Managing your own short-term rental can be both rewarding and challenging. When I first entered the vacation rental business in Michigan in 2007, the landscape was vastly different. Platforms like Airbnb didn’t even exist yet, VRBO and HomeAway were two separate entities, and hardly anyone had their own website. Automation and smart home technology were still dreams on the horizon. Back then, offering free WiFi felt like cutting-edge hospitality. Today, the landscape has transformed with powerful tools and platforms that make it possible to self-manage—but that doesn’t mean it’s simple. In this post, we’ll explore the pros and cons of self-managing your short-term rental, taking into account how much time, expertise, and dedication it truly requires.
The Pros of Managing Your Own Short-Term Rental
1. Control Over Every Aspect of Your Business
Self-managing allows you to maintain complete control over your property. From pricing strategies to the design of each guest’s experience, everything is in your hands. This level of oversight is especially appealing to property owners who take pride in delivering a highly personalized guest experience.
2. Saving on Management Fees
One of the biggest advantages is the financial savings. Property management companies typically charge 20-30% of your rental income, which can significantly impact your profits. By handling management yourself, you avoid this expense. However, it’s essential to consider the hidden costs, such as the time and money required to set up booking software, smart home technology, and online marketing campaigns.
3. Building Relationships and a Personal Brand
If you’re passionate about hospitality, self-managing allows you to create a unique brand that stands out. Engaging directly with guests enables you to foster positive reviews and build a following of repeat guests who value your personalized touch. For many hosts, this relationship-building is one of the most enjoyable aspects of managing a short-term rental.
The Cons of Managing Your Own Short-Term Rental
1. Time Commitment and Stress
Self-managing isn’t a “set it and forget it” endeavor. Hosting requires constant guest communication, handling booking inquiries, resolving maintenance issues, coordinating cleanings, and monitoring property conditions. If you’re a busy professional with a high-income job, consider the value of your time. Self-managing means taking on a significant workload, which could mean late-night calls about a broken appliance or helping a guest figure out how to work the TV.
2. Technological Complexities and Learning Curve
While technology has made self-managing more accessible, it has also made it more complex. Maintaining listings across multiple online travel agencies (OTAs) like Airbnb and VRBO, managing a direct booking website, using dynamic pricing software, implementing digital marketing, and leveraging social media can be overwhelming. Additionally, integrating smart tech—like smart thermostats, door locks, and noise monitoring systems—requires a fair amount of technical knowledge and regular updates.
3. Finding and Retaining a Reliable Cleaning and Maintenance Team
One of the biggest operational challenges, particularly in smaller towns, is finding dependable cleaning and maintenance teams. A great cleaning crew is crucial for keeping guests happy and maintaining high standards, while a responsive maintenance team is vital to handle unexpected issues. However, hiring and retaining reliable teams can be challenging, as smaller markets may have limited availability and competition for skilled workers can be intense. It’s a task that requires diligence and frequent communication.
4. Staying Compliant with Local Regulations and Taxes
Short-term rental regulations can be complex and change rapidly. Many cities and municipalities have specific zoning rules, permit requirements, and occupancy limits for vacation rentals. Failing to stay up-to-date can result in fines or forced closures. Beyond regulatory compliance, managing tax obligations, such as sales and occupancy taxes, adds an additional layer of responsibility. Don’t forget end-of-year tax tasks like issuing 1099s to contractors—it’s all part of the job.
5. Property Maintenance and Guest Expectations
Every rental property requires routine maintenance, but short-term rentals demand even more attention. Turnovers between guests, repairs, and keeping up with wear and tear can be daunting, especially if you’re managing the property remotely. Additionally, guest expectations have increased dramatically in recent years; today’s travelers expect high standards of cleanliness, responsive communication, and well-maintained amenities.
6. Being a Good Neighbor
Maintaining good relations with your neighbors is essential for a successful vacation rental. Noise disturbances and increased traffic can strain relationships within the community, so guest screening and monitoring are crucial. Smart noise monitoring devices can help, but you’ll need to actively manage and enforce policies to ensure a peaceful environment for neighbors.
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Is Self-Managing Right for You?
Self-managing a vacation rental can be highly rewarding, but it’s not for everyone. Ask yourself:
- Do you have the time and patience to take on the tasks of guest communication, property upkeep, and regulatory compliance?
- Are you tech-savvy and comfortable with marketing, pricing strategies, and digital tools?
- Do you genuinely enjoy hospitality and the operations involved?
- Are you willing to be on-call 24 x 7 x 365?
While managing a single property can be feasible, it can become a full-time job if you have multiple rentals. Scaling up in a single market can make it more cost-effective, but if you find yourself struggling to keep up, partnering with a professional property manager may be worth the investment. An experienced property management company can reduce your stress, ensure compliance, and, often, maximize your revenue—even after accounting for management fees.
Conclusion
Ultimately, the decision to self-manage comes down to your goals, lifestyle, and resources. If you thrive on the hands-on nature of hosting, you may find self-managing a rewarding way to share your property. However, if you prefer a more passive investment, a trusted property manager can handle the intricacies of daily operations while you enjoy the benefits with peace of mind.
If you’d like to discuss which option is right for you, or learn more about our property management services, please reach out to us!
📧 Email: Mike@AnchorPointVacations.com
📞 Phone: 269.762.4100
🌐 Learn more: join.anchorpointvacations.com
📞 Phone: 269.762.4100
🌐 Learn more: join.anchorpointvacations.com
Let us help you find the best approach for your property management needs!
Sincerely,
Mike Wesling, CEO and Managing Director of Anchor Point Premier Vacations
