An Airbnb property management firm is a company that oversees seasonal property rentals on behalf of a host, including services like meet and greets, cleaning, check-outs, creating ads, and communicating with visitors, among others.
The Airbnb property manager may choose to work independently or as a part of a larger property management company. The market share of the vacation rental business is significantly dominated by Airbnb. With a market share of around 20 percent of the whole vacation rental market, Airbnb is projected to be worth about $93 billion.
Steps to Write an Airbnb Property Management Business Plan
Matthias Lundeberg® Airbnb Property Management Company, Inc. is a standard Airbnb property management business that will be located in Charleston, South Carolina but with an active presence and network all across major cities in the United States.
We have been successful in obtaining every license and permit essential for us to engage in our business in the United States.
Matthias Lundeberg® Airbnb Property Management Company, Inc. is set up to cater to the niche Airbnb market in the United States of America. Jordan Winston is the founder of Matthias Lundeberg® Airbnb Property Management Company, Inc.
a. Our Products and Services
Matthias Lundeberg® Airbnb Property Management Company, Inc. will;
- Foster connections with homeowners.
- Confirm reservations with visitors.
- Plan and oversee cleaning and maintenance tasks.
- Manage check-in and check-out procedures.
- Posting advertisements on Airbnb and other rental marketplaces.
Our services are designed to help Airbnb property owners maximize their investment and also to help travelers and visitors secure short-let accommodation whenever they travel to our city.
b. Nature of the Business
The nature of our business will revolve around working with different Airbnb property owners and investors by effectively managing their properties and increasing the returns on their investments.
c. The Industry
Matthias Lundeberg® Airbnb Property Management Company, Inc. will operate in the real estate and vacation rental industry.
d. Mission Statement
Our mission is to help Airbnb property owners and investors effectively manage their properties by performing the routine activities and everyday operations necessary to maintain an Airbnb property.
e. Vision Statement
Our vision is to rank as one of the top 10 Airbnb property management firms in the United States of America.
f. Our Tagline (Slogan)
Matthias Lundeberg® Airbnb Property Management Company, Inc. – Your Trusted and Reliable Airbnb Property Managers!
g. Legal Structure of the Business
Matthias Lundeberg® Airbnb Property Management Company, Inc. will be formed as a Limited Liability Company (LLC). According to this agreement, each member of the partnership is responsible for the profits and losses the company incurs.
h. Our Organizational Structure
- Chief Executive Officer
- Facility Manager
- Sales and Marketing Officer
- House Keepers
- Customer Service Executive/Front Desk Officer
i. Ownership/Shareholder Structure and Board Members
- Matthias Lundeberg (Founder and Chief Executive Officer) 40 Percent Shares
- Duke Elton (Co-Founder and Chief Operating Officer) 30 Percent Shares
- Boston Carman (Board Member) 10 Percent Shares
- Adams Laborious (Board Member) 10 Percent Shares
- Zara Ezekiel (Board Member and Sectary) 10 Percent Shares.
- Services are reasonably priced.
- Ideal location for Airbnb (thriving real estate and vacation rental market)
- Robust relations with Airbnb property owners and properties investment moguls
- Water-tight strategy on how to scale the business quickly
- Good returns on investment for investors and partners.
- A new business that will be competing with well-established Airbnb property management companies
- Inability to retain our highly experienced and qualified employees longer than we want.
- Charleston, South Carolina is a thriving market for Airbnb (thriving real estate and vacation rental market)
- Good support structure for Airbnb property management companies all across the United States of America.
i. How Big is the Industry?
It is safe to say that the Airbnb property management business is one of the largest industries in the United States of America, given that the market size of the real estate sector was estimated to be $156.2 billion in 2021.
ii. Is the Industry Growing or Declining?
All available data points to the fact that the real estate and Airbnb property management industry is growing. As a matter of fact, if you are prepared to put up the effort to get renters and maintain their satisfaction, short-term rental services like Airbnb can be quite profitable.
iii. What are the Future Trends in the Industry
Traditional methods of service delivery have been overtaken by SaaS (software as a service) and cloud computing integrated services. Subscription-based SaaS applications can be advantageous for businesses of all sizes. SaaS solutions are used by businesses to automate operations and get rid of manual input, making them run more efficiently.
In addition, SaaS systems let consumers examine information using any internet-connected device and from any location.
Multi-vendor technologies are also simpler to integrate into existing applications thanks to the SaaS approach. Property managers could use a SaaS platform to combine their excellent services with cutting-edge payment technologies in order to promote convenient and straightforward transactions.
iv. Are There Existing Niches in the Industry?
No, there are no existing niche ideas when it comes to the Airbnb property management business. This is because Airbnb property management is a subset or a niche idea in the real estate and vacation rental services industry.
v. Can You Sell a Franchise of your Business in the Future?
Matthias Lundeberg® Airbnb Property Management Company, Inc. has no plans to sell franchises in the nearest future but we will accommodate more partners and investors in the nearest future.
- The arrival of new Airbnb property management companies within our market space
- Unfavorable government policy and regulations
- Community resistance
- Liability problems
- Continuously changing consumer demands especially as it relates to how they want to be served et al.
i. Who are the Major Competitors?
- Lillian Limited Co: Airbnb Property Management
- Goldnest Property Management
- Great Dwellings
- Effortless Rental Group
- Tangy Management
- Niagara Falls Airbnb Property Management
- Park Place Property Management
- Niagara On The Lake Airbnb Management
- Air Concierge Inc.
- Penny Realty, Inc. Property Management
- Red Door Property Management
- Twelve Rivers Property Management
- Stones River Property Management
- Ready Set Build Management
- Weekender Management, LLC
- Heartwood Furnished Homes + Realty
- Trend Property & Management.
ii. Is There a Franchise for Airbnb Property Management Business?
- iTrip Vacation Rental
- Property Management Inc.
- Happy Holiday Homes
- Pass the Keys.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Airbnb Property Management Business?
Yes, there exist zoning regulations that regulate land use, lot size, building heights, density, setbacks, and other aspects of property usage in almost every town in the United States.
a. Who is your Target Audience?
i. Age Range
Adults above the age of 18 having the financial means to do business with us make up our target market.
ii. Level of Educational
There are no restrictions on the degree of education of those who are willing to engage with us as landlords or renters.
iii. Income Level
The people we are aiming to conduct business with will have an annual income of between $40,000 and above $100,000.
There are no restrictions on the people we will work with when it comes to their ethnicity.
There are no restrictions on the languages that individuals can speak when it comes to leasing our Airbnb properties to them.
vi. Geographical Location
Everyone is welcome to associate with us or conduct business with our organization, regardless of their location.
No investor or client will be prevented from working with us or conducting business with us because of their race, culture, or way of life.
b. Advertising and Promotion Strategies
- Host Themed Events That Catch Attention.
- Tap Into Text Marketing.
- Make Use of Bill Boards.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with players in the real estate and brokerage industry.
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH, Marketing – Public Transit like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing)
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our target market and potential target market.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
Matthias Lundeberg® Airbnb Property Management Company, Inc. will take decisions that will help us account for profits, insurance, premiums, licenses, economies of scale, and the total package for each property when developing our pricing plan.
In all our pricing strategy will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Utilizing partners and third parties, such as referral partners, affiliate partners, strategic alliances in the real estate and Airbnb rental industries, tourism, and freelancers to help direct clients to us, is a key component of our channel sales strategy.
- Airbnb Website
- Alternative Rental Websites
- Travel Oregon site
b. Inventory Strategy
Matthias Lundeberg® Airbnb Property Management Company, Inc. will operate an inventory strategy based on a day-to-day approach for ordering, maintaining, and processing products in our warehouse because. We will need the necessary toiletries, cleaning chemicals, pillows, bedding, and other supplies (bulbs, change of building materials, and ) on a regular basis.
d. Payment Options for Customers
Here are the payment options that Matthias Lundeberg® Airbnb Property Management Company, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
e. Return Policy, Incentives, and Guarantees
Guests have the liberty to cancel their reservation a maximum of five days before their arrival. They will obtain a complete refund, and the landlord would not charge them for the reservation. In the event of a late cancellation, guests would be billed for one night and would be reimbursed 50 percent of the leftover nights.
If somehow the guest cancels the reservation after arriving at the lodging, they would be billed for the length of time stayed, one extra night, and they will be reimbursed 50 percent of the remaining nights not used.
f. Customer Support Strategy
We will solicit input from customers as part of our customer service approach. With their wants, experiences, and pain points in mind, we will be better able to serve all our clients and investors and provide them with exceptional Airbnb properties, returns on investment (ROI), and customer service. To be able to accomplish this, we will work using a powerful CRM program.
The plan will have a marketing, sales, and operations component, and overall, we want to increase our revenue by 25% in the second year of operation.
Attracting investors (landlords who are interested in Airbnb property management business model) would be part of the plan’s operations section and would allow the company to expand its assets and service offerings and support revenue development.
a. What Happens During a Typical Day at an Airbnb property management Business?
- The office is open for the day
- Documentation and other administrative works are conducted throughout the day
- Airbnb apartments are rented out
- Housekeeping is carried out
- Marketers go out to market our Airbnb properties and services
- If there is an ongoing property furnishing and makeover project, the required team and machinery are sent to the field to carry out the project.
- The team and machinery return to base (office) after the day’s job
- The report for the day is written and submitted to the required authority
- The office is closed for the day.
b. Production Process (If Any)
There is no production process when it comes to the Airbnb property management business.
c. Service Procedure (If Any)
No, there is no defined service procedure for an Airbnb property management business.
d. The Supply Chain
Key figures in the real estate and brokerage industries will be relied upon by Matthias Lundeberg® Airbnb Property Management Company, Inc. to refer business deals to us. Additionally, we have been able to forge business ties with wholesale suppliers of building materials and other items.
e. Sources of Income
Matthias Lundeberg® Airbnb Property Management Company, Inc. will make money from managing Airbnb properties for landlords, and investors.
a. Amount Needed to Start your Airbnb Property Management Business?
For Matthias Lundeberg® Airbnb Property Management Company, Inc. to effectively launch our Airbnb property management business in the United States of America, an estimate of $150,000 is required.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding, and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease for Our Office Facility- $45,000.
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $100,000
- Start-up Inventory – $15,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility?
Matthias Lundeberg® Airbnb Property Management Company, Inc. will not build a new facility for our business, rather we will work with landlords who are interested in making money from the Airbnb vacation rental business model.
d. What are the Ongoing Expenses for Running an Airbnb Property Management Business?
- Cost of bedding, toiletries, and supplies
- Utility bills (internet, phone bills, signage and sewage et al)
- Repairs and maintenance
- Occupancy cost
- Salaries of employees
e. What is the Average Salary of your Staff?
- Chief Executive Officer – $85,000 Per Year
- Facility Manager – $72,000 Per Year
- Business Developer / Sales and Marketing – $42,000 Per Year
- Accountant – $40,000 Per Year
- Customer Service Executive / Front Desk Officer – $30,000 Per Year
- House Keepers – $25,000 Per Year.
f. How Do You Get Funding to Start an Airbnb Property Management Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks.
a. How Much Should You Charge for your Product/Service?
At Matthias Lundeberg® Airbnb Property Management Company, Inc. our fee will be based on the location and type of property we want to manage.
b. Sales Forecast?
- First Fiscal Year (FY1): $320,000
- Second Fiscal Year (FY2): $480,000
- Third Fiscal Year (FY3): $600,000
c. Estimated Profit You Will Make a Year?
The ideal profit margin we hope to make at Matthias Lundeberg® Airbnb Property Management Company, Inc. will be between 15 and 25 percent on running costs.
d. Profit Margin of an Airbnb property Management Business
Profit margins in this sector frequently fluctuate because enterprises are mainly concerned with sustaining their space and growing their society. Furthermore, at the end of each month, there are several factors and fixed expenditures for an operation. Even as the company grows, it will face associated costs and considerations that will reduce the potential profit.
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
Within the first five years of starting the company, Matthias Lundeberg® Airbnb Property Management Company, Inc. will expand its Airbnb property management business by first creating more offices in major American cities, and then by enlisting more partners (landlords who are interested in the Airbnb vacation rental business model).
b. Where do you intend to expand to and why?
- Jacksonville, Florida
- San Diego, California
- Tampa, Florida
- Miami, Florida
- Las Vegas, Nevada
- Austin, Texas Savannah, Georgia
- Charleston, South Carolina
- New Orleans, LA
- Nashville, Tennessee.
The reason we intend to expand to these geographical locations is that available statistics show that the cities listed above have the highest and most thriving real estate market in the United States. As a matter of fact, the median listing price of a home in Savannah, Georgia in January 2022 was $274.5K, which was unchanged from the previous year.
The average listing home cost $165 per square foot. The average cost of a home sold was $259,000. In January 2022, there are more buyers than there are homes available in Savannah, Georgia, signaling a seller’s market.
Matthias Lundeberg® Airbnb Property Management Company, Inc. wishes to merge with a large international real estate company so that the management of the company can be in the capable hands of a recognized party once the founders retire.
Attempting to achieve synergy, where the new company’s management team and board of trustees are well-organized is the goal of integrating two or more Airbnb property management companies on a global scale (the former two distinct entities).