The Business Behind Hosting: Mergers, Markets, & Management

Meet the Experts

Jamie Lane, Chief Economist at AirDNA, sits down with, Patryk Swietek, owner of The Co-Host Company, to talk about his unconventional path to success in the industry. Patryk manages over 100 listings in Joshua Tree, California, and has become recognized for his innovative approach to scaling short-term rental businesses through strategic acquisitions.

Patryk, a former product manager at AvantStay, combines tech expertise with operational excellence to rapidly scale his property management company. "I realized I wasn't a great employee, so I decided to start my own business… I achieved that by acquiring three property management companies, which allowed me to scale quickly," Patryk explains.

Scaling Strategies for Short-Term Rental Businesses in 2025

Acquisition as a Growth Engine

Patryk's journey from individual host to managing 100+ listings demonstrates how acquisition can accelerate growth in the competitive short-term rental market of 2025. Starting with five properties in 2021, he recognized the limitations of traditional scaling methods and pivoted to acquiring existing property management companies in Joshua Tree.

His first acquisition involved 15 co-host contracts, structured with 50% down and 50% retention-based payment to mitigate risk. This deal protection ensured that if clients left during the transition, the final payment would adjust accordingly. "The appealing thing about buying a company is that you immediately have a brand and website," Patryk notes, emphasizing how acquisition eliminates the time-consuming process of building infrastructure from scratch.

The strategic value extends beyond immediate growth. Patryk explains that "every time I buy a property now, I put it under the management company, which already has contractors and operations managers in place." This plug-and-play approach transforms property ownership from a time-intensive endeavor into a streamlined operation supported by established systems.

Evaluating Buy vs. Build in 2025

The financial mathematics of acquisition versus property ownership reveal compelling advantages for scaling a short-term rental business. Patryk's analysis of his first property showed $170,000 in equity generating approximately $1,500 monthly net income. By investing that same capital in acquiring 15 management contracts, each generating around $1,000 monthly, he effectively multiplied his cash flow potential.

In 2025's market context, acquisition offers several advantages over organic growth. The lifetime value of a contract in the industry averages 10 years, with typical churn rates around 10% annually. "The only way to access those valuable homes is to buy the relationships," Patryk emphasizes, noting that established management companies have sticky contracts with hundreds or thousands of five-star reviews that make client poaching extremely difficult.

Business Models: Co-Hosting vs. Property Management

Defining Roles and Revenue Streams in 2025

The distinction between co-hosting and property management remains crucial for scaling strategies in 2025. Patryk clarifies the fundamental difference: "If you handle the money, you're a property manager; if you don't, you're a co-host and invoice for services." This distinction affects everything from regulatory compliance to revenue models and operational complexity.

The Co-Host Company's name itself tells an interesting story about branding in the digital age. Despite functioning as a full-service property management company, the original owner chose the name as a placeholder in 2016 and never changed it. "People searching for 'co-host Joshua Tree' will find us first," Patryk notes, highlighting the SEO advantages that have proven valuable in 2025's competitive digital landscape.

Revenue considerations differ significantly between models. Property management companies in 2025 typically earn 20-30% of gross revenue, handling everything from guest communications to maintenance coordination. Co-hosting arrangements often involve lower percentages but also reduced liability and operational complexity.

Operational Integration and Tech Stack Consolidation

Integrating acquired contracts into a unified system presents both challenges and opportunities in 2025. Patryk's approach focuses on contract acquisition rather than company absorption, simplifying the technical integration. "We usually buy the contracts, not the companies themselves, so we just reassign them to our brand and put them on our property management system," he explains.

The human element proves more complex than technical integration. New owners may feel apprehensive about management changes, requiring careful communication and relationship building. Patryk addresses this by arriving with a clear game plan and demonstrating immediate value through improved operations and owner returns.

Economies of scale become apparent as the portfolio grows. The larger company provides backend support, established vendor relationships, and proven systems that benefit newly acquired properties. This operational leverage improves margins while maintaining service quality across the expanded portfolio.

Leveraging Technology and Human Touch

Automation vs. Personalization in 2025

The balance between automation and human interaction defines successful property management in 2025. Patryk's philosophy centers on strategic automation: "Anything administrative can be automated, but anything front-facing should remain human." This approach frees staff to focus on high-value, relationship-building activities while technology handles routine tasks.

Despite managing 100 properties, The Co-Host Company maintains personal touches. "We call our guests before they arrive, even with 100 properties, and stay proactive," Patryk emphasizes. This commitment to hospitality comes at a cost—payroll represents their largest expense—but creates the differentiation necessary in competitive markets.

The company maintains a ratio of one property manager per 10-12 homes, ensuring each property receives individual attention between every guest stay. These managers develop deep relationships with owners and intimate knowledge of each property. Patryk describes this as delivering a "Ritz-Carlton, five-star experience," acknowledging it's expensive but essential for reducing issues and maintaining satisfaction.

Technology Trends Shaping Short-Term Rentals in 2025

Technology adoption in 2025 focuses on tools that improve rather than replace human judgment. Patryk actively seeks new solutions through industry connections, citing examples like AirDNA's property manager tool for instant review analytics and competitive insights. "Being able to see reviews instantly or compare cleaning fees is valuable," he notes, especially in markets like California where certain pricing data isn't publicly visible.

Conference networking yields practical technology discoveries. Meeting Top Key at an industry event led to implementing their product across the portfolio. Similarly, a recommendation from Isaac French introduced them to a social media company now "crushing it" for their properties. These technology adoptions demonstrate how staying connected to industry innovations directly benefits operations and owner returns.

The integration of data analytics proves particularly valuable. "We can pull reports from AirDNA and show owners how much their property can make, using our own comps," Patryk explains, demonstrating how technology builds trust and supports data-driven decision-making in 2025's sophisticated market.

Market Dynamics: Competing in Joshua Tree in 2025

Evolving Competition and Guest Expectations

Joshua Tree's transformation from hidden gem to hypercompetitive market exemplifies broader trends in desirable short-term rental destinations. Patryk's basketball analogy captures the intensity: "It feels like being in the NBA—I'm guarding LeBron James. The competition is intense." This market attracts creative professionals and wealthy investors from Los Angeles, San Diego, and San Francisco, each bringing capital and design expertise.

The market has evolved beyond amenity competition into what Patryk calls an "art race." Properties that would dominate other markets represent merely baseline expectations in Joshua Tree. "Something that would crush it in another market is just the bare minimum here," he observes, noting how this forces continuous innovation and differentiation.

This competitive pressure has unexpected benefits. Joshua Tree serves as an innovation laboratory where trends emerge before spreading nationally. Saunas appeared years ago in the market, while geodesic domes for stargazing have been popular locally for two years before gaining traction elsewhere. "The creative energy levels up the market as a whole," Patryk notes, suggesting that intense competition ultimately benefits rental demand despite supply growth outpacing demand.

Owner Education and Portfolio Curation

Success in Joshua Tree's 2025 market requires careful property selection and owner education. The Co-Host Company applies strict criteria: "There's definitely a threshold for us, and it's all just math. The percentage has to make sense for us to support our operations." This includes evaluating maintenance requirements, owner alignment with company vision, and social media potential.

Property improvements require strategic planning to maximize returns. Patryk shares a specific example: pool placement can impact revenue by 20-25% depending on how it photographs. "If we work with owners early, we can show them the data and help them make informed decisions," he explains, demonstrating how property managers in 2025 must serve as consultants, not just operators.

The company maintains a wish list of target properties identified through AirDNA's platform, focusing primarily on new inventory rather than poaching existing relationships. "We try to educate and connect with new owners ahead of time to add value so that maybe one day they'll want us to manage their property," Patryk explains, highlighting the long-term relationship building essential in competitive markets.

Building a Sustainable, Differentiated Brand

Hospitality as a Moat in 2025

Creating sustainable competitive advantages in 2025's short-term rental market requires unwavering commitment to service excellence. "We're committed to providing a specific level of service—hospitality is everything," Patryk emphasizes. This philosophy drives weekly metrics tracking, continuous improvement initiatives, and strategic decisions about which properties to retain or release.

The company actively prunes its portfolio, letting go of properties that don't align with their service standards or profitability requirements. This disciplined approach reflects a broader trend in 2025 where successful property management companies focus on quality over quantity. "Our goal is to build a moat by differentiating ourselves through excellent service, which will allow us to thrive long-term," Patryk explains.

Operational excellence manifests in measurable improvements. Weekly team meetings track ratings and implement specific actions to better performance. This data-driven approach to hospitality ensures consistent service delivery across the portfolio while identifying opportunities for improvement.

Community, Learning, and Industry Presence

Building in public presents both opportunities and challenges for property management companies. Patryk acknowledges the double-edged nature of visibility: "My business comes first, but some owners might think my brand is more important to me, which is a misconception." However, he remains committed to community engagement, recognizing that "these connections and insights have been invaluable."

Industry participation yields concrete operational improvements. A podcast guest specializing in five-star reviews transformed their guest communication approach. Conference connections introduced game-changing technologies and service providers. "I love giving back and being part of this community," Patryk states, viewing knowledge sharing as both a responsibility and strategic advantage.

The balance between public presence and operational focus defines successful scaling in 2025. Patryk's approach demonstrates how property managers can leverage industry connections for a competitive advantage while maintaining a primary focus on client service. "We're scaling responsibly and focusing on retention by doing the best job possible, which pays off with both new and current clients," he concludes, encapsulating the sustainable growth philosophy essential for long-term success in the evolving short-term rental landscape.