Successful vacation properties are managed well. They remain booked and in high demand. Working with a property management firm allows business owners to save time on many tasks associated with running the property.
Landlords may assume renting a vacation property is like renting other accommodations. However, guest communication takes up a significant amount of time and rental properties require more marketing because of the frequent guest turnover.
In addition, guests expect more from a vacation rental. They want an outstanding guest experience. This differs greatly from individuals renting a property to live in. How can a property management firm assist with managing vacation rentals?
People rarely realize the time involved in managing vacation properties. They assume if the property is in a desirable location, people will flock to it. They quickly discover the property sits empty more than it remains occupied. When the owner uses a management firm, they find they encounter fewer vacancies. The management firm handles the marketing and advertising of the property. However, this serves as only one task the firm takes on.
A reputable property management firm will make suggestions on property improvements to draw in more guests. They also assist the owner in setting the rental rate. A high rate discourages potential renters, but a low rent comes with many drawbacks.
Potential renters may question what is wrong with the property for it to have a low rate. The owner also loses money every time they rent the property because they aren’t getting full market value. The property management firm knows the local market and how to price a vacation rental to remain competitive.
Fewer Maintenance and Repair Costs
Successful vacation properties run smoothly. Guests don’t want the hassle of a broken air conditioner or a sink that won’t drain. A property management firm maintains an in-house professional or team of professionals ready to handle general repairs. In addition, the firm keeps a list of contractors who tackle those tasks the in-house staff cannot. They vet these professionals and work out a lower payment.
Property owners find they save money on repair and maintenance costs. The property management firm handles minor tasks and consults with the property owner before authorizing large repairs. This ensures everyone remains on the same page and the owner has a property that is ready for guests at all times. As a result, they generate more income from the rental property without the hassle of day-to-day management.
Property owners must track all income and expenses related to renting the property. A property management firm assists with collecting this information. Furthermore, the firm helps clients determine which deductions they can claim and gather the necessary documentation to prove the income and expenses. A property owner may find they can claim more than they realized with the firm’s help. For example, they can claim maintenance and repair costs but not those associated with capitalization. Safe harbor rules apply, and the property owner may not realize this. The firm ensures they get these deductions. In addition, the property owner may deduct any fees associated with using this firm.
Determine your needs and research different providers to find the right firm for each property. Create a list of questions to ask each firm and don’t overlook questions regarding any fees. With due diligence, finding the right provider becomes an easier task. Once this firm is in place, you’ll find you see greater success with your rental and increased profits.