Airbnb Management in Australia: Finding the Right Company for Your Airbnb
What is Airbnb property management?
Airbnb has taken the world by storm since the company launched in San Fransisco back in 2008. Four years later, Airbnb was welcomed in Australia and have since boosted the travel sector and the country's economic growth. Australia comes in at number six on the top ten list of countries that have seen the greatest economic impact of Airbnb with the service bringing in just over US$4.6 billion into the economy.
Many Australians choose to invest in property as it's often commended by investors to maintain a stable rental income while achieving good capital growth. Gold Coast, Northern Beaches, Sunshine Coast, and the Surf Coast have become popular investment property areas for holiday goers while Sydney, Melbourne, Perth and Adelaide welcome business travellers.
Airbnb property management is a service offered to homeowners who are looking to put their homes in the short-term rental market. A good Airbnb property management company will offer a full service including guest vetting and communications, listing optimisation, managing bookings, cleaning, maintenance and revenue management.
Airbnb Property Management in Australia: Finding the Right Company for Your Airbnb.
How to find the right management company
Consistent 5-star guest reviews and high occupancy rates are not easy to achieve. That's why it's important to know which company offers strong operational, technical, revenue and guest relation expertise. Below are some questions to ask before signing a property management contract in Australia.
How well do they know the market?
Many Airbnb property management companies provide basic services like cleaning and maintenance. This, however, doesn't mean they're good at managing short-term rentals. A good property management company will have a solid understanding of the short-term rental market and its trends. This will ensure properties are well looked after and booked regularly to increase rental yields while bringing in 5-star guest reviews.
What is their approach to guest relations?
Your chosen property management company will represent you and your property to potential guests. Every guest is different which is why it's important to know how the company will handle guest relations. Do they operate from a central customer support centre or do they have local teams on the ground ready to support guests, handle guest communications and be around for emergencies or maintenance issues? Local teams are always a better option for Airbnb owners as guests frequently have queries about their accommodation or may have an emergency like locking themselves out of a property.
What is their pricing strategy?
This is a two-fold question. The first is finding out how much the property management company charges. Do they take a monthly retainer amount so they'll earn even if your property isn't performing or do they take a percentage of your booking rates so they only earn when your property earns? In most cases, the latter is the best option. A property management company needs to remain motivated to increase its earnings and provide the best possible guest experience so both parties benefit from the contract.
The other important factor is finding out how the company will price your Airbnb. This is where dynamic pricing comes in. What aspects do they look out for and what do they take into consideration when deciding the best nightly rate for your property. Are they solely basing it on your competitors’ rates or are they also seeing other trends such as incoming festivities, public holidays, and market developments? A good Airbnb management company should continuously look for ways to optimise and position your property to elevate the nightly rate when needed. On the other hand, are they also decreasing rates closer to the weekend if those nights are available? A lower nightly rate is, after all, better than an empty home.
We hope these questions have helped you find the best Airbnb property management company for your investment property in Australia.