In our previous post, we explored the key differences between short-term rental (STR) property managers and co-hosts. Now, we’re diving deeper to help you determine which business model is right for you - whether you’re looking to scale a portfolio or earn a side income.

1. Define Your Business Goals

You don’t need to have a five-year plan mapped out, but it’s important to know your initial direction. Are you aiming to build a scalable business that could replace your current job? Or are you seeking a flexible side hustle for supplemental income?

In general, property management companies are better suited for scalability, while co-hosting businesses tend to remain smaller and leaner. Each model offers distinct pros and cons depending on your ambitions. 

2. Evaluate Your Capacity (Time & Team)

Ask yourself:

• How much time can you realistically commit to this business?
• Are you comfortable hiring and delegating tasks as you grow?

Property managers often need to build infrastructure: software systems, vendor relationships, and support teams. As your portfolio grows, so does your time commitment - especially with 24/7 guest communications, vendor oversight, and monthly owner reporting.

Co-hosting, on the other hand, typically requires less overhead and fewer responsibilities. It’s a leaner model that may suit those who want to stay hands-on or avoid managing large teams.

3. Understand the Legal & Financial Responsibilities

Your location plays a major role in this decision. Some states require a real estate or brokerage license to collect rent on behalf of others, which may push you toward one model or the other.

If licensing is required in your area, and you don’t currently hold a license, co-hosting may be a better fit - at least to start. Alternatively, you could partner with a licensed real estate broker to operate a management business legally. Just be sure you have a solid handle on your trust accounting in this scenario.

4. Follow the Money – Revenue & Expense Models

Property managers typically:

• Charge higher commission rates (20–25% is common)
• Add revenue streams like tech fees, setup fees, and home watch services
• Handle guest communication, cleaning, taxes, repairs, and owner payments
• Collect guest revenue directly and disburse payments monthly

Co-hosts often:

• Charge lower commission rates
• Rely on owners to cover or reimburse many expenses
• Are limited in their ability to operate across multiple channels or scale quickly due to cash flow constraints

If you’re prepaying for services (like cleaning or repairs) and waiting for reimbursement as a co-host, cash flow can quickly become a bottleneck.

5. Map Your Growth Strategy

Planning to scale from a handful of units to 50+? A full-service property management model - with systems like trust accounting and professional bookkeeping - is more likely to support long-term success.

Prefer to manage a few properties for friends and family? A co-hosting model may be the ideal starting point - just be clear about what tasks you’re willing to take on yourself.

Conclusion: There’s No One-Size-Fits-All

Both co-hosting and property management offer viable, profitable paths in the STR space. Your choice depends on your goals, available time, financial position, and legal environment - and it can evolve as your business grows.

At Keystone Bookkeepers, we’ve helped clients transition from co-hosting to full property management as they scaled, and we’re here to support you no matter where you start.

Still unsure? 

Schedule a free strategy call to discuss your goals and get expert guidance on the best model for your STR business.