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
- •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.
- •There are two popular management fee models: charging on gross rental revenue (including cleaning fees) or net rental revenue (excluding cleaning fees).
- •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
- →PMS: The speaker mentions using a PMS.
- →Yale Assure Smart Lock: The speaker mentions using the Yale Assure Smart Lock.
Watch Out For
- ⚠Dealing with Airbnb resolution can be difficult when acting as a co-host because Airbnb won't directly contact you.
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