Property managers taking 20% is a joke for the amount of work it takes
49
3
87
Replies
If you like this post, you might like my newsletter:
1 Actionable tip for running your short-term rental business with a full-time job
Join dozens of Superhosts here:
0
0
3
@BryceWGarcia
Could be talking our book, but 2 reasons I struggle with this take:
1. It’s not just about cost. Also about revenue. If you’re not spending time on it, then you’re leaving money on the table. And if you are spending time on it, there’s a cost of that time. To be apples to…
5
0
9
@TrentHawthorne
Yeah I think point 1 ties back to
@Jacobtmueller
's point of at scale its probably worth it because you only have so much time. And assuming they are actually a good PM, they should increase rev.
0
0
3
@BryceWGarcia
My STR manager takes about that much (net) but I don’t mind it since it’s a more passive stream for me. I see it as profit sharing.
1
0
3
@BryceWGarcia
Just like any vendor, your juice is typically equivalent to your squeeze
That 20% PM might actually know how to scale
And cut fee when you do
Question might be- What is knowledgeable scaling worth to you? Should be a premium
1
0
0
@reconwhispers
I haven't been impressed with the few professionally managed STRs I've stayed at but certainly outsourcing the work can help you scale
1
0
2
@BryceWGarcia
Dude what in the world?? What assets are you paying for a property manager. In CRE it's 2 to 3 percent or SFR I've seen 10 percent
1
0
1
@BryceWGarcia
Passing my portfolio off to PM’s was best decision ever. But all are 5-10% + 50-75% of 1st mo on new leases on turnover. Well worth the time it saved me to focus on doing more deals and being FREE! But agreed, 20% is crazy high.
1
0
1
@BryceWGarcia
20% is a lot. But I wouldn't manage STR's for 20%. Not worth it. Call me crazy but there's a high price for me to be 24/7 on-call, concierge, visiting the property after every move-out, dealing with an owner micro-managing bookings and questioning every expense, etc. no. thanks.
0
0
6
