A No-Rental Vacation Property
Assuming that you are not actively renting your vacation home (i.e. renting it for less than fourteen days per year), there is no need to hire a full-time professional property management company. This is your home, and just like your primary residence, if something breaks while you are there, you either fix it yourself or call a repairman. If you are away from your home for long periods of time-say, the entire winter you may want to contact a property management company who would be willing to monitor the home for a small fee and take care of any repairs or emergencies.
A Rental Vacation Property
If you are planning to actively rent your vacation home, you have little choice but to hire a professional property management company. A vacation property management company will charge you between 10 and 30 percent of rental income. The fee is closer to 20 to 30 percent for most beach vacation rentals. Some resort projects that developers manage could hit 50 percent. But you can expect a great deal from a property management company. Make sure to hire one with an excellent reputation ask your neighbors or your local real estate agent in the area because you are depending on it to protect and maintain your property.
The most important service that a property management company provides is to find tenants for your property. It will try its hardest to fill up your rental calendar during the peak season and even some months during off-peak. This is because the company gets a percentage of the rental income. A good property management company can attract prospective tenants whom you could never get on your own. The company will list your property in appropriate multiple listing services, vacation magazines, and so on, to find prospective tenants. It will also take applications from and screen prospective vacationers, negotiate and issue lease agreements, and collect security deposits and rent. It will also check the tenants in and out and collect keys upon departure.
It will contract with a cleaning service to maintain the property after each tenant has departed. It will also provide emergency maintenance service for unexpected problems, such as plumbing and electrical. And finally, it will usually transfer funds to the property owner on a monthly basis and furnish an itemized financial statement.
Some vacation-home owners avoid the expenses of a property management company, particularly in handling all of the rentals throughout the year. But this is extremely difficult to do if you are far away from the property.