Hilton Head Vacation Rental Company

Essential Benefits of Hiring a Rental Management Company

On average, it only takes us 38 seconds to judge a vacation rental. Those crucial seconds can be the difference in whether or not your lodge is being fairly assessed by potential renters
and your neighborhood.

If you are renting a property, selecting a rental management company can help make sure your home is being well cared for, looking at it’s best, and most of all, bringing in more revenue!

We are going to talk about the benefits of hiring a property management company today.

Maximizing Your Profits

You won’t make money if your property isn’t renting. A property management company knows how to minimize the downtime of your property being rented. They can make certain that your property is constantly rented and bringing in revenue.

Understanding exactly how to bring in quality renters is one reason you want a rental management company.

Your property manager will go through the process of handling new vacation renters and credit screenings. This is going to allow you to consistently earn revenue from your lodge.

Contact With Vacationers

Keeping up with communication with vacationers can be daunting, especially if you have several properties. Property managers are there to keep communication open with them and make sure that they are having the experience they need.

If there are problems such as broken appliances or issues with neighbors, they are there to mediate the situation. Having them as the main point of contact allows you to focus on collecting your rent hassle-free!

Marketing A Vacation Rental

Even the best looking rental properties can sit unrented without the appropriate marketing strategy. Employing a rental management company will make sure that your property is getting traction on rental venue websites.

The team should have ample experience is taking great photographs of the property and they ought to be able to execute a perfect open house.

A property manager with these skill sets can help make sure that your property is not sitting vacant for extended periods.

Getting On-Time Payments

Your property manager has an incentive to make sure that your tenants are paying rent . In most situations, the manager will get their payment directly from the tenant’s monthly rent payment.

If issues ever arise with a tenant for not paying, your property management team will know exactly how to move forward to resolve the issue. The rental manager will likely have clear guidelines laid out in the lease to avoid any gray areas with late payments

No Stress Renting

Daily management is not for everyone. Hiring an expert manager will ensure that your property is being taken care of so you can sit back and collect your income. Rental managers will take care of things that you may not have ever thought you would have to worry about.
From weekly lawn care maintenance to writing a lease, your property manager will maintain your rental running smoothly.

Hire a Rental Management Company Today!

If you are considering renting your property don’t delay choosing a rental management company. Save yourself the problems of daily rental management, maintenance, and finding consistent vacation renters by finding a team that is good for you!

Hilton Head Vacation Rental Company

Common Mistakes Vacation Rental Homeowners Make When Hiring A Rental Sales Company

What you don’t know CAN hurt you, short term and long term. When it comes to owning a vacation rental, there are pivotal considerations you need to make of any vacation rental sales company you’re thinking of hiring — whether you’re a first time owner or you have multiple properties.

How many of these might apply to you?

Does Size Matter?

A handful of individuals assume that the larger a vacation rental sales company is, the better it’ll be for them as homeowners — because of course, that firm is successful, right? Often, that’s far from the truth. Nonetheless, rental sales companies with large numbers of properties too often treat you the same way: like a number.

That’s not just unfortunate; it is rude and wrong. Your investment deserves personal attention, from an assigned sales associate — someone who is passionate about your property and understands how to best sell itsomeone who understands you and the amount of service you expect; someone you can have a relationship with built on trust. Ask who you’ll be working with, and ask to satisfy her or him.

You are Afraid to Change Horses Midstream

This applies to anyone who’s purchased a home or condo that’s already in a rental program, or anyone who’s been with the same firm for a number of years. The notion of change can be, well, frightening — you are afraid you may lose future bookings or long-term customers by making a switch.

Don’t be. Just do your research. Find a rental sales company that (see above) will bring a personal, passionate approach to you and your sales.

Armed with this, along with an aggressive sales and marketing program, your new vacation sales team should be able to maintain most if not all of your current bookings — by being proactive, positive and personable when reaching out to your existing customers, while adding new ones.

In addition, don’t ever allow the rental sales firm you’re currently contracted with suggest that you will”lose all your future bookings” if you cease to work with them — that’s just intimidation and unprofessional.

Ask If They Have a Plan — Or Even a Clue

When interviewing rental sales companies, make it a must to ask them to explain or outline their marketing plan — for their company and your property. Odds are, you’ll be surprised at the variety of answers you get. What you want to hear is:

We have an annual strategic plan for both our company and your property.

We integrate our marketing efforts to reach potential renters of your home via a handful of high-performing digital means, including: website; search engine marketing and retargeting; e-marketing; professional photography and videography; professional writing; social media; multiple sales channels (such as Home and Away, VRBO, etc.) that they manage for you; even employment of a professional branding or marketing agency with expertise in vacation rentals.

We can supply you statistics, analytics and testimonials to back this up.

What you don’t want to hear is: “Ah, well, um, you know, we do stuff, trust us.”

Ask If They Have an Incentive Program That Rewards Them for Sales.

According to the site Larger Pockets (a real estate investing system ), a vacation rental owner may expect to pay 25% or more in commissions to the sales rental company.

Make sure you ask about not just commissions, but also incentives — does the company have performance goals that will reward them (and you!) For increasing your rental revenues? You want the answer to be: Yes!

It’s What You Know, and Who You Know

It’s true in life, and it is true in the vacation rental sales business. After you get past the”what they know,” be sure to ask”who they know” — in other words, what kind of networks and connections does the company bring to marketing your home, helping to increase your rental earnings and profits. Key influencers you want to look for are:

Affiliated entities such as resorts, restaurants and attractions (and the chance to leverage those outlets to help create more rentals for you and provide a much better vacation experience for your clients).

A preferred group of real estate professionals that are always fielding inquiries about vacation rentals, and who can refer potential renters to your sales team.

Hilton Head Vacation Rental Company

Do I Really Need A Property Manager For My Vacation Rental?

When deciding to rent out your vacation home your first question may be, “Do I need a property manager for my vacation rental?” If you are looking to generate substantial income and not looking for a second job, the easy answer is yes.

To be able to conduct a successful vacation home rental operation, you will need to place your business hat on and start thinking about your next home as a revenue stream. Getting the appropriate support staff in place will be crucial to your rental success and will also help you protect your home as the vacation getaway you always intended it to be.

Property maintenance is a constant for homeowners and maintaining a second home an airplane trip away can be both time consuming and challenging. Employing a local property manager to handle the maintenance and upkeep of your vacation home will provide you the peace of mind you desire while also ensuring your home is in tip-top shape for renters. It is critical that your home be well maintained to ensure the best possible guest experience. Positive experiences lead to positive reviews, your best form of online marketing.

We propose hiring a property manager who is well networked with service providers in the area as this person can help hire and manage your housecleaner, the lawn and pool service companies, window washers, etc.. For repairs, they will tap into their network and get several bids and check references to ensure the best individuals are hired for the job.

Your property manager should be put in charge of all household supplies. They can help you create a home inventory and take care of shopping when it comes time to replenish or replace.

During a guest’s stay, your property manager should be on call to handle any repairs or issues that arise. After every stay, they should do a review of your home to check for any damages and make sure everything is in working order and well-stocked for the next visit.

To ensure there are no surprises, your property manager should help you decide on a budget for the home and be placed in charge of a house bank account. They can use this account for receipt of rental revenue and for payment of all recurring bills. These funds can be accessed for replenishing household supplies and for covering miscellaneous repairs.

We cannot stress how important a top-notch local property manager is to your vacation rental business. But they’re not the only partner needed; a house cleaner, concierge and vacation rental agent should also be part of your rental team.

Some property managers’ capabilities may include house cleaning and concierge duties, however most property managers lack the expertise required to navigate the highly competitive and complex world of online marketing. For this role you want an experienced sales and marketing professional who can drive qualified leads and easily secure bookings.

Home Panama City Beach Vacation Rental Company

Is Purchasing A Vacation Rental Property a Great Investment?

Imagine that you just came back from a much needed summer vacation and can’t get that beach house out of your head. You keep thinking about how peaceful you felt and how great it is to have a vacation home.

Your mind starts to wander and you consider, what if I bought a vacation property of my very own? Or maybe you ask yourself, is purchasing a vacation rental property a fantastic investment? Now is the time to stop daydreaming about having a vacation home and figure out if it is perfect for you.

Today, we’ll start out by listing the essential things to consider before buying a vacation home. Then we’ll weigh out the pros and cons of owning a vacation rental property. Finally, we’ll answer, is buying a vacation rental property a good investment.

Buying a Vacation Home: Things to Consider

There are a whole lot of things to think before buying a vacation home, as with any big investment. In the following sections, we will talk about factors that should impact your decision to take the plunge on a vacation home or not.

Contemplate Your Stage of Life

Are you raising a young family? How often do you travel? Just how much money, on average, do you spend on a family vacation? Are your children grown and you want to give a gathering place for everybody?

Considering that your stage of life will help determine exactly why you want to buy a vacation home and if the timing is ideal.

Second Mortgage

Second home loans generally require additional money down and a better credit score than owner-occupied home loans. In order to procure a second mortgage, generally you need to be able to verify that you can pay both your primary and secondary mortgage for between two and five months.

In 2014, 30 percent of vacation home buyers paid cash, according to the Realtors’ association.

Choosing to take out a second mortgage for a vacation home is a big decision that shouldn’t be taken lightly. If you are planning to get a mortgage to finance your second home, run the numbers to ensure it makes sense.


Can You Rent It?

Calculate insurance prices for the vacation properties you are seeking to buy. If you are planning on renting it out, then you will want rental home insurance, not general homeowners. The good news is, if it is used as a rental, insurance may be considered tax deductible.

Deciding to rent your vacation property or not would have a massive impact on out of pocket expenses. Rentals offer tons of tax deductions on expenditures like, mortgage interest, insurance, maintenance, and repairs. Renting out the home can also produce cash flow to help offset the costs associated with owning it.


When looking at where to get vacation property, choose your location carefully. If you are planning to rent out your vacation home when you are not using it, it’s important to consider future tenants. The rental ought to not only attract you, it should attract the renters as well.

A fantastic place to start is places you’ve been to on vacation before and you’re somewhat familiar with. Decide on a vacation rental property that’s easy to get to and will attract guests. Because this is the vacation home, also consider travel time and proximity to your primary residence. Choosing a good location for a vacation home has the capability to make or break your expertise and investment.

Pay Attention to Seasons

When determining where to buy a vacation home, pay attention to the seasons. If you are renting it out, understand when the”high season” months are, and when you can expect less demand.

For example, if you purchase a property in a beach setting, the high season will be through the warmest months. These high season or high demand months must make the most consistent rental income. On the other hand, during”off seasons,” expect less consistent rental income and be prepared for the lulls throughout the year.

Laws and Regulations

Because laws and regulations vary depending on location, check to make sure the vacation property you are looking to buy is within an area where rentals are allowed. Worst case scenario is that you fail to look into local laws and find out after purchase that you aren’t allowed to rent out your property.

There are steep penalties for renting out a property where it is not permitted. Certain cities also have a limit on how many days you can rent out a property.

Additionally, look at the regulations for short-term rentals in the area. It would be wise to avoid these areas, especially if you are going to rent out the property now or in the future.

Maintenance Costs

How are you going to maintain your vacation property? If your rental isn’t in close enough proximity to take care of it yourself, consider hiring a property management company. A tip from rental experts is to set aside at least 1 to 2 percent of the value of the house per year, for maintenance and repair costs.

Even if you are close to your property to tend to all the maintenance, ask yourself if you want to take on that responsibility. Especially in the case of an emergency, a property management company may be worth it. You may also be able to deduct the price of a management company in your taxes if it qualifies as a rental property.

Marketing Strategies

One of the biggest”what if’s” for a vacation rental property is the issue of vacancy. Assuming you want to earn rental income when you aren’t using the vacation home, you need to figure out how to attract guests.

Prior to closing on the deal, think about how you want to market your vacation rental home. Will you market the property yourself? If so, how? There are a range of vacation rental sites where you can list your home. Choose whether you want to go the Airbnb or even VRBO course, advertise through social media, or hire a property manager to handle all the day-to-day details.

There are a lot of marketing strategies to increase the likelihood of maintaining your vacation rental filled. Once again, based on how hands on or off you want to be, a property manager may be a great alternative.

Panama City Beach Vacation Rental Company

Things To Think About Prior To Buying An AirBNB Investment Property

First and foremost, where are you buying the property? When you’re thinking about purchasing a property with the purpose of renting it out on a short-term nightly basis there are a few things to consider when choosing the location for the property.

First and foremost is the demand from tourists to stay in that location. If the apartment is located in the suburbs, away from shops, tourist sites or other desired locations you aren’t going to be getting many bookings. If you can offer attractive features such as a sea view, near a convention center, a sports stadium or a location on a main boulevard of a few of the larger cities you can expect demand to increase dramatically.

You should also give a thought to seasons, and how they will impact the price of your property. While a ski chalet may do great in the winter, you will probably find yourself struggling outside of Ski season.

So what are the most lucrative places to purchase rental property? Forbes lists Austin, Texas; Provo, Utah; Houston, Texas; Orlando, Florida; and Dallas, Texas as the top five places to invest in property in 2015.

Where you’ll get the maximum value in your property renting it out on Airbnb is different. We’ve identified that New York City, San Francisco, San Diego, Miami and Austin are the top five areas to invest in if you’re thinking about renting out your investment using Airbnb.

Nonetheless, there are many more locations across the US that are high return areas. Keep in mind, there are legal regulations that can change and impact the investment opportunity.

How are you going to manage the property? Do you have enough time and resources?

Once you have purchased the property, and found your first tenants, you can just let the property basically run itself? Nope, not at all. Even if you are renting out the property on a long term (monthly) basis, your tenants may still have issues and asks that you’ll be expected to answer. Even if you are in a different state or country, tenants are likely to anticipate that there will be someone they can contact immediately in an emergency.

If you are going to rent the property on a short-term basis, you have to expect to invest a significant amount of your time managing reservations, and ensuring that items are prepared for your guest’s arrival. This includes having towels washed, the property cleaned, someone present to open the door and a welcome basket ready.

If your property is not in the same town as where you live full-time, or if you plan to travel a whole lot, consider hiring someone to check in on the property, and manage it while you’re away.

There are a number of companies that encourage Airbnb hosts in managing the property, such as Pillow; an online service that helps you manage several Airbnb properties, by assisting with bookings, cleaning and guest support. However, with careful planning, a few gadgets, and some nice neighbors, that much additional help may not be necessary.

Lockitron, was designed after the founder wanted a way to let his Airbnb guests without having to physically be at his house. The lock is controlled by an app, and allows you to open and close the door whenever you like, through your smart phone. You can also add and delete friends allowing them entry into your home for a limited period of time.

If you’re not interested in managing the home, another online platform that can help is Rented.com. This services helps property owners find the best property manager. In addition, property owners can also get bookings by selling weeks to a property management company. This is a great way to secure income and reduce vacancies.

Making certain that your neighbors are aware of the fact that different people will be coming in and out of your house is a good idea — they may start to ask questions otherwise! It is also a good idea to let them know when people are expected to arrive, as the more you inform them the more likely they would be to contact you if they saw something unusual.

Long-term or short-term lease?

The decision on whether to rent your house on a short-term lease or a long-term lease may not always be a case of how much return on your investment you’ll get. As a starting point,

If you are renting your house out to a couple of guests per week or month, you are going to have to either pay for a cleaner or spend a significant amount of time cleaning each week.

At around $20-30 per hour depending on where you live, the cleaning fees will soon add up. Add to that a welcome basket at a price of around $20, and any repairs for damaged or broken goods, and you are looking at around $50 spent on each guest.

This is not a passive ‘job’, and it is a job. Is the extra income worthwhile?

There will be lots of costs that you did not necessarily foresee coming. Taxes for example — that vary state by state — are gathered when you offer a short-term rental. In one city, there was 8% sales tax and an additional 8% occupancy tax.

Renting out your apartment on Airbnb may not be a full-time business, but it does require a whole lot of effort, at least initially to get it up and running. You will need to make certain you’re getting great reviews, and that requires being attentive and on call for your guests needs.

Consider the time spent managing your program, and ensuring you are getting bookings; this includes taking photos of your property (Airbnb offers a free professional photo service within the US), ensuring you have all the necessary items for guests, including towels, closet space, basic toiletries and at the very least tea and coffee.

Renting out an entire business can be a lucrative and rewarding experience, but just be aware that you can’t simply sign up to Airbnb and anticipate the bookings to come flooding in!

Panama City Beach Vacation Rental Company

Top Pros and Cons Of Owning Vacation Rental Property

Having a second home in an exotic location is a dream many people have. You can achieve this AND start making money in real estate by investing in vacation rentals. Owning vacation rental property is one of the best strategies to start investing in real estate.

There are many advantages when it comes to owning vacation rental property, but there can also be some drawbacks. In this blog, we will talk in detail about owning a vacation rental- pros and cons.

The Experts of Possessing Vacation Rental Property

Rental income

The main advantage of owning a vacation rental is the rental income you can make by renting out your investment property on sites like Airbnb, VRBO, and HomeAway.

The latest hype of Airbnb rentals is attracting many vacationers away from hotels. So, owning vacation rental property in a fantastic location can provide steady positive cash flow, especially during the peak season.

Property appreciation

A vacation rental property will most likely experience equity gain due to real estate appreciation — if the market permits. This generally means that as a real estate investor, the longer you hold on to the vacation rental, the higher the property value is going to be.

Tax benefits

Since owning vacation rentals is regarded as a business, there are drastic tax advantages and you can write off many rental expenses. For example, owning vacation rental property allows you to deduct your mortgage interest the same way you would from your first home.

Each state has a different taxation system so you will need to have a look at which short term rental tax deductions apply to your vacation rental.

Dual use of property

The main reason that drives real estate investors to have a vacation rental property is the fact that they can use it themselves. Being able to use and enjoy the property during the year or during the off season is a great perk of investing in vacation homes as you’ll not only make money when Airbnb guests occupy the rental property but you will save money on your vacations!

Various management options

Vacation rental property management can be overwhelming for novice real estate investors. However, owning vacation rental property can be made easier with the help of vacation rental management services that will take care of the property and take over time consuming duties. This allows you to buy a vacation rental property out of state and maintain a high Airbnb occupancy rate.

Finding guests is easy

Thanks to the growth of the vacation rental business, supported by platforms such as Airbnb, VRBO, and HomeAway, it has never been easier to find tenants for your vacation rental property.

Not only will you get access to thousands of guests using these platforms, but managing your listing is also simplified. For example, being an Airbnb host allows you to choose which dates you want to rent out your rental property and market it to target vacationers.

Learn about the real estate business

Owning vacation rental property provides you room to learn about real estate investing while enjoying the perks of owning vacation rentals. By gradually learning how to make the most out of your short term rental property, you can then expand your property business and earn more.

The Disadvantages of Owning Vacation Rental Property

Property Expenses

Property costs associated with owning vacation rental property lead the list of the cons. Not to discourage you from investing in vacation homes, but the latter comes with several expenses that you will need to get prepared for. Factoring in your vacation home expenses from the beginning can help you accurately estimate your net operating income and return on investment.

The vacation rental income calculator from Mashvisor allows you to include all costs associated with owning vacation rental property. Such expenses include property management fees, utilities, property tax, property insurance, mortgage payments, and other various Airbnb expenses. This way, you can make sure the costs won’t damage your ROI and manage them efficiently.

Short term rental regulations

In recent years, many cities and states have started regulating short term rental properties. In the most Airbnb friendly cities, there are no limitations or heavy regulations when it comes to operating a short term rental property.

However, in other locations, a real estate investor may face strict laws that impede the full earning capacity of the investment property. Since vacation rental properties are mainly rented out as short term rentals, you should avoid investing in cities where that can be a problem.

Investment risks

When it comes to owning vacation rental property, there are two major risks that you need to consider. First, there is the financial risk of the real estate market taking a hit and property values dropping as a result. Truly, vacation homes are particularly sensitive to economic downturns, which could leave the real estate investor financially vulnerable.

A second risk associated with owning vacation rental property is the incidence of natural disasters. There is a high demand for waterfront vacation homes, for example, and you may want to tap into this market. But having an investment property by a beach includes the risk of adverse weather conditions like hurricanes and flooding. Therefore, it would make sense to get insurance that covers any losses resulting from these conditions.

Unplanned costs

Owning vacation rental property includes a great deal of expenses and on top of that, you will always have to deal with unplanned costs due to the high tenant turnover. Setting aside 10% of your monthly rental income will serve as an emergency fund that covers unplanned costs.

Panama City Beach Vacation Rental Company

How To Go About Prevention, Protection, and Action For Damages To Your Vacation Rental

From costly artwork and furnishings, detailed finishes, thoughtful amenities, and top of the line appliances, many Airbnb vacation rental hosts in California spend tremendous amounts of time, energy, and money creating some of the finest rentals for their vacationing guests to enjoy.

Given such a large investment in the rental space, most hosts naturally question how they can protect themselves against losses from renter accidents and incidents that cause property damage. Let us explore what damages you can expect, what damages should prompt action, prevention measures, and recourse actions.


Accidents happen even under the best precautions and care. Of course, there are also those renters who simply don’t care or respect the property because the aftermath of their actions isn’t perceived as theirs to clean up and repair.

As you accumulate renters, you might find that little annoyances such as chips on dishes, small scuffs on walls, sticky fingerprints on every surface imaginable, bathrooms clogging, and regular dirt trekking on flooring is just par for the course in renting to vacationers.

It is disappointing that people aren’t more cautious by just taking their shoes off or wiping their kids hands down after eating. Yet, these types of incidences just aren’t worth the time, cost, nor energy to pursue. In most cases, it’s simply more cost-effective to make cleaning arrangements and replace inexpensive products.


You’ll want to take wear and tear, such as limescale buildup, tears in worn fabrics, deteriorating furniture, aged appliances, and so forth, into account for your rental property’s contents and any damages that occur.

It is a given that if your carpeting, for example, is in pristine condition and a guest spills a bottle of wine on it, then you certainly have cause to contact airbnb management to report serious damage. But, if that carpeting was already excessively worn and torn from age and general use, stressing over looking for compensation to replacing it now isn’t very justifiable.

It’s better to concentrate your efforts on serious incidences of damage to and theft of valuable items in good shape. In other words, one stolen towel from a big box retailer’s shelf isn’t comparable to all your brand new designer towels being ruined by a guest wiping their red lipstick stain or fingernail polish all over them.

Common areas that prompt you to act on severe damage are incidences such as:

• Theft or destruction of valuables in good condition.
• Drop incidences that cause cracked flooring.
• Structural damages, such as holes in the wall or broken windows.
• Driving over landscaping.


Some guests will immediately call the server or airbnb management team when something is broken or damaged. They may even offer to immediately resolve the issue by voluntarily compensating for the owner’s loss But, this call isn’t guaranteed, and any offer of payment isn’t guaranteed to be enough to cover the damages.

Whether you make contact with the renter or they make contact with you, it’s ideal to utilize the Airbnb platform for all communications so that Airbnb can monitor and document the resolution process. If the renter is unwilling to resolve the issue, you can use the Airbnb resolution center to file a formal complaint.

Your Airbnb security deposit is another defense option and damage set source. Proceed to the Airbnb website, select manage your space, pricing, and then safety deposit to submit a claim on damages. You have up to 14 days after the guest checks out to submit your claim.

Should damages exceed the security deposit amount, Airbnb’s Host Guarantee Program covers certain damages up to a million dollars. Do remember, however, that damages caused by personal liability and that involve securities, artworks, pets, jewelry, collectibles, and cash aren’t covered by the program.


Of course, the best recovery procedure is proactive prevention and assurances to cover incidences before they happen.

The absolute best way that you can protect yourself from the expense of renter damage is to invest in additional Airbnb insurance. A detailed coverage plan will offer you total peace of mind that all, not part or limited-to, losses and damages will be covered.

Aside from Airbnb insurance, there are a few more proactive steps you should take to protect yourself, including:


All hosts should have an inventory of their property’s internal and external contents, including everything from utensils and floor coverings to lounge chairs and light fixtures. This should contain numbers and condition notations. Support your stock list with time-stamped photographs to document each item’s condition. Your stock and photo documentation should be updated at least yearly.

Guest Screening And Vetting

Be selective about who you book. Do research on social media and even through background checks before booking. Explain your property rules thoroughly beforehand so that you and guests can decide if your property is a fit for their own purposes.

Remove Personals From The Property

You may use your rental property when vacationers and other guests aren’t there. Don’t leave your personal valuables, such as photo albums, heirlooms and antiques, financial documents, and clothes, behind for visitors to pilfer and plunder.

In closing, it is unrealistic to think that renters will honor and cherish your vacation rental property as you do. By knowing what to let slide verses what to pursue as a serious damage and how to protect yourself from serious damage with proactive measures like an insurance plan and documentation, you can better manage how it is you manage your property and save yourself a lot of stress when damage does occur.

Panama City Beach Vacation Rental Company

What’s Better? DIY or Hire A Property Manager For Your Vacation Rental?

Owning a vacation rental property is a great investment. However, owning a rental property of any kind comes with a lot of responsibilities. Providers of a rental can expect to do many different jobs when it comes to their property, including:

• Managing all the business aspects of the rental, such as taxes, rental fees and insurance policies.
• Aggressively marketing your property so that you can attract enough customers to make the rental profitable.
• Manage all of the reservations, payment processing, and other related administrative tasks.
• Property maintenance inside and out and cleaning the unit each time a guest leaves.
• Greeting all renters upon their arrival to assist with any of their needs and perform a walk through on the unit before they depart to ensure everything is not damaged.
• Answer emergency calls for anything that could happen at the property.

When you purchase a rental, you will need to ask yourself if you are going to handle all of these tasks or if you hire a property management company.

A Look At Property Management

When it comes to deciding on property management, you have four real alternatives. Each of these options offers different services. The sort of service you use will depend on your preferences and what you hope to achieve with your rental.

Full Service Vacation Rental Service

A full service rental service will manage every aspect of your rental property for you for a monthly fee. Their services include marketing, reservations, cleaning and prepping the unit for each guest, and emergency contact services.

Some are also including additional services as a way to lure customers such as concierge services, package deals or local attractions, and discounts for dining and other local experiences. These additional benefits encourage many visitors to choose their rental units above other available units in the same area.

Property Management Company

A property management company performs a very basic service. They will make certain that the property stays maintained both inside and out and will provide an emergency contact number for guests who may experience problems. However, they will not manage any sort of marketing, reservations, or answer questions for guests.

Booking Company

A booking company offers reservation and guest inquiry services. They will answer questions when someone asks about your unit and will book their stay, but they usually do not offer any additional services.

Marketing may be an add-on feature that these services offer, but this is not very common. Booking companies do not handle any sort of maintenance and do not interact with clients other than to make their reservation.

DIY Property Management

If you are a DIY person, than you may just rely on family and friends to assist you with your vacation property. Anyone that decides to do this, however, should take a very close look at what successfully managing a property entails, the hours and effort involved, and decide frankly if they can accomplish these goals.

Self-Managing A Rental Property

The first step to a successful rental business is being able to get people into the rental unit. On average, a DIY manager will have to devote at least nine hours a week to get a minimal response to their marketing efforts.

You’ll have to be available around the clock to accept calls for inquiries and reservations. You have to consider, especially if your property is in a high-demand area, that you will be contacted from visitors who are traveling from all areas of the world. They will contact you in their time zone, not yours.

If you do not live within a short distance of your property, you will have to think about how the property will be maintained. Can you come every couple of days to maintain the property and make sure the interior is clean?

Can you make necessary repairs that are within safety and building code guidelines? How hard is it for you to reach the property in the event of an emergency? These are all serious questions that must be asked and answered honestly.

Can you dedicate sufficient time each week to performing all of the administrative tasks necessary to manage the vacation rental business? Do you understand the tax structure and local fee structures for rental properties? Can you process credit card payments from your home office? All of these things have to be considered.

Options For DIY Managers

If you are still determined to manage as much of the rental business as possible, there are choices that can make it easier. Look honestly at your strengths, such as your ability to market or make repairs, and then find support services to aid with the other tasks.

A handful of property management companies devise a service package for you based on how much, or how small, of the services they offer you will need to make your rental property a success.

Panama City Beach Vacation Rental Company

Amazing Reasons Why Hiring A Property Management Company will Give You A Good R.O.I

If you’re just starting on your rental property journey, or, you’re a seasoned investor, most likely, your goal is to maximize your profits and expand your portfolio.

If this is your primary focus, then managing your investment properties wouldn’t be practical, even if you feel you’re capable of pulling off the job. This is where a property management company comes in. They can successfully manage your real estate investments and ultimately funnel more money in your bank account!

Let’s dive in to find out more about having your rental properties professionally managed to maximize your revenue stream.

Increase Your Profits by Hiring a Property Management Company

Maintaining a rental property comes with a significant amount of time consuming responsibilities. In addition to this, it also requires having extensive knowledge of the topic to ensure that all your bases are covered.

For instance, advertising and marketing, tenant screening, and property maintenance, are just a few of the components that, if done properly and efficiently, will boost your profits. However, before you start searching for your dream management company, read more about finding a cash flow oriented property management team.

If you are eager to learn more, take a look at these 7 reasons why hiring a property manager for your real estate investments will increase your profits and keep more money in your pockets:

Avoid Financially Draining Vacancies with Proper Marketing Strategies

An experienced property management team can literally save you thousands of dollars with their proven marketing strategies. Their advertising efforts can pull in a massive pool of candidates very quickly. This can certainly fill your rental property vacancy within a timeframe that prevents you from losing money.

Also, a property management company will have the necessary expertise and skills for writing rental ads and creating professional photographs. In addition to this, they are set up to be able to negotiate advertising rates; cutting your costs even more. Lastly, they have the know-how to host the perfect open house to successfully showcase your rental.

Escape Financial Risks by Weeding Out Bad Tenants

Even if you have the time to sit and interview all of your applicants, do you have the experience to spot the red flags for problem tenants? A lousy tenant or two can cost you more than you realize.

From lawsuits to property damage, an undesirable tenant can certainly decrease your profit margin. Selecting a real estate property management company will ensure that all the proper measures are taken when searching for the perfect tenant. This would include verifying employment, checking credit and criminal reports, contacting previous landlords, and more.

Experienced and trained property managers have an eye for spotting trouble makers. Additionally, they have a good sense as to which individuals are more likely to be reliable renters who will take care of your property. In sum, a good management property team can successfully preserve your revenue stream by placing qualified tenants on your rental properties.

Efficient Rent Collection Ensures a Consistent Cash Flow

Let’s face it, rent is expensive these days and times that are tough happen. Bearing this in mind, you can expect to have some issues with rent collection. Time is money, and if you have to spend time chasing down rent payments, as well as taking the appropriate steps when a tenant just can’t make that payment, it’s going to affect your bottom line.

Selecting a real estate property management team that is equipped to handle all situations pertaining to monthly rent collection, will allow you to maintain a consistent cash flow. It is their job to make certain that your tenants follow the lease agreement down to the fine print, including payment guidelines and late fees.

Boost Your Earnings by Achieving Higher Tenant Retention Rates

Maintaining a high tenant retention rate — maintaining your current tenants from moving out, can easily be accomplished by property managers who understand how to keep your tenants happy. Rental management teams have the experience to maintain good relationships with your renters.

This includes such things as taking care of maintenance issues in a timely manner, conflicts with other residents, as well as keeping the property looking well maintained and attractive. Additionally, offering a rental portal for easily making payments and submitting repair requests is a bonus for your renters.

Basically, when property managers take your tenant’s needs seriously and make them feel well taken care of, it is going to go a long way. This can keep your current tenants from moving elsewhere. In the long run, it is going to decrease expensive tenant turnovers, and keep money in your pockets.

Save Thousands by Letting a Management Company Handle Property Repairs

By employing a real estate property management company, you will, without a doubt, save a considerable amount of money on maintenance and property repairs. By doing so, you will be able to utilize the management company’s professional and experienced maintenance staff.

Plus, property management companies have access to bonded and licensed contractors who provide discounts for consistent workloads. This will not only add up to significant savings but also increase your property value.

Hilton Head Vacation Rentals

Pro’s and Con’s Of Getting Of Purchasing A Vacation Rental

Purchasing a second home and using it as a vacation rental property is a huge decision. And sometimes making large decisions, similar to this one, requires sitting down, doing the research, and making a pro/con list of owning a vacation rental to help guide you.

The good news is that we have done the hard work for you. Our team at LSI Vacation Rentals are experts in vacation rentals and understand all of the pros and cons for owners and potential owners just like you. Here are few tips that can help you with your decision.

Pro: You’ll earn extra income.

This is probably the main reason you are considering owning a vacation rental property in the first place. Who doesn’t want extra income plus a vacation home they can retreat to whenever they have to get away?

Your rental income will depend on which city you purchase in, what neighborhood, the sort of home you have, and much more. We recommend checking out some listings on Airbnb and VRBO in your town. Look at the nightly rate that other owners are charging and determine the rates and availability change depending on peak season and offseason.

Most recently, as the travel industry has faced a surge of vacation cancellations because of COVID-19, many travelers have opted to stay in vacation rentals over hotels because of their ability to easily social distance. This could mean a massive bounce back for the home-sharing industry, as well as a more permanent shift in accommodation preferences as travel starts to resume again.

Con: There may be some unexpected expenses.

Just like at your primary residence, things in a vacation home can break or just stop working at any moment. When this happens, you as the owner are responsible for paying to fix it.

You can plan for certain costs, like utilities, restocking, taxes, and regular maintenance, but you can’t plan for your air conditioner breaking or a pipe bursting. We recommend setting aside a certain amount of money each year, like 1% of the home’s purchase price, for unexpected repairs and maintenance.

Pro: The home may increase in value.

When you purchase a home, the expectation is that will appreciate in value so that you can make more money off it when you’re selling. A vacation rental home is no different. Your property will hopefully increase in value year over year.

This is true especially if you buy in a high-demand area. Before making a purchase, take a look at past and current trends in the market you’re hoping to purchase in.

Con: Your down payment might be higher than you think.

If you’re purchasing a primary residence, you can sometimes get a loan with a 3-5% down payment. The rules are different for vacation rental properties. When you’re buying a second home that you don’t plan to stay in full time, expect to put down 20-30%. Your credit score requirements also might be higher for this vacation home because you’ll be taking on more debt.

Pros: You can deduct business-related expenses.

Don’t forget about tax deductions! This is a business for you, meaning if you are paying taxes based on your rental income, you can deduct any business-related expenses.

Deductions you may be able to claim include housekeeping, restocking, and the price of your property management company. Just make sure you keep each and every receipt. We recommend getting a business credit card to pay for any expenses related to your rental so you can see everything you paid for in one place.

You also may be able to deduct your mortgage interest, property taxes, and insurance. To figure out exactly which deductions you can claim each year, talk to a tax professional in your area.

Con: You’ll have to pay more taxes and fees.

You won’t have to pay taxes on rental income if you rent your home out for less than 14 days each year. But if you are renting out your property for more than 14 days, you will need to pay federal taxes on that additional income.

Other taxes you’ll pay include state, local, and property taxes. Depending on your local tax laws, you may need to get a business license, pay sales tax, or resort taxes too. When it comes to fees, you will probably have to pay a booking fee for the websites you use to market your home.

Pro: You’ll have a vacation home to use whenever you want

Do you need a vacation? When you have a rental property, you always have a place you can visit. To maximize your earnings, we recommend heading to a vacation home in the off-season.

You will also have a place that friends and family can stay in (whether you make them pay the full price, a reduced rate, or nothing is left up to you). And while retirement may be a long way off for you, a vacation home is the perfect place to retire to when you decide that you’re ready for it.

Con: The care can be time-consuming.

There is a lot of upkeep involved with owning a vacation rental property. You’re going to have to keep up with regular maintenance and repairs, but you will also have a lot to do for each guest’s stay. This includes housekeeping (whether you hire someone or do it yourself), restocking, and answering the guest’s questions and concerns.

If you get a vacation rental property in a different town than your primary residence, you also need to think about the time and costs for traveling back and forth between both homes when you will need to take care of something at the rental property.

There’s also the marketing aspect. You Will Need to create listings for sites across the internet, such as HomeAway/VRBO, Airbnb, and Expedia. With these listings, owners must always be answering potential guest’s questions, responding to reviews, and updating the nightly rate/calendar for their property.

Rental properties are easier to manage with help.

If all of the maintenance above sounds like a lot, there are people who can help — that is a major pro. Vacation rental property managers like TurnKey can do everything for you, so you don’t have to spend every spare hour dealing with your rental home.

When it comes to marketing, a great property manager will expertly craft a listing on all of the major sites travelers use. They’ll use professional photography and an expert copywriter to make certain that your home stands out among the thousands of others that may come up in a search.

Another way a good property manager will be able to help you manage your rental is by being there for guests. For example, TurnKey has a guest team that’s staffed 24/7 to immediately answer any question a guest might have. You can also rely on your property manager to handle housekeeping and regular maintenance.

TurnKey will take care of the housekeeping and any minor maintenance tasks such as changing light bulbs, replacing batteries, etc. to make certain your home is always perfect for guests — we even give cleaning companies a checklist to follow while they’re housekeeping, and we always do photograph comparisons to ensure your home is staged properly. Additionally, a property manager will walk through the rental before any guests arrive.