Scaling Smart, Not Big: Inside Kylee & Steven's Approach to Boutique Management

In this episode of the STR Data Lab podcast, host Jamie Lane, Chief Economist at AirDNA, sits down with Kylee and Steven Niederhauser, founders of a thriving boutique vacation rental brand in Southern California. The Niederhausers bring unique perspectives from their journey managing properties while traveling across all 50 states, offering invaluable insights into the evolving landscape of boutique vacation rental management in 2025.

From Startup to Boutique Brand: The 2025 Landscape

The Niederhausers' journey began in 2017 with a rundown duplex in Mission Beach, San Diego. Starting as accidental property managers when neighbors noticed their consistently booked Airbnb and asked for help, they experienced explosive growth during the pandemic. By late 2020 and early 2021, they were constantly onboarding new properties, particularly in the Palm Springs area where second home demand surged.

Their current portfolio in 2025 reflects strategic diversification, with an almost 50/50 split between owned and managed properties. They've expanded beyond traditional short-term rentals to include midterm rental management and monthly furnished rentals, adapting to changing market demands. This evolution represents a deliberate shift from rapid expansion to maintaining boutique scale. "In the last three years, we realized we don't want a huge property management company," Steven notes, emphasizing their commitment to quality over quantity.

Navigating Market Changes and Owner Relationships

The post-COVID market normalization in 2025 has brought new challenges for boutique managers. The Niederhauser's have experienced portfolio fluctuations as market conditions shifted. "Some owners have sold their properties, so our portfolio numbers have fluctuated," Steven acknowledges, highlighting the reality of owner retention in changing markets.

A critical aspect of their business involves educating owners about reinvestment strategies. The challenge lies in aligning owner and manager goals, particularly when it comes to property upgrades. "The frustration in property management is that you're not in control of every aspect of a property's performance—you need owners to be on board," Steven explains, underscoring the partnership nature of successful property management relationships.

Remote Operations and Systemization for 2025

The transition from hands-on to remote vacation rental operations didn't happen overnight for the Niederhausers. "We felt tied to our business for a long time and had to make a point to figure out how we could travel, even just for a weekend," Kylee shares about their two-year journey to build location independence.

Their current setup includes strategic staffing in key markets, with a full-time employee managing operations in Palm Springs where the bulk of their portfolio resides. This structure has remained consistent for almost two years, enabling them to maintain quality while gaining flexibility. "Our full-time employee in Palm Springs has been our boots on the ground for almost two years, so our roles haven't really changed," Kylee explains.

Essential Tools and Automation in 2025

The Niederhauser's tech stack centers on two core platforms that enable their remote operations. Uplisting serves as their primary tool for guest management, listing management, and pricing strategies, while Breezeway handles the operational side including turnover scheduling, cleaning coordination, and maintenance tracking. They supplement these with smart home technology and noise monitoring through Minute.

Interestingly, their approach to vacation rental automation tools goes against industry trends. "Most people would be surprised, but not much is automated… We prefer to personalize our communication with guests," Kylee reveals. This deliberate choice reflects their boutique philosophy, using templated responses as a foundation while adding personal touches to maintain their brand standard of exceptional service.

Staffing and Scalability Limits

The current staffing model—two owners plus local support—represents what the Niederhausers see as the optimal size for maintaining their service standards. "If we wanted to maintain our current quality, hiring more people would require us to keep growing to cover those costs," Steven explains, highlighting the economics of scaling boutique property management.

They've observed various operational models in the industry and question the profitability of heavily staffed operations. "We're fine with our current number, but it does require a good amount of our time," Steven admits, acknowledging the trade-offs between scale and personal involvement in boutique operations.

Guest Experience and Content Strategy in 2025

The Niederhausers' commitment to personalized guest experience extends to their communication strategy. While using templates as a foundation, they ensure each interaction feels personal and timely. "Since both of us are usually near our phones, it's easy to respond quickly," Kylee notes, contrasting their approach with hosts who take 8-10 hours to respond.

Their 50-state journey has provided unique insights into guest expectations. "Being on this trip has changed my hosting mentality. There were things I was strict about in our own properties, but as a guest in others, I've realized some things aren't as big of a deal as I thought," Kylee reflects, demonstrating how experiencing properties as guests has refined their hosting approach.

Leveraging Content Creation for Brand Growth

Content creation has become an unexpected driver for their property management business. "YouTube has brought in some property management clients, which we didn't expect," Kylee shares, noting how local property owners discovered them through their educational content.

Their most successful content focuses on practical, actionable advice for hosts. "Straightforward, practical videos do well—like our videos on settings, setups, and things not to do," Kylee explains. This approach aligns with their philosophy of transparency, sharing both successes and failures with their audience.

The cross-country journey has shifted their content strategy, potentially expanding their audience beyond the host community. "Most of our audience is host-related, not guest-focused. That might be changing with this trip, since we're putting out different content," Steven observes.

Trends, Challenges, and Opportunities in Boutique Vacation Rental Management

The vacation rental market in 2025 has returned to pre-pandemic patterns of seasonality and increased competition. This shift has prompted a strategic pivot for many operators, including the Niederhausers. "It's important to maximize what we have rather than just acquiring more properties," Steven emphasizes, reflecting broader vacation rental trends 2025 where optimization trumps expansion.

The post-COVID era has made generic suburban properties harder to market, requiring managers to help owners understand the importance of differentiation. Properties must now compete on amenities and unique experiences rather than simply availability, a significant shift from the pandemic boom years.

Owner Education and Portfolio Optimization

Data-driven owner education has become crucial for portfolio optimization in 2025. The Niederhausers leverage performance data from their own portfolio to demonstrate potential improvements. "We use data from our own portfolio to show owners what's possible," Steven explains, using concrete examples to encourage reinvestment.

The challenge lies in convincing owners to invest in upgrades when performance lags. Some owners struggle to understand that strategic improvements can significantly boost revenue, particularly in competitive markets. This education process requires patience and clear communication about return on investment timelines.

Family, Flexibility, and the Future of Boutique Management

The Niederhauser's journey demonstrates how boutique vacation rental management in 2025 can accommodate lifestyle goals while maintaining business excellence. "We decided to visit all 50 states in the U.S., and in each state, we're looking for the coolest kid-approved short-term rental," Kylee shares, highlighting how they've integrated family life with business operations.

Their experience offers valuable lessons for other boutique managers seeking work-life integration. "I'll never regret taking this trip. There are challenges, but I'm glad we came up with the idea and decided to do it. The memories are worth it," Steven reflects.

The connections made during their journey have enriched both their business knowledge and personal experience. "Meeting hosts and hearing their stories has made the experience even more special," Steven notes, emphasizing how relationship-building remains central to successful boutique property management even in an increasingly digital world.

For property managers considering similar flexibility, the Niederhauser's journey proves that with proper systems, trusted staff, and clear communication, running a successful boutique vacation rental management company while maintaining personal freedom is achievable in 2025. Their story serves as both inspiration and practical blueprint for others in the short-term rental business 2025 landscape.