Are you thinking of listing or hosting your property as a vacation rental home? If you are, then make sure that you collaborate with the right vacation rental management company, there are certain factors that you might want to know and look for in a vacation rental management company before listing with them. Here’s what to look for in a vacation rental management company.
Fee model
Usually, vacation rental management companies have one of the 3 types of fee structures.
Fixed Rate Model
Some rental management agencies or companies follow the fixed rate model. They usually charge a flat rate for a variety of standard services. It does not matter if you have a surge in tenant registration or bookings per month or not, the fees remain constant in this model of fee structure.
Guaranteed Model
In this model of fee structure, the owner of the house will have to make a fixed passive income each month. This is one of the best models if you are looking for a hands-off approach. Regardless of how many bookings there are, you are bound to be in the profit.
Commission-Based Income Model
Here, the person who owns the property pays the property manager according to the number of rentals.
Well, you will have to decide which would be the perfect fee structure you would want to go with. Be smart with your choice such that you shall be in benefit in the long run.
There are specific ways in which you need to choose the right vacation rental manager. For starters, you will need to decide if you are willing to go with a company or an individual. We would definitely recommend you go with a vacation rental management company. Once you have decided, make sure that you check the reviews before you collaborate with them.
If your views sync with the reviews received by the vacation rental management company, then check out their properties and you are good to go!
While you are in the process of deciding on the company with which you want to list your house, there are again a few things that you will need to inquire about.
Ask if they are Provide Marketing Services
Understanding the STR market and following industry changes are professions that vacation rental property managers pursue. As a result, they are knowledgeable on how to effectively market a vacation rental, when to alter prices, which platforms to utilize for marketing, and how to draw in the right kind of visitors for your property. Some managers may include this service as part of their monthly cost for managing vacation rental properties, while others might offer it as an extra service. Ask your manager if you would prefer to have this service excluded, but first consider whether you have the time and resources to market your property on your own.
Cleaning Services
Your rental will need cleaning services each time a visitor checks out. Cleaning costs could be included in the monthly amount charged by some vacation rental managers. This implies that you will be footing the bill for the cleaning services.
Other property managers might include a cleaning cost in the rent and charge visitors extra for cleaning. Before employing a manager, make sure you are aware of the cleaning fee’s structure and how it will be paid. The cost of cleaning will vary according to the size, location, and amenities of the property.
Maintenance and Repairing Services
The monthly fees that property managers charge for managing vacation rentals frequently include maintenance costs. This is due to the fact that repairs and maintenance frequently need to be completed promptly and on short notice. Visitors will anticipate rapid repairs if pipe bursts or the washing machine leaks; otherwise, they might not leave a positive review.
Ask the manager specifically what upkeep it covers if they charge a maintenance fee. Find out if they employ a maintenance staff of their own or contract out the work, and whether the monthly charge includes all essential repairs. The last thing you want to do is have to pay more maintenance fees if they expire in the middle of the month.
Booking Fees
if a visitor makes a reservation at your rental through your manager rather than through your advertisement.
External amenities Fees
Maintenance and repairs for a yard, pool, or hot tub are examples of extras. Make sure you ask the company if there will be extra fees for such extra amenities regarding maintenance and repair.
Customer Service Fees
This may entail managing check-ins and handling guest communications. This could be a great way to build great community relations with your customers.
