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Rental Property Management |
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Rental property management is something many Mammoth home owners need to use. It is difficult to manage your own property if you do not live locally. And because we experience extreme winters, it's not as easy as just locking everything up until your next trip up. Freezing pipes, wildlife break-in, leaks, security; these are all things that need to be taken care of in a timely manner.
As you can imagine, there are many companies who provide these services so it's up to you as the home owner to interview the candidates and make a selection. Here is a list of things to ask the property management companies you interview...
1. What is your fee for rental property management?
Many companies will provide this number as a percentage of the gross rental revenue less expenses (ie: repairs, appliance replacement if needed, etc.). A common 'take' for a property management company is anywhere from 20-50%.
2. What services are included with your fee?
There are two main commonalities among many of the property management companies when it comes to housekeeping. Ask the property management company if housekeeping is included with the fee or is deducted from the owner's percentage.
It is ideal that the management company provide the linens to be used by guests in your property. Some companies require that you provide your own linens but many will provide sheets, bath towels, kitchen towels and bath mats. It's also nice if the company provides toiletries and the basics such as toilet paper, paper towels, dish soap, detergent, trash bags, and even coffee and cream.
3. How often and in what manner is the owner's percentage paid?
Typical is monthly. Many companies still cut physical checks that are mailed to the home owners but some newer companies such as the Westin's onsite rental management offer direct deposit.
4. How do you advertise the units for rent?
The internet is the name of the game in advertising vacation rentals these days. Don't be concerned with print ads; focus on how much effort they put into their web presense. Check out their website and make sure it's easy to navigate. If you don't want to spend any time looking at the properties they have for rent on their site, chances are someone looking for a place to rent isn't going to want to either. They should provide detailed information and lots of photos, and a virtual tour.
Find out where most of their guests come from. If they say a large majority is repeat customers, that is an excellent sign of great customer service and management. Another source of business high on the list should be internet. They should also offer online reservations.
5. What items must you provide and who is responsible if the items are broken or missing?
The company will usually have an inventory list with items marked as required or optional. Ask if you will be reimbursed by the company or if you will just be required to replace it. You would think this would be obvious, but you'd be surprised at some of the answers you get. Makes sure whatever they say, it's in writing in your contract. It may not be their policy but may be willing to agree just to get your business.
6. Do you use a rating system for units? If so, what would you rate my unit in the current condition? What would I need to do to raise my unit up to the next levels?
Some use a number system, some rate by stars but almost all charge different rates based on the rating of the unit. A nicer upgraded unit will more easily warrant a higher rental rate and unique features can increase the likelihood of repeat guests specifically requesting your unit. These people tend to take better care of the property also.
7. Is there a difference in rental rates depending on the rating? What rate would you ask for my unit based on the time of year and how many nights they plan to stay?
There are usually certain requirements to meet each rating for a property. Be sure to ask what it will take to get to the next level up. You may be as close as a tv or dvd player.
8. How do you qualify guests to limit the potential for damage or theft? Who is responsible and what happens if it does occur?
The correct answer here is that they limit the number of people allowed to stay in a property based on it's number of bedrooms, they do not allow anyone under the age of 18 to rent a unit or stay in the unit without adult supervision and that inspections are done. These companies should have liability insurance policies that cover damage and theft. They should also be taking sufficient security deposits.
You cannot discriminate who you rent to on the basis of having children so don't ask the management company to note "No Children" on your unit; it's illegal.
9. Do you allow pets in the units? How many pet-friendly units do you have? What are your rules and procedures for guests with pets?
You can designate your property as pet-friendly or not. But check with your CCR's to ensure guests and renters are allowed to have pets. Projects such as Bigwood allow home owners to have pets but does not allow renters or guests to have pets so be sure to check if it's important to you. Pet friendly units do rent well and a large security deposit is usually required to cover any extra necessary cleaning.
10. Do you manage the entire property (meaning the entire project where yours is located)? Do you provide for staff to handle after hours emergencies with guests? Do you have any home owners you can provide for me to speak with for a reference?
If the company manages the whole property, that means they have an on-site manager or a manager close by under the company's control. It could be seen that these manager may take a personal interest in the care and maintenance of your property. That is something to provide a little piece of mind for your investment.
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