What management fee rate for short-term rental companies is mentioned?

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Diya Liu's PERSPECTIVE

12 Dec 2022 · 1 min

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Short excerpt from a YouTube video titled "Diya Liu's PERSPECTIVE" (uploaded Dec 12, 2022) where the speaker contrasts buying one 40-unit hotel with acquiring 40 separate short-term rentals. The speaker argues a single hotel simplifies acquisitions (fewer closings, mortgages, utility setups) and operations (fewer on-site managers vs. paying ~20% to short-term rental management companies), likely lowering costs and complexity.

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From an acquisitions perspective, it's easier to buy one 40 unit hotel and be done for the year versus trying to buy 40 different short term rentals because that's a lot of closings and a lot of mortgages, a lot of utility companies. And it's also easier operationally because instead of hiring a short term rental management company and paying 20%, you can just have one or two really quality on site managers and it might actually be cheaper than having 20% of your revenue go towards a short term rental management company.