High occupancy alone doesn't indicate good management. Filling your property at below-market rates is easy — and expensive.
Evaluate their pricing methodology to understand whether it's static or dynamic, their platform distribution strategy, revenue benchmarks versus long-term rental alternatives, their seasonal pricing approach, and how they balance occupancy against rate optimisation.
Good indicators include clear explanation of pricing logic, data-driven approach to rate decisions, multi-platform presence rather than just Airbnb, and transparent reporting on pricing performance.
Systems and Technology
Professional management requires professional systems.
Essential capabilities include centralised booking management across platforms, automated guest communication workflows, owner reporting and financial transparency, calendar management and availability control, and maintenance tracking and vendor coordination.
Ask what owner visibility you'll have into bookings and performance, how frequently you'll receive statements and reports, and what systems they use for pricing, communication, and operations. Manual processes, delayed reporting, or lack of owner visibility indicate operational immaturity.
Guest Experience: Your Reviews Depend On It
Your property's review score directly impacts future bookings and pricing power. Guest experience is the management company's responsibility.
Evaluate response times to guest enquiries, check-in and check-out processes, issue resolution approach, cleaning and quality control standards, and review scores across their portfolio. Good indicators include consistently high ratings across many properties rather than just cherry-picked examples, Superhost or equivalent platform recognition, clear guest communication protocols, and professional cleaning and inspection processes.
Fee Structures: Understanding What You're Paying For
Management fees vary, but the lowest fee rarely indicates the best value.
Typical fee components include management fee as a percentage of revenue, cleaning fees per turnover, maintenance coordination, and setup and onboarding costs. Clarify what's included in the management fee, what's charged separately, how maintenance costs are approved and charged, and whether there are minimum commitments or exit fees.
Unusually low fees often mask either hidden charges or inadequate service. If a fee seems too good to be true, investigate why.
Questions to Ask Before Signing
Direct questions reveal more than marketing materials. Ask how they handle DTCM compliance end-to-end, what their average occupancy rate is across their portfolio, how their pricing strategy works across seasons and events, what reporting you'll receive and how often, how they handle maintenance approvals and emergencies, whether they can share performance examples from similar properties, and what their track record is on compliance.
Confident, specific answers indicate operational maturity. Vague or evasive responses indicate the opposite.