A Reliable Short Term Rental Management Company for Your Peace of Mind
It used to be that owning a rental property meant you were getting monthly rent with annual contracts. However, with the rising popularity of platforms such as Airbnb, the option to rent your property short term has become a more viable option.
There are definitely advantages and disadvantages to both long and short term rentals. Short term rentals are almost certainly going to increase your income, but long term rentals may provide more of a sense of security and consistency. Renting your property short term also gives you the freedom to only rent when you want to and block out time for you to use your own property if you desire.
Whichever choice you make, one thing is certain. Your property will need to be managed. Short term rental management entails many components from marketing to property maintenance, guest communications and logistics, just to name a few. In fact, many people give up the idea of short term rental purely because of overwhelm, even though the numbers make much more sense.
In order to be successful in short term rental management, a wide range of knowledge and skills are required, not to mention considerable time and energy. From market research and analysis to property maintenance, guest services and marketing, property setup, listing setup, photography, managing and restocking inventory, cleaning, repairs, and the list goes on.
If you don’t have a background in hospitality, or if you aren’t willing or able to put significant time into managing your short term rental, hiring a professional, full-service short term rental property management company like Sagah Management Inc. is your best bet.
At Sagah, we begin by conducting a thorough market analysis to determine the viability of your property for short term rental. In this process, you will receive a projection of your estimated potential revenue based on current and accurate data so you can make an informed decision. Once you decide to move forward, we begin the process of property setup. You may choose to do this yourself or provide us with a budget and we can take care of the entire setup for you. Our in-house interior design team is also here to help if you would like to be involved in the process but need some professional help.
Once the property is set up, we also offer optional professional photography so your property is well represented, then set up your listings on multiple platforms using strategic marketing techniques and keywords to attract more potential guests. We take care of ongoing management of your listing, being sure to revisit market data on a monthly basis to adjust rates as needed to ensure optimum pricing for maximum revenue.
We also manage the daily aspects of your property and guests such as cleaning and maintenance, restocking of necessary items, interact with guests to provide check-in and check-out, provide 24/7 guest services, screen for quality guests, and employ noise monitoring technology to protect your property.
The key advantage to short term rental over long term is the increase in revenue. We would argue that the difference is significant enough to consider, even with all of the additional work that it may entail. And when you can hire a professional short term rental property management company to do the work for you, it really is a no-brainer!
Let’s consider a typical 3-bedroom home in the Dallas area that may rent for around $2,500 per month, resulting in annual revenue of $30,000. This same home is likely to rent short-term for around $250 nightly. Rented short-term for just 70% of the time, the total annual revenue would come to $63,000, more than double the potential for long-term rental.
If your motivation for considering short term rental is in order that you can use your property from time to time, this also provides a viable scenario. Based on the sample home mentioned above, you would only need to rent your property for just 10 nights a month to make the same revenue as you would for long term rental. This way, the remaining 20 or so nights would leave your property vacant for you to use as your own vacation home, for guests, or any other use you desire.
Will the Increased Revenue Offset the Short Term Rental Management Fees?
But what about the short term rental management fees, you ask? Don’t we need to still pay the management company?
At Sagah, our service fees range from 15-20% of total revenue, depending on the size and type of your property. This is a highly competitive rate compared to industry average short term rental management feeswhich typically range between 25-30% according to Lodgify.
If we were to apply our service fees to the 3-bedroom home sample mentioned above, you would be left with $53,550 at our lowest rate of 15% or $50,400 at our highest rate of 20% from the annual revenue of $63,000. Both would still be considerably higher than the roughly $30,000 revenue you may get from long term rental.
The Best in Service for You, Your Property, & Your Guests!
- The latest and most accurate market data to ensure you always receive the highest return possible
- Multiple platform listings to maximize occupancy
- Insurance of up to $1 million per property
- 24/7 property monitoring