What is the secret to generating passive rental income?
One of the best ways a rental property owner can minimize their involvement is to hire a property manager or property management company. Simply put, a property manager is the secret to making passive rental income on a property you own truly passive. While property management fees contribute to your overhead expenses, those fees can be tax deductible, making them more than worth the investment. When set up properly, a property manager is able to take care of logistics and upkeep, allowing the property owner to remain mostly hands-off as they collect the profits from their property.
When hiring a property manager or property management company, the most important factors to weigh are experience, responsiveness, and communication. A property manager with a proven track record of success may be safer than someone with less experience. Keep in mind, also, that a more established property manager may already manage several other properties, and have industry contacts that may help. Prioritize property managers who are willing and available to communicate with you and your renters promptly and professionally.
Once you select a property manager, set clear expectations for how you want them to manage your property. Many states and cities have legal requirements for landlords that apply to their property managers, so be sure to sign a Property Manager Agreement to memorialize their responsibilities clearly.
How can a property manager help ensure vacation rental success?
A property manager handles the daily operations of vacation rental properties, making sure that a property and guests get the attention they need. This allows property owners to set their focus elsewhere.
Behind the scenes, a property manager can make sure your rental stay in compliance with the state and local laws for short-term and vacation rental properties. This can also include obtaining necessary permits and making sure taxes or fees are paid where required.
Once a property is ready to rent, a property manager can handle the advertising, bookings, and even the money. Typically, they know the best listing sites to use and other helpful marketing strategies, enabling them to improve occupancy rates and limit vacancies. A property manager also handles renter screenings, facilitates check-in and check-out, and prepares and collects important documents like the Vacation Lease and Move In Checklist.
Between renters, a property manager can inspect the property for damage or lease violations and promptly follow up with troublesome renters. Then, as needed, they can arrange for the property to be cleaned and prepared for the next guest. They also execute repairs and routine maintenance to keep the property in good shape and attractive to renters.
How can a property manager improve the guest experience?
A good property manager can take the guest experience to new heights. They have the capacity to respond to guests’ concerns and needs more quickly than the property owner, especially if they live nearby or onsite. A property manager may even be able to be physically present during check-in and check-out for guests, providing the opportunity for immediate responses or feedback. They can also tackle repairs and upgrades effectively and urgently.
For these reasons, rental properties managed by a property manager are typically better maintained and cleaner than those managed by the property owner alone. A property manager may also have time to gather feedback from rental guests and implement valuable suggestions to improve the experience for future guests and increase the odds that satisfied renters return.
How does a property manager or management company help when you share ownership of a vacation rental property?
Sharing ownership of a short-term rental property provides its own set of challenges beyond managing the property itself. Fortunately, a property manager or management company can address many of these challenges. For instance, a property manager eliminates any potential stress or conflict over who bears responsibility for keeping the rental site ready. Plus, a property manager takes care of key operational duties, such as keeping records, collecting rent, and paying contractors or vendors for services related to the rental property.
A property manager’s experience often provides them with insider insight into how to make your investment property more appealing to renters and potential investors. Thanks to their ability to optimize rental income and minimize operational efforts, a property manager can go a long way in making sure everyone is satisfied with their vacation rental property experience.
If you have more questions about hiring a property manager, or property management company, reach out to a Rocket Lawyer network attorney for affordable legal advice.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.