Vacation rental properties are one of the best ways for people to diversify their asset holdings and also generate a passive income. Whether you’re looking for short-term rental management or a long-term investment, the vacation rental industry can be lucrative. By investing in a quality rental property in a highly demanded location (such as Scottsdale, AZ), you can begin to immediately earn a regular return on your initial investment.
However, while the vacation rental property market can indeed be extremely profitable, it can also sometimes be difficult to manage your property on your own. There are many things you’ll need to do as a property owner to ensure your property is profitable, and failing to do these things can harm your ability to generate income. The need for effective vacation rental property strategies is even more pressing for people who own multiple properties or live in different locations.
Fortunately, there are plenty of resources available to help ensure your property ownership experience is both profitable and productive. Hiring a vacation rental property management team will help check all the necessary boxes and position your property to generate strong profits for many years to come.
In this article, we will discuss the most important things to know about vacation home rental management companies. VacayAZ offers many different vacation property management services, including customizable service packages designed to address your specific needs. By understanding what these niche, specialized firms can provide, you’ll be able to decide if hiring one of them makes sense for you.
WHAT DOES A VACATION RENTAL PROPERTY MANAGER DO?
To put it simply, your vacation rental property management team should be able to assist with every component of the vacation property ownership experience. This could even include selecting the property itself, preparing the property to go to market, and helping with all associated paperwork.
The team will also help market the property to help ensure it is not only consistently being occupied, but also that it is being rented at a profitable rate. Marketing the property on social media, running a website, and engaging in rental platforms such as Airbnb can all help increase your occupancy rates. The team will also help communicate with clients and encourage positive reviews from certified visitors.
Additionally—and perhaps most importantly—the team will help ensure that the property will always be in a condition where it is ready to be rented. Cleaning the property, fixing things as they break, and performing routine maintenance will help ensure your guests have a satisfactory stay. Lack of cleanliness is the most common cause of negative guest reviews, which is yet another reason why having a guest-oriented cleaning team is so important. It can be detrimental for a company’s reputation if cleaning and maintenance are not at the forefront of a vacation rental management company’s priority list.
IS HIRING A VACATION RENTAL PROPERTY MANAGER WORTH THE COST?
The cost of hiring a vacation rental property manager will depend on several different factors. Most firms offer customizable solutions, making it easy for you to scale your services as needed. The specific services being used, the number of properties being managed, and the frequency these services are being used can all impact your final costs. In most cases, the cost of hiring a property manager will be a fraction of the revenue generated by the property itself. This structure helps ensure that the management team isn’t getting paid until you do.
Regardless, you might find yourself wondering if hiring a vacation rental property is worth the costs. In the vast majority of cases, we would unapologetically argue that yes, it is. In addition to already being affordable (and being paid after the value has been provided), these firms can help increase your bottom line. Better marketing, better guest communications, higher standards of living spaces, and more will all help your property generate more money over time.
Furthermore, it’s important to recognize that if you don’t hire someone to help manage the property, then you’re going to have to do these tasks yourself. If all you are doing is renting out your spare guest room on Airbnb, then you might be able to handle the cleaning, guest communications, and financial management all on your own. But if you hope to rent out a full property, or even multiple properties, then investing in a management partner can easily be justified. This is probably the surest way you can maximize your property’s value.
HOW TO CHOOSE A VACATION RENTAL MANAGER
In competitive vacation rental markets such as Scottsdale, Phoenix, and elsewhere in Arizona, you are likely going to discover multiple property management teams available to choose from. To narrow your search, it is strongly recommended that you choose a team that is based in your specific area. Contrary to national property management firms, those that are based in Arizona will be familiar with the nuances of the local market and will be able to adjust their marketing, financial, price-modeling, and even interior decorating strategies accordingly.
Taking some time to speak directly with the property management company themselves can help you gain insight into how they communicate and also have your most pressing questions answered. Ask about the company’s history, how they manage their relationships with clients, their values, their cost structure, and the various resources they have available. Reading online reviews can also be helpful—the more insight you can gather about each of the property management teams you are considering, the easier it will be to be confident in your final decision.
CONCLUSION - VACATION RENTAL PROPERTY MANAGEMENT
In the United States, (real estate) property is the greatest source of individual wealth. If you have purchased a vacation rental property, then you have certainly made a considerable investment to earn quality rental income.
As you would want with any major investment, your vacation rental property is something that will need to be managed over time. Vacation rental management teams, like the one you’d find at VacayAZ, consist of qualified individuals that can help you save time and save money, all while providing the best guest experience for your renters. Between cleaning, managing relations with guests, marketing, and more, these firms can offer tremendous levels of value.
Succeeding in the vacation rental industry requires both hard work and expertise. At VacayAZ, we can help advise you in your own vacation rental business endeavors.
Contact us today to learn more about how vacation rental properties can be a sound investment for those hoping to earn more income, diversify their investment portfolio, and enter a lucrative industry.