Statista reported the global vacation rental industry will soon reach 893.7 millions guests. It’s no surprise that Airbnb owners make over a million dollars per year.
Before you invest in vacation property, think about how you will manage a home that is not located near you. Even if you’re local, do you really have the time for maintenance requests, tenant screenings, and other management duties? Would you rather someone else take on these stressful tasks, like a property manager?
We’ll answer some important questions today about vacation rental management. Find out if this is a good investment for you and learn the next steps to getting started in this growing market.
What is a Vacation Property Management Company (VRPM)?
A vacation rental company is exactly what it sounds like: a group of professionals who take care of the day-to-day management of your vacation rental. A vacation rental manager can help you with repairs, maintenance and bookings.
Vacation rental management companies are typically involved with short-term rentals, alternative accommodations or other types of properties, except for hotels. The guests stay anywhere between 1 to 90 nights. Sometimes, they can stay longer depending on the local laws.
Alternative accommodations are often advertised as a boat, tiny house, condo, villa, apartment or bungalow. Consider a vacation rental company the same as a company that manages short-term rentals.
What is the Best Vacation Rental Management Company for You and Your Property?
You are a good candidate for management services if you own a vacation home. Porch Survey found that 88.3% landlords experience stress in dealing with tenant requests and maintenance.
It’s a good idea to begin coordinating early with local property managers, even if you aren’t sure if your home will be converted or if it is a vacation property. The short-term management company will often provide valuable insights on the buying process.
Many property owners are unaware that their properties have the potential to be leased for short periods.
Let’s play a quick game. You might be able to find a short-term rental that is worth a lot of money if…
- Travel often
- Multiple properties
- Work from anywhere
- You can live in a different town than your property
- You may want to use your property on occasion
- You can inherit a property
You may have an asset (that you can rent out) that is already valuable and will earn you money without much effort.
So, does your property qualify? It may be worth considering working with a vacation management company in order to maximize your return on investment and reduce the amount of work that you have to do.
Three Vacation Rental Management Options
There are typically three ways to get rental management help if your property fits the bill. Let’s examine the options.
1. Rental Manager
Partnering with a rental manager is another option. It would be a single person that handles all the details for your vacation rental. If necessary, they may have a small staff to help, but your communication will be streamlined by a single person. This is a good option for property owners who have a single or multiple properties at the same location.
2. Rental Management Company
Vacation rental management companies offer the best services, and they have less geographical restrictions. This may be the best option if you already have properties in multiple areas or plan to do so. management companies are likely to have the necessary resources, multiple locations and the ability manage your property wherever it may be located. This can be an expensive option so it is important to do thorough research.
3. Rental Management Software
Rental management software can be the most cost-effective but also the most involved option for property owners. VRBO and Airbnb are websites that help with bookings and payments, but they don’t handle maintenance, cleaning or repairs. This is a great option if you are just starting out, have a limited budget or want to try short-term rental for the first.
Purchase Vacation Rental Property
When deciding on where to buy a vacation rental, there are three main factors.
Ask yourself: Where would YOU like to vacation?
After you’ve chosen a location – here are some “best” locations to consider – it’s time for you to be realistic. What can you afford on the local market. Don’t forget that small spaces can yield big returns.
Last, determine what you can earn per month in rental.
What’s your next move? Research the market for vacations.
Three Steps to Vacation Renting Success
Follow these simple steps if you are seriously considering adding vacation rentals to your portfolio.
Step 1: Find the right management
It may sound like a dream to have a beach house that you can rent out and earn money while you are away. But managing a vacation rental successfully is not an easy task. The key to success is to secure good management.
Websites such as All Property Management provide extensive information on vacation rental managers located in your chosen area. It’s the best way to begin your search.
Step 2: Find the right balance
After you have chosen the best property manager to meet your needs, it is time to negotiate the terms of the vacation management agreement .
You can keep this agreement simple but you need to include a few things. You should read the fine print and discuss any questions you have with your new manager. Also, you can include a trial period (3-6 months) so you are not immediately locked into a 24 month agreement.
Step 3: Letting go
It is often the last step that property owners find most challenging. Let the vacation management company handle everything. You’ve done the research, and you know that your property is being managed by professionals who are trusted. It’s now time to relax and wait for the checks.
