Airbnb Manager vs Co-Host: Key Differences

After you buy an Airbnb property, you have to decide on the best way to manage it. Two of the most popular options that short-term rental owners face are hiring a professional property manager or working with a co-host. But what does each of these options entail? And what is the best choice for your particular situation?

In this article, we’ll cover everything you need to know about professional Airbnb property management and Airbnb co-hosting so that you can make an informed decision about the best option for your portfolio. We’ll start off by comparing what property managers vs co-hosts do, go through how much they charge and what the pros and cons are in each case, and conclude with actionable tips on how to find the best person to help you manage your vacation rental and boost its performance.

Looking for the best way to maximize the revenue of your short-term rental property while earning passive income? Check out Checkmate Rentals. It combines the best of both worlds by offering professional end-to-end property management services while co-hosting with you so that you own your listing forever. And fees start at only 15% of revenue for full-service.

What Is a Property Manager and a Co-Host for Airbnb?

There are many different people - both professionals and amateurs - who can help you manage your portfolio of vacation rentals. Two options that owners frequently go for include a professional Airbnb property manager and an Airbnb co-host. While there is a major overlap in the work that these two people do when managing short-term rentals, there are also some important differences that hosts need to understand in order to be able to make the best decision for their business.

So, what exactly do property managers and co-hosts do?

What Does an Airbnb Property Manager Do?

A short-term rental property manager is a professional who specializes in providing the services needed to run a vacation rental business. This is someone who doesn’t have ownership stakes in the properties that they manage. Instead, a property manager is hired by the property owner to deliver quality services that not only free the owner from the day-to-day operations but also improve their bottom line via professional hospitality services.

Depending on the type of property manager and the arrangement between them and the homeowner, an Airbnb manager can have a varying degree of control over business decisions. In all cases, the host retains the right to have the final say on major aspects of the business, such as the type of guests to cater to, the house rules, and whether to have a pet-friendly listing or not. At the same time, the main responsibilities of the property manager are associated with the day-to-day tasks necessary for the smooth operation of the vacation rental.

There are a few different types of Airbnb managers depending on the services that they provide and the markets in which they operate.

Types of Property Management

The main types of property managers include:

• Full-service Airbnb property managers: These are Airbnb management companies or individual professionals who offer end-to-end management services for short-term rentals, allowing investors to make passive income from real estate and own properties away from home. These property managers perform online and on-site services to serve all the needs of guests and owners in a way that increases revenue and profit. Some popular options for Airbnb hosts in the US market are Vacasa, Awning, and AvantStay.
• Half-service property managers: These companies or individuals focus on property management services that can be automated via the use of technology, while offering very limited in-person services. In most cases, they focus on things like listing, distribution, marketing, dynamic pricing, guest communication, booking management, and financial reporting, but leave tasks such as housekeeping, inspections, and maintenance to the owner. Generally speaking, half-service management is a good option for hosts who would like to be actively involved in their business and don’t mind doing some legwork. Popular options include Evolve and RedAwning.
• National vacation rental property managers: These include large STR management companies that have portfolios of thousands of vacation rentals distributed throughout the US, with some working even internationally. While they benefit from corporate-level supervision and access to top technology, they offer less customizable services and limited human touch. Examples include Vacasa and Evolve, among others.
• Local short-term rental property managers: These are small companies or individuals who work with no more than a few dozen rentals located within the same area. They usually provide personalized services to owners and guests but lack economies of scale.
• Virtual Airbnb managers: These service providers focus on the vacation rental management tasks that can be conducted online or remotely. This makes them similar to half-service property managers, but virtual assistants are usually smaller-scale professionals and use third-party software apps rather than proprietary technology.

Each of these types has its own pros and cons, and working with them can be a very different experience for owners. What unites all property managers is that they don’t own shares in the properties they work with.

What Does an Airbnb Co-Host Do?

Similar to a property manager, a co-host helps the Airbnb owner take care of their short-term rental in a way that aims to maximize results. The difference between a co-host vs a property manager is that the former can be a partner investor (meaning that they own a part of the home) or a third-party individual (who does not have stakes in the rental). The Airbnb co-host role is very flexible, with no specific duties and responsibilities or fee structure. The services and the remuneration depend entirely on the arrangement between the host and the co-host. Moreover, the co-host can be someone with expertise in the short-term rental management or hospitality industry or someone who is willing to take some responsibility off your back, such as a relative or a friend.

It’s important to note that the Airbnb platform allows hosts to list a co-host, so this is an official position from the perspective of the booking website. As a host, you can define the exact permissions assigned to your co-host(s) in line with your agreement with them. Airbnb even gives you the option to pay the co-host directly from the platform, but you can do that outside the website too.

Just like property managers, co-hosts can fall into various categories.

Types of Co-Hosting

Different categories of Airbnb co-hosts include:

• Full-access co-hosts: On Airbnb, these are defined as account holders who have full access to the management of the listing, messaging, calendar, transaction history, and others.
• Co-hosts with calendar and messaging access: These co-hosts can message guests on Airbnb and view the booking calendar but cannot make changes to it.
• Co-hosts with calendar access: On Airbnb, this is the most limited type of a co-host who can only view the calendar but cannot edit it.
• Professional co-hosts: A host can hire a STR professional to manage their property under a co-hosting agreement. Professional co-hosts are very similar to property managers, but they co-host the rental together with the owner instead of listing it under their name. This means that the listing remains under the possession of the owner forever, so the owner gets to keep their listings and all guest reviews even after they stop working with the manager. Airbnb managers, on the other hand, typically list properties under their name, so owners lose their entire business once they decide to cancel services. Checkmate Rentals offers a unique proposition as an end-to-end Airbnb management company that co-hosts properties with owners.
• Non-professional co-hosts: This can be a family member, relative, friend, or acquaintance who helps you with some aspects of owning and managing a short-term rental without necessarily having the required qualifications. It can be just someone with strong interpersonal, managerial, housekeeping, or team management skills.
• Investor partners: In many cases, investors who buy properties together decide to manage them together. This option allows investing partners to capitalize on the strengths of each host for optimal results.

All in all, co-hosting gives hosts more flexibility and freedom to assign the specific tasks they want to, but it might deprive them of professional-level services.

Services Provided by Airbnb Property Managers vs Airbnb Co-Hosts

When choosing whether to work with a property manager or a co-host, it’s important to understand the exact services that you can expect from both.

Let’s take a look at the responsibilities of each one:

Property Manager Services and Responsibilities

Professional managers offer some or all of these Airbnb management services:

• Interior design and furnishing
• Legal assistance with short-term rental licenses and permits
• Help with setting up, collecting, and filing Airbnb taxes
• Setting up and managing a smart home
• Linen provision and replacement
• Listing featuring professional photography and virtual tours, copywriting, and Airbnb SEO optimization
• Guest guidebooks creation and personalization
• Listing distribution across top booking channels (Airbnb, Vrbo, Booking.com, Expedia, Tripadvisor, etc.) and smaller short-term rental websites (HomeToGo, Hopper, Whimstay, Plum Guide, etc.)
• Dynamic pricing and revenue management
• 24/7 guest communication and support
• Guest screening
• Owner communication and services
• Booking management
• Check-in and check-out coordination
• Housekeeping including cleaning, laundry, and guest supply restocking between stays
• Guest review collection and management
• Property inspections
• Preventive and urgent maintenance coordination
• Airbnb insurance including property damage protection and general liability
• Payment processing including guest fee collection and owner payout transfers
• Financial reporting
• Strategies to improve performance

The range of duties delivered by professional property managers depends mostly on whether they are full-service or half-service. Full-service short-term rental management companies provide comprehensive services to hosts and guests that aim to improve performance. The best ones even help prepare properties for listing and welcoming the first guests via vacation rental design and furnishing and legal assistance.

Meanwhile, half-service Airbnb managers focus on listing optimization, revenue management, and guest communication. Some of them offer access to a network of local, vetted vendors in the housekeeping and maintenance space.

Co-Host Services and Responsibilities

Airbnb co-hosts offer more or less the same services as professional short-term rental managers. However, the exact selection of responsibilities is even more fluid and depends entirely on the property’s specifications, the owner’s needs, the co-host’s skills, and the agreement between the two parties.

Typically, remote, busy vacation rental property investors look for co-hosts who can take over the management of their property entirely. This includes everything from getting the rental guest-ready to managing finances and housekeeping, with all tasks in-between.

At the same time, investors who own a property close to home and have some free time choose to work with co-hosts who take responsibility over the most time-consuming and least strategic aspects of the work, such as communicating with guests and housekeeping. The rest of the work remains the responsibility of the owner.

Fees Charged by a Property Manager vs a Co-Host

Both property managers and co-hosts offer services to owners in order to make money from Airbnb without necessarily owning a property. But how much do they charge and how are their fees determined?

Professional Property Manager Fees and Costs

In most cases, STR management companies charge a commission, which means that they are paid a percentage of the monthly booking revenue in exchange for the ongoing services that they provide. The typical range is between 10-15% for half-service and 25-40% for full-service.

Additionally, property managers ask for extra fees for one-time services such as design, furnishing, and linen provision or for additional services not included in the core property management package, such as amenities maintenance and damage protection.

Exactly how much Airbnb managers charge depends on the following factors:

• The type of management: Full-service vs half-service
• The company
• The market
• The property type and number of rooms
• The amenities present
• The expected rental revenue
• The property management agreement duration

It’s worth noting that some, albeit few, property managers charge flat fees. This means that they receive a fixed amount of dollars each month, regardless of the performance of the rental. This model is suboptimal for hosts because although they know how much they will need to pay every month, their manager does not feel the urge to maximize the property revenue in order to boost their own payment.

Due to the wide range of possible fees and services covered by them, owners need to get a clear understanding of how much a property manager would charge and what services they would provide in exchange before deciding whether to hire a certain professional.

Co-Host Fees and Costs

The pricing of Airbnb co-hosts is less clear than professional property management fees. Some co-hosts ask for 10-20% of the monthly rental income, while others charge a flat fee. Still others, like family members and relatives, might work for free. Investor partners operating as co-hosts, on the other hand, split the net booking revenue in proportion to their ownership share and responsibility distribution.

When opting in for a co-host, you have the flexibility to find the remuneration model that works best for you, the co-host, and your property.

Terms and Conditions of Working with Property Managers vs Co-Hosts

Another important consideration when comparing a property manager vs a co-host is the terms and conditions under which they work. It’s important for owners to know how they can get started and cancel when deciding which option is better for their needs.

Property Manager Terms and Conditions

It’s best practice in the short-term rental property management industry to sign a written Airbnb management contract that clearly outlines the rights and responsibilities of both the manager and the owner as well as the comprehensive fee schedule.

Most property managers use monthly or annual vacation rental property management agreements that get automatically renewed unless one of the two parties cancels. In some cases, monthly contracts are associated with higher overall fees as companies are willing to offer discounts for longer-term commitment.

The top STR management companies do not demand long-term commitment from owners. Instead, they try to retain customers for the long haul by offering top-notch services that truly optimize performance and bring superior financial results. Most companies allow owners to cancel with a 90-day notice and honor reservations that have already been made for this 90-day window.

Nevertheless, some property managers require highly restrictive contracts which make it impossible for owners to opt out before the deadline without paying hefty cancellation fees, sometimes reaching thousands of dollars.

All these details need to be discussed during the initial consultation and included in written agreement to ensure a problem-free cooperation. 

Co-Host Terms and Conditions

Co-hosting doesn’t necessarily require the signing of a written contract, especially when the co-host is a family member or a friend of yours. The terms of collaboration can be much more flexible, just like the provided services and the offered remuneration.

However, we still strongly recommend having a clear, unequivocal agreement with your co-host to avoid troubles down the road. The managing of a short-term rental property is a serious business and financial process and should not be taken lightly.

In the contract, you should outline the tasks that the co-host will perform, who will handle financial transactions, how much and when you will pay them, the expected results in terms of business performance, and the rights of each party in case the other party defaults on their responsibilities.

Pros and Cons of Working with an Airbnb Manager vs an Airbnb Co-Host

Just like any other option in the vacation rental business, working with a property manager vs a co-host comes with important advantages and disadvantages. The balance between the two should guide your choice of whom to hire for the management of your Airbnb rental business.

Property Manager Pros and Cons

The main pros of hiring a professional property manager include:

• Professional hospitality services
• Passive real estate income
• Strict business relations
• Motivation to optimize the performance of your property
• Maximized rental revenue
• Discounted third-party services and supplies

The most considerable cons of working with an Airbnb manager are:

• One-size-fits-all property management model
• Absence of personal touch
• Loss of control over many property management decisions
• Hefty property management fees
• Lack of listing ownership

Co-Host Pros and Cons

The major pros of having an Airbnb co-host are:

• Adjustable rights and responsibilities arrangement
• Flexible remuneration options
• More engagement in the STR business management
• Listing ownership
• More personal approach

The most significant cons of finding a co-host comprise:

• Personal relations getting on the way of business
• Lack of hospitality experience and short-term rental market expertise
• Revenue sharing
• Need for third-party Airbnb management software tools
• Suboptimal property performance

As you can see, both options offer major benefits and drawbacks. That’s why the best model depends on your particular situation, your preferences, and your skills. Alternatively, you can combine the best of the two styles by hiring an Airbnb manager who works under a co-hosting model, like Checkmate Rentals. In this way, you get to earn passive income while owning your listings and having a say in all major business decisions.

How to Choose Between a Property Manager and a Co-Host for Your Short-Term Rental

Since both professional property managers and co-hosts can bring important advantages to the table, as well as some downsides, the decision is very personal. It should depend on multiple considerations that affect each individual situation.

The main factors that should drive your decision between an Airbnb co-host vs an Airbnb manager should be:

• The proximity of your investment property
• The size and diversity of your short-term rental property portfolio
• Your time availability
• Your hospitality experience
• Your vacation rental expertise
• Your business and soft skills
• The availability of good property management companies in your area
• The presence of a potential co-host
• The forecast rental income
• Your preferences

Who Should Use an Airbnb Property Manager

Based on the criteria above, the following categories of short-term rental property investors and hosts are likely to be better off hiring a professional manager:

• Serial investors with large, diverse portfolios
• Beginner investors with zero experience in the field
• Part-time Airbnb investors with a 9-to-5 job outside real estate
• Those investing in luxury or group travel rentals or other properties that require excessive management and care
• Owners of under-performing vacation rentals falling behind the market average, in need of professional services
• Passive income seekers
• Second home owners with poor business, managerial, and personal skills

Who Should Use an Airbnb Co-Host

Meanwhile, cooperating with a co-host is the ideal solution for:

• Experienced hosts in need of on-site assistance
• Multiple-property investors who need help with specific tasks to keep up
• New hosts who want to learn from more experienced fellows
• Investors who own properties locally but need support in some aspects of property management
• Those investing with partners
• Vacation rental property owners who prefer a partnership rather than a strictly business collaboration
• Hosts who don’t want to pay full Airbnb management fees

How to Find the Right Person to Manage Your Vacation Rental: 10 Tips

Whether you decide to hire a property manager or to look for a co-host, you need to put effort into finding the best possible person to help you with your short-term rental portfolio. Both of these types of managers need to share some common features, and you need to apply some of the same mechanisms in either case.

Here are a few proven tips and tricks to identify the right company or individual to manage your Airbnb:

1. Outline your specific needs, requirements, and expectations to arrive at a precise job description
2. Decide between a property manager vs a co-host and focus your search on them
3. Look around for different options, don’t choose the first manager or ho-cost who comes your way
4. Hold in-person or phone interviews with a few short-listed candidates and check customer reviews on reputable third-party websites
5. Choose the exact portfolio of services that you and your property need
6. Select a company/person that uses the latest short-term rental technology while also providing the necessary human touch
7. Agree on fees that reflect performance to motivate results optimization
8. Sign a clear, detailed agreement
9. Start with a trial period before committing in the long term
10. Regularly evaluate performance and decide whether to keep the same property manager/co-host or look for an alternative. Don’t be afraid of change if you think your property is not performing up to its potential.

With these top 10 tips, you should be able to find the right person to help you manage and grow your short-term rental property business.

Bottom Line

Both a property manager and a co-host can help you optimize the performance of your Airbnb property without spending all your time and effort on managing it, allowing you to even make passive income if you opt in for a full-service option. Whether you choose to work with a professional Airbnb manager or a less formal co-host depends on your portfolio, investment location(s), available time, skills, experience, and preferences. With a third-party manager, you can access passive earnings and professional services while losing some control over your business. With an Airbnb co-host, you can build a long-term partnership based on a flexible remuneration model but deprive your property of hospitality-class services.

To reap the benefits associated with both professional property management and co-hosting, check out Checkmate Rentals. We offer personalizable, flexible, end-to-end Airbnb management services where you own your listings forever. And all this at industry-low fees starting at only 15% of revenue for full-service management.