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Short Term Rental Property Manager vs. Co-Host: 5 Critical Differences Every Vacation Rental Owner Should Know

SHORT TERM RENTAL PROPERTY MANAGER VS. CO-HOST – 5 KEY DIFFERENCES

Navigating the short term rental (STR) world can feel overwhelming for newcomers. The industry terminology often sounds like a foreign language on Facebook groups and STR podcasts. Terms that might seem interchangeable actually have significant differences, creating confusion for property owners seeking assistance or entrepreneurs looking to enter the industry without purchasing properties.

One particularly confusing distinction for beginners is understanding the difference between a short term rental property manager and a Co-Host.

A property manager represents a company responsible for all aspects of rental property management. This comprehensive approach is typically called “full service.” Their duties include collecting guest payments, distributing funds to owners, managing cleaning staff, arranging repairs, and handling all guest communications.

A Co-Host, meanwhile, is a term specifically created within the STR ecosystem, originally by Airbnb, defined as someone who “assists” Airbnb owners with property and guest management. This looser definition means significant variation exists between what different individuals might offer under the Co-Host title.

5 Key Differences

Here are the fundamental distinctions between a STR property manager and a Co-Host:

1. Licensing

  • Property Manager – Most states have specific regulations governing who can operate as a property manager. The classification of short term rentals creates some complexity, as some states categorize vacation rentals similarly to hotels, requiring no license. For safety, thorough research is essential. If you’re hiring a property manager, always inquire about their licensing status.
  • Co-Host – No licensing requirements exist for the Co-Host designation since they don’t collect funds directly. However, independent research remains advisable.

2. Flow of Guest Funds

  • Property Manager – Collects all guest payments regardless of booking platform. These funds are held in a designated trust account (sometimes called escrow), with monthly disbursements made to property owners and to the management company’s operating account.
  • Co-Host – Doesn’t directly collect guest payments. May receive funds from Airbnb if using the Co-Host payment splitting feature, though this arrangement becomes complicated when managing multiple booking channels.

3. Listing Control

  • Property Manager – Typically maintains ownership of listings across all platforms. For example, on Airbnb, the listing would appear under the property manager’s account.
  • Co-Host – Listings usually remain under the homeowner’s control, with the Co-Host added either through platform-specific features (like Airbnb’s Co-Host function) or through shared login credentials.

4. Maintenance & Supplies

  • Property Manager – Provides property supplies (potentially charging owners depending on fee structure) and coordinates payment for routine maintenance and repairs.
  • Co-Host – Arrangements vary by agreement. Some Co-Hosts cover all supplies and maintenance costs before invoicing owners. Others utilize the owner’s credit card for expenses, while in some cases, owners handle these matters directly.

5. Occupancy Taxes

  • Property Manager – Handles any occupancy taxes not automatically collected by platforms like Airbnb on the owner’s behalf. Some manage this internally, while others outsource to specialized services. Filing schedules may be monthly, quarterly, or annual.
  • Co-Host – Since funds transfer directly to owners, the responsibility for collecting and paying property taxes remains with the owner. Co-Hosts might provide reporting assistance to support the owner’s tax filing process.

One Additional Difference – Owner Statements!

The different approaches to fund management naturally lead to differences in owner statements. While statement formats vary between managers, effective statements break down individual stays with detailed revenue components to maintain transparency.

Below is an example of a Property Management statement where the property manager collects funds and distributes them monthly to the owner. This example focuses solely on revenue, showing that the funds owed to the owner would be $16,035.36.

A Co-Host statement contains one crucial difference – an owner payout section. This reflects funds already transferred to the owner, essentially converting the statement into an invoice.

In this example, you can see the Owner Payout column. The statement still demonstrates property performance and reservation details, with the total amount owed ($3,368.40) matching the Management Commission column. This represents the amount the homeowner would pay to the Co-Host.

The remaining statement portions typically appear similar, depending on expense payment arrangements, but including the Owner Payout represents a key distinction for STR Co-Hosts.

Whether you operate as a property manager, Co-Host, or maintain a vacation rental portfolio as an investor, specialized bookkeeping services can be tailored to your business model. Understanding these fundamental differences helps you navigate the STR landscape more effectively and choose the management structure that best suits your needs.

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