Self-Managing vs STR Management Company
Let us begin with a quick self-assessment:
What are your current day-to-day tasks including your family, other investments, and personal hobbies? How much free time are you left with?
How much availability do you have for guest questions and calls on bookings, amenities, and maintenance?
Are you able to make space in your life to consistently and effectively manage your STR business?
How much availability do you have to research optimal pricing and adjust to market value?
Do you believe that your time is as valuable as money?
What are your goals in regards to scaling and creating additional streams of income through adding properties to your portfolio?
When growing a vacation rental business you will be faced with several decisions as a real estate investor. One especially impactful choice would be between self-managing or outsourcing to a property management company. There are pros and cons to each, so here in this article, we will review some key points to consider.
Self Managing:
As someone who manages their property on their own, you will need to consider tasks like marketing & SEO, price fluctuations, market analysis, and home upkeep. Also jot down responsibilities such as day-to-day scheduling of home cleanings, routine maintenance, and inventory management. You will also be in charge of the back-end financials and budgeting - which of course are all very do-able items. The real question is after you’ve invested money into the property itself are you also willing to invest a large bulk of your time?
The biggest benefit here is, of course, 100% profit (after expenses) that comes back directly to your bank account! Yippee!!
Outsourcing to a Property Management Company:
An investor that chooses to outsource the management of their STR business has the ability to delegate all of the above-mentioned tasks (plus additional items not listed) to a pre-established team. Enjoy the benefits of a fully functional and reliable group of people to handle the full spectrum of your business. From 24/7 guest support to property protection plans and upkeep, you will be essentially hands-free and reclaim the ability to focus your attention on your next passive stream of income.
The biggest benefit here is the time freedom that delegation allows!
The main question boils down to this, what else could you be creating with your time? What would having control of your day-to-day life gives back to you?
For more information on property management or to discuss further if this model could be of value to you, please visit www.iessentialproperties.com.