Whether you own a “traditional” rental property or one that’s exclusively for short-term vacation rentals, you’ll eventually run up against an important question: Should you manage the property yourself, or hire a third-party property management company?
Managing rental property of any kind takes a lot of time and work. Property management companies ease the burden, taking care of the day-to-day operations necessary to keep units occupied, generate income, and protect the owners’ investment.
Miami Residences Management and Vacation Rentals (MRM) is a full service property management company that oversees operations for vacation rentals as well as the long-term leasing of apartments, condos, and single-family homes. With a wide array of services, their dedicated staff takes on the pressure of rental property management in the greater Miami and Fort Lauderdale area.
Vacation Rental Management vs. “Traditional” Property Management
With the emergence of companies like Airbnb and VRBO, the concept of a vacation rental has become an alternative to a hotel stay. Single-family houses, condos, or apartments that are rented out by the night or week. Some may be available for longer periods, like a month or more.
Property management companies can be the official liaison between the property owner and the people who stay in these rental units. The services they provide are very similar whether renting to vacationers or more permanent tenants…but there are some significant differences. MRM handles both, depending on whether you choose to market your investment property for short-term or long-term stays.
There are also some similarities between vacation rental management and more traditional property management. Both involve:
- Marketing the property to find good tenants or guests
- Handling payments for rent or vacation stays
- Providing legal documents, whether leases or short-term rental agreements
- Upholding rules and regulations
- Taking care of maintenance and repairs
Whether dealing with an investment property or renting out your own residence during an extended time away, these things can’t be ignored. The tasks aren’t impossible for a property owner to do by themselves…but they can be time consuming and frustrating. More often than not, it makes sense to outsource the work to a reputable property management company.
Vacation Rental Management and Property Management—Same Goal, Different Approach
Vacation rental management is different from leasing a property that the tenant will call home. They both have the same goal, however: Retaining the property’s value and maintaining a steady stream of revenue. Here is how property management companies tailor their approach to accomplish these essential tasks:
Marketing
To market vacation rentals, property management companies maintain listings on the major rental platforms such as Airbnb, Booking.com, and VRBO, as well as their own company websites. An online presence is common for long-term leased properties too, but on sites like Zillow or realtor.com or through a leasing agent.
Regardless of where property management companies advertise, eye-catching, professional photos are a must, especially for luxury properties. Digital marketing and social media have transformed the industry for both types of rentals, so companies like MRM make it their mission to stay on top of new trends and best practices.
Pricing
Vacation rental prices fluctuate based on many factors including the day of the week, the season, holidays, and local events. Monthly rent for a condo or apartment is more market driven, taking into account other comparable properties and the amenities the unit has to offer.
Knowing what to charge is both an art and a science. It can make a big difference not only in the owner’s profit margin, but the rentability of the property. Property managers have experience in the local market to price units appropriately, whether for a night’s stay or a monthly rent amount.
Finding Renters
When renting a primary residence, it is common practice to go through an application and screening process that analyzes a potential renter’s qualifications including their credit score, job, income, and references. There may even be a criminal background check. The goal is to find a good tenant who will be able to pay rent and not cause problems for other tenants or the property itself.
Vacation rentals are quite different. Checking into a condo or apartment for a week or two won’t require any extensive personal information. Some rental sites, however, give the property owner or manager the ability to rate guests, which can be helpful information for future hosts. Longer stays, say for a month or more, or high-end luxury accommodations, might come with some type of screening.
Payments and Contracts
Property management companies like MRM have systems and infrastructure in place to write contracts and collect payments. For a vacation rental, this consists of a short-term rental agreement and the collection of a down payment, or payment in full before the vacation begins.
Long-term renters will receive a lease and must pay a security deposit before moving in. The property management company is in charge of collecting rent each month, offering tenants automated payment methods. Most importantly, they deal with tenants who are late or do not pay.
Leases and vacation rental agreements are legal contracts, and it is the job of property management companies to enforce them. They can fine tenants or guests if the terms of the contract are broken, and even begin eviction proceedings against long-term renters if necessary.
Maintenance and Repairs
Keeping rental property in good shape can be a major headache for owners, but neglecting it can diminish the property’s value. Property management companies can monitor properties closely and provide 24/7 assistance for both vacationers and long-term renters.
Responsive property management for short term rentals that handles maintenance requests and emergencies quickly can result in favorable reviews and rebooking for a vacation home. Likewise, tenants who know they’re concerns will be addressed swiftly and efficiently are more likely to renew their leases year after year.
Keeping Rentals “Rent Ready”
Every day that a rental unit is vacant costs its owner money. Property management companies make sure that the unit is “rent ready” as soon as possible between occupants. This means having a reliable team to clean quickly and thoroughly, and handle necessary repairs between guests or tenants.
Keeping vacancy rates low also requires savvy pricing and marketing directed at the right audience. Partnering with the right property management company can shrink the time between bookings and leasing, ensuring that your investment property is making money.
Reasons to Hire a Property Management Company
Property owners hire property management companies for a variety of reasons. It is usually because the property is only meant to be an investment, and the owner prefers not to be involved in day-to-day operations. Some common situations are:
- Owning multiple properties
- Living far away from the property
- No time, expertise, or desire to do the required tasks (marketing, maintenance, accounting)
- Don’t wish to be a “landlord” or interact with guests
Whatever the case, MRM has the experience, systems, and infrastructure to manage your rental real estate for you. Our services are designed and focused to relieve you of landlord responsibilities while still allowing you to maintain property ownership that maximizes rental income and protects your investment.
