Renting out several airbnb apartments: Why and how?

Short-term rentals of multiple properties, e.g. through an Airbnb platform, can open up new opportunities to increase rental activity and diversify income. Investing in different locations and audiences can help diversify risk and protect income from regional fluctuations.

Moving from one to several locations may require efficient systems and tools. The use of a property management system (PMS) could potentially help centralise reservations, communications and pricing strategies in one place. Using automation may also make sense, as manual management can become challenging with multiple calendars and customer relationships.

Using separate accounts for different properties or setting up a property manager account to oversee multiple listings may be worth considering. The key is to create a foundation that scales with the business while maintaining a quality customer experience across all properties.

Managing multiple Airbnb properties can therefore offer significant benefits for the development of short-term rental business. Let's take a closer look at the benefits and challenges involved.

The benefits and challenges of renting out more than one dwelling

Benefits

Maximising rental income: managing multiple sites significantly increases your earning potential compared to operating a single site. Empty sites no longer take up all capacity, as others may be full.
Marketing and reservation management: cross-site marketing allows customer enquiries to be redirected to other available sites, increasing bookings and reducing vacancies.
Centralised procurement and negotiation: managing multiple sites brings savings as you can negotiate better prices for cleaning, maintenance and other needs.
More effective seasonal pricing: you can use seasonal pricing on multiple sites, adjusting prices according to local events, shelf life and other factors to maximise returns.
Investment diversification: managing multiple sites in different locations diversifies risk, so that regional market disruptions do not affect the business as a whole.

Challenges to manage

Time management challenges: managing multiple items can feel overwhelming without the right system in place. Fortunately, this challenge can be overcome by investing in property management systems (PMS) that centralize reservations, communications and pricing in one place.
Communication overload: customer communication on multiple sites can easily exceed the limits of control. This challenge can be met by using communication automation and centralised communication platforms to prevent important messages from going unnoticed.
Operational complexity: property management at many sites can feel confusing without a system. This can be addressed by creating standardised processes for cleaning, maintenance and communication.
Financial monitoring: it can be difficult to monitor the finances of many sites without separate bank accounts and financial management systems. These can help to clarify and simplify financial management and taxation.

Less manageable challenges

Balancing quality across sites: while processes and systems can be standardised, different sites can still face unique problems. This can make it difficult to maintain consistent quality across all sites at the same time.
Efficient allocation of resources: in the management of multiple sites, resources such as cleaners and maintenance services can be limited. This is a challenge that cannot be completely solved, but with the right prioritisation and scheduling, efficiency can be improved.
Market disruptions and regulatory changes: market disruptions or changes in local regulations may affect certain areas. Although you can spread your sites across different locations, external factors such as regulatory changes or economic downturns can be difficult to predict and manage.

How do I start managing multiple Airbnb properties?

Understanding the real estate market

High tourist demand: choose areas where there is constant demand, such as popular tourist destinations and places frequented by business travellers.
Seasonal appeal: ensure that the area is attractive all year round, so that seasonal fluctuations do not have a significant impact on income.
Local regulations: familiarise yourself with the short-term rental laws in your area. Many cities, such as Helsinki, have specific rules for short-term rentals that must be followed.
Take advantage of Airbnb's tools: use the business metrics Airbnb provides to track the performance of your properties and optimise pricing.

Choosing the right targets

Balance between purchase price and rental income: look for properties that offer a good return compared to their purchase price.
Special features and location: sites with unique features or prime locations can attract more customers and allow higher prices.
Minor renovations: avoid major renovations unless you are experienced in construction. Small surface renovations can be more efficient and productive.
Multi-bedroom apartments: they attract larger groups, such as families, and offer better returns.
Focus on areas where you can manage multiple items: it's easier to manage multiple items efficiently when they are located in the same area.

Operational strategies to increase efficiency

Centralisation of reservations management:
- Use a property management system (PMS) that consolidates all notifications in one place.
- This avoids the need to log into multiple accounts and allows you to monitor the performance of your targets.
Implementation of automation tools:
- Smart locks: provide guests with unique access codes per booking, which improves security and streamlines check-in.
- Automatic communication systems: send guests check-in instructions, house rules and reminders automatically.
- Dynamic pricing tools: maintain competitive prices and maximise returns with real-time pricing that takes into account demand and local events.

Branding as an accommodation provider

This way you can build a strong and recognisable brand:

A coherent brand: create a brand that reflects the quality and uniqueness of your accommodation. This should be reflected in everything, including the name, logo and visual identity.
Professional photos: invest in photos that show the specific features of each site. Good photos not only attract customers, but also build trust.
Website: creating a website gives you full control over the presentation of your brand. It offers customers an easy way to access all your sites and adds value to your brand.
Social media: use Instagram, Facebook and other social media channels to interact regularly with your customers and increase your brand visibility.

Effective marketing tools

Take advantage of multi-channel marketing and optimise your visibility across platforms:

Multi-channel marketing: listing on multiple platforms such as Airbnb, Booking.com and Expedia helps to reach different groups of travellers and expand your customer base.
Dynamic pricing: pricing that adapts to seasonality, local events and competitor prices can help maximise revenues.
Email marketing: contacting previous customers can encourage them to return. Emails can also be used to offer special offers and news.
Social media advertising: take advantage of highly targeted advertising on social media. Facebook and Instagram ads can reach just the right customer base and increase bookings.
Local partnerships: working with local restaurants and attractions can add value for your guests, and differentiate you from the competition.

Pricing strategies to achieve competitive advantage

Seasonal pricing: higher prices during holiday periods and discounts during low seasons help to balance the booking situation with returns.
Pricing by usage rate: by monitoring the usage rate, you can optimally adjust your prices. For example, if occupancy is high, you can increase prices. When occupancy is low, you can try discounts or additional benefits to attract customers.
Different pricing models: a number of sites allow you to experiment with different pricing models and find the best strategies for each location and customer base.

Excelling in customer service

Guest satisfaction can lead to positive reviews and repeat bookings. Here are a few key practices to improve the guest experience:

Welcome guides and local recommendations: prepare detailed welcome guides containing important information such as house rules and safety instructions. Also provide local recommendations that highlight special features of the area, such as good restaurants and attractions.
Personalisation: use your management system to record guests' preferences and special situations. You can offer customised experiences, such as a guest's favourite coffee brand, or organise small feasts for special guests, such as birthday celebrations.
Quality control: Use checklists with your cleaning team to ensure that your property is always ready for guests. Regular inspections before guests arrive will ensure high quality in all your properties.
Surprising amenities: small additions such as high-quality toiletries, local delicacies or smart home features can delight guests and lead to positive reviews. These little touches can make a guest's experience special and memorable.

Communication management

Effective and rapid communication is one of the most important factors in achieving guest satisfaction.

Automated messages: create ready-made message templates for booking confirmations, check-in instructions, mid-term checks and departure information. This ensures that communication is fast and consistent.
Centralised communication platform: use tools like Hostex to manage all your messages from one place. This prevents important messages from going unnoticed and makes communication smoother.
Fast response times: aim to respond to all enquiries within 1-2 hours during working hours. Set clear response time standards for your team and ensure that communication is always prompt and friendly.
Be proactive: send check-in instructions 48 hours before arrival and communicate with guests during their stay to make sure everything goes smoothly. A proactive approach can prevent potential problems before they affect the guest experience.
Standard operating procedures: develop clear guidelines for dealing with common problems such as maintenance issues, noise disturbances or booking changes. This will allow your team to act consistently in all situations, and your guests will receive consistently good service.

Maintenance and upkeep for multiple dwellings

Cleaning and maintenance plans

Effective management of multiple sites requires well-organised cleaning and maintenance plans. This helps to ensure that each property is always ready for guests, and quality remains consistent. Well-planned practices include the following elements:

Standardised checklists: create uniform cleaning and maintenance checklists for all sites. Standardise all maintenance tasks in one place. Standardise all maintenance tasks in one place. Around 80% of maintenance tasks are often the same in different locations, which allows you to draw up general guidelines. This reduces errors and improves efficiency.
Scheduling and tracking: use property management software such as Hostex to schedule and track cleaning and maintenance. These systems can automatically notify cleaning staff when guests leave and help maintain time limits.
Reliable maintenance services: build relationships with reliable maintenance people and companies, such as plumbers and electricians. This way, even small problems can be solved quickly before they grow into larger ones and lead to costly repairs.
‍

When managing multiple Airbnb properties, you benefit from scaling, for example by asking for bulk discounts or contracts from cleaners and other partners. You can read about experiences of running an Airbnb rental.

Quality control and ensuring comfort

The quality of the properties and the comfort offered to guests are key to creating a good customer experience. The following actions can help:

Regular inspections: carry out monthly inspections for each site. This way you will identify any maintenance needs before guests arrive and ensure that everything is in good working order.
Sustainable furnishings: invest in durable and easy-to-clean furniture and quality bedding and towels that can withstand repeated use and reduce the need for replacement. This will not only save you money in the long run, but will also improve the guest experience.
Surprise amenities: offer guests small unexpected comforts, such as high-quality toiletries or local delicacies. These little touches make a stay special and can lead to positive reviews.

Communication and customer service

Good customer service and smooth communication are key to the management of many sites. The following practices can improve communication and customer experience:

Automated Message Boards: use automated communication systems to send standard messages such as booking confirmations, check-in instructions and departure instructions. This saves time and ensures consistency of communication.
Centralised communication platform: use centralised communication platforms, such as Airbnb's professional accommodation tools, to bring all your messages together in one place. This prevents important messages from being missed and improves the quality of customer service.
Proactive approach: send check-in instructions well in advance of your visit. Engage with guests during their stay to ensure that everything is running smoothly and that any problems can be addressed before they affect the guest experience.

Toolkit for managing Airbnb properties

There are a number of software solutions in the short-term rental sector designed to make tasks easier, from managing reservations to guest communication and cleaning. Here are some of the industry's most respected tools:

1. Guesty

Guesty is a comprehensive property management system (PMS) designed for hosts with large portfolios. It centralises communication across platforms (such as Airbnb, Booking.com, Vrbo, etc.), automates routine tasks and provides comprehensive reporting capabilities. This system is particularly popular because of its scalability and easy integration.

2. Hostfully

Hostfully offers a cloud-based PMS solution that improves guest communication and streamlines operations. In addition to managing reservations and channels, it provides digital guidebooks for guests - a useful add-on service that improves the guest experience and reduces repetitive queries.

3. OwnerRez

OwnerRez is a versatile tool that supports multiple booking sites and integrates directly with Airbnb. Its powerful automation features (such as customizable booking policies, billing and reporting) make it an attractive option for more efficient property management.

4. Lodgify

Lodgify is particularly known for its website building tools, together with its booking and channel management features. It is particularly useful if you want to create a direct booking website, while managing your listings on the major travel sites. Its clear interface and ease of use have been widely praised.

5. iGMS

iGMS provides an intuitive platform designed to facilitate communication, reservation management and scheduling of cleaning and maintenance services. Its unified mailbox and automation features help reduce manual work, allowing you to manage multiple properties efficiently.

Further information:

Channel management: look for solutions that combine listings across multiple platforms, reducing double bookings and ensuring price consistency.
Automation: automated features such as guest messages, check-in instructions and sending review requests can significantly reduce the manual workload.
Reporting and analytics: advanced reporting features help track performance across properties and provide insights that can improve revenue management.
Integration: the possibility to integrate additional tools (accounting software, dynamic pricing systems, etc.) can further streamline operations.

The best solution depends on your needs, such as the number of properties, your budget and the level of automation you want. It is often useful to try free trials or demos to find the tool that best supports your way of working.

‍

Legal issues in the management of multiple sites

Understanding local short-term rental rules

In Finland, short-term rentals are allowed, but there are conditions and restrictions that may vary from municipality to municipality. It is important to understand that:

Municipal regulations may differ: in Helsinki, for example, the maximum rental period may be limited and the landlord must be present during the rental period. Other municipalities may also have such rules.
Checking local regulations: to avoid possible fines or suspension of activities, it is important to check the local regulations for each site separately and follow them strictly.

Understanding permits and registration requirements

In most municipalities, a permit or declaration is required for short-term rentals. For the management of many properties, this means:

Separate permits: if you manage multiple sites, you will need to obtain separate permits for each location. Permit processes can vary from municipality to municipality, so it is important to familiarize yourself with the requirements of each locality.
Renewal of permits: remember that permits must be renewed periodically. Failure to do so may result in fines or business interruption.
Permit fees: permit fees can vary from municipality to municipality, so budget carefully as your business expands.

Responsible marketing and disclosure

Many municipalities require the short-term rental permit number to appear on all online advertisements. This means:

Permit number in notices: make sure you clearly indicate the permit number of the rental and follow the municipal rules.
Up-to-date permits: keep all permits and certificates up to date. Keep all your permits and licences up to date.

Making use of local host networks

Joining local host associations can provide support and resources:

Networks and cooperation: host associations help keep up to date with regulatory changes and offer support in complying with the rules. This can also help build community with other hosts.

Financial matters when renting more than one property

Monitoring of expenditure and revenue

In managing many Airbnb properties, accurate monitoring of finances is vital. It is important to keep track of all income and expenses. In particular, you should keep track of the following:

Fixed costs: mortgages, insurance and property taxes are ongoing costs that need to be taken into account.
Variable costs: costs such as electricity, water, heating and cleaning can vary from month to month and need to be monitored closely.
Platform fees: Airbnb commissions and payment processing fees can have a significant impact on returns. Tracking these costs will help you understand how much it costs to run platforms.
Service provider fees: fees for cleaners, janitors and other helpers may increase when managing more than one property. These costs must be included in the budget.

Using separate bank accounts for each item can help with the separation of funds and financial management. This practice also simplifies taxation and helps to assess the profitability of each site.

Maximising returns

In the management of many properties, dynamic pricing can be the key to optimising returns. The following strategies will help maximise revenues:

Dynamic pricing: take advantage of tools like PriceLabs or Beyond Pricing, which adjust prices in real time according to demand, seasons and local events. This ensures that prices remain competitive and in line with market prices.
Experimenting with pricing strategies: managing multiple sites allows you to experiment with different pricing strategies. Best practices can be shared across assets, improving returns for the portfolio as a whole.
Investing in quality adaptations: high-quality furniture, modern appliances and small additions such as coffee machines or smart TVs can justify higher prices and attract more customers. Such investments also improve the customer experience.

Cash flow management

Cash flow management is particularly important when managing multiple sites. It is recommended to keep at least three months of working capital for each item. This buffer fund provides financial protection against seasonal fluctuations and unexpected expenses such as sudden repairs or maintenance needs. It also ensures business continuity in difficult times.

Financial planning and monitoring are key to the successful management of many Airbnb properties. Well-managed finances not only improve business profitability, but also support sustainable growth and long-term financial success.

Considerations for expanding rental activities

Managing multiple Airbnb properties offers significant opportunities for business expansion and revenue growth. However, careful planning and effective systems are needed to ensure successful expansion. Here are the key steps to scaling an Airbnb business.

Creating systems for enlargement

The use of technology is key to the management of multiple sites. Here are a few recommendations:

Property Management System (PMS): investing in a quality PMS system can centralise all operations in one place and automate repetitive tasks such as reservations, communication and cleaning schedules. This improves efficiency and reduces the chance of errors.
Standardising processes: guest communication, check-in and maintenance requests need to be standardised to ensure that quality remains consistent across all sites. Detailed operations manuals help maintain consistency and clarify team roles and responsibilities.
Building a reliable team: As the team expands, it is important to ensure that it has the right people for different roles:
- Property manager: overseeing day-to-day operations.
- Professional cleaners: flexible availability for cleaning jobs.
- Service technicians: responding quickly to emergencies and maintenance needs.
Scaling up financial systems: keeping separate bank accounts for each site makes it easier to monitor finances and tax. Financial management software can streamline financial reporting and budgeting.

Assessing new markets

Before acquiring new sites, it is important to carefully assess the potential locations. This includes the following areas:

Market research: examine rental rates, average day rates and seasonal variations in the area. Tools such as AirROI can provide valuable market research information to support decision making.
Risk diversification: by spreading your assets across different districts or even cities, you can protect yourself from market shocks. Sites targeted at different types of travellers, such as business or leisure travellers, can smooth out fluctuations in demand throughout the year.
Site evaluation: Each potential site should be assessed against the following criteria:
- Initial investment: purchase price or lease terms.
- Renovation costs: the need to bring the property up to Airbnb standards.
- Expected return: ROI (Return on Investment) calculated on the basis of comparable rentals.
- Local regulations: legal requirements for short-term rentals.

Special features: unique amenities or distinctive decorative elements can make a property more attractive and justify higher prices.