Airbnb's New Co-hosting Platform? Fact & Fiction

As the short-term rental (STR) industry continues to evolve, a significant trend is emerging that's being overlooked by many professional property managers: Airbnb's co-hosting model. Despite the wealth of discussions around Airbnb's impact on hospitality, there's a surprising lack of focus on the potential disruption this co-hosting model could cause to professionally managed properties.

Airbnb's launch of the co-hosting marketplace essentially invites individual property owners to explore a more personalized, often more affordable, management solution. This isn't just a new service—it's a shift in power dynamics. Co-hosting allows experienced Airbnb hosts or freelancers to handle operations like guest communication, cleaning, and check-ins, bypassing the overhead costs typically associated with professional management companies. While convenient and cost-effective for owners, it poses a formidable challenge to traditional property managers.

The professional STR management industry, once the default solution for expanding Airbnb portfolios, now faces increased competition from co-hosts. Many co-hosts provide similar services with less red tape, fewer fees, and often, a more customized experience for both guests and property owners. As Airbnb offers a marketplace for co-hosts to connect directly with owners, the conventional management model is being increasingly undercut—a trend that's becoming impossible to ignore.

So, what's at stake for property managers?

For a long time, professional management companies have been a one-stop solution for owners, offering marketing, guest relations, cleaning, and maintenance. However, these conveniences come at a cost—management fees can take up between 20% and 50% of revenue. In contrast, co-hosts can offer a similar service for potentially lower commission rates or flexible arrangements that fit the owner's needs.

The bespoke nature of co-hosting is particularly attractive to small-scale property owners who want to maintain a hands-on approach while leveraging the expertise of a trusted local host. This model isn't just cost-effective—it fosters a partnership model, a feature typically lacking in professional management agreements.

As Airbnb refines its co-hosting model, the increased visibility and accessibility of co-hosts could further eat into the traditional property manager's market share. The burning question for property managers is: How can they differentiate their services from co-hosts, particularly if they're being outperformed in cost-effectiveness and flexibility?

There was a time when property management companies could justify their higher fees through advanced tools, large teams, and professional networks. But with technology now levelling the playing field, co-hosts have access to the same tools: automated messaging systems, dynamic pricing strategies, and platforms like RentalWise that make running a STR business easier than ever.

Moreover, co-hosts can offer something larger firms can't—an individualized, hands-on approach. For many owners, knowing their co-host is just a message away is a significant selling point. This combination of high-tech and personal connection could be the very thing that disrupts traditional management's dominance.

So, where does this leave property managers?

Property managers must adapt. Instead of viewing Airbnb's co-host model as a threat, forward-thinking companies can embrace it as an opportunity. By offering customizable service levels, prioritizing exceptional guest experiences, and leveraging local knowledge, property managers can maintain their relevance. If they fail to evolve, however, they risk being overshadowed by freelancers and co-hosts who offer the flexibility and personal touch that property owners increasingly desire.

Airbnb's co-hosting model is a game-changer in waiting, set to radically transform the professional property management landscape. The silence in the STR industry is surprising, given co-hosts' potential to seize an increasing market share. Property managers who fail to recognize the power of this model risk being left behind in a rapidly evolving industry.