In the short-term rental riches will discuss investing in real estate with a specific focus on short term rentals quick action items to wire. Scale your portfolio I’m your host Tim Hubbard. 

Welcome back to the short-term rental riches podcast happy you’re here again as always we’re talking about housekeeping it’s one of the biggest challenges it’s one of the biggest operational pieces with their short term rentals and there’s multiple ways to handle it so this week we’ll cover hiring a professional management company but then also Harnam person that we pay per unit next week we’re gonna jump into hiring our own team members that we pay by the hour they’re totally different there’s pros and cons to each and. Based on where you’re at with your portfolio one of them will fit best for you so I can tell you that and the 3 cities where I own in and operate short term rentals I’m using different methods so what will tend to happen is if you just have a few units then you’re probably gonna be paying a little bit more per unit but as you scale then you have more work for someone who can keep them motivated and you can pay by the hour base the crate full time position for someone and so that’s what we’ll jump into next week but let’s get into the pros and cons this week about hiring a professional management company first and then we’ll jump into hiring our own person our own housekeeper that we pay per unit so the pros of a professional housekeeping company well they usually have a lot of staff so you’ve got your back up options already taken care of right if one person isn’t available to clean your unit they likely have other people to fill that spot whereas if you hire your own person times that’s a one person show and you got to have other backups for so so that’s one of the pros they also provide their own cleaning supplies and the more units you have the more this becomes a lot of your operations ordering cleaning supplies in order and sponges and soaps and all these things that you have to replenish on a normal basis in your properties so if you’ve got a professional management company they’ve already got all their supplies one last thing you got to worry about so they got back up they’ve got their own supplies another great thing about him is that it’s it’s pretty much just hands off you don’t have to train them their professional management company they already know how to clean ideally you find a company that’s already worked with short term rentals because it is different than your normal housekeeping that’s what they do there sat up and geared to help you with all of your properties and you can. Scale with them as well. Now the cons well basically is as we add more properties the more we have the less we can spend on housekeeping per unit but we only have a few units it’s expensive and a lot of times when we only have a few reason professional housekeeping company and they’re going to cost the most but you do have a lot of peace of mind and the reality is is that if you only have a few units. It’s hard to keep someone motivated if they’re only cleaning one or 2 units a week where’s the house keeping company they’re going all over town in the clean and a whole bunch of people’s units so they do cost more that’s one of the downsides you also don’t have the ability to have responsibilities with the housekeeping company so a lot of times when we hire our own people which will jump into in a second here we can start adding responsibilities or we can use them for management they can help us with gas eccentric cetera you can’t do that with another company’s employees unless you. I don’t know you but you poach them and they decided they liked working for you more than they did the house keeping company which you know I guess that could happen to but the reality is that working for a big company they’re staying fully employed and the chances of you being able to add more tasks with them it is not very likely it’s probably gonna stop at the housekeeping level now you still want to vet your professional housekeeping company well if ideally they’re already doing short term rentals but I would always recommend the first few times they do any of your properties that you at least have a checklist of some sort you can check out properly we’ll put a link in the shadows for properly but that is designed for housekeeping them out a lot of other features include a checklist where your housekeepers I have to take pictures before they can finish the job and a lot of a lot of really cool things in there for making sure they clean your property the way you want so that’s professional housekeeping company not show it’s going to cost a little more but they have way more staff and it is peace of mind if you find one that’s good and they’ve already been doing short term rentals. Now kind of like a S. S. side component to professional housekeeping company or another option but still not paying them by the hour is hiring your own person who maybe has our own professional housekeeping company but you’re just paying them per unit and they’re more of a one person show not a big company now with those people you can scale easier there are much more flexible in their terms right so if you add more properties maybe you can get a break for property but you can also get help from them with your properties and so I do that and I I have some housekeepers have worked with for years in Sacramento where I just have a few units that actually sold most of them but that’s what we’ve been doing there and it works out well there’s peace of mind with that too now it’s difficult to have this option available to you again if you only have a few units because if you want to hire someone on a per unit basis and maybe only have one cleaning a week or you have couple cleaning the week you’re probably gonna have to pay them a lot you know maybe as much as the professional housekeeping company otherwise are there won’t really be motivated you know I mean that that they need to make money and if you’re only providing a little bit a couple times a month it’s just not enough to keep them in the game and on your team so those are a couple of the professional options again these are gonna cost a little more but you do get some the securities with professional housekeeping company where you have scalability you know they have backup options already they’re already getting the cleaning supplies if you hire your own person MPM per unit you’re still going to be paying a little bit more per unit versus an hourly model but you have the option of scaling with them which can be fantastic peace of mind and well worth the money believe me so that and not shell is kind of. Couple options these options will be for someone that either doesn’t want to deal with anything or as little as possible or someone who just kind of getting started with short term rentals so next week we’re gonna dive into hiring our own team and paying them by the hour. It’s a little more complicated but if you are growing in your scaling ultimately that will be what’s best fit for you almost all the time just picture hotels they don’t hire outside housekeeping companies right so we’ll go over the pros and cons next week of hiring our own team till next time. Have a wonderful day. Want to get on the fast track to financial freedom through short term rentals what all searching the properties you. You want to make sure that you fire the right. To give you my. Yes there is no charge to you for being one of our subscribers just the rest methods. R. E. S. T. methods.com

RELATED PODCAST EPISODES

• Episode 62: Professional Tax Advice From My CPA – Part 2
• Episode 61: Pro Tax Advice directly from my CPA (part one)
• Episode 56: Short-Term vs. Long-Term Rental? How Much Does it Really Cost?
• Episode 45: Hiring Your OWN Housekeeping Team (Pros and Cons)
• Episode 27: Building Your Remote Team (Essential Steps‪)