Airbnb Property Management vs. Co-Hosting:

What’s the Difference?

If you’re looking to get into the short-term rental game, you’ve probably come across two business models: Airbnb property management and co-hosting. Both can be incredibly profitable, but they come with different responsibilities, structures, and opportunities. In this post, we’ll break down the key differences between property management and co-hosting, so you can decide which one aligns with the business you’re looking to build.

Listing Profile: Who Owns the Reviews?

The listing profile is the first big difference between property management and co-hosting.

Property Management: When you operate as a property manager, the Airbnb listing is typically under your own profile. That means you have control over the listing, and all the reviews are tied to your account. If you part ways with the property owner, you keep the reviews, making this model attractive if you’re building your own reputation and portfolio.
Co-Hosting: In a co-hosting arrangement, the listing often stays under the property owner’s profile, and you’re added as a co-host. You can still act as the primary operator, but the reviews stay with the property owner. This is important if you’re planning on parting ways down the line because the owner keeps the listing’s reviews, regardless of your contributions.

Service Model: Full-Service vs. Flexible Solutions

The services you provide as a property manager vs. a co-host can look quite different.

Property Management: As a full-service property manager, you’re handling everything—marketing, pricing, guest communication, cleaning, maintenance, and even the financial side of things, like bookkeeping and collecting payments. You’re offering a completely hands-off experience for the property owner, which justifies the higher management fees.
Co-Hosting: Co-hosting allows you to offer a more customized service. Maybe your clients handle their own marketing and bookings, while you focus on guest communications, cleaning, and property maintenance. Or perhaps you offer specific services when the property owner needs extra help. This flexibility can make co-hosting a more attractive option for property owners who want to stay involved but need help in certain areas.

Term: Long-Term Contracts vs. Flexible Agreements

Another key difference between the two business models is the length of the contract.

Property Management: If you’re operating as a property manager, you’ll typically require a longer-term agreement—often 12 months or more. This gives you time to fully manage and optimize the property, ensuring consistent revenue and a strong partnership with the property owner.
Co-Hosting: Co-hosts tend to offer more flexible terms. You might offer your services for a few weeks while a property owner is on vacation, or for 3, 6, or 12 months, depending on their needs. This short-term flexibility can be a selling point when you’re attracting new clients, especially those who might not be ready to commit to a full year of management.

Money Flow: Who Handles the Finances?

The way money is handled is a critical part of both business models.

Property Management: As a property manager, you’ll be responsible for receiving all guest payments, covering expenses like maintenance and cleaning, and then disbursing the remaining profits to the property owner. Most property managers provide monthly owner reports, making it a completely passive experience for the property owner.
Co-Hosting: Co-hosts often invoice property owners for their services, or set up a split-payout system through Airbnb. This means the property owner is still in charge of managing the money coming in, while you charge them for the services you provide. This gives the owner more control over their finances, and can be more attractive for owners who prefer transparency or direct involvement in the financials.

Fees: How Much Do You Charge?

When setting up your pricing structure, the fees for property management and co-hosting differ widely.

Property Management: Full-service property managers charge higher fees, typically between 20-30% of the rental income. And, in some popular vacation rental markets, full-service property managers charge as much as 40-45%.
Co-Hosting: Co-hosting fees are generally lower, ranging from 10-25%. Since the property owner may retain control over certain aspects of the business, your fees may vary depending on your level of involvement. This can be a more appealing option for property owners who want help but aren’t ready for the full-service price tag.

Ready to Start Your Airbnb Business?

Whether you’re leaning towards starting an Airbnb property management business or offering co-hosting services, both models have the potential to be lucrative ventures. The key is finding the one that aligns with your goals, strengths, and the type of clients you want to attract.

You’ll also need to be sure to understand your local laws and regulations around property management. That’s right, each state has differing requirements – here’s one of my favorite go-to resources for understanding property management laws by state.

If you’re ready to explore your options and learn how to build a successful Airbnb management or co-hosting business, book a time with my team today. We’ll help you get plugged into resources to maximize your potential and get your business off the ground. Let’s take the first step toward your Airbnb success!