Entering the world of property management comes with its share of challenges, including navigating complex legal requirements and understanding the intricacies of landlord-tenant rights. For those who are new to this field, the starting point is not always apparent.
Whether you’re an investor experiencing substantial profit losses due to property management fees or a newcomer exploring supplementing your income with a rental property, learning how to manage your own property is vital for maximizing profits.
We sat down with Avery Carl, CEO of The Short Term Shop and one of the most prominent figures in the short-term rental industry, to discuss the three essential steps that investors can take to become their own property managers.
Managing Your Own Rental Property is Easier Than You Think
Property management is a lucrative business. The property management industry as a whole is valued at $88 billion, with over 270,000 companies specializing in managing properties in the U.S. alone. But the fact remains that it’s a less daunting task than most property owners assume.
Carl relayed how she was also under this mistaken assumption when she first got started. “Me and my husband started out by buying a single cabin to rent out in the Smoky Mountains in 2015. Pretty soon, we realized we didn’t want to pay a property manager 20 to 40% of our gross, which is a lot,” said Carl, “The Short Term Shop came about from me teaching friends how to do what we’d done. Then it was friends of friends, then people we truly didn’t know. And now we’re in over twenty markets.”
Named in Wall Street Journal’s top ten real estate agents this year, Carl has grown her portfolio to over 250 properties in less than a decade and overseen the sale of more than $2.5 billion worth of short-term and vacation rentals. From this depth of experience, Carl has gleaned some key findings on how property owners can become their own property managers.
This is made possible by a few key factors, including the advent of rental property management software solutions and apps, popular booking and listing sites like AirBnB and VRBO, and the fact that it’s never been easier to efficiently manage your own short term rental properties.
Step 1: Take The Reins
If you’re considering becoming your own property manager, it’s crucial to be aware that the best education will come by just taking the reins and learning as you go. As you are managing your properties on a daily basis, you will start to see patterns in the business, and develop systems and standard operating procedures that you will use to efficiently manage your properties, which will allow you to eventually delegate some property management tasks to employees or virtual assistants.
“As you accumulate experience, you’ll be able to delegate more” said Carl, “It’s vital to invest in your professional development, and there is really no better way to build your portfolio more quickly than to self manage your properties, and use that 20-40% you would have paid a property manager to invest into your next property.”
Step 2: Broaden Your Network of Peers And Potential Vendors
Carl recommends attending conferences to gain valuable knowledge and to build a strong professional network, so that you never stop learning new ways to optimize your properties.
“Real estate is a competitive field. Oftentimes, the best deals are snapped up before they’re even officially on the market,” said Avery, “That’s why I recommend broadening your network. Because you never know who might prove to be an invaluable resource. With that being said, 90% of real estate transactions are done on the market, so it is very important to build a relationship with short term rental-specialized agents in the market you plan to invest in.”
According to Carl, this principle also holds true for managing properties, as it’s crucial to secure excellent deals in various areas, including general repairs, housekeeping, plumbing, HVAC, and electrical services.
“A small difference in what you’re paying on a maintenance service can add up to big savings across dozens of properties,” said Carl, “At The Short Term Shop, we encourage our investors to be savvy property managers and price out several vendors before settling on their go-to company for a given service.”
Step 3: Utilize Valuable Resources To Your Advantage
Per Carl, successful property managers understand the importance of leveraging resources like local real estate investor meetups, city council meetings, and national industry conferences. These sources provide valuable information on changing requirements, best practices, and industry innovation. The same applies to technological tools, which can reduce the complexity of managing multiple properties.
Carl also believes in the importance of finding great mentors. “Without the right guidance, you could find yourself floundering in legal complexities, losing potential income, or stuck in a job that offers little in terms of personal and financial growth,” said Carl, “I built this giant portfolio from nothing, and you can do this too, but you need the proper resources, and to be humble enough to realize what you don’t know.”
In fact, that’s one of Carl’s missions for The Short Term Shop – equipping investors with the property management tools to succeed in a competitive market, which is why they supply all of their clients with end to end remote property management training, references to local cleaners, handymen, contractors, and other qualified tradespeople, making property self-management easy from anywhere across the globe.
About Avery Carl
Avery Carl, Founder of The Short Term Shop brokered by EXP, was named one of Newsweek’s Top 500 agents in 2020, Wall Street Journal’s Top 100 in 2021, Top 50 in 2022, and Top 10 in 2023, as well as the New York Times Top 100 in 2022. She and her team focus exclusively on vacation rental and short-term rental clients, having closed well over $2.5B in sales. To join over 5,000 happy Short Term Shop investors, please visit https://theshorttermshop.com/
