Evaluating a Vacation Rental Management Company

So, you are purchasing a short-term rental property and have to decide if you are going to manage the property yourself or have a professional company take care of it. It's not an easy decision. If the property is currently managed and is doing well, you might want to consider staying with that company – at least for the next few months. If is it underachieving, you might want to consider making a change. The Sold in Paradise Team is constantly assisting investors in purchasing properties, and as a result we interact with many vacation rental companies. We have discovered that there are six key inquiries to make as part of your due diligence: 

1. Ask for recommendations.  Ask other owners in the community, real estate professionals, and locals. You can google the company and see what consumers are saying.

2. What is their level of expertise?  How long have they been in business and how knowledgeable are they of the local communities? Experience is essential.

   

3. Who will be handling the account?  The boots-on-the-ground contact person can really make a difference-and so can the culture of the company.

4. What is the cost of management?  Make sure you review the entire contract and pay attention to the small print-especially credit card fees, housekeeping, maintenance, travel agent discounts, etc.

5. What is included in the management fee?  Determine what specific services are included in this fee.

6. What is the company's marketing plan?  It's important that the company promotes their vacation rentals via various platforms: mailers, web sites, Facebook, Instagram, etc. Check out their web site; it has to be user-friendly. The pictures should look professional and should look better than the real thing!  Make sure the site has local and community information.   

These are just a few things to consider when selecting a rental management company. It is worth taking the time to get all the answers up front. We are always here to help you if you need anything.