Are you planning to rent out your extra home? If yes, you should contact a property management company that can find potential tenants on your behalf.
It’s a privilege if you have an extra house because it provides various ways to make some extra money. But make sure you work with the right vacation rental property management company. Not all of them are reliable and a few may dupe you after promising many things.
You may think whether it’s at all necessary to hire a property management company.
Honestly, there are many owners who handle their properties themselves but it’s a time-consuming job. You need to take quality photos of your property, field traveler inquiries, promote your rental property, answer questions of potential tenants, write and revise the listing, meet potential guests, follow up for reviews, and take care of cleaning and maintenance alone.
If you don’t want to take so many responsibilities, you can simply hire a vacation rental management company and spend your time elsewhere.
However, you shouldn’t hire the first property manager that you come across. Make sure you talk to at least a few of them and ask the questions below to figure out who can do your job better.
- How is the performance of vacation rentals in the area where you have your property?
It’s important to work with someone who knows the local market like the back of his palm. He can recommend the peak and lull season and guide you on when to rent your property, the types of properties popular in the area, the average rentals, and the local regulations that affect vacation rentals. Prepare your questions after taking a look at the vacation rental performance reports.
The more questions you ask, the more you know whether the manager has the potential to do your job or not. An experienced candidate will not only answer your questions confidently but also provide insights about the locality that may give you an upper hand in finding guests faster.
On the other hand, if the candidate stutters or takes too long to answer your questions, it’s better to stay away from him. Make sure you ask about the rules and regulations of vacation rentals in the area. Ask the managers about the latest vacation rental laws to find out whether they keep themselves updated. A few managers may be experienced but not necessarily up to date with the new laws and regulations.
- What are your contract terms and fees?
In most cases, the average vacation rental property management fee may be between 25 and 50% of your rental income. In fact, the rates are higher in some places.
You should always calculate the fee of the manager before hiring him. Needless to say, you should hire someone whose fee comes with your budget.
Many homeowners can’t seem to work their way around the contracts of their property managers. Suppose you sign a one-year contract but you find out after a couple of months that the manager is not able to do the job efficiently. You may want to fire the manager but you can’t because of the contract’s terms and conditions. Therefore, always read the contract carefully to ensure that you don’t end up regretting hiring the respective manager.
Don’t hesitate to ask whether the vacation rental management company has any out clauses not based on its poor service or performance. Suppose the company comes up with only two bookings in six months or doesn’t clean the property at least thrice a year, then you should be able to end the contract without paying any penalty.
Most importantly, the company should prioritize guest experience above everything else, like contract terms and fees.
- What services are included in the management fees?
It’s important to know what you are paying for before signing the contract. Therefore, ask about the services that the company will provide against the agreed fee.
Always ask whether the fee covers services like writing the listing, observing market trends, pre-stay walkthroughs, in-person visits, cleaning, maintenance, updating the listing, photography, and marketing.
Additionally, also inquire about some of the services that the companies usually don’t include in their fees, such as if one of the employees visits the property outside his business hours for your benefit or attend to a problem that the guest is facing. You should keep in mind that the company you hire must provide top-notch guest support without charging a fortune.
Once you are aware of the services that the fee covers, you can decide whether it’s worth hiring the company or not. If the company only offers cleaning services and leaves the rest for a la carte, it’s better you keep looking for other service providers. On the other hand, if the company agrees to provide a bunch of services for a fixed fee, you can consider hiring it.
- How do you plan to market my property?
One of the most crucial aspects of vacation rentals is marketing the property properly.
Merely marketing the property on the website of the service provider isn’t enough these days. It’s essential to list your property on all the major websites so that there are higher chances of potential guests contacting you. It doesn’t matter whether the property manager is famous in his locality; his reach won’t be the same as the major online listing sites, such as HomeAway, Airbnb, or Vrbo. If he doesn’t list your property on these websites, you may lose out on tons of potential guests.
Moreover, marketing doesn’t just mean listing your property on different sites; it also includes taking photos of your property, keeping an eye on the latest market trends on how to promote vacation rentals, and checking high-converting websites for inquiries.
The manager should cover at least 25 to 50% of your marketing cost on a major listing site. Additionally, he should constantly make efforts to improve your profile on different websites. If the manager mentions phrases like “search engine marketing” or “appear high in the search results,” it means that he is honestly putting an effort to make your listing popular on different websites so that you get calls from potential guests.
Apart from finding guests on your behalf, the manager should also follow up with the guests and see whether they are happy with their stay or not. He should ask them for their reviews about their stay and if they want to book the property in the future. You can ask the manager about his skills that can ensure 5-star reviews from guests.
- When and how can guests book my property?
You can’t expect your vacation rental manager to work 24 x 7. However, he should have a pretty good idea regarding expected bookings. For example, he may make himself available during the weekends or around festivals when people usually look to make travel plans.
If the manager only works from 9 to 5 on weekdays, then you may miss out on many potential guests. Your guests may also have similar working hours and they may want to make travel plans during the weekend. It is best if the manager replies to inquiries within 15 minutes. Otherwise, the potential guest may look elsewhere for vacation rental properties.
The mode of payment is a big concern for many guests. Make sure they are able to use their credit cards while booking online. Most guests prefer online booking as it’s convenient and takes less time. Your manager should allow your guests to book your vacation rental online; otherwise, you may lose out on several guests.
- How often can I expect updates regarding my property’s condition?
It’s essential to maintain good communication with your vacation rental manager, especially after the guests leave. He should check the condition of the property and note any accidental damage. You can also ask how the manager handles cases like missing items or broken dishes once the guests leave the property.
It’s the manager’s responsibility to bring the property back to its charming best after the guests leave. From recording damages to cleaning the property, he should do everything necessary to make the rooms appealing for the next guests.
Don’t think that the manager will pay for missing items or accidental damages from his pocket. Instead, you should get a damage protection program like Property Protection Plus to meet these expenses.
The manager’s responsibility is to record the damages and inform you so that you can take care of the costs to repair the necessary areas.
- Can I speak to a few of your current clients?
The best way to understand the credibility of a vacation rental manager is by speaking to a few of his clients before signing the contract. Ask the manager to share the contact details of his clients so that you can find out how efficient he is at his job.
A confident manager will readily provide the contact details. If he doesn’t, it means he doesn’t want you to know about his inexperience or quality of service. In that case, you should work with someone else instead of hiring him.
You may come across a few managers who go out of their way to provide tips on finding guests quickly. These are the managers that you should work with as they focus more on their quality of service instead of making bold claims.
Bottomline
The traditional tricks used in vacation rental management are nearly obsolete these days. From listing and marketing your property to cleaning the property after the guests leave, it’s a huge responsibility to do everything alone. That’s why you should hire a property management company to make the entire process hassle-free. But make sure you hire someone who doesn’t cost a fortune yet provides the essential services that can attract guests to your property.
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