Many self-managing owners fall into the mindset that managing their investment property themselves will be easy and more profitable then hiring a property manager. Island Realty is here to explain the top reasons why self-managing can be an uphill battle, costing owners unlimited amounts of time and money spent on their investment property. Today we talk about self-managing short-term/ vacation rentals.
Contact our Business Development Manager today, Collins Atkinson, for more information about our rental program and how our services can benefit you!
Why do most owners initially think it is a good idea to self-manage their rental property?
At first glance many folks see a simplified version of the potential transaction and feel confident they have access to reliable vendors that are capable of handling most anything. How hard can it be to plug the name and date in the calendar, set up the required services, and collect the rent? They often overlook the complexities of each of those steps – If everything went according to plan then insurance wouldn't be such a large industry!
Getting the property set up with the proper pictures, details of the bedding, home layout, abiding by all local ordinances and appropriate paperwork, 6 levels of taxes, and hiring responsible vendors for various services can be confusing and time consuming. Once you are up and running folks didn't realize that they may get 25 emails for every one booking- but all have to be respectfully replied to –often in an hour's timeframe. Similarly, phone calls at all hours of the day for inquires, incoming guests with questions about the rental/area/activities, and in-house guests with questions about how to turn on the exterior lights, what input the TV should be on, why the door won't lock and similar questions cause constant interaction and attention from the property owners. Who do you call when things happen at the most inopportune times? Often times issues occur at inconvenient times, such as when your maintenance man is out of town, or when the housekeeper doesn't show up to clean and when the next guests are checking in that day. The previous guests didn't tell you about the leaking sink and now you have water dripping into the master bedroom or worse into someone else's property..... or the guests did just call you and they have used all of their towels to clean up the water and have to have clean towels for their shower and business meeting the next morning at 8AM.
- Everyone thinks renting their own property is easy
- Main reason property management companies are in business is because issues do happen at the most inopportune times.
The most common types of self-managing owners
Generally for vacation rentals there are type-A folks who are extremely driven, live in close proximity to the actual property, up to date with current technological and marketing trends and they feel they can do it better then almost anyone!
Changes in the amount of self-managing owners in the Charleston market for vacation rentals
Main driving force is technology, and will continue to be. No one before technology/ global distribution. Recession, drove self-management of otherwise unrented property, realtors became property managers, property managers became vacation renters with the advent of OTA's...
Top Reasons to Stop Self-Managing {show top 5 reasons to stop self-managing slide}
1. Time: Constantly "On Duty"- the phone calls, the emails, the inevitable Murphy's of the world. It really never tops and today's clientele expect someone to be at their beckoning call 24/7/365.
- Maintenance—light bulbs
- Technology fixes...super time consuming.
2. When you manage your own vacation rental- there is no vacation for you. The lack of depth not only In the oversight of the property but the additional levels of services required to keep a rental going. Working with people in the real world who may not show up and the ability to get the issue resolved for the guests regardless.
Self-managing is time and labor intensive!
3. Exposure & industry trends. In todays world many folks are able to self-manage with the help of a few key websites that account for the majority of their bookings. Have you considered the breadth and depth of the Industry of a whole and the exposure and thus the bookings that could be achieved by using multiple platforms, the most up to date marketing date/trends, and the resources of companies who do this professionally? What about service features such as personalized apps, offering mobile hospitality centric to a specific property and reservation.
What is a reason that extends to the core of operating a vacation rental? We have heard you mention legal issues that arise in property management before...and that could put a self-manager out of business! show top 5 reasons to stop self-managing slide}
4. Conflict resolution- How do you feel when people tell you your rental is ummm " not habitable". There is what seems to be growing portion of our society that seem to lack common sense and general courtesy. Are you able to take the abuse and still provide the level of service guest have paid for?
- Legal liability: IOP ordinances—compliance must be maintained, or loss of business license. Guest damage causes accident and you do not know, now you are liable. We require $300,000 min ho policy + umbrella policies.
- Self interest, dealing with the general public, etc.
5) Personal /family issues- heaven forbid something were to happen in your personal life or those of your loved ones. Also conflict of interest.
Read more about Island Realty's property management services!
800.707.6421