The Real Cost of DIY Property Management
Let’s face it—real estate is still one of the golden geese of investment. With an average return of 5-7% annually, and if you’re leveraging that sweet 20% down payment, you could be looking at a jaw-dropping 25-28% return. Cha-ching! But, hold on a minute—before you start dreaming of a yacht and a personal masseuse, let’s talk about the real cost of real estate investment. Spoiler alert: it’s not as passive as you might think.
Sure, the numbers sound great, but managing the properties yourself? That’s where things get spicy. As a landlord, you’ve got a never-ending list of tasks that can make you want to pull your hair out. Tenant issues? You bet. Repair requests? Absolutely. Conflict resolution? Oh, you’ll have your hands full there too. Late rent? Non-paying tenants? Property damage? Oh, the joys of being a landlord!
How Airbnb Property Managers Can Save Realtors’ Reputations
Now, for all the realtors out there, you know the drill—your role in helping investors find long-term tenants is crucial. You’ve probably done your due diligence—credit checks, background screening, income verification—you’ve made sure that all the bases are covered. And yet… boom… along comes the rent arrears nightmare. According to CMHC’s annual rental market report, the rent arrears rate in Toronto was a staggering 19.6%. That’s nearly one in five renters unable to pay their rent. And let’s not even get started on the cost of those late payments. On average, a landlord loses $15,863 for a non-paying tenant (thanks, Openroom.ca, for that little fun fact).
So, what happens when a property investor has to face this unpleasant reality? Well, they might point the finger at you, their trusted realtor, and blame you for the troublesome tenant. “You didn’t screen them well enough!” they might say. Ouch. But here’s the kicker: you don’t have to bear the brunt of this risk. You can pass the baton (and the headache) to an expert Airbnb property manager.
Here’s the deal: when you collaborate with an Airbnb property manager, you’re essentially handing over the keys to someone who specializes in short-term rentals. And guess what? Short-term rentals like Airbnb are way less likely to have the rent arrears drama. Why? Because renters are booking for a weekend, a week, or a few days—not signing a 12-month lease that might go south in six months. It’s the opposite of long-term leasing, and it’s working for a lot of property investors.
But wait, there’s more! The beauty of working with an Airbnb property manager is that your clients—your beloved property investors—don’t have to worry about the hassle of day-to-day management. For about 20% of the rental income (the typical property management fee), your clients get to sit back, relax, and watch the income roll in without dealing with those pesky late-night repair calls or angry emails about a broken microwave.
The Win-Win: Why Clients and Realtors Benefit from the Partnership
Now, here’s the real kicker: when your clients succeed in their first property investment with minimal headaches, guess who they’re going to call when they want to buy their next property? That’s right. You, the realtor who connected them with an Airbnb property manager, making their investment experience a smooth and profitable one. Success breeds success, my friend.
So, to all the realtors out there—don’t let your clients drown in the waves of tenant issues and maintenance nightmares. Help them swim to smoother shores by partnering with an Airbnb property manager. Your clients will thank you, and hey, they’ll probably bring more business your way once their first property investment is a roaring success.
At the end of the day, the goal is simple: keep your clients happy, make their investments easier, and watch your reputation (and commissions) soar. That’s a win-win in anyone’s book.
Ready to make your clients’ lives easier—and more profitable? Time to chat with CoHostsCircle – your trusted Airbnb property manager!