Choosing to use a vacation rental property management company is an important decision that requires deliberation. You might want to handle all of the managing, hosting, and maintenance yourself, an admirable goal. However, certain factors should tell vacation rental property owners it’s time to get help.
In this article, we look at 6 signs you need a vacation rental management company. Afterward, we discuss some of the various questions you should ask your prospective property management company to ensure the right fit.
VacayAZ is Arizona’s premier vacation rental property management company. We offer vacation rental owners advanced market identification techniques, financial pro forma, property selection consulting, and sales brokerage services. Whether you’re looking to rent your property for weekends or you want to offer short-term rentals, we can take care of all your needs. Continue reading to learn when it’s time to consider a vacation rental property management company.
What Is a Rental Property Management Company?
Property management companies manage multiple property listings and ensure the properties get filled by tenants and that they stay well maintained. These companies can specialize in apartment complexes or vacation rentals and they often handle all of the owner’s marketing operations and maintenance.
These companies ensure business runs smoothly and they deal with problems promptly. They take the administrative burden off owners’ shoulders, letting them take full advantage of their investment and enjoy the benefits rather than treating it as another full-time job.
When Should You Use a Vacation Rental Property Management Company?
There are many reasons for using a vacation rental property management company. Most of these reasons deal with the convenience these companies provide owners. If you invest in a vacation rental property, you likely don’t want to struggle with the various bottlenecks that arise.
Filling your vacation rental property with tenants can be a hassle, especially if you own property outside of where you live. These properties can quickly become more of a stress than a convenient source of income. Vacation rentals help you maximize your investment and take the worry out of a potentially stressful situation.
1) You Aren’t Generating an Income
You didn’t invest in property to lose money. You own property for the perks and additional source of income. One of the most obvious perks is that it can bring you some side cash for other investments.
Airbnb Superhosts can make upwards of $900 per month on average. Hosts in high-demand areas with superhost property management can make up to four times as much. These sites show you how attainable a profit is when you post on the correct websites. However, if you don’t have the right resources, it can be challenging to make a profit.
2) You Struggle to Fill Your Properties With Tenants
It’s understandable why you would have some trouble filling your properties. If you have a full-time job, finding tenants for your vacation rental property can be challenging. Even if you don’t have a full-time job and you’re just trying to enjoy retirement or your investment, the last thing you want to be worrying about is an empty property accruing expenses.
Vacation rental property management companies can take the stress out of filling your vacation rental. They make sure your vacation rental stays occupied without you lifting a finger.
3) Your Competition Is Winning
Vacation rentals are highly competitive and if you manage the property yourself, you have to complete competitive research. If you fail to do so, eventually, competitors will prevent you from filling your properties.
Learning the correct price points, effective marketing techniques for your property, and deciding the furnishing for your property takes time. If you’re in a high-demand market, competitors will undoubtedly try to outperform you and attract tourists to their property. If you have trouble staying up to date on what’s performing in your market, it may be time to enlist the help of a vacation property management company.
4) You’re Getting Bad Reviews
Reputation is everything in the hospitality industry. Without positive reviews and favorable word of mouth, it’s difficult to fill your vacancies. Reviews are especially critical during the digital age when everyone has access to everyone else’s experiences.
People can be very selective about what they want out of a vacation rental. After all, it’s their time to kick back and relax in luxury. Something as insignificant as a missing shampoo can ruin your reputation and make it difficult to find tenants.
If you’re managing the property yourself, you need to be mindful of your reviews. A few bad ones won’t kill you. However, if you find it difficult to adjust to these reviews, it might be time to use a vacation rental property management company. These companies eliminate your worry about the tasks it takes to impress guests.
5) You’re Having Trouble Focusing on Hospitality
Vacation property owners might associate their ownership as stress-free. We hear about it all the time on social media- the need for passive income. However, if you own your property, you don’t start making money the second you sign on the dotted line.
Generating an income renting a property requires a lot of hard work. Do you really want to be an owner, manager, and host at once? Can you make sure to greet your guests when they arrive, strike up a conversation, and tell them about the local cuisine, nightlife, and attractions? Do you want to restock your property with water, coffee, snacks, and other niceties that separate you from the competition?
If not, you should consider a rental property management company.
6) You Struggle Maintaining Your Property
You won’t generate a side income if you can’t adequately maintain your property. Maintenance issues are an unavoidable byproduct of owning a property. If you can’t stay on top of these issues, your reputation as a property manager will suffer, and you won’t be able to fill your properties, no matter how nice they are.
Vacation rental property management companies help you avoid these potential pitfalls. These companies fix maintenance issues as they arise and ensure the smooth operation of your vacation rental.
Questions to Ask Your Vacation Rental Property Management Company
What Are Vacation Rental Property Management Fees?
Answering the question of how much do vacation rental management companies charge requires you to ask the right probing questions. The fees these companies charge can range from 25-50% and in some areas, they can be even more.
Make sure the prospective company is upfront with its fees and contracts before accepting terms. You should know exactly what the company offers and what responsibilities they can fulfill. There’s nothing worse than choosing a company that doesn’t take care of your needs.
How Do You Market?
Marketing is an essential service that most property management companies provide. Some vacation rental property management companies only market their clients’ properties on their websites, missing out on a substantial market of guests.
Your property management company needs to list your property on all of the major listing platforms. They also need to understand how to write compelling listing descriptions, take property photographs, and position the property for success in your current market.
When searching for a vacation rental property management company, look for those who employ effective search engine marketing techniques and who understand how to garner reviews from their clients. If a vacation rental property manager can get reviews from their clients, they will likely understand how to get reviews for your property.
How Often Can You Expect Updates?
You should expect an open line of communication with your vacation rental property management company. They should provide frequent updates on your property’s condition and any accidental damage caused. They should also perform post-stay walkthroughs after every guest leaves the property.
Can I Speak To Some of Your Clients?
Reputable vacation property management companies will provide you with a few clients to contact as references. At the very least, they won’t be shy about you contacting their clients. These companies should be comfortable with you contacting prior clients. It shows they are proud of their work and confident in their clients’ endorsement.
Conclusion- 6 Signs It’s Time To Use a Vacation Rental Property Management Company
Owning a vacation rental should be a financially rewarding and enjoyable experience. Likely, you didn’t buy your property to constantly feel under pressure managing the property and hosting guests. You probably bought the property with the intent to generate a little side income and enjoy your property a few weeks out of the year.
Vacation rental property management companies fulfill all the responsibilities that quickly turn owning a vacation rental property into a stressful occupation. Why stress about filling vacancies when you can have someone do it for you? Why worry about what’s going to malfunction in your property when you can have an experienced team of professionals take the responsibility off your hands?
VacayAZ is Arizona’s premier vacation rental property management company. We create incredible experiences for every one of our guests that keep them coming back and keep you enjoying your property as an owner. Make sure your property stays the most sought-after listing with our full range of vacation rental management services. Contact us today and start enjoying life as a vacation rental property owner.