Best way to work with management clients (Ep583)
Summary
This podcast episode discusses how to structure management deals with clients. The guest shares insights on charging structures, specifically discussing the pros and cons of charging on gross versus net revenue, along with strategies for clear client communication. Hosts can learn from the speaker's experience in streamlining their management practices and client communications.
Key Insights
- •There are two popular management fee models: charging on gross rental revenue (including cleaning fees) or net rental revenue (excluding cleaning fees).
- •The speaker initially used the co-hosting model and transitioned to having their own company Airbnb accounts due to limitations like revenue management applications and dealing with Airbnb resolution as a co-host.
- •The speaker found it more efficient and simpler to charge 30% on gross rental revenue to cover supplies and toiletries for their clients.
Action Items
- ✓Consider creating a simple, clear client agreement contract, including calculations for your management fee.Effort: lowImpact: medium
- ✓Implement a clear monthly communication process with clients, such as scheduling 30-minute calls or sending Loom videos.Effort: mediumImpact: medium
Tools & Resources
- →Yale Assure Smart Lock: The speaker mentions using the Yale Assure Smart Lock.
- →PMS: The speaker mentions using a PMS.
Common Mistakes
- ⚠Dealing with Airbnb resolution can be difficult when acting as a co-host because Airbnb won't directly contact you.
More from Hosting Operations
An Airbnb property owner in Citrus Heights reported a massive party and property damage caused by a guest using a fake elderly profile. This incident highlights the risks of fraudulent guest profiles and the potential for significant financial losses. Hosts should be aware of the security vulnerabilities on platforms like Airbnb.
This article discusses traffic issues in Whistler, British Columbia, suggesting that road infrastructure alone isn't the sole cause. While not directly about STRs, it hints at broader issues like increased tourism and potential impacts on local services which can affect hosts. This impacts the guest experience and host operations.
Minor Hotels is developing an AI platform from scratch to enhance guest personalization. Unlike rivals layering AI onto existing systems, Minor's approach prioritizes real-time data for faster impact. This signifies a potential advantage in marketing, offering, and service improvements for their 640+ hotels and 12 brands.
Curated by Learn STR by GoStudioM