With frequent turnover, running Airbnbs takes a lot of work. People often recommend Airbnb ventures for side income, but it can potentially grow into the main thing taking up your time. When that happens, there are two popular options that hosts take advantage of in order to get a helping hand in successfully operating their properties—co-hosting and property managers.
Bringing on a co-host is a great option if you are an Airbnb host that needs an extra hand in managing your listings. According to Airbnb, co-hosts are individuals that help listing owners take care of their home and their guests. A co-host is typically someone the listing owner or primary host knows personally—maybe a friend, family member, or close neighbor. Ideally, it is someone you trust enough to take care of your property and your guests. Co-hosts don’t always have extensive previous experience with hosting on Airbnb. They might just be in close proximity to the property or be familiar with it and be a hospitable enough person.
Co-hosts can handle a wide range of responsibilities once given access to the primary host’s listing, from creating and editing a listing, to guest communications, to handling disputes through Airbnb. Hosting duties get split between co-hosts and the primary hosts, as well as the reservation income. Co-hosts will typically decide how they want to split this workload with the listing owners.
Involved parties must also decide what is financially worthwhile for an Airbnb co-host to get in on the hosting responsibilities. Airbnb co-hosts earn a wide range of income percentages off of the property reservation income, ranging anywhere from 15-40%, dependent upon how much of the hosting responsibilities the co-host is taking over for the primary listing owners. You may find co-hosts that want to offer you to handle EVERYTHING with a higher payment ratio.
Airbnb no longer has a public co-host market. If you are active in any online hosting communities, more and more, you will see a market of “freelance” co-hosts pop up, offering their services to burdened Airbnb hosts. You can add up to three co-hosts per Airbnb listing.
Co-host themselves do not receive reviews on their Airbnb profiles or have their personal Superhost status impacted by any listings they may be co-hosting. Co-hosts also do not have access to the listing owner’s payout or taxpayer information, the listing owner’s personal Airbnb traveling log, or messages that transpired before the co-host was added.
Airbnb property management
Airbnb property managers are similar to co-hosts in that they help lessen the workload of Airbnb hosts. Where as co-hosting is split responsibility between the co-host and the primary listing owners, property managers typically handle everything from start to finish, then mail off the check to the homeowner. Full-service Airbnb property management offers current hosts the chance to pass off all the nitty-gritty work and make passive income off of their property.
Like mentioned, the co-host you bring on doesn’t always have to be an Airbnb expert. On the other hand, the best Airbnb property management companies have deep experience in the short term rental industry. They are also likely successfully running 10s if not 100s of properties already.
Rather than a division of income, property managers are typically compensated by management fees or a set commission rate. Typical commission rates Airbnb property management companies ask for are anywhere from 20-35%
There of course are legal differences that separate co-hosts from property managers. Because Airbnb property management companies are brokering deals between two parties, they must operate in compliance with specific real estate regulations. Laws on what define a property management operation differ from state to state. Your local real estate commission can tell you what type of license is required to operate an Airbnb property management company in your city.
Deciding between using a co-host or an Airbnb property management company is dependent on what community you have around you and to what extent you still want to be involved in running your listings.
Ready to bring in a property manager for hosting your Charlotte Airbnb listings? Talk to one of our team members about what you can expect from Rabbu's 5-star management services.