If you own a vacation home, you know the struggle of managing an entire property all by yourself. Although it’s a great way to earn extra income and share your love for a particular location, there are some hurdles you cannot ignore. Be it finding guests, fielding inquiries, handling maintenance issues, or keeping your property clean.
You might sometimes feel like having someone as a helping hand would have been a better idea. But with that in mind comes the extra cost of salaries. Vacation rental software can also be a helpful option, but it cannot be used as a replacement for a human helping hand. So, is a property manager right for you? You need to make this decision with proper consideration as there are many pros and cons associated with it. Let’s discuss if you should hire a property manager.
The Pros of Hiring a Property Manager
Hiring a property manager can be quite a smart decision to make. When you know a professional is handling everything, you can relax a bit and focus on making your property more welcoming and handling the accounting.
Here’s what you get when you hire a property manager:
1. More Time
Managing a property means you have to take care of everything, including marketing, screening guests, maintenance, or even answering late-night calls. Handling all these tasks single-handedly is very difficult. Property managers take care of the day-to-day operations, which allows you to free up enough time. This means you can focus on other things, like your daily job, traveling to different locations, exploring more options for passive income, or spending time with family.
2. Experienced Professional
Property managers are experienced in handling every property type, regardless of size. They know the nuances and are trained to tackle the challenges with confidence. If you hire a property manager from a nearby location, the local market and rental regulations are familiar to them. They also usually have a network of reliable vendors like plumbers, electricians, or cleaners who can handle repairs and maintenance requests whenever needed. This makes the maintenance work much easier than you think.
3. Marketing and Guest Acquisition Expertise
An experienced and knowledgeable property manager can handle the marketing activities of your property professionally. They know inside and outside of the vacation rental industry. From creating attractive listings, developing effective marketing strategies, and screening guests, they can manage everything hassle-free.
4. Professional Tenant Management
Although guests are the heart and soul of your business, sometimes handling them can be trickier, especially when it comes to issues like late payments or maintenance requests. Property managers are trained to handle these difficult situations professionally and according to local regulations.
When you let a property manager handle your rental, it becomes much easier to handle everything properly. A property manager can give you security and peace of mind whether you live nearby or miles away.
The Cons of Hiring a Property Manager
There are some disadvantages to hiring a property manager as well. These are:
- Hiring a professional comes with a cost, which is typically a percentage of your rental income or monthly salary. If you are hiring on a shared-percentage basis, the charges could be 20-40% of your rental income. So, when deciding your overall ROI, consider this cost.
- You are transferring an important part of your business. Although a good property manager can help you grow and succeed, you may not always make the final decision.
- Another important factor is finding a trustworthy and qualified professional. Whoever you hire should have a strong track record, a clear communication style, and experience managing similar rental properties.
What Should You Do?
The decision to hire completely depends on your requirements and preferences. Here are some questions to consider:
- How much time can you dedicate to managing your rental?
- Are you comfortable with the level of control you’ll be giving up?
- Can you afford the fees associated with property management?
- Do you live near your rental property?
Conclusion
Whether you should hire a property manager depends on your business. Before making a decision, consider the factors we have discussed above. If you are still not sure, you can hire someone temporarily for some time, check if you are comfortable with the process, and make your final decision. It’s always better to experiment before completely investing in it.
