Never add a security camera without your guests knowledge.  I advise my guests of the fact my properties have cameras in every listing.  If your guests have already booked and you added a camera after the fact, let them know in writing you have done so.  Although it should go without saying, never ever never ever add a camera or any other recording device to the interior of a rental.  Add a sign at the entrance of your property and make sure your guests and their visitors are aware of the fact there are cameras on property.  Having cameras on your exterior can allow you to monitor your property while offsite and is a good deterrent for theft when no one is occupying the property.