You have decided to monetize your home and make it available on the short-term rental market, but you still don’t know if you will personally deal with all the legal issues and daily management or if you will deliver it to an Airbnb management company? Discover the advantages and disadvantages of each of the possibilities in this blog post.
Do your own Airbnb management
This is the most traditional and common form for those who have only one house and want to monetize it in the short renting market. It is also the most demanding, since the owner of the house must always be available to meet the needs of guests and solve all questions, not only before but also after their departure.
• You will be able to meet and talk to everyone who will use your home;
• Income is not shared, you only have the costs of commissions from the websites;
• You’ll have absolute control over everything that’s going on in your house.
• If you have more than one house, management can become very complicated;
• You have to be available to respond to all last minute requests from guests, which may involve midnight phone calls, check-ins and check outs at all times, resolution of any problems in the house, etc..;
• It will have to deal with the bureaucratic, logistical and accounting aspects: legalization of local accommodation, management of receipts, invoicing, payment of tourist fees, communication to SEF, etc.;
• The work is quite “manual” because you will not have access to management platforms that companies usually use, such as channel managers, PMS, CRM, etc..;
• The owner is responsible for communicating with the booking websites and solving all problems (overbookings, refund requests, rehousing, etc.).
Recommended article: How to legally register your Airbnb for “Alojamento Local” in Portugal
Delivering your home to a Airbnb management company
There are, however, some alternatives to self-management. Short renting management companies act as intermediaries between guests and homeowners and generally take care of everything, so there is no direct contact between guests and homeowners.
• In this option, the owner has no work whatsoever because he doesn’t have to talk to the guests, nor deal with the reservations, or check in – the company is responsible for everything;
• The companies take care of the whole process, from the preparation of the house to the check-out of the guests, passing through the accounting, receipts and other legal obligations;
• All communication with the booking websites is done by the company;
• The technology of the management companies allows that each house is advertised in several websites and that the communication with the guests is immediate and effective;
• Depending on the size of the company, it may have people available 24 hours a day, responsible for resolving all the issues that arise (a broken machine, an infiltration, a delay in checking in, etc.).
• The owners’ only concern is to receive their income at the end of the month.
Recommended article: Short renting in Portugal: what taxes do you have to pay?
• You will have to pay a commission to the local housing management company (which usually varies between 15% and 40%, depending on the services it includes);
• You don’t know the guests who stay at your house;
• You may have less control over what is happening in your home, for example: number of bookings, occupancy rate (however there are some companies that detail all this information, so that you have full control over the income of your home, as is the case with Feels Like Home).
Now that you know all the advantages and disadvantages of both types of short renting management, you can decide which is best for you and your home. If you are interested in having a complete management without worries and with excellent results, consult our services or contact us so we can give you an estimate of how much your house can be worth in the short-term rental market.