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If you’re like most people, you don’t have time to manage a vacation rental property yourself. That’s where a property manager comes in. A good property manager can take care of everything for you, from cleaning to marketing and handling repairs.
In this blog post, we’ll discuss the benefits of hiring a property manager for your short-term rental and provide some tips on how to find the right one for you.
Table of Contents
What Does a Property Manager Do?
The first step to deciding whether or not a professional property manager is to know exactly what they do, so you can decide if it is something you need.
A property manager typically oversees the maintenance, rental, and promotion of your property. Instead of being a full-time job for you to take on, they make it easy to rent out your property without having to spend all of your time on each management task.
They may be responsible for managing the day-to-day operations of your real estate, communicating with guests, collecting payments, organizing housekeeping, and handling repairs and maintenance issues.
This helps property owners to make sure their real estate is safe and well managed, no matter where they are in the world. An experienced rental owner can enable you to use your property as a semi-passive force of cash flow, rather than just another thing on your plate.
What Are the Benefits of Hiring a Property Manager?
Some of the benefits of hiring a property manager include:
- They can take care of everything for you, from tenant placement to collecting rent and handling repairs.
- Property managers can increase your profits on your vacation rental property if they properly market it and have a good understanding of the tourism industry.
- They can help you make sure your property is safe and well managed.
- You don’t need to live on-site or near your rental property, which means you don’t have to worry about being available 24/7.
- They can help with promotion and find avenues for exposure.
- It’s helpful for people with a lot of investment properties because it can simplify the process and save money overall.
- You won’t be responsible for dealing with difficult tenants or problems that may arise.
- They often have the know-how that is helpful for new owners who aren’t interested in being involved in being hands-on with every detail of renting.
However, this arrangement isn’t right for everyone. Here are a few of the cons to consider before making your decision:
Cons of Hiring a Property Manager
- They may not always have your best interests at heart. Make sure you do your research and interview multiple candidates before making a decision.
- You need to give them some level of access to your property.
- It can be expensive. Fees for property management services typically range from around five to ten percent of the rental earnings or a flat fee.
- You may have less control over what goes on with your property if you hire a manager.
- There may be miscommunication between you and your property manager, which can lead to issues down the line.
- When you hire someone to manage your property, you will need to put them on payroll and become an employer. You’ll want to make sure you’re comfortable with these legal and tax requirements.
- You may have to pay your property manager even when your vacation rental is empty.
- You may not be able to find a good property management company in your area or one that works with short-term rentals.
How Do I Find a Reputable Property Manager?
In order to find a reputable property manager, start by asking around. Your friends, family, and colleagues may have referrals or personal experience with a good or bad property management company.
You can also check online review websites like Yelp or Google Reviews to get an idea of what other people are saying about local companies. Make sure that your potential property manager understands the short-term rental market and is willing to put in the extra effort to market your property correctly.
You should also interview multiple candidates and ask for references before making a decision. When you’re interviewing potential property managers, make sure to ask about their experience and qualifications for managing short-term rentals.
It’s also important to ask about property management fees upfront so that you’re sure you have the budget for their services. Let them know that you are going to have more renters since it is a short-term property and that the percentage won’t be determined by a typical monthly fee.
A good property management company will have a thorough understanding of the laws in your area so that they can ensure compliance with all legal requirements.
Ask them how much time they spend on each task, such as marketing or tenant placement services. You want to make sure you’re getting what you’re paying for and that they will treat your own rental as if they were their own properties.
If you’re still feeling overwhelmed, consider hiring a property management company to help get your short-term rental off the ground. They can take care of everything from tenant placement to collecting rent and handling repairs, so that your property is safe and well managed, no matter where you are in the world.
Do Property Managers Charge a Fee?
Property managers may charge a fee for their services. This fee is typically based on the gross monthly rent and can range from five to ten percent of your rental income per month. They may also work on commission when it comes to booking new tenants in your short-term rental.
The amount you pay will depend on where you live, your property type, how much experience your property manager has, how much work is involved with your rental, and what kind of services they offer.
If you have more than one real estate investment and need a person or company to manage several units, you can leverage a property management company’s buying power to get a lower rate.
Sometimes, it can be more expensive for a management company to work with a vacation rental unit. This is because they often have to do more advertising and manage visitors, house cleaners, and repairs.
Will a Property Manager Provide an Estimate?
A property manager should be able to provide you with an estimate of the services they offer. This estimate should outline what their fees are, how much work is involved in managing your rental, and what kind of services they will provide.
You’ll want to make sure that everything outlined in the estimate is something you’re comfortable with and understand before signing any contracts or agreements.
Do Property Managers Pay For Repairs?
Property management costs such as unit repairs are almost always paid by the owner. Sometimes, there may be an agreement where the property manager or rental management company can use funds from the security deposit or rent payments to cover repairs.
All of these details should be found in the property management agreement and can be outlined before signing any type of contract or agreement.
A minimum reserve is required by every property management company. Maintenance and repairs are covered by this reserve. It is meant to ensure that bills are paid quickly, without having to wait for landlord funds.
There is usually between $250 and $1,000 in these reserves. The average is $500.
Paying vendors and bills from the property manager’s reserve is a good practice. After that, the reserve is replenished with next month’s total rent income.
How Much Control Will I Lose If I Hire a Property Manager?
Hiring a property manager will give you peace of mind that your rental is being taken care of. You’ll still have the final say in all decisions made about the property, but your manager can take care of many of the details that come up each day.
It’s important to work with a property manager that you trust so that you feel comfortable with small decisions made without their approval.
You can clarify what decisions they can make and which ones will require your approval beforehand. You can also build a good tracking system that allows you to monitor what’s going on with the rental at all times as well as organize information for everyone’s convenience.
Can I Manage My Own Short-Term Rental?
You can manage your own short-term rental, but it will require a lot of work on your part. You’ll need to be familiar with local laws and ordinances, as well as tax regulations. You’ll also need to know how to market your rental, screen tenants and provide background checks, and handle any issues that come up.
If you choose not to hire a property management company for your short-term rental, keep in mind that it will be time-consuming for you or someone else on your team. You can always consider hiring an assistant who can handle certain tasks without needing to do all of the management tasks. This could be a good compromise and a more affordable solution as well.
Final Thoughts
It’s important to remember that the cost of hiring a property manager is an investment, and it can be well worth the money when you’re able to relax and know your rental is in good hands.
They make sure you have good tenants, source potential tenants, handle maintenance requests, keep an eye on your rental units, and much more.
However, if you’re looking for a more affordable and DIY solution when it comes to managing your home, a property manager may not be the best option for you.
Either way, it’s great to know the steps for hiring a property manager in case the time comes when this service can be of value to you!
Featured Image Credit: Freedomz
