Luxurious homes and private villas are becoming an attractive alternative for travelers looking for more than just a typical chain hotel. Property managers help owners by renting out and maintaining their properties.
Choosing a property management company
Do thorough research
Completing thorough research before signing a contract helps owners avoid aligning themselves with an unreliable company. Check with your local chamber of commerce and industry associations like the Vacation Rentals Managers Association for reputable companies in your market area. Perhaps most importantly, meet with the staff of several potential companies to get an idea of how they operate.
Of course, it’s good also to get a feel for how potential management companies may treat your guests. What kinds of amenities will they provide to enhance your guests’ vacation experience? Look them up on travel review sites and read what guests have said about their experiences, but be mindful about looking for trends in the reviews rather than isolated instances; don’t make a decision based on just one negative comment.
Compare different commission rates
Owners should also compare the commission rates property managers charge in your market area and find out what services are included in their fee structure. If the rates are on the higher end, see if they are covering things like landscaping that might otherwise be an additional charge for you.
However, rates that are too low are not always ideal; the company may be making up for them with higher fees elsewhere, so be sure you know all the costs.
Consult a lawyer before signing any contract
Once you decide on a management company, it is important to make sure you get everything in writing. Because contract formats vary with each company, make sure your manager discloses as much information as possible.
Consulting an attorney can help ensure you understand everything going into the contract, which should include a detailed list of what your expenses are and what is included in the fees being quoted. Your contract should also define what the company covers repairs to avoid any surprise charges to you.
Choosing the best property manager is a grueling process, but it has an enormous impact on the success of your vacation rental properties. A rental home is a major investment, and a quality management company will treat it with similar care and attention to details as you would.