Self-Managed or Property Management – Which One is Right for You?
Whether you already own a property or are interested in “Airbnb-ing” it, there are 2 ways of managing it in Dubai. You can either manage the Airbnb yourself or hire a property management company. In this article, we have put together the pros and cons of managing it yourself vs outsourcing to a professional, so you can decide if it’s worth it to DIY.
Property Management – Pros ✅
| Offers Full Spectrum of Services | From applying for holiday home license from DTCM, furnishing the apartment, listing it on booking platforms, arranging cleaning services, to acting as guest services on your behalf. |
| Communicate with guest Less stress for homeowners | Communicating with guests is a big reason why most hosts decide to outsource. You will not need to deal with guest requests and complaints directly, which can be very time-consuming and emotional. |
| Can optimize income | They have more reach, more data, and tools to determine how to price your property competitively. |
| Payments and reporting | Since property management companies have more reach with multiple platforms, they will have their own system to streamline and manage your booking and revenue reports. |
| Local markets knowledge | They will have knowledge on visitors’ demographics that will look for your type of property, and be attuned to seasonality. |
Property Management – Cons ❎
| Eats into your profits | They take a 15% – 20% cut from your revenue along with other fees, i.e. set up and onboarding fees, which includes deep cleaning, photographer, etc. If you are not making enough profit from your property to begin with, you may want to keep this revenue. Property management may prioritise maximising occupancy rate by lowering your daily rate. |
| Bound by contract | 30 days – 90 days notice to terminate the contract, and some will charge a termination fee. |
| No say in tenant selections | Property management companies will ensure you honor all bookings. If you cancel or cause the guest to cancel, they can charge you the full management fees for that booking, along with any charges incurred from their booking platforms. (i.e. Airbnb, Booking.com) |
| Reduced Attention | No control over guest experience. You won’t be able to add your personal touch. If the property manager handles a large number of listings, they may not be able to offer the same level of attentive service as an individual owner. |
Airbnb Reviews Stay with Property Management | We probably chose a property management company based on their good reputation and ratings. Keep in mind, our ratings will be removed if we de-list our property with them, meaning you will be starting from scratch again. |
Self-Managed Pros ✅
| Save on Management Fees | Get to keep 15%-20% revenue from each booking, and avoid set up fees (i.e. using their linens and photographer) as an on-boarding requirement. |
| More flexibility & Control | Have complete control over your property. You choose when you want to open up for guests, and when you want it for yourself. You pick your cleaners, repair guy, and how to handle issues, decreasing your overheads. |
| More Say in Tenant Selection | Property management companies will ensure you honor all bookings. If you cancel or cause the guest to cancel, they can charge you the full management fees for that booking, along with any charges incurred from booking platforms. (i.e. Airbnb, Booking.com) |
| Airbnb Reviews Stay with You | Your hard-earned great reviews stay with you, and not with the property management company. |
Self-Managed Cons ❎
| Less personal time for yourself Less freedom | This means, more time spent on managing reservations, ensuring tenants are happy, getting those 5-star reviews, coordinating with cleaners and repairs, and restocking amenities. You will constantly be on call. |
| Maintain High-Quality Aesthetics | Guests expect their short-stay to look a certain way, so you will need to furnish your rental nicely, equip it with certain amenities, and have cleanliness at hospitality standards. |
| Uncertainty | Less professional knowledge & expertise & less time for revenue scaling activities can affect your property’s performance. |
| Managing Administrative Tasks | Keeping track of documents, law regulations, cash flow reporting is not for everyone. It can be very tedious, detail, and administrative. |
Ask Yourself
1. How much time do you want to dedicate to property management, the cleaners, and liaising with guests?
2. How well can you handle stress? Do you want to be available 24-7?
3. Is that extra 15%-20% revenue worth your time and effort or would you rather pay someone to handle it all?
Doing Your Own Research
The truth is, it may take some time to find the perfect property management firm in Dubai that suit your needs and expectations. You’ll have to go through a bit of trial-and-error until you find the perfect fit and a company that’s trustworthy and reliable.
