I was excited about my AirBnb investment. There were some delays with the property manager getting the place furnished and ready to be rented out, but there didn’t seem much to be concerned about. He was pretty good at communicating with me about what was going on. He also listed the property on AirBnb with the date he anticipated it would be ready. To my surprise, people started booking! There were no pictures of the interior of the house nor were there any reviews. Although there were reviews of the co-host, the property manager’s local area manager, who had pretty good reviews.
As the date the property would go live got closer and it still wasn’t ready, the first guest started to complain about the lack of photos. I started to get a bit concerned and I contacted the property manager who assured me he would personally be there to make sure everything was completed. (I’m not exactly sure how his business model works but he manages properties in multiple cities and has a local area manager handle the day-to-day duties, who is listed as the “co-host.”) Photos were finally uploaded onto the site, which was the first time I’d seen the finished version. It looked pretty nice. There were a few things, I thought would have been done better, but for the most part, it looked good. It’s a 2-family house so I had two guests that first weekend. After a few days, I was notified that the listing had its first reviews. I was excited to see them, but after reading the reviews, the jaw dropped.
“Messy”
“Smell of cigarettes”
“No air conditioning”
“Lock on bathroom door doesn’t work”
“habitable” – Definitely not a compliment on an AirBnb review!
The property manager said these issues would be fixed, but he was already getting less responsive. He said it was peak summer season and apologized. I noticed the next day that the co-host was changed. When I asked him what happened to the original co-host, he told me that she decided to leave. At that point, I started receiving contact from the guests. The new co-host wasn’t great at responding to inquiries or guest questions. She also provided the wrong wifi password. The property manager said he would speak to her about these issues and make sure I didn’t have to deal with any calls/messages.
The Final Straw
I receive a message from the new co-host telling me that she was quitting and that she wanted to be paid for cleaning. (The property manager is responsible for this payment based on our agreement) Apparently, she was the cleaner on top of being the co-host. I contacted the property manager and did not hear back. That evening, a guest called me and says that he is trying to get in, but no one has sent him instructions. I did not know the passcode to enter the property, and the guest was understandably upset. I frantically called the property manager multiple times as well as the co-host who had just quit, but there was no response. (I would later learn that it wouldn’t have mattered since the apartment was not cleaned anyway) I was very apologetic to the guest and fortunately, he was able to find other accommodations.
The morning after this disaster, I receive a brief e-mail from the property manager saying that what happened was an absolute failure and that it was hard to find reliable workers. He said that he was diligently looking to replace the co-host. He didn’t even have the decency to call me back to explain what happened. I responded to his e-mail later in the afternoon to inform him that I was terminating our agreement. He never responded to that e-mail.
Implement Emergency Plan
In my previous post, I said that I had a back up plan if things didn’t go as planned. This was the time to implement it as I had guests arriving later that week. I mentioned that I had a family member who lived up in Buffalo. Well, he saved me and got things cleaned up, changed the passcodes, and fix some minor things. I tried to find cleaners but most weren’t used to cleaning short term rentals. They asked to come for an estimate and then schedule a time for the following week to clean. REALLY?! You have to get an estimate? I’ve never heard of such a thing for cleaning, but I’ve also never hired a cleaner. I used an online platform which specifically lists Airbnb cleaners. There was only one in the area the property is located and I contacted her. I was also able to see her full name when signed up on that platform. When I googled her name, I found she had a criminal past. Whoops! Good thing, she never contacted me back because I probably would have said no thanks!
I contacted the backup property manager that I mentioned in my previous post, but I never heard back. She also blogs about financial freedom, so maybe she is so financially free, she has no need to take on more clients!! I contacted the company which offers to pair up property managers with owners and offer a guaranteed rent for the term of the lease. I’m waiting on them to give me the rental amount.
I posted about my disaster on the Biggerpockets forum and the members were very helpful in giving me advice and tips. One person even called me to walk me through how to self-manage the property! Another member who lived not too far from my property contacted me and said that he and his wife were planning to rent their house short term as well. He said they were planning to eventually manage other people’s property in the future and offered to help. Awesome site with awesome people…well mostly. Did I mention that I found the original property manager there?
This past weekend’s guest said that the host (ME) was “super nice” and that the place was very clean! So that makes me feel awesome. I also got in contact with a contractor who I worked with before and will have him fix up some things to improve the property. I’ll also have to figure what I want to do long term.
My Options
I can self-manage the property but this option isn’t all that appealing. I kind of enjoy responding to prospective guest inquiries, but I’m sure that’ll get old at some point. I am a little nervous about responding to guests issues during their stay as I feel attached to my phone. I’ve gotten calls/messages about trouble using the passcode to unlock the door and complaints about another guest taking up a parking spot. I like passive income and I’d prefer not to deal with guest complaints. Though I do save a nice chunk of change by not paying a property manager!
I can take the guaranteed income, but part of me will always feel that I’m giving up the upside potential by only getting that fixed amount. I’ll have to see what they offer me before I decide. Based on the estimate given to me by their online calculator, the amount should cover the mortgage, utilities, and give me a decent amount of cash flow. The numbers won’t be as high as if I chose a commission based payment (if things went well and according to projections), but at least I’m assured a set amount.
I can take up the offer from this young couple trying to break into the short term rental game. The e-mail seemed genuine and provided insight into their lives and experience. I tend to trust people, but I’m a little jaded after my last experience. Also, they are not that experienced in short term rentals so there are bound to be some hiccups along the way.
What would you do? Manage yourself? Take the guaranteed money? Find another property manager?