Property Management & Co-hosting
Terra Bella has been in the vacation rental business for nearly 20 years. Our experience includes fully managing our own properties since day one, plus managing and co-hosting properties not under our ownership. We are Airbnb approved co-hosts.
We are based in western North Carolina. NC law requires property managers to be licensed real estate brokers. No license is required to manage property you own. We do not possess a real estate broker license in NC, which limits the service we can offer in NC to co-hosting.
In Tennessee, we have obtained a Vacation Lodging Service (VLS) license that allows us to fully manage property without the requirement of holding a real estate license. Our Tennessee VLS license is #800. We can also co-host in TN as well. For full property management, we prefer to work with properties in the Gatlinburg area only.
Below is a short discussion diving deeper into the distinction between property management and co-hosting, what might be best for you and how we can help you with your NC or TN property.
Property Management vs. Co-hosting
Property Management
A vacation rental or short-term rental (VR/STR) property manager (PM) is typically a professional individual or company that has taken on the task of day-to-day management of your property. You as the property owner will have little involvement in this model. Their role encompasses a broad range of responsibilities aimed at maximizing the profitability and operational efficiency of your property.
A PM’s role includes, but is not limited to, guest communication, listing management, pricing, booking management, cleaning and maintenance coordination, marketing, rent collection and owner payouts. Property managers often employ computer programs like property management software (PMS) or dynamic pricing to automate certain tasks. Owners who prefer a hands-off approach or have multiple properties may choose to hire a property manager.
Co-hosting
A VR/STR co-host is typically a professional person or small company knowledgeable in the VR/STR field, and could even be VR/STR property owners themselves. Large property management companies typically do not co-host, seeking only to work with property owners wanting or needing full management services. The role of a co-host is more flexible and is often tailored around the needs of you as the host.
The role of the co-host can include managing bookings, guest communication, cleaning coordination and handling maintenance concerns. Co-hosts often subscribe to PMS and dynamic pricing programs as well. Co-hosts typically do not handle any financial matters or owner payouts, leaving those tasks to the owner. Property listings on sites like Airbnb and Vrbo are typically created and owned by the property owner. Unlike under the property management model, rental income flows directly to the property owner.
Considerations when Choosing Between a Property Manager and a Co-host
As a VR/STR owner, deciding whether to hire a property manager or co-host is a big decision that impacts not only your property's success, and possibly you as a host, but also comes with financial, control and legal implications.
One primary consideration for many VR/STR owners in choosing between a property manager or co-host is cost and profitability. Property managers typically charge a percentage of your property’s rental income in the range of 20% to 40%, or even more, depending on the services provided. This can be a big chunk of your property’s annual income and can be the difference between your property making a profit or becoming a loss. Co-hosts, on the other hand, typically charge 10% to 20%.
How to Decide What's Best for Your VR/STR
Making the right choice between a property manager and a co-host for your VR/STR property involves a clear understanding of your personal and financial needs and goals, and the requirements of your property.
Start by evaluating your preference and the time you’ll be able to commit to your VR/STR property. If you enjoy being somewhat hands-on with your property say, for instance, you enjoy guest interaction, a co-host might be the better choice to help you manage your workload and other tasks while not giving up full control.
If your preference is a complete hands-off approach or you have a profession or other commitments that limit your time, a property manager could be the correct choice for you.
Financially, it’s important to have a keen understanding of your carrying costs (mortgage, utilities, taxes, insurance, etc.) and income projections. Are you okay with breaking even at the end of the year or do you absolutely need to make a profit? This is an important factor that needs to be considered carefully as you review your options.
Our Difference
We would very much enjoy discussing with you your needs for your VR/STR property, whether those needs are big or small. We understand every host has a unique set of circumstances and there is no one size fits all solution that many property management companies try to sell. Our difference is we don't offer a rigid set of services, choosing to be flexible around the needs of our clients instead. Contact us or connect with us through our Airbnb co-host profile and let’s talk about a winning solution for you and your property!