Perhaps you’re considering working with a property management company, but you can’t decide. Here is a list that will help you.
Property management companies wouldn’t exist unless they were answering a common problem that exists in the rental market.
Some do a better job of this than others so you need to do your homework and see which are the best ones to reach out to.
Renting out your property seems simple on paper especially to the short-term rental market.
It goes a bit like this:
- Somebody wants to rent a property.
- You have a property.
- You rent your property to them. Easy.
If only it were that simple. People are complex and so is the operation of property management. But with the right systems in place, property managers such as those at Happy Owner do their best to take the complexity out of the equation.
Making this entire process stress free, while you still get all the benefits.
So why would you work with a property management company when you can have a go and do it yourself?
Advantages of Working with a Property Management Company
1. The market is competitive
Entering the vacation rental market is relatively easy and requires no experience (unfortunately). However, this leads to a big gap in quality. For the most part, a lot of these OTA (Online Travel Agents) don’t care about this as much as they would like to.
OTA’s such as Airbnb, Booking.com, and Expedia are all playing the numbers game and not the quality game. They have a formula to scale up and to do so as aggressively as possible.
We touch on this point in my other article 10 Questions to Ask Yourself Before Listing Your Property on Airbnb
There are other platforms on the market offering an alternative to this. Such as Plum Guide and Homes and Villas by the Marriott, but in general OTA’s are playing the numbers game. Bigger inventory means bigger money.
This makes the market incredibly competitive. To compete having a partner that is a competent and trustworthy property manager may be exactly what you need to position your property in the market, sustain yourself, and grow continuously.
2. Last Minute Bookings and Late Check-ins
Not all reservations will happen at a time that is convenient for you. You won’t always be able to check a guest in that is arriving at late night hours.
This inconvenience can be greatly disruptive to your day and your life.
Alternatively, you can place restrictions on your property so these occurrences don’t happen. However, that may have a negative impact on your ranking on these platforms and ultimately lower your earnings for your property.
Working with property managers such as those at Happy Owner can solve this entire problem for you. Last minute check reservations won’t be a problem. Guests checking in at irregular hours will either be accommodated or an automated system will be used to ensure they check-in smoothly and easily.
For a prolific property manager, this is all just part of everyday life.
For a private owner, this may cause stress, a breakdown in communication, and perhaps not just an unhappy owner but an unhappy guest as well.
3. Maximize your earnings
Knowing your property is positioned correctly in terms of presentation, pricing and customer service will ensure you get the maximum from your property.
Doing it yourself requires a lot of guessing and trial and error while you could be just benefiting from the experience of a professional.
You’ll be less likely to panic, worry and second case your decisions and instead let the property manager deal with all of that.
4. No need to deal with guest issues
Issues with the property and issues with the guests are inevitable. Any property manager that tells you differently is a property manager you ought to stay away from.
However when they happen you won’t have to worry about it. Your property manager has the skills and experience to navigate any turbulence that may present itself during the time of the guest’s experience with your property both before, during and even after their stay should issues arise.
The key to the best resolution is often timely communication.
With a team of dedicated professionals committed to the success of your property that won’t be an issue.
5. Maintenance is not your problem
Any property run successfully will require maintenance due to wear and tear. It’s inevitable. As well as this the more people that stay in your property the greater the chance of breakages and property damage.
Some small, some significant, but regardless all need to be looked after professionally and in a timely manner. A reputable property maintenance company will have dedicated staff ready to take care of and resolve these issues.
Finding the right people and handling any other logistical and tactical challenges you may be confronted can be incredibly time consuming.
When you connect with the right property manager, your biggest obligation is signing the contract and handing over the keys.
As long as you can handle that you are golden. Additional expenses may occur for professional maintenance and the upkeep of the apartment but you’ll be told about them in good time.
Your property is managed by a professional, your agreement is legally binding and as long as the money keeps flowing into your bank account everyone’s happy.
Making money from the point of view of the owner does not get much more simple than this.
7. Minimize your investment of time
Time is one of the biggest resources consumed when managing a property. There is maintenance, administration, lead nurturing, customer support, legal compliance, cleaning and laundry among other things.
And that’s if everything runs smoothly. Life has a funny way of presenting us with challenges and when it does that challenge requires more time and attention.
A good property management company will take care of all of that for you. As a property owner your investment of time is minimal.
8. Ability to to scale up without increase input
Let’s say in the best case scenario you successfully manage your property in the short term rental market. You may be confronted with or tempted with another property to host and manage.
As a private owner that means doubling your investment of time, resources and energy. With a property management company, you simply tell them you have a new property for them and they’ll add it to their inventory.
You potentially double your cashflow without doubling your effort and that is what we call efficiency.
9. Professional photos
This touches on previous points, however it is worth bringing attention to as its own point.
There will be several primary reasons why someone selects your property on one of the online travel agents. One of those reasons will be the visual impact.
The primary way you achieve visual impact is through the photos.
A good property management company will ensure that your property is positioned with excellent photos taken by a professional. This will increase the number of times people click on and enquire about your property.
As a result it will increase your revenue and result in you being a Happy Owner.
See below an image from one of Sea N’ Rent’s properties in Tel Aviv.
10. Cleaning and laundry are sorted
Right next to cleanliness and maintenance there is laundry. Bed linen and towels must be in excellent condition and of the highest standard when it comes to their level of both comfort, visual display, and of course cleanliness.
A reputable property management company will work with a professional laundry service to ensure a fresh and consistent flow of clean towels and linens enter your property for all your guests.
It seems obvious that this should happen, but it should also happen like clockwork and when a guest needs extra it should be readily available.
This is exactly the sort of service you can expect from professional property management company and honestly you should not accept anything less.
Regardless of whether you are thinking of flying solo and embarking on the short term rental market with your property yourself or teaming up with a great property management company, you should weigh up all the details and make a decision that benefits you the most.
Choose wisely to maximise your profits, potentially scale up the operation and gain peace of mind.
Have you got a property in Tel Aviv that you’re considering renting out as a vacation rental?
Set up a call with Happy Owner today and see if we can help you with earning the most from your property.
Scott D. Renwick is the Head of Operations at Sea N’ Rent Ltd., working with them since 2015. His skills have helped the company structure its operations to ensure stability and future growth in the property management business.