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Rabbu Property Management Review: Is Rabbu Worth It?

Rabbu Property Management Review: Is Rabbu Worth It?

Key takeaways

Rabbu Property Management Review: Is Rabbu Worth It?

When deciding how to manage their short-term rental property, US investors face many options. One of these options is hiring Rabbu, a full-service vacation rental property manager in the US market.

Rabbu is not one of the most popular names in the industry, so short-term rental hosts might need some extra help in figuring out all they need to know about the company before deciding whether to work with it.

That’s why we’ve put together this Rabbu property management review to answer all burning questions like what Rabbu is, how it works, what services it provides to hosts, how much Rabbu costs, how satisfied property owners and guests are with the services provided by Rabbu, and what its top alternatives are.

Ultimately, we’ll answer the question: Does Rabbu provide the best value for money?

In brief, no! Rabbu fees and costs seem to be excessive for the services they provide, while the company’s online presence is too limited to prove their real value.

* If you’re looking for the best vacation rental property management company in the US, Awning provides comprehensive services which allow investors to make truly passive income, at an industry-low fee of 15% of monthly revenue.    

What Rabbu Is

Emir Dukic found Rabbu in 2017, with headquarters in Charlotte, NC. The company aims to help real estate investors find and manage profitable short-term rental properties.

Rabbu provides three primary services with US coverage including:

  • Short-term rental property acquisition
  • Short-term rental property management
  • Short-term rental property disposition

Regarding property management, Rabbu operates in 60 US markets, where it offers all services that hosts need in order to benefit from a passive real estate investing experience. Importantly, the company harnesses the power of real estate technology while not ignoring the importance of human intervention in vacation rental property management decisions.

While Rabbu works with many Airbnb rental properties, our review shows that it is the best Vacasa competitor for cheap, low-revenue short-term rentals. Daily rates on their booking platform range from $50 to $600.

What Rabbu Property Management Is

Rabbu is a full-service short-term rental property manager. This is one of the core solutions that the company provides to real estate investors, and they introduced it at the company launch, in 2017.

At the moment, the company manages 320+ properties, buildings, and hotels. This is a relatively small number of rentals if we compare it to Vacasa (35,000+ properties) and Evolve (24,000+ properties), especially since Rabbu has been around for 5 years. According to Rabbu estimates, they have provided investors with $2.2 million in Airbnb revenue.

Rabbu manages only rentals owned by other real estate investors and not its own properties. This is important to ensure that they put the interests of property owners first and not their own interest.

Like many other property managers and unlike Awning, Rabbu property management services are not available across the entire US market. Instead, they cover a selected number of locations, distributed from coast to coast.

Where Rabbu Property Management Is Available

Rabbu property management is available in 60+ markets in various US states, covering from coast to coast. The state with the most markets covered by Rabbu is North Carolina, followed by Florida, California, Indiana, Texas, Ohio, and Georgia. These include some of the best cities to buy rental property to list on Airbnb.

The company can achieve multi-market coverage by working with on-the-ground market managers and a carefully vetted team of vendors for each rental.

Rabbu is not present outside the US unlike some of its principal competitors which have limited coverage in Canada and Mexico.

The company manages a wide range of short-term rental property types including single-family homes, condos, multi-family homes, ADUs, boutique hotels, and large commercial hotels. This is a rather unique feature of Rabbu property management services as most alternatives focus on residential properties and do not branch into hotels. Meanwhile, if you own or plan to buy a less popular property type (different from the list above), contact the Rabbu team to confirm if it would qualify.

How Rabbu Property Management Works

As a full-service Airbnb property manager, Rabbu covers a wide range of services for properties, property owners, and guests. Our Rabbu property management review reveals that the company seems to be a truly full-service provider.

Here are the broad categories and the specific services it offers:

Preparing Rentals for Listing and Renting

Because it provides full-service property management, Rabbu helps investors get their properties ready for guests. This differentiates Rabbu from half-service companies like Evolve.

Specific services under this category include:

  • Property onboarding
  • Installation of smart home appliances
  • Expert selection of a dedicated vendor team
  • Linen and stocking supply
  • Coordination of initial deep clean
  • Coordination of professional photography
  • Optimized property listing
  • Listing distribution on brand-owned booking website and all major booking platforms

One service that Rabbu does not provide related to getting a property ready is interior design. Rabbu competitors like Awning, Air Concierge, and AvantStay offer design services in line with local trends and demand, which helps boost daily rates and occupancy. In general, they charge separately interior design from the monthly property management fee.

Another issue which property owners should keep in mind is that while Rabbu provides the initial supply of linen, it is not clear how often they replace this. If you’d like to work with them, clarify this issue and have it in a written form to avoid unpleasant surprises along the way.

In addition, Rabbu property onboarding does not incorporate legal help in obtaining required licenses and permits. Most U.S. markets have adopted specific, strict short-term rental laws and regulations. Many require short-term rental licenses and permits which need to be renewed annually. This can take a lot of time and energy from hosts, so the best Airbnb management companies cover this on behalf of property owners.

Managing Day-to-Day Operations

Once your vacation rental is up and running, the Rabbu property management team takes care of all services needed for the smooth operation of your rental business. These include:

  • Dynamic pricing combining a technology-driven strategy and human review
  • Managing an on-the-ground vendor team to clean, do laundry, and restock between guests
  • Conducting quarterly property audits and inspections
  • Managing an on-the-ground vendor team of maintenance individuals, pool cleaners, hot tub cleaners, and others

One service that is worth highlighting is the dynamic pricing model implemented by Rabbu. Their strategy begins with automated software tools which use Rabbu data review and trends to adjust pricing rates daily to make sure that they are competitive and optimize revenue. However, the process does not end there. Afterwards, the daily rates are reviewed by human revenue management experts who make sure that the algorithm is indeed maximizing income for every property.

For comparison, most Rabbu alternatives rely only on a technology-driven approach in order to cut costs. But eliminating the human element is risky and might not lead to optimal results. The only other short-term rental property management company which uses both technology and human adjustments is Awning.

Providing Ongoing Optimization

Experienced vacation rental hosts and Airbnb property managers know that creating a great listing is not enough. You must continue working towards optimizing it as booking platforms frequently change their ranking algorithms to provide the best experience for guests and outperform the competition.

So, your property listing has to be constantly updated and optimized in line with new algorithms to maximize views, clicks, and bookings. This will increase your short-term rental’s occupancy rate, monthly income, and Airbnb cap rates.

Rabbu property management services includes ongoing monitoring and optimizing of listings according to the latest booking platforms algorithms. This includes things like photos, title, and description.

Communicating with and Managing Guests

Guest communication and support is one of the most tedious - yet demanding - parts of the Airbnb property management process. It requires a high level of patience and professionalism and being available around the clock.

If you opt for hiring Rabbu as your vacation rental property manager, they will take care of all aspects of this. Related services include:

  • Guest screening and approving/denying using proprietary technology
  • Guest communication before, during, and after stay
  • Booking logistics before, during, and after stay
  • 24/7 guest support
  • Check-in and check-out management

These services are comparable to what other short-term rental property management companies in the US market provide.

Offering Full Transparency and Data to Property Owners

Building customer trust and being completely transparent with customers are crucial to ensure long-term cooperation. To ensure these, the Rabbu property management provides:

  • Access to dedicated owner’s portal
  • Access to on-demand property insights
  • Ability to reserve your property for your personal use
  • Monthly statements and payouts

As a technology-driven company, Rabbu has created a one-stop owner’s portal where investors can monitor the performance of their property and everything else they want.

Additional Rabbu Property Management Services

Unlike many competitors, Rabbu does not offer extra services that are paid separately. Their property management services come as a package, charged at a single fee, calculated as a percentage of revenue. The company prides itself in not having hidden fees or additional costs.

However, on the flip side, this limits Rabbu property management services. For instance, they don’t help with interior design, while professional design and vacation rental furnishing can help attract more guests, boost daily rates, generate more positive reviews, and ultimately get more revenue.

Rabbu Property Onboarding

The Rabbu property management onboarding process is aimed to get your vacation rental ready for guests and optimize its performance from the very beginning.

The onboarding process includes a few steps:

  1. Filling in an online form
  2. Booking a time to meet with a Rabbu Short Term Rental Expert
  3. Receiving projected revenue forecast from Rabbu
  4. Signing a property management agreement
  5. Meeting the Rabbu property management team to prepare the property for listing
  6. Going live

It is not clear how transferring a property from another property management company to Rabbu works. So, in case you currently employ another Airbnb property manager, we advise you to contact Rabbu and ask about the specific process. Keep in mind that if you switch from another company to Rabbu (or any other competitor), you will most likely lose your current reviews. 

The vast majority of short-term rental property managers, list properties under their host name, so you lose reviews they generate for your property while managing it.

The vast majority of short-term rental property managers, list properties under their host name, so you lose reviews that they generate for your property while managing it.

The vast majority of short-term rental property managers, list properties under their host name, which means that you lose reviews that they generate for your property while managing it.

The vast majority of short-term rental property managers (with the exception of Awning), list properties under their host name, which means that you lose reviews that they generate for your property while managing it.

The vast majority of short term rental property managers (with the exception of Awning), list properties under their host name, which means that you lose reviews that they generate for your property while managing it.

Property Reviews Generated by the Rabbu Property Management Team

One question that many real estate investors forget to ask when choosing the best vacation rental property manager is whether they get to keep reviews once they decide to no longer work with this manager. However, this is a very important question as having a lot of positive reviews helps rank higher on booking websites and also helps gain guest trust and thus get more bookings.

Similar to most other alternatives, Rabbu lists properties under its host name, so should you opt out of working with them, you will lose all property reviews which they generated for you. You will need to start from scratch.

This is a major drawback that property managers use in order to keep hosts for longer. Awning, a top Rabbu alternative, lists properties under the host’s name, so hosts keep reviews.

Rabbu Property Management Costs and Fees

Rabbu property management is full service, except for interior design and legal help. But before you can decide whether this company makes sense for your investor needs, you have to know how much they charge. You need to select the best value for money to optimize your Airbnb profit margins.

Rabbu Property Management Fee

On the company website, Rabbu states they charge a single short-term rental property management fee for the package of services they provide. They charge this fee as a percentage of the booking amount and varies by location and portfolio size. However, Rabbu does not provide a range of fees. 

Online Rabbu reviews by property owners show they pay a management fee of about 25%. This is within the industry standard.

Costs

The Rabbu website highlights that the company does not charge any hidden, additional, unexpected fees. A Rabbu review reveals that on top of the monthly management fee, Rabbu also charges for the cost of supplies. Not mentioning this additional cost makes investors doubt the transparency of Rabbu and think that there might be other extra fees too.

Payouts

Similar to other Airbnb property management companies, Rabbu collects revenue from guests on behalf of hosts. They subtract their property management fee from this amount and transfer owner payouts on a monthly basis.

Onboarding Costs

The Rabbu property management company does not charge onboarding costs. Most property managers include this cost in the monthly management fee which they will collect once the vacation rental starts receiving guests. One notable exception is Air Concierge property management, which charges a sizable onboarding fee of $300.

Leaving Costs

Rabbu requires property owners to sign a written contract before working together. But it’s not clear whether opting out of this agreement comes at a cost or not. Investors should inquire about this and ask for it to be included in the agreement text.

Rabbu Property Management Terms and Requirements

Rabbu does not have specific eligibility requirements for vacation rentals. They cover most property types and are present in 60+ markets across the US. The company helps with preparing properties for renting, so they don’t have to be guest-ready to qualify. However, your property should be furnished as this service is not provided by Rabbu.

Working with Rabbu property management requires signing a written agreement contract as part of the onboarding process. Rabbu does not specify the required length of engagement, and it doesn’t provide a copy of the property management agreement on its website.

According to the agreement, Rabbu must provide full-service short term rental property management services. Property owners retain the right to book their second home for personal uses as they like. They also gain access to a dedicated owner’s portal where they can keep track of performance.

The Rabbu team does not provide information on how investors can opt out of their services.

All this means that hosts should have an open conversation with a Rabbu representative, understand all details, get all terms in writing, and carefully review the property management contract before hiring Rabbu. Investors should insist on being able to leave the company if they are not completely satisfied with the kind and quality of services that they receive.

Rabbu Property Management Reviews

Although Rabbu has been around since 2017, their online presence is very limited. There are less than 100 Rabbu reviews, and it’s absent from all major customer review websites.

Here are a couple of sources where you can find Rabbu property management reviews:

  • Birdeye: Currently 4.1/5 stars based on 47 reviews
  • Yelp: Currently 2.0/5 stars based on 5 reviews
  • Airbnb: Currently 9,414 reviews

As showed by the average ranking of Rabbu, reviews are a mix of positive and negative experiences. Happy property owners praise the transparency and honesty of Rabbu and their quick responses and ability to always get 5-star reviews by guests.

Meanwhile, in negative Rabbu reviews hosts complain about destroyed properties, unexpected charges, lack of communication, and poor customer support.

As a host, Rabbu has generated over 9,000 reviews on the Airbnb platform. Guests are satisfied with Rabbu properties and experiences.

Rabbu Competitors

Before hiring Rabbu, it’s worth checking out some of its competitors. The short-term rental property management industry has grown significantly over the last decade, and there might be Rabbu alternatives that offer better services and fees. We will review 3 of the main Rabbu competitors.

Below you can find a quick comparison between Rabbu and its main alternatives:

Rabbu Property Management Competitors

Awning vs Rabbu

Awning is a full-service short-term rental property management provider that is considered the best for overall property management as it offers the best value for money in the US market.

Awning services include everything that Rabbu offers besides interior design (managed by the ex Head of Design at Airbnb), smooth and efficient vacation rental furnishing (in line with local trends and demands), and legal help in acquiring necessary short-term rental licenses and permits.

Unlike most Rabbu competitors, Awning covers the entire US market by vetting and setting up local property management teams in each location before even getting listings there. They manage all types of properties (except hotels).

The Awning team can boost revenue by 10-30% because of the combination of the latest real estate technology and (human) local expert involvement in all processes. Rabbu does not commit to a specific number.

One of the major benefits of Awning is that it charges a comprehensive property management fee of only 15% of revenue. This is an industry-low rate for a full-service provider. This low fee, however, does not come at the expense of the quality of services which Awning provides to vacation rental owners and their properties. The company can afford this competitive fee by automating the processes which can be automated, while their team focuses on those which require human intervention.

Evolve vs Rabbu

Unlike Rabbu and many of its competitors, Evolve is a half-service Airbnb property management company. This means that they work with guest-ready properties of most property types. They do not help prepare your property for renting, and their core services focus on listing and guest management.

Evolve offers the possibility to connect hosts with local vetted vendors to provide the services which the company does not cover. However, this arrangement is suboptimal for investors who are looking for passive income opportunities. Managing a team of vendors is a very time-consuming task which requires local presence, so investing remotely is not an option.

In terms of market coverage, Evolve property management is available in 750 US markets (more than Rabbu) and Mexico.

Contrary to Rabbu, Evolve charges a single property management fee across all markets, property types, and portfolio sizes of 10% of monthly revenue. This looks like a very low fee, but the reason is that it doesn’t include many services which full-service Rabbu alternatives provide.

Overall, Evolve might be a good choice for investors who’d like to be personally involved in the management of their vacation rental investment property while getting some extra help.

Vacasa vs Rabbu

Vacasa is the largest and most popular vacation rental property management company in North America. At the moment, Vacasa manages 35,000+ properties in 35 US states, Canada, Mexico, Belize, and Costa Rica. This large portfolio means that the company cannot provide truly personalized services, as reflected in many Vacasa complaints.

As a full-service property manager, Vacasa offers all services needed by hosts. However, some of them - like interior design, the linen program, and vacation rental insurance - are paid for separately.

Similar to Rabbu, Vacasa does not publish its pricing structure and range on the company website. They say that management fees depend on the market and the property type and size. Vacasa reviews by property reviews reveal fees ranging between 25% and 35% besides extra fees (like linens) as well as occasional unexpected costs.

So even though it is the biggest player in the US vacation rental market, Vacasa does not provide the best value for money for investors.

Takeaway

Our Rabbu property management review shows that this company might be a good fit for investors who have a portfolio of a few furnished properties. Although it’s a full-service Airbnb management company, Rabbu does not help with interior design and furnishing, but it offers discounts on managing multiple vacation rental properties. Rabbu’s limited market coverage and unpublished property management fees make it suboptimal for most investors in short-term rental properties in the US. From an investor's point of view, it’s worth checking out Rabbu competitors before deciding where to entrust your investment property.

* If you’re looking for the best vacation rental property management company in the US, Awning provides comprehensive services which allow investors to make truly passive income, at an industry-low fee of 15% of monthly revenue.

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