If you have decided to rent out your vacation property or if you are thinking about purchasing one so you can rent it out, congratulations you are one step away from increasing your wealth. But ok let’s be honest, things are not that simple because choosing between self management and hiring a professional Vacation rental property management company is equally important.
A professional company will help you take a decision wether if you are going to rent short term or long term. Some of you might not know the fundamental differences? Do not worry I will expain to you. A short term rent is considered anywhere between an evening and a month, while rents over a month are considered long term. Short term rentals are in general more rewarding but at the same they are way more demanding.
Every property is not made equal, so not every property is suitable for short term rentals, and if you take the wrong decision you could be leaving money on the table (more information about what makes a property suitable can be found here). If a property is not suitable for short term rentals and you choose to use it so, instead of making money you could be paying on top. This will be mainly because you will not be making much to cover utility bills, cleaning and any other sort of expense that will come up like damages. If you consider the opportunity cost of not renting long term, then the losses will be great.
A professional vacation rental property management company with their experience and tools can you help you identify how your property will be generating the highest incomes and not only that.
Here are the 5 reasons why you need a Vacation rental property management company
1. It knows the market and how to keep your occupancy rates high
A professional vacation rental property management company will use its tools and experience to identify how you should rent out your property. Also if a company is using the right channels to promote your property and has the knowhow for implementing aggressive revenue management strategies they will keep your property occupied at the highest occupancy possible with the highest rates and they will make for you the highest earnings. On average professionally managed properties generate significantly higher revenues than self-managed properties.
2. They know how to protect and maintain your property
An experienced company will take good care of your property because they know that a well maintained property will generate higher incomes not only for you but also for them. They should have the procedures and methodology to effectively screen guests that will be staying at your property and minimise the possibility for any miss happenings. Furthermore, a professional property management company will collect damage deposits and when any sort of problems arise they will timely and efficiently take care of it and fix everything either through their own property maintenance crews or by calling up one of their associates.
3. They can make owning a rental property simple and convenient
Any company that respects its self should be able to take over and streamline all the processes required to accommodate guests. They should also be able to help you with any type of legal issues, tax issues and any type of paperwork required and they will in general make your life much easier so that you can spent your time doing other things while still enjoying all the financial benefits of owning a vacation rental.
4. They will offer the best service to your guests
A vacation rental property management company pretty much combines everything that a traditional property management company does with a lot of the services hospitality businesses like hotels offer. They have the experience to provide exceptional customer service to your guests, by making them feel like home and providing any sort of assistance and information that they will need in order to make their whole experience as pleasant as possible. By doing so, they guarantee that your property will receive great reviews and higher rankings in the channels they use something that will in return guarantee you more bookings and higher revenues.
5. They are the buffer between you and your guests
You have to always remember that an investment property is exactly that and investments are there to make you money. By getting to close to your guests as an owner, when any sort of problems arise you may become too reluctant to deal with the problems immediately and in some cases you may become frustrated with some of your guests..
A good vacation rental property management company should always be there to protect you and prevent this, by ensuring that the appropriate level of professionalism is always kept. Any issues with guests will be swiftly dealt in an efficient and professional level.
Just to put things into perspective, the role a of vacation rental property management company in our days is the overseeing of the promotion, rental and maintenance of properties. But it’s a bit more complex than it sounds.
A good vacation rental property management company will make your life much easier and will in general make your investment more rewarding. They should take care of everything for you and the only thing you should you have to worry is about how big your paycheck will be at the end of each month. To me it is clear that there is no reason for not handing the keys to a professional agency, unless if you want to do it yourself as a full time job.
If you finally decide to proceed with purchasing an investment property, then arguably the second most important decision should be about choosing the right company to manage your property.
If you have decided to rent out your vacation property or if you are thinking about purchasing one so you can rent it out, congratulations you are one step away from increasing your wealth.
But ok let’s be honest, things are not that simple. I will first explain a few things before moving to the main part of the article. There are other important decisions that you need to take before your investment starts generating important incomes. The first one is choosing the right rental duration and this can be tricky. You have two major options long term and short term. A short term rent is considered anywhere between an evening and a month, while rents over a month are considered long term.
Short term rentals are in general more rewarding but at the same they are way more demanding. Every property is not made equal, so not every property is suitable for short term rentals, and if you take the wrong decision you could be leaving money on the table. If a property is not suitable for short term rentals and you choose to use it so, instead of making money you could be paying on top. This will be mainly because you will not be making much to cover utility bills, cleaning and any other sort of expense that will come up like damages. If you consider the opportunity cost of not renting long term, then the losses will be great.
A professional vacation rental property management company with their experience and tools can you help you identify how your property will be generating the highest incomes and not only that.
Here are 5 reasons why you should choose one to manage your property:
1. It knows the market and how to keep your occupancy rates high
A professional vacation rental property management company will use its tools and experience to identify how you should rent out your property. Also if a company is using the right channels to promote your property and has the knowhow for implementing aggressive revenue management strategies they will keep your property occupied at the highest occupancy possible with the highest rates and they will make for you the highest earnings. On average professionally managed properties generate significantly higher revenues than self-managed properties.
2. They know how to protect and maintain your property
An experienced company will take good care of your property because they know that a well maintained property will generate higher incomes not only for you but also for them. They should have the procedures and methodology to effectively screen guests that will be staying at your property and minimise the possibility for any miss happenings. Furthermore, a professional property management company will collect damage deposits and when any sort of problems arise they will timely and efficiently take care of it and fix everything either through their own property maintenance crews or by calling up one of their associates.
3. They can make owning a rental property simple and convenient
Any company that respects its self should be able to take over and streamline all the processes required to accommodate guests. They should also be able to help you with any type of legal issues, tax issues and any type of paperwork required and they will in general make your life much easier so that you can spent your time doing other things while still enjoying all the financial benefits of owning a vacation rental.
4. They will offer the best service to your guests
A vacation rental property management company pretty much combines everything that a traditional property management company does with a lot of the services hospitality businesses like hotels offer. They have the experience to provide exceptional customer service to your guests, by making them feel like home and providing any sort of assistance and information that they will need in order to make their whole experience as pleasant as possible. By doing so, they guarantee that your property will receive great reviews and higher rankings in the channels they use something that will in return guarantee you more bookings and higher revenues.
5. They are the buffer between you and your guests
You have to always remember that an investment property is exactly that and investments are there to make you money. By getting to close to your guests as an owner, when any sort of problems arise you may become too reluctant to deal with the problems immediately and in some cases you may become frustrated with some of your guests..
A good vacation rental property management company should always be there to protect you and prevent this, by ensuring that the appropriate level of professionalism is always kept. Any issues with guests will be swiftly dealt in an efficient and professional level.
Just to put things into perspective, the role a of vacation rental property management company in our days is the overseeing of the promotion, rental and maintenance of properties. But it’s a bit more complex than it sounds.
A good vacation rental property management company will make your life much easier and will in general make your investment more rewarding. They should take care of everything for you and the only thing you should you have to worry is about how big your paycheck will be at the end of each month. To me it is clear that there is no reason for not handing the keys to a professional agency, unless if you want to do it yourself as a full time job.
If you finally decide to proceed with purchasing an investment property, then arguably the second most important decision should be about choosing the right company to manage your property.