As the Airbnb market in Montego Bay continues to thrive, a seasoned property manager ,Nadiya Andrus, faces the daunting challenges that come with a flourishing industry. Managing a portfolio of upscale properties within gated communities, the businesswoman has quickly learned that a highly competitive market brings increasing demands and that success can be a double-edged sword.

In April 2023, Airbnb listed 1,146 short-term rental options in the Montego Bay area, marking a significant increase of 23 per cent compared to April 2022 and a notable rise of 37 per cent compared to April 2018.

“Clients have become more and more demanding because there are more options around,” Andrus revealed. “My particular segment is Airbnb within gated communities. I have particular clients like returning residents and mostly people from the United States and they are accustomed to a very high level of service at home. Everything has to be in excellent working order.”

According to the property manager, it takes effort and an unwavering dedication to the job to meet and exceed the expectations of her discerning guests. And coupled with the world’s financial adversities the hurdles can be even more formidable.

“I notice maybe because the global economy is getting worse in terms of people’s earnings, especially since COVID and the war in Ukraine, people are looking for any small reason to get a refund,” she said.

This means that while her business offers upscale accommodations with high-class amenities, the inconsistencies of public utilities on the island can create problems.

“Now, no electricity for 20 minutes, you get claims and then some people will complain that there is no hot water [as a result],” Andrus related. “So you can imagine how at two o’clock in the morning, oh my God, no Internet, and then what do you do? It can be very time-consuming.”

“And then Airbnb may decide to refund them 30 per cent of the stay depending on how long the issue was,” she added.

Andrus began managing properties in gated communities in 2016 that were in close proximity to where she lived. Her penchant for meticulous management meant that it was more convenient to administer nearby apartments that she could regularly check on.

“The business grew from there, but every new property I try to have it locally based within a short distance,” she explained.

The number of properties in her portfolio has increased as Montego Bay’s Airbnb market has expanded significantly. Andrus shared her opinions on why the industry has experienced substantial growth.

“For investments people are thinking right away in Airbnb,” she said. “You talk to people and they’re like ‘hey, I’m setting up my bedroom or spare rooms to be Airbnb’ or ‘I’m building a separate studio apartment to be Airbnb’. It seems to be a number one goal for investment.”

According to Andrus, a lot of new real estate developments are quite pricey making it hard for them to attract long-term clients. This makes the Airbnb revenue that can be earned from nightly charges an attractive option.

But the property manager warns that the proliferation of Airbnbs in the market demands a competitive edge from each and every home.

“The competition is getting more demanding in terms of everything — service, decor, amenities,” she disclosed. “But I don’t see the prices for Airbnb going up. On the other hand, cleaning supplies, a lot of things are going up.”

Andrus claims that rates for Airbnb studios, for example, have not changed much in recent years. But in order for studios to compete in an expanding market, they have to add more amenities and the costs are significant.

While the property manager maintained that prices remained constant from her perspective, AirDNA, a data analytics company specialising in short-term rentals, unveiled that in the Montego Bay area, “rates declined as the demand for smaller properties outpaced that for larger or higher-end accommodations.”

Specifically in April 2023, the average daily rate was US$245, representing a 15 per cent drop compared to April 2022 and a 54 per cent dive since April 2018.

In this environment, the reviews of your property on the Airbnb platform are of paramount importance.

“The ideal goal is for your property to stay occupied and that is driven by reviews and ratings,” she pointed out. “So you aim for a five-star review and the reviews from Airbnb have gotten more complex. They ask more questions. You want your apartment to be listed in the first few pages of the Airbnb listings rather than on page 25.”

According to AirDNA’s findings, Montego Bay boasts an average review score of 4.65 (out of 5 stars). What’s even more remarkable is that 75 per cent of the listings have an overall rating of at least 4.5.

The property manager explained what this level of competition means for ensuring proper management and maintenance of properties.

She has a staff to help her manage her portfolio of properties but even with dedicated employees it can be challenging.

“It is sometimes hard to get a reliable team because this job is 24/7,” Andrus explained. “There are emergencies. Things can come up and it is hard to get people in the mindset that you have to be available to work at 1:00 am. It takes time to get a good, reliable team together for sure.”

She has developed a team over the years that is willing to help each other and even do tasks that might not necessarily fit their job descriptions so that if one person is not available, another can help.

“It is not an easy business as some people think,” Andrus emphasised. “It is a lot of commitment. It is a lot of hard work. The standard keeps on rising and I see a lot of people here. They don’t know the standards of the amenities that are required like coffee makers and particular kettles, for example.

“There are a lot of apartments that I have visited that are not even ready for rental,” she continued. “Decor is very important to be competitive. People want to see something that is pleasant to their eyes. You can’t just put a mattress on a base and think, hey, my bedroom is ready.”

Andrus added that there are homeowners with full-time jobs who want to go into the Airbnb business who are unaware of the demands of the business.

“You have to answer guest requests almost immediately and address their issues,” Andrus stated. “In that case where the guests don’t get enough customer service, your reviews will suffer and your rentals will not be competitive anymore.”

Looking ahead, the property manager believes that while the Airbnb market has expanded and become more competitive, the higher level of competition may cause it to shrink slightly in the coming years.

“I think a lot of properties that are on the lower end, whether in terms of service or amenities or location, will convert back to long-term rentals,” she opined. “Competition is going to be more and more fine accommodation and better amenities in the apartments and villas. It’s going to be better quality and maybe less listings in a few years.

“My business has approximately 15 per cent returning clients and I think when they experience higher quality, higher quality bedding, extra amenities, if that client travels from my studio to another similar apartment in size that doesn’t have these things, the next time they won’t return there. They will be looking out for my apartment again and I have my loyal clientèle.”