Crystal Coast Vacation Rental Show

Last week we looked at whether you should hire a property manager for your Short Term Rental (STR) or do it yourself. This week we’re going to examine the process for selecting a property manager.

We are going to break down this process into five key areas to consider. None of these will make or break a candidate if they are strong in the other categories. However, this is a partner you will have to work with. There will be occasional stressful times. Often, there will be real financial consequences. As it is with any partnership, it’s important to understand everyone’s roles and responsibilities if you want success.

1. Experience and Expertise: This is a dynamic business with many differences from other styles of rental management. Choosing a company that has been in the business for a while.

• Short-term rental specialization:
  • Ensure they have specific experience in short-term rentals, not just long-term property management. This market has unique demands.
  • Ask how long they’ve been in business and how many short-term rentals they manage.
• Local market knowledge:
  • They should understand your local market, including pricing trends, peak seasons, and local regulations.
  • Ask about their familiarity with your specific neighborhood and target guest demographics.

2. Services Offered: This is foundational. Many companies will have an ala carte offering of services, allowing you to customize which services you have. Needs vary by location, property, and owner involvement.

• Full-service vs. limited services:
  • Determine your needs. Do you want someone to handle everything (marketing, bookings, cleaning, maintenance) or just specific tasks?
  • Clarify what services are included in their fees.
• Marketing and booking:
  • Ask about their marketing strategies, including which platforms they use (Airbnb, Vrbo, their own proprietary system, etc.).
  • Inquire about their ability to optimize listings, take professional photos, and use dynamic pricing.
• Guest communication and support:
  • They should provide prompt and professional guest communication, including pre-arrival instructions, during-stay support, and post-departure follow-up.
  • Ask about their response time to guest inquiries and emergencies.
• Cleaning and maintenance:
  • Ensure they have reliable cleaning and maintenance crews.
  • Ask about their cleaning protocols, inspection processes, and how they handle maintenance requests.
• Financial management:
  • They should provide clear and accurate financial reporting, including income, expenses, and occupancy rates.
  • Clarify their fee structure and payment schedule.

3. Reputation and Reviews: In today’s world, the world can quickly see customers’ opinion of a management company. In many ways this will be the face of your property. Who has properties you would rent from?

• Online reviews and testimonials:
  • Check online reviews on platforms like Google, Yelp, and social media.
  • Look for consistent positive feedback.
• Referrals:
  • Ask for referrals from other property owners.
  • Contact previous clients to ask about their experiences.
• Licensing and insurance:
  • Verify that they are properly licensed and insured.

4. Technology and Communication: Even the most hands off owner will need to see deposits, fees, and tax information at the minimum. Others will be more actively involved. Make sure the available methods fit with your needs, and your accountant’s needs.

• Property management software:
  • They should use technology to streamline operations, such as online booking, automated messaging, and real-time reporting.
• Communication frequency:
  • Establish clear communication expectations.
  • Determine how often you’ll receive updates and how they’ll communicate with you.

5. Fees and Contracts: Simple and changeable are what we seek here. Many services are offered for a year at a time. There’s no need for anything longer than that. There will be a lot of moving parts, including, fees, commissions, and taxes. It will be complicated, but a good manager will help you navigate it all.

• Fee structure:
  • Understand their fee structure, including management fees, cleaning fees, and any other charges.
  • Compare fees from multiple companies.
• Contract terms:
  • Carefully review the contract terms, including the length of the agreement, cancellation policy, and responsibilities of both parties.

A few more points: I’ve mentioned here before that we used our management company as a guest prior to hiring them. If at all possible, that’s a great way to see the operation from that point of view. Additionally, as time goes on, you may develop your own “style” of rental. For example, some owners strive for a total luxury experience, while others pursue something a bit more frugal. Make sure your manager fits with your own personal style.

With some time and planning you will find a partner that will enhance your ownership experience, put money in your pocket, and give you more time for what you really want.

We will be at the Carteret Chamber of Commerce Business After Hours Expo April 29 at the Crystal Coast Civic Center. We will be promoting our exhibition spaces and are planning some great giveaways and promotions. See you there!

As always, if you are interested in the Vacation Rental industry or are already involved, we encourage you to join us at the Crystal Coast Vacation Rental Show October 18 and 19 at the Crystal Coast Civic Center. Subscribe and follow our social media links above and below to stay on top of what’s coming next.