Boutique vs Behemoth: The Pros and Cons of Smaller vs Larger Short-Term Rental Property Management Services
If you own a short-term rental or vacation property, you’ve probably had this conversation with yourself:
“I don’t have the time or resources to manage all of this - the logistics, the on-site experience, the cleaning, the guest communication. But I don’t know who I should use to manage my rental: one of those big property management platforms or a smaller property management company…”
….and down the Google research rabbit hole we go.
Ultimately it comes down to what you value most when it comes to your guests’ experience and your personal goals with your property. To make your decision a bit easier, we’ve put together a quick list of the pros and cons of both options:
BOUTIQUE PROS // BEHEMOTH CONS:
PROFIT MARGIN:
Depending on the location and property type, larger rental property management companies can take upwards of 35% commission and management fees on your short term rental. And those nickels and dimes eat into your profit lines. When you add up all the additional “standard” fees the big platforms charge (that may or may not even apply to your rental…but you will absolutely pay for), the boutique option typically comes out the net winner in terms of reaching the maximum profitability for your property.
PERSONALIZED SERVICE:
This one really isn’t even a debate. We know that the downside of scale is the inability to give the same level of TLC to every property. It’s just not realistic when you’re managing tens or hundreds of thousands of short term rentals/vacation properties across the country (or globe). In contrast, small boutique property management companies prioritize building relationships with property owners and making sure to provide tailored services that meet your unique needs. When your eggs are in fewer baskets - you take exceptionally good care of those baskets. It’s science.
LOCAL EXPERTISE:
Large platforms like Vacasa rely heavily on automated systems with limited local insights. This lack of local expertise can lead to improper pricing and subpar rental experiences. Small boutique property management companies, on the other hand, have in-depth knowledge of the local market and can leverage this expertise to optimize rental strategies, leading to better occupancy rates and higher guest satisfaction. Want to know the best Joshua Tree Park sunrise look-out point? Or the best seafood spot in Venice? Hit us up :)
FLEXIBILITY:
Because smaller property management services are not beholden to rigid corporate regulations or pricing structures, you’ll typically get a lot more flexibility and willingness to accommodate your individual needs as a property owner. No AI chatbot auto-replying to your message with “We are unable to fulfill your request. Please see our corporate policy.” More flexibility = more control over your rental property. Think about every famous artist who had zero say over their own music because they signed an early contract with a label that controlled their every move. Don’t find yourself in an N*Sync vs. Lou Pearlman situation.
BEHEMOTH PROS // BOUTIQUE CONS:
CONVENIENCE:
Larger property management services like Vacasa have broad customer bases, a strong online presence, and a pretty seamless user experience. They’ve built robust digital systems that automate things like: guest services, payments, and maintenance issues. All those web developers and engineers behind the scenes are doing their best to make your life as a rental property owner easier. It truly is not their fault things can sometimes fall through the cracks, systems can glitch, bugs can develop, and it can become frustrating for people. Smaller companies may not have their own app, but they do have emails and phone numbers where you can reach real humans as your first stop.
EXPOSURE:
Think about listing a product on Amazon vs selling it on an individual website. Obviously you want the exposure of the big platform that so many people already use to buy things, right? However, you also have to think about the flip side of that coin…which is the probability of getting buried by competitors in the search results. Most of these bigger rental property companies are masters of SEO/SEM. They have the marketing budgets to buy those Google Page 1 search results because they know full well that most people don’t look further than Page 2 or 3. However, these types of massive service aggregator platforms often end up being a “race to the bottom”. People looking for the best price, but ultimately end up dissatisfied with the quality of service and regretting their decision to skimp on quality to save a few bucks. It’s that age-old saying: “You get what you pay for”.
MARKET AVAILABILITY:
Sometimes it’s hard to find property rental management services in smaller markets. This is when larger companies may be a better option. Typically they are big enough that they can offer services in a wide variety of markets - from Tulsa, Oklahoma to Miami, Florida. Deja Blue covers several of the top Southern California markets: from Los Angeles to Malibu to Palm Springs. So if SoCal is your market, look no further :)