If you purchased your "starter home" in an up and coming area, you may be amazed to see your neighbors' rental and sale costs continue to climb -- while also frustrated at the increased foot and vehicle traffic that comes along with living in a popular destination. In many cases, you may be able to achieve both your financial and lifestyle goals by turning your primary residence into a short-term vacation rental, capitalizing on the benefits of being centrally located in a vibrant tourist destination without the legwork that goes into running a bed and breakfast or other hotel-like rental. However, even once you've made the decision to plunge into the vacation rental business, you may be at a loss when it comes to managing the marketing, leasing, and cleanup process. Read on to learn more about the benefits of utilizing a central property management agency, such as Jet Property Managment LLC, for your vacation rental, as well as a few situations in which forgoing this service for an individual manager may be a better option.
What are the benefits of managing your vacation rental through an agency?
With the rising popularity of the "gig" economy (including more and more millennials willing to rent out their car as a taxi or their couch as a vacation destination), a number of short-term property management agencies have flourished. These agencies help advertise and book tenants for your home, as well as manage the lease agreement, collect payment and even arrange for housekeeping services to clean and freshen your home between each vacation renter. In exchange for this level of service, you'll pay a portion of the rental charges for each night your home is rented.
Even if you have other rental properties and manage them yourself, utilizing an agency for your vacation rental may be the best idea. These short-term vacation rentals are designed to have much more frequent turnover than apartments or rental homes, making self-management challenging if you already have a full-time job or family obligations. You'll likely already be tempted to "farm out" many of the services provided by a property management agency, whether enlisting a cleaning service to launder linens and take out the trash or a collections attorney to seek reimbursement for damaged property not covered by the deposit.
When may an individual property manager be the best choice?
Although a property management agency can provide a one-stop shop for your vacation rental needs, there are some situations in which enlisting an individual property manager may be your best bet. If traffic around your rental home tends to be nightmarish and the property management company you're considering is out of town, you may want to evaluate the greater ability of a local property manager to make quick trips to check on your house or greet tenants. If you do utilize a property management company not based in your area, you'll want to look over your agreement carefully to ensure you're not being charged for any extra time spent in traffic.