Vacation rental is a growing business and according to a survey, it will be more than 893 million this year. Short-term rentals are making millions of dollars every year and that makes vacation rentals an investable business. However, managing an extra property is not as easy as it seems. This vacation rental can be at a distance from your primary residence and you need to visit frequently. Moreover, you have to fulfill maintenance requirements, emergencies, and other responsibilities as manager of the property. If you find it stressful, other options are also available like a property management company. To make it simple for you, here is the complete vacation rental property guide, which you may find helpful.
What is a property management company?
As the name suggests, it’s a company that manages all aspects of your vacation rental unit. The property experts manage everyday tasks and monthly and yearly jobs as well. They take care of everything like repair, maintenance, new bookings, payment collection, sending notices to tenants, and many other things. Property management companies deal with different property sizes, so whether it’s a single-family unit or a multifamily residence, they can manage both. In vacation rentals, usually guests stay for a few days but the duration of their stay can be as long as 90 days.
Other than vacation rentals, they are ready to manage units like condos and villas too. Short-term rental management companies offer all services a landlord asks for.
Is hiring a vacation rental management company the right choice?
If you have a vacation property, there is nothing wrong with hiring property management services. Several landlords experience stress when it comes to rental management, it’s about maintenance activities and dealing with everyday tenant requests. If you feel stressed, you must ask for management services.
If you are planning to buy a vacation rental, getting in touch with a management company in advance will be a nice move. Some companies can help you even during the buying process and it will be a great support for you. If you are a new investor, they can help you to find suitable properties and with documentation procedures as well.
If you travel frequently or have multiple properties, you can use them as your rental properties. It will be an easy income stream without much effort. If you have such property, all you need to do is to hire a rental management company. The experts know their job and they will handle everything. The company will help you to get the best return on investment.
Rental management options
If you have a property that can be used as a rental property, various management options are available for you. Here we are discussing a few best ones.
Hire a property manager: The first option is to hire an individual property manager. The person will manage your rental property, in every way. He may have one or two assistants to help him. But you have to communicate with the manager only. This option suits those landlords, who have multiple properties in the same location.
Get services from rental management company: If you need a comprehensive rental management service, hire a company. It’s suitable for those landlords who have multiple rental houses at different locations. A rental company can manage your properties efficiently, no matter how far apart they are. However, it can be a bit expensive so search for an economical option in your area.
Use management software: If you are looking for a cheaper but more efficient option, use rental management software. It’s a great option for those owners, who want to look after their property without any manager. Online services like Airbnb help with customer bookings, but you have to do the rest like repairs and maintenance. New landlords or those having small budgets can use this management software and manage their rental business without any problem.
Where should you buy a rental property?
Many new landlords have no idea about where they should invest in rental property. To get the answer, you need to answer this question, where do you want to spend your vacation? Your answer is the ideal location for rental property investment. However, you need to keep your approach very realistic. Choose a market where you can afford to buy a small rental home. No matter if the unit is small. If it’s at the right place you can make big profits even from a small unit. Choose a house and evaluate your return on investment. If you are satisfied, go ahead!
How to be successful in the vacation rental business?
If you want to succeed in the vacation rental business, you need to take your investment seriously. Following a few steps can help you to succeed.
Find the right manager for your property
For the success of the rental business, location is important but proper management is vital. If your property is not well managed, it will not generate good profit, no matter how good the location is. Proper management is not as easy as it seems. You need to hire a good property manager, who can be an individual or a company. You can find reliable managers online too. Some online platforms provide information about qualified property managers.
Write a proper management agreement
When you find a good property manager, you need to work on a property management agreement. Try to write a simple agreement, but include all terms and conditions. Discuss everything and read the printed copy before you sign. You can start with a trial period, which can be 3 months or 6 months. Instead of having a 12-month or 24-month agreement, starting with a short duration is a good idea.
Let the manager do his job
Property owners hire managers but don’t allow them to work freely. It is very important to understand that if you will not allow him to work, he will not be able to get desirable advantages for you. He is a professional and knows his job. Now relax and enjoy the return on your investment.
If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.