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Stop Working for Free: Why Investors Hire Full-Service STR Property Managers

By October 2, 2025Real Estate Pros Show


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Show Summary

In this episode of the Real Estate Pros podcast, host Q Edmonds interviews Chad Hart, a property management expert specializing in short-term rentals. Chad shares insights into the importance of professional management, the challenges of scaling a business, and the impact of technology and AI on the real estate industry. He emphasizes the significance of building relationships and managing customer reviews effectively to enhance business growth.

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    Investor Fuel Show Transcript:

    Chad Hart (00:00)
    Yeah, I think that we work principally with professional real estate investors. And then my second kind of tier of people I work with would be other professionals, lots of CPAs, doctors, lawyers. They choose us because look, they’re high income, generally speaking, right? So they’re making north of a quarter million a year. Why would they possibly manage a condo and rentals and people calling them when they’re at dinner? I always say Friday night, you’re out to dinner with your wife. You got somebody blowing your phone up because the AC is out and you’re like, look.

    You know, one of the spouses is going to say, what are we doing here? Like, this isn’t what we signed up for. I thought you said it was going to be some kind of real estate investment. And now suddenly you’re managing the air conditioning on Saturday night and I don’t want to do that. Okay. And so I think that’s a, that’s a key to second home is not your second job. I think that’s completely the key to what we’re doing is just taking that off your plate with our real estate investors.

    Quentin (02:26)
    everyone, welcome to another episode of the Real Estate Pros podcast. I am your host Q Edmonds and I got somebody with me today. He’s going to give you a ton of nuggets, a ton of value, especially when it comes to the short-term rental space. This guy, what he does is a one-stop shop. He’s going to make sure that his clientele is absolutely taken care of. And so I’m so excited for us to get a chance to peek.

    in his lens for him to take us into his world. And so I just want to introduce you guys to Mr. Chad Hart. Chad, how you doing today,

    Chad Hart (03:00)
    Doing great, thanks for having me on.

    Quentin (03:02)
    man, man, thank you for being here. Thank you for sticking with it. You you and I know some of the backstory, but I’m so glad you’re here, man. I’m so glad we’re making this happen. And so listen, man, I’m gonna be honest with you. I want to dive in. I want you to take us into your world. Take us through your lens. Let us know your main focus, what you’re mainly focused on. Maybe tell us, maybe how you got started and what markets you’re operating in.

    Chad Hart (03:28)
    Sure, so my company is called South Padre Trips. I mean, of course, dot com, but we’re a full service property management vacation rental management company on South Padre Island, Texas. So, Padre is a barrier island, really as far south as you can get in the continental United States. The only place further south of us is really like Key West. But we’re connected by a two and a half mile pass away from the mainland to our island, which is South Padre. And my company differs a little bit from, you know, your typical like Airbnb host, so to speak.

    We’re a little bit more traditional in that we have a physical location here, the retail office. You can still come in and book face to face. How many people do that? Not a ton, but you still can. And then we are full service property managers. So that means is rentals, housekeeping, accountant, maintenance, your short-term rental license that you have to have here, paying your local hotel occupancy tax. We take care of everything. So you can just throw us keys, go to Costa Rica.

    And then you get what I call mailbox check, even though we don’t send checks, it’s ACH. So you don’t have to do any of that stuff. And it takes a lot of organization and you have to have some scale. What I mean is you can’t run an operation like us with 20 units or you’d really lose your butt. So, you know, to have this many, like I’ve got 34 employees and most of it’s housekeeping, to be honest, but my housekeepers are in house. So is our maintenance. So I don’t outsource that stuff.

    That way I’ve got a little bit more control. also build, you know, commercial fourplex like residential. So I’ve got that builder’s knowledge in the background too, when comes to maintenance, it helps a lot. I know if I answered your question or not.

    Quentin (05:53)
    Man, you definitely answered the question for sure, And I love it. love the details that you gave. One of the things that you said, one of the quotes that I actually wrote down that you said when you was talking before we got on camera, you said, your second home should not be your second job. And I think for me, that gives a clear lens into how you want to make sure that your clients are really taken care of.

    Chad Hart (06:18)
    Yeah, I think that we work principally with professional real estate investors. And then my second kind of tier of people I work with would be other professionals, lots of CPAs, doctors, lawyers. They choose us because look, they’re high income, generally speaking, right? So they’re making north of a quarter million a year. Why would they possibly manage a condo and rentals and people calling them when they’re at dinner? I always say Friday night, you’re out to dinner with your wife. You got somebody blowing your phone up because the AC is out and you’re like, look.

    You know, one of the spouses is going to say, what are we doing here? Like, this isn’t what we signed up for. I thought you said it was going to be some kind of real estate investment. And now suddenly you’re managing the air conditioning on Saturday night and I don’t want to do that. Okay. And so I think that’s a, that’s a key to second home is not your second job. I think that’s completely the key to what we’re doing is just taking that off your plate with our real estate investors.

    We’re just a line item fee. Like, yes, I charge a fee, but it’s just the cost of doing business.

    And at the end of the day, Uncle Sam, right, you write it off anyway. So it’s like, what are you doing? Unless you’ve set up your property as an LLC and are actually writing yourself a paycheck. Most hosts on Airbnb, they’re working for free. Like because you’re making rental income, that doesn’t mean like you have to work for free. think that’s crazy. And it’s a lot of our investors. They’re still under contract. They haven’t even closed on the property and they sign a property management agreement with me because they want it. They hit the ground running. They’re not like, let’s start shopping after they closed.

    Quentin (07:34)
    Yeah.

    Chad Hart (07:48)
    Now you got a two to four week process to get it clean, photos, ready to go on a rental. You made nothing while you’re kind of screwing around, right? So that sec, Hey, that’s where it comes in with, with our professionals is, like, why is this? Why are you making this your job? I think I brought up to you previous to the podcast. You can change your own oil in your car and you can wash your own car in your driveway. Go ahead. You can run your own Airbnb. In fact, they suggest you should do it. Do you know why they suggest you should do it?

    They want you to work 24 hours a day, seven days a week, free of charge. That’s why they would prefer that they have, you know, grandma owns a house next door. But I don’t wash my own car, you know, every now and then I’ll do it with my kids for fun. But honestly, like you get a car wash, oil change. I haven’t changed my oil and I know what to do. My dad taught me, but look, I haven’t changed oil in 20 years. I could and you can run your own air B B. That’s how you tell people, what’s your rate? I’m going, well, you’ve just asked the wrong question. It doesn’t matter what I charge.

    What matters is this property going to be properly maintained. We’re in a high salinity content with the salt air. We’re surrounded by the Laguna Madre Bay, which is somewhere between six inches and three feet deep. And then we’ve got the ocean on the other side, the Gulf of America, Mexico, whatever you want to call it. But when we’re at 95 degrees in the summer, imagine that, that burn off, that evaporation, that salt goes somewhere and it ain’t going where you like if you own property. Okay. It’s going to settle and rust.

    Quentin (09:06)
    Yeah.

    Chad Hart (09:09)
    And so you got to keep your maintenance up. that’s that my maintenance crew is absolutely critical, especially if you have a standalone home.

    Quentin (09:15)
    Yeah, yeah. Now I heard you, what I heard you say, and I think it’s so good, you said you take things off of people’s plates and put it onto your own. And I know that’s not always easy. Everybody can do that. And so you got 34 employees. Like what’s been the key to keeping your machine running smooth?

    Chad Hart (09:33)
    Well, unfortunately I called the Superman complex. So the first free user of my business, I just try to do it all. Right. That’s what you do when you’re small. You have to, if you’re going to survive really, when you’re an entrepreneur doing it, doing it like I’ve done property management of some kind for about 25 years, just straight up property vacation, rental management. Like with this company has been about eight years, but I had the Superman complex at first. Like I’m going to do everything. I’m going to do the accounting. I have a

    I have an MBA in finance. I’m gonna do the accounting. I’m gonna do the post inspection.

    It just went on and on until it was like, well, hold on. Like where’s actually the value for me to the business? And it’s probably not going over to make sure the fry pans look good. Okay. But it’s important that somebody does that. So that’s where we, but that’s where the scale matters. When I got started, I started nine properties just like everybody else, right? I owned four of them. I was like, I don’t want to do this anymore. But I made a company.

    Quentin (10:46)
    There you go.

    Chad Hart (11:04)
    that basically surrounded the fact that I didn’t want to do the rentals on it. It was too much work. Like all weekend I was blown out. on the phone all night. I’m like, you know, and then, then of course, as a human being, at some point you’re going to get frustrated. What do you think happens? Your guest reviews, like they’re going to in the toilet because you’re rude to somebody because you’re just tired. Right. So we got to take that off people’s plate. I think that’s the, that’s the thing is I’m taking that away. You don’t want to do that. Stop thinking about doing it. Now, if you want to, by all means.

    But usually after a few months, you’re like, ⁓ this, sucks. I shouldn’t have got involved. I liked the property, but I don’t want to run it.

    Quentin (11:42)
    Yeah, yeah. Now I think you hit on something very, very good. I had a guest on, know, he had scaled his business 100 million revenue and he dropped the bomb that I was like, this makes so much sense. He said, you delegate to elevate. He said, you got to delegate to elevate. You got to sneak some stuff off your plate. And so I think that’s one of the best things you’re doing is taking off that Superman cape, putting on your car, car clink clink glasses and like, listen, you can take care of this.

    Chad Hart (11:56)
    Yeah.

    Quentin (12:10)
    I know where I need to focus on to make this business be better. can’t do everything, even though you’re capable well, but you can’t do everything. And so I think that’s so, so important, man.

    Chad Hart (12:17)
    Yeah.

    And also don’t you, I think it’s easier said than done too. You know, you, you watch all these videos and podcasts and stuff. Oh, Hey, you to delegate. Hey, you can’t be doing all your stuff. You’re like, yeah, but who pays? Like when you have a small business, you’re just trying to survive. And if you have kids involved, it was really easy. I had a tour company. started with this college spring break tour company out of college. It was me. I didn’t have any kids. Wasn’t married. It either made it or not. All I really needed was a bed and you know, my mom’s old car, whatever.

    Quentin (12:22)
    yeah.

    Tap part.

    Yeah.

    Chad Hart (12:46)
    But then

    at some point you grow up and you’re like, wait a second. Like, I don’t want to live like that for one. And for two, I got kids, you know, my kids now aren’t really little, but still as teenagers, you got to take care of them. And of course kids aren’t cheap. So yeah, it’s easy. I said, just delegate. Hey, you should have somebody doing your revenue management. should have somebody else running your housekeeping. Well, they’re not going to work for minimum wage anymore. Right. Wages since COVID escalated to the point where it’s like my housekeepers were between 10 and $12 an hour prior to COVID.

    Now they’re at 20 to 22. Like that’s a huge increase and you can’t squeeze the guests for more and more money on cleanings or they’re not going to book, right? So anyway, it’s a balance.

    Quentin (13:29)
    I think you’re the nail on the Like you said, it’s a balance. You’re doing it within your scale, within your systems. man, I appreciate your perspective. I appreciate everything you’re saying. I think you are giving nuggets to people as they’re on their journey that they really can hold up to and really look at and say, hey, you know, this is something that I can hold on to that’s going to help me out. And so I want to ask you.

    Chad Hart (13:51)
    Yeah. ⁓

    Quentin (14:09)
    Like what are you most focused on solving next? Like what’s the next real goal for you?

    Chad Hart (14:15)
    Yeah. So what are the things I think that is on any progressive operators mind? And it’s not just real estate guys, right? We’re all thinking about technology and AI is such a buzzword. Like everything’s AI and it annoys me because I’m like, that’s not really AI. That’s just software, right? Like AI can do 15,000 calls an hour. I’m like, that’s called an auto dialer. This thing’s been around 30 years, but we’re trying to balance. And as we discussed technology stack, like what makes sense.

    Then two, can we afford it? And then three, does the time work on this tech? And we’re not talking about, don’t think in real estate, how much time this tech actually takes. If you wanna have a new property management software, you know that probably took us and my operator, like I got a reservations manager,

    I bet between us it took us a thousand hours to change our software, okay? It’s like a divorce. So it’s like, but now you’re like, I really like this program.

    You know, you and I talked about Stafi like, hey, it’s a great program because it captures guest data to do direct bookings later. The problem is, is first of all, okay, so you get this little module, you plug in the wall with your wifi and they can’t get on unless they put their info in, which you want as an operator because then you can do direct marketing to avoid Airbnb space. The problem is, is okay, so I got this little module, now I’m managing 120 properties. How long does it take you?

    to install 120 modules in condos spread out all across your destination. You’re talking a hundred hours? Who pays for that? You do. And Stafi doesn’t pay. And then they want 50 bucks a month. It’s a great product. So here we go. Time, software, and does it improve the guest experience? Clearly no. They should be able to just go there, scan a QR code and they’re on the internet. But it doesn’t get in the way that much that their guest experience sucks. So it’s worth doing because

    You get the guest data to remarket to them. But see, this is the, think the biggest challenge right now is what technology makes sense. AI, everybody’s got their eyes on it. That’s progressive in this business. wants to propel it. What do I use an AI, but cost time. Will my guest experience be diminished? Like hotels are playing around this big time. I heard somewhere Hilton tried all contactless check-in and the business travelers hated it. They now they have it as an option.

    Still, most people want to check in on a front desk. No one knows why, it’s just tradition, right? Like I’m going to hotel, I want to see somebody and check in and get my key. It takes longer than contactless, right? Because you could use your phone to check in. People still aren’t doing it. Well, why? I mean, these are the challenges that we’re facing in real estate is all this tech, how do we implement it at a cost effective way, but also increase our guest experience.

    Quentin (17:27)
    Yeah

    Yeah. Now I think you hit, I think you hit the nail on the head. know, we’re definitely technology is advanced and AI is not going anywhere. You know, using AI as the tool of how we can use it. But you said it bros, like how much is it costing? How much time is it taking? And what is the overall experience at the end for our customers? And I think you’ll hit the nail on the head. And that’s why it’s such a big move accepting and embracing technology, but also, you know, it’s, can be risky at the same time.

    Chad Hart (17:48)
    Right.

    Quentin (18:08)
    And so I love the way you’re going at it, if you’re wearing the cost. And so that’s big, man. That’s, that’s, that’s big. And the next move, he either compound things or create total chaos. So we go and see, we go and see, but the thing about chaos, eventually you can wrangle it down and put it into some type of order. So no doubt in my mind, man, you’re building the systems to do that. ⁓ and so what I love about you, you know, you’re, you’re, you’re talking about people. You talk about your, your staff.

    them going from $12 to $22. You sound like somebody that knows the value of relationships. And so I think it would benefit our listeners hearing this from you, from your perspective, when it comes to building relationships and growing your network, what has made the biggest difference for you?

    Chad Hart (18:57)
    Well, for me, what’s been kind of a game changer for us is we all know that personal referrals are way more powerful than advertising. Like one of things I learned was, is I can’t advertise in new owners for a portfolio on Facebook. Like, yeah, you’ll get people interested that fill out a lead for, but actually signing them, the cost to signing is way too high. So how do I obtain new properties? Like I have people like, how are you growing it like this?

    I say, well, you you have a quality service like on Google reviews. My company has an average review score of 4.9 stars. We have over 550 five star reviews. I’d like to have 5,000 five star reviews, but see, you’re able to use that as a kind of a sales tool. That’s a third party. So my recommendation to business owners, what’s your third party source that says you’re good? Because you can say you have the best podcasts in real estate. You’re saying it, but if you get a three, two or three other sources that say you’re the best guy in real estate.

    for interviewing real estate professionals, all of a sudden you are. And I position myself, I was lucky because I was young enough and we’re fresh enough, we’re not brand new at seven or eight years old now, but I started the company with the idea that these Google reviews matter. Okay, people are gonna read that crap. And I wanna control at least Google’s reviews the best I can. Airbnb is another whole other deal. Like who knows where those reviews go, but Google I have more control. Cause those are direct bookings.

    We don’t pay people refer reviews. I’ve kept it very clean and to do that and don’t ever pay for reviews like I’m just gonna tell you that right now like that’ll get you lagged just don’t do it and You got to respond to every review even if they’re bad now if it’s one you think you can get removed like someone’s a jerk They’ve attacked you personally you can get that removed on Google So don’t respond to those but every other review like if it’s legit, they have a profile photo Especially if they posted a photo Google is not removing that

    Quentin (20:31)
    Yeah. Yeah.

    Chad Hart (20:53)
    Okay, most of the time your feelings are just hurt, but you know what you want? If you go to look at a beach rental in South Potter Island, you see the review, someone gave them a one star and they’re complaining about blah, blah, blah. But then the operator gets on there and says, I’m so sorry, Mr. Smith, that you had this experience. We immediately set pest control because you mentioned that there was a bug in there. You mentioned that it wasn’t clean enough. So we went ahead and did a deep cleaning. We’re so sorry that you didn’t have a perfect stay. We’d love to earn your business and try again. That’s all you want to see.

    Right? If there’s no response or the operator, I’ve seen this from hotel sometimes, these independent operators, they go on there and they justify why there’s bugs or they justify why it was dirty. Well, as a guest, what are you going to say? Hey, where there’s smoke, there’s fire. Like this, company is not apologizing. And then two, offering a solution. I just want a solution. You know, if I buy a new tire from you for my car and it blows out the next day, I go to your shop and you’re like, dude, I’m so sorry. Let me put a new tire on. What are you complaining about?

    Quentin (21:42)
    Thank

    Here,

    Chad Hart (21:51)
    Now, if they’re like, well,

    you must have ran over something, it’s full price. You’re going to be angry, right? Even if it was your fault. So you got to respond to reviews, but staying at top of those reviews for me has been the game changer and it sucks as a business owner. I recommend you delegate it if you don’t like it, but somebody’s got to do it. These reputation managers charge too much, but I would, that’s where I really would get into a virtual assistant, wherever they live in the world, they can handle this for you. Okay.

    Quentin (21:56)
    Yeah.

    Yeah.

    Chad Hart (22:18)
    I do like

    the guesty platform for short-term rentals because you can automate responses to reviews as automatic five-stars. You got to respond to every review on Airbnb. Now you can stop that like if they, you know, damaged your property, you don’t have to automatically do it. So it automatically reviews on the last day possible, like on the seventh day it drops that five-star review for your guest. That way, you know, another secret here is don’t review people on the day of checkout. Because when you review them, Airbnb sends them a message and says,

    Quentin (22:26)
    Yeah.

    Mmm.

    Chad Hart (22:47)
    They reviewed you you should review them. Well, if they didn’t love you guess what you get you’re gonna get hammered It’s better that you wait till the very last day they get the notification if it wasn’t great. They’ve already moved on Okay, they’ve already moved out their life. Both people will take the time to hammer you See you want it there’s there’s a definite science to this review management and I’m not perfect Okay, but I know if you’re not focusing on it with any business you have you’re gonna be a lot of trouble these days because everybody needs reviews

    And not everybody’s an expert review anyway, but we treat them as if they are like this guy goes to a five star restaurant gives them one star. It’s like, dude, you’ve only had a McDonald’s. You have no business reviewing this poor restaurant. I always feel so sorry for restaurants. But anyway, kind of got off.

    Quentin (23:31)
    No, man, hear, man, I hear your passion coming through, man. I hear your passion coming through. And you are driving just so many just good nuggets, just good information, especially with that view that I got to review hack. I don’t know if that’s the right word, but now, man, this, is great information. This has been great information. And listen, if someone was wanting to reach out to you, wanting to connect with you, maybe collaborate with you, learn more about what you’re doing, what’s the best way for them to reach out to you?

    Chad Hart (23:37)
    Yeah.

    Well, there’s, I’m on every social media channel for sure, but just my cell is five one two eight two five two one five seven. I give it up. ⁓ I don’t do any gatekeeping. You text me, call me. And obviously my email is Chad at South padre trip, but our website southpadretripscom. then on Tik TOK I’m at inertia Chad. If you want to follow it, all my Tik TOK is dedicated to short term real estate investing. So all the videos you see, it’s all on condos. It’s on our deep clean process.

    And it’s a lot of fun to see the units that we’re doing too. So I try and make them kind of entertaining, of course, where nobody wants to watch it.

    Quentin (24:36)
    Yeah, yeah, yeah. Well, listen, Chad, sir, I thank you so much, man. I thank you so much for your time. I thank you for your story. Thank you for your perspective. Thank you for coming and continuing to make sure that this happened today. It was such a pleasure. And I know our viewers have just taken some great, great value and nuggets from you. So again, thank you, Absolutely, no problem. All right.

    Chad Hart (24:50)
    Absolutely.

    Absolutely. Thanks for having me on. Have a good Thursday.

    Quentin (25:02)
    man. Now, everyone else, you heard him. You heard the value that Chad has given.

    And y’all know we’re going to continue to bring other operators up, other business owners, other investors, other managers. And you do not want to miss out on this incredible content that we’re going to continue to give. So just hit that subscribe button. Just go ahead, set it and forget it. That way we will let you know when the episode is up. So listen, we thank you again, Mr. Chad and to everyone else. Y’all have a great.

    Chad Hart (25:27)
    That’s it.

    Thanks,

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