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Should You Hire a Vacation Home Rental Agency? Pros & Cons for Airbnb Hosts

By HostStarter

· AirBNB Management

As someone who works with Airbnb hosts every day, I’ve seen it again and again.

It usually starts with one property – sometimes it’s a side hustle, sometimes it's someone's first real dip into the short-term rental world. At first, it’s exciting. Then come the late-night guest messages, the last-minute cleanings, the maintenance headaches, and trying to guess the right price week after week.

Pretty soon, the big question comes up: Should I bring in help?

If you’re at that stage – or helping a client who is – this guide will walk you through the real pros and cons of hiring a vacation rental agency. I’ll also explain how we built HostStarter’s Auto-Hosting model to solve these problems without the usual agency headaches.

What Vacation Rental Agencies Actually Do

A good vacation rental agency handles the daily grind so you don’t have to. That usually includes:

Writing your listing and making sure it ranks well

  • Messaging guests and handling bookings
  • Coordinating cleanings and turnovers
  • Dealing with maintenance and repair issues
  • Adjusting prices to stay competitive
  • Navigating permits, taxes, and local regulations
  • In other words, they’re there so you don’t have to be on call 24/7.

Big Names in the Industry

When people come to me asking about management options, these are the names that come up most often:

  • HostStarter – 12.5%

This is our platform, built specifically for Airbnb hosts who want full-service help without overpaying. We handle listing optimization, smart pricing, guest messaging, cleanings, and more – with no long-term contracts or bloated fees.

  • Vacasa – 25–35%

One of the biggest names in the space. They offer total hands-off service, but clients often report lower profits and less control.

  • Sonder – Varies

Sonder manages entire buildings, so they’re really built for developers and large-scale investors – not your average host.

  • AvantStay – 20–30%

Focused on luxury and group travel. They bring in designers, concierges, and branding – but expect to pay a premium for that experience.

  • TurnKey (now part of Vacasa)

Once a standalone tech-savvy management company, TurnKey’s services have been rolled into Vacasa’s larger platform.

Why Hosts Start Thinking About an Agency

Most of the hosts I talk to aren’t trying to hand off their business – they’re just overwhelmed. Usually they’re:

Burned out from being glued to their phone

  • Struggling to find reliable cleaning teams
  • Unsure how to price their listing effectively
  • Juggling guest issues with their full-time jobs
  • Curious about scaling, but don’t know where to start
  • Hiring an agency can be the answer – but it’s not always the right one. Let’s look at the pros first.

The Upsides of Hiring a Vacation Rental Agency

1. You Get Your Time Back

Managing a short-term rental is a 24/7 commitment. Agencies take the pressure off so you can focus on your job, family, or just enjoy your weekends again.

2. Better Listing Performance

Professional photos, well-written descriptions, and SEO matter. A good agency makes sure your property gets seen – and booked.

3. Smarter Pricing

Agencies use dynamic pricing tools that adjust your nightly rate based on demand, season, local events, and more – so you’re never leaving money on the table.

4. Compliance Without Headaches

Staying on top of permits, taxes, and regulations is no joke – especially with so many cities cracking down. Just in the last six months, places like Normal, Illinois have banned STRs in single-family zones, and Barcelona and Madrid have removed thousands of illegal listings. A smart agency helps you stay on the right side of the law.

5. Room to Grow

With the right partner, you can go from one property to several – even in different cities – without losing your sanity. That’s exactly why we created:

  • HostStarter Launch – a full-service launchpad that takes care of research, setup, furnishing, and listing optimization so you start strong and earn faster.
  • HostStarter Arbitrage Search – A done-for-you sourcing service that finds landlord-approved, high-cash-flow units perfect for rental arbitrage.

The Downsides of a Traditional Agency

1. The Fees Add Up
Most agencies charge anywhere from 20% to 35% of your total booking revenue. That can take a huge chunk out of your profits - especially if you’re trying to scale.

2. Quality Isn’t Always Consistent
Some agencies do a great job — others, not so much. I’ve seen hosts struggle with poor communication, spotty cleanings, and guests leaving frustrated.

3. You’re Locked In
A lot of companies want you to sign a 6 to 12-month contract. And if things aren’t going well, getting out isn’t always easy — or cheap.

4. Your Superhost Status Could Suffer
If guests aren’t happy and reviews take a dip, your Superhost badge could be on the line — even if it wasn’t your fault.

When It Makes Sense to Hire Help

I usually recommend hiring a vacation home rental agency (or Auto-Hosting service) if you:

  • Do not live near the property
  • Have a full-time job or limited bandwidth
  • Want to grow from one property to several
  • Prefer a hands-off model but still wants good results
  • Is tired of late-night guest issues and logistics

But if you:

  • Enjoy hosting personally
  • Live close enough to manage cleanings
  • Have a tight budget and don’t mind doing the work
  • Want full control over every detail

Then you may be better off using automation tools and hosting directly.

Other Options Besides Full-Service Agencies

For hosts who aren’t quite ready to hire an agency or sign on with a co-hosting platform, there are still smart ways to reduce their workload:

  • Use tools like Hospitable or Guesty for automation
  • Hire a local co-host for specific tasks like cleaning or check-ins
  • Outsource tasks individually (cleaning, maintenance, etc.)
  • Use Smart Pricing tools (like Airbnb’s or PriceLabs) independently

Every host’s situation is different. The key is finding the balance between profit, time, and peace of mind.

Final Thoughts

Hiring a vacation home rental agency can be a great move - but it’s not for everyone.

From my perspective, most traditional agencies are overpriced and outdated. That’s exactly why we built HostStarter Auto-Hosting - to give Airbnb hosts a smarter alternative that scales with them, keeps costs low, and still delivers exceptional service.

If your client is feeling stretched, wants to grow their business, or just needs more time back in their week, this might be the perfect solution.

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