Many Options are Available for the Management of Vacation Rental Properties
Nov. 2, 2006. An article in the New York Times discusses the management options that are available to vacation rental owners, a subject that has been thoroughly explored in past editions of the members-only editions of the VacationRental.org newsletters.
The options run the gamut from self-management, which is difficult to do from afar, to hiring a local property management company to find the tenants, collect their money and then clean up after they depart for fees that amount to anywhere from 20 to 50 percent of the gross rental income.
As we have pointed out in our newsletters, the right arrangement depends on the individual property owner. Many vacation rental owners don’t have the time or inclination to mange their own vacation rentals, and therefore must turn this responsibility over to a management company. They have to pay dearly for this service. Our rule of thumb is that the more the owners get involved in advertising, renting, and management of their property the more they will profit from the rental.
Fortunately, competition allows vacation rental owners to bargain with realtors and management companies and select only the services they need. If you can bring in a lot of the rentals yourself with listings in directories such as VacationRetnals.org, you can reduce your management expense.
One thing to keep in mind when buying into a condominium is that you must always reserve the tight to change management if you are not happy. Don’t get locked in to an arrangement with a condo hotel or any other arrangement where you don’t have that option.
If you decide to self-manage your property from another location, you need a good local friend, and preferably a reliable handy man, as well as a reliable cleaning service. It is important to keep in mind the importance of maintaining a high level of quality and service if you intend to be successful in the long run.
