Self-Management vs. Co-Hosting: Which is Right for You?
As a short-term rental owner, you face a big decision once your property is ready to go: should you manage it yourself or hire a Co-Host? Both approaches have their advantages and drawbacks, and finding the right fit depends on your unique goals, availability, and experience level. Let's dive into the pros and cons of each option to help you make an informed choice.
Self-Managing Your Short-Term Rental
Managing your property yourself can be rewarding, especially if you're a hands-on, detail-oriented owner with a passion for hospitality. Here’s a breakdown of the pros and cons of self-management:
Pros of Self-Management
Higher Profit Margins
When you manage your own property, you don’t have to pay management fees, which can range from 10-30% of your booking revenue. By handling the operations yourself, you keep a larger slice of your rental income.Full Control Over Operations
Self-management allows you to have a say in every aspect, from setting pricing strategies to establishing check-in procedures and communication with guests. You can adjust your practices based on guest feedback quickly and experiment with different ways to enhance guest experiences.Personalized Guest Experience
As the point of contact, you have the opportunity to connect directly with your guests, offer personalized local tips, and build rapport. This personal touch can lead to great reviews and more repeat bookings, as guests often appreciate dealing directly with the property owner.Enhanced Learning Experience
Managing your rental offers a crash course in hospitality, marketing, customer service, and property maintenance. Over time, this experience can turn you into an expert host, which can be advantageous if you plan to expand your rental portfolio.
Cons of Self-Management
Time-Consuming
Managing a short-term rental can feel like a full-time job. You’ll need to respond to inquiries, handle booking requests, coordinate cleaning, manage check-ins and check-outs, and address issues during stays. If you have a full-time job or other commitments, this may be too demanding.24/7 Availability Required
Guests may need assistance at any hour, and issues like lockouts, appliance breakdowns, or complaints can arise suddenly. If you aren’t prepared to respond promptly, it could negatively impact guest satisfaction and your reviews.Risk of Overlooking Compliance
Short-term rentals are subject to local regulations, tax requirements, and safety standards, which can vary widely. As a self-managing host, you’re responsible for staying on top of these requirements. Missing a regulation can lead to hefty fines or even a loss of your rental permit.Limited Marketing Reach
Co-Hosts often have access to marketing tools and expertise that can increase your property’s visibility and bookings. As a self-manager, you’ll need to be proactive about listing optimization, pricing adjustments, and staying competitive in the market.Hiring a Co-Host
Hiring a co-hosting company can be an ideal solution if you prefer a hands-off approach or lack the time or expertise to manage your rental yourself. Here’s what to consider about using a Co-Host:
Pros of Hiring a Co-Host
Time Savings and Convenience
A Co-Host takes over the bulk of the work, from guest communication to maintenance and cleaning coordination. This frees up your time, making it easier to scale to multiple properties or focus on other priorities.24/7 Guest Support
Co-Hosts provide around-the-clock guest support, ensuring any issues are resolved promptly. This can lead to happier guests, better reviews, and a smoother hosting experience overall.Professional Marketing and Revenue Optimization
Experienced Co-hosts typically have access to advanced software like Hostaway that optimizes pricing based on market demand. They may also market your property on multiple platforms, increasing exposure and maximizing bookings.Legal and Compliance Expertise
Co-Hosts are generally well-versed in local regulations and can help ensure your property remains compliant. This can save you from legal headaches and ensure you’re meeting local rental standards.Scalability
For owners with multiple properties or plans to expand, Co-Hosts provide a streamlined way to oversee more rentals without adding to your workload. This scalability is particularly useful if you plan to invest in properties in different locations.
Cons of Hiring a Co-Host
Reduced Profit Margins
Management fees cut into your earnings, and depending on the management model, you could see 10-30% of your revenue going to the Co-Host.Less Control
While a Co-Host takes care of day-to-day operations, you also relinquish some control. Decisions about guest interactions, pricing strategies, or marketing choices may be out of your hands.Quality Can Vary
Not all Co-Hosts are equally skilled or invested in maintaining your property. Some may overbook, under-deliver on guest support, or fail to keep the property in top shape, leading to issues with reviews and occupancy rates. If the Co-Host doesn’t share your standards, it could affect your property's reputation.
When Self-Management Makes Sense
You have the time and energy to devote to the rental. If you live locally or have a flexible schedule, self-management can make sense.
You're on a tight budget and want to maximize profitability by avoiding management fees.
You enjoy hospitality and want to be directly involved in creating positive guest experiences.
You’re only managing one property and can handle the workload on your own without sacrificing other commitments.
When Hiring a Co-Host Makes Sense
You’re a remote owner who cannot visit the property regularly or respond quickly to guest needs.
Your time is limited due to other jobs, family obligations, or personal commitments.
You have multiple properties and need assistance scaling operations effectively.
You lack experience and/or interest in the day-to-day operations of a short-term rental and would rather trust a professional.
Making the Choice
Ultimately, the decision between self-managing and hiring a Co-Host comes down to balancing your goals with your availability and comfort level with hospitality management.
For some, self-management provides a fulfilling way to build income and engage directly with guests. For others, working with a Co-Host offers a hassle-free, scalable approach to passive income.
If you’re unsure, consider either starting with self-management to understand the business before deciding to hire help or seek a co-hosting company with flexible terms so you can switch to self-management if you choose. With careful consideration, you can make the best choice for your rental—and enjoy a more rewarding hosting experience.
We Can Help!
At COHO Collective, we provide our owners with flexibility as they navigate the challenging decision of hiring help. All of our owners own their listings and their reviews, should they choose to go a different direction in the future.
You can read more about the difference between co-hosting and traditional property management groups here. Want to learn more about how we can help? Reach out to us!
