Lisa Marion has always loved entertaining and hosting guests in her home.

For five years, she welcomed hundreds of people to share space in her Toronto apartment as a way to make extra cash. She even wound up working for the short-term rentals website Airbnb, coaching people to become better hosts.

Her friend Monica Reichel also joined Airbnb, working in the resolutions department, dealing with rental issues such as missing keys.

But in 2013, Airbnb restructured its operations here, and both were out of work. As they juggled part-time jobs, they decided to put their expertise to work and formed a property management company, H&P Properties.

The H stands for hyacinth, Reichel’s favourite flower, and the P stands for peony, Lisa’s favourite.

While they handle traditional property rentals, their focus is on short-term rentals in Toronto. They do everything from writing listings to decorating spaces, screening guests to leaving coffee and a gift basket, and arranging cleaners.

“Our goal is to the raise the bar,” said Marion, 30.

“It’s something that’s not going to go away,” she says of such online rentals. “People need to come to terms with it, and make sure things are done properly.”

Travellers rave about these short-term rentals, which are usually cheaper than hotels, and give visitors a chance to live like a local. But problems can emerge, with bad guests, or neighbours complaining about frequent parties.

The Star has heard from residents on a quiet street in Willowdale about a five-bedroom house where a high school prom celebration was held last spring. Others in Rosedale have complained about a large house, complete with indoor swimming pool and sauna, being the site of noisy late-night parties.

Under Toronto’s zoning bylaw, there is nothing that prevents owners from renting out their whole house, though some co-op and condo boards have bylaws restricting such activity.

Some jurisdictions, such as San Francisco and London, have begun to implement rules, from requiring licences and proof of insurance, to restricting the number of days that homes can be rented out.

Reichel, 32, says that when owners list properties, they can do things to protect themselves, including careful screening. “There are no taboo questions,” she said. “Why are they coming? If you don’t feel comfortable, politely decline. You can decline anyone you want.”

Similarly, she said those looking to book a space should ask specific questions and get a certain comfort level.

She urges all home owners to be transparent and offer accurate descriptions and photos. Acknowledge if you’re not terribly neat; if children usually live in the space, note there will be wear and tear and the occasional toy out of place.

H&P, which manages 11 properties listed on sites such as Airbnb, vrbo, and Flipkey, always demands a two-night minimum stay, as well as cleaning fees and a $250 minimum security deposit.

“Without the two-night minimum, it’s not worth it and it might attract the wrong people,” said Marion.

They also carefully set the price to discourage certain travellers. “We’re not budget accommodation, but we’re not luxury,” she said.

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For every confirmed booking, the company charges 20 per cent of the rental price to owners, some of whom don’t want to manage rentals on their second home. H&P only takes on properties in the right location, and says it abides by condo board regulations and requires additional rental insurance.

It reports an overall 75 per cent occupancy rate, but added that it jumps to 100 per cent during peak summer travel season.

By requiring a security deposit, H&P keeps funds to pay for damages, or for extra cleaning if renters smoked where it’s prohibited.

“We screen everybody,” said Reichel, adding that they ask why the individuals are coming to town and how many people will be staying at the home. “You have to trust your experience and your gut.”

They concede that in two years of business, they messed up once — a woman planning a girls’ weekend in Toronto ended up having a big party, bringing lots of friends and leaving a lot of clean-up work.

Since that experience, they don’t allow guests pay just cash; they always use the online credit card payment system, and require a security deposit.

While Marion and Reichel don’t own any homes themselves, they hope the company can soon buy an investment property and begin renting it out.

They started their company with seed money from their families, and say they are making money. The work is growing, so they are interviewing for an administrative assistant to join the company.

They credit some of their success to winning a spot the city-sponsored Enterprise Toronto’s Starter Company program for young entrepreneurs last July. They received a $5,000 grant that helped their business, but they believe the bigger benefits have been the mentorships and courses they have taken, from accounting to business-plan development.

They concede they work all the time, answering text messages and phone calls late into the night, but insist they love the work.

“It’s very hands-on with all the inquiries. You’re constantly working,” said Marion. “You have to have the passion for it.”