For those who are not familiar with the term co-hosting, let us help with that. It is basically a level of assistance for short-term rental (STR) or vacation rental owners, similar to a Property Manager (PM,) but not defined as Property Management in a traditional sense. The duties of a co-host are geared more towards the hospitality aspect of a STR. A co-host usually does not handle any money related to the property, such as booking revenue or expenses (mortgage, utilities, taxes,) as most states require PM's to hold a broker's real estate license in order to hold escrow money or distribute funds to the owner. This keeps a good separation between operations and the owners asset, which in our opinion is a good thing for both parties.
Initially the term co-host was introduced as an additional feature for hosts who listed their properties on Airbnb, but it has evolved and they can help operate your listing on all OTAs (Online Travel Agency) and so much more.
Who can be a Co-Host?
The truth is that almost anyone can be hired as a co-host, but not everyone can provide the services needed to operate your STR efficiently, and with a focus on hospitality. This is where you will want to identify the services you need for your property to find the best co-host for you. In some cases, you can hire a friend, family member or neighbor located close to your property, but we highly suggest you stress your priorities to them in order to give you the results you need.
The Role of a Co-Host:
First, as previously noted a co-host usually does not handle any booking funds and it is important to note that while they are added to your Airbnb listings, they will not have access to your bank account information. They will be able to see booking reports here and on other OTA platforms.
Now onto a short list of services a co-host may offer....
Manage reservations on multiple OTAs.
Guest Communication before, during and after their stay.
Write reviews of the guests that occupied your property.
Update your listings with photos and descriptions.
Assist with pricing strategies.
Schedule cleaners and maintenance trades.
Assist your guests with any concierge services that you may offer in your STR.
Handle guest emergencies during their stay.
Conduct property inspections periodically to address maintenance and guest issues in a timely manner.
and so much more!!!
Basically they cover all the tasks that an owner-operator tends to want to avoid. Just leave these to a co-host (possibly us) and just focus on your expenses and growing your business... a topic we cover next!!
So, I'm an owner-operator, what other benefits would I get by hiring a co-host?
We get this question often, so let's break it down.
We all know that operating a short-term rental is a great way to make extra income as a homeowner, regardless if you are renting a room, an in-law suite or a full home. Now if you have another job or full-time responsibility, managing guests and cleaning (if you are doing this yourself) can quickly turn into a part-time job and take time away from family. A co-host takes on this role of "host" to free up your time, and giving back your life.
Also, if you have considered growing this into a full business, hiring a co-host can actually help you achieve this faster in a few ways. First, do you want to acquire more properties? Specific to our company, Dream Host Hospitality LLC, we have a fully licensed Real Estate Agent on our team to assist with buying and selling investment properties. Secondly, we have have sources to assist with improving your property with interior design, along with improved photos and descriptions. We also assist you with understanding pricing analysis to increase your nightly rate per season, and creating a branding strategy for your property. These are all ways to increase your existing revenue and work towards building your business and ultimate wealth.
Which brings us to the next common question....
How much does it cost to hire a co-host?
As for the cost, you will find with a little research that it can range between 10-30% of your monthly booking revenue, with some co-hosts including the cleaning fees and some that do not. Our company does not factor cleaning fees into your revenue, as we view this is an expense. In general this amount is less than what a full property management company normally charges, which can range closer to 40-50%, while understanding that this is is not an apples to apples comparison in services. PM companies handle much more a property owner, and that works for some people. As mentioned before, this is where you will need to determine what needs you want to pass along to others, as this will guide you to use a co-host or a property management company.
Let's recap and take away...
So, to circle back to the initial question, "What is a Co-Hosting? We think we have given you a head start but this level of services is ever-evolving as the STR industry advances. The key thing to identify and take away is that engaging a co-host will take you and your business to a new level, while keeping control of your asset.
If you are intrigued to learn more... just take the next step in contacting us. It's easy. Click here or email us or call us at the number below. We look forward to working together towards a bright future for you and your STR portfolio.
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