It is now estimated that there are areas in the UK that have one Airbnb property for every four dwellings.
Short-term rentals are big business, and in a market that is becoming saturated, you need to stand out. So what options do you have when if don’t have the time to deliver a quality and competitive service?
One way is to consider letting someone manage it for you. Read on as we discuss 5 tips for finding quality property rental management.
Some rental management companies can charge up to almost 50% of your rental income. If you want a hands-off experience, then this could be worth the money. But if you hire a company that does very little, you may as well be throwing money down the drain.
There are several services offered by rental property management companies. The most vital ones are below.
When a vacancy occurs, you are losing potential profit. Yet it is not enough for a rental management company to see what other lets in the area are charging. A management company must be proactive in its pricing.
Imagine a major event takes place close by and your prices are not raised. Everywhere may sell out with raised rates, but you may get booked at a bargain price. Similarly, a low season may occur when prices should be dropped to avoid having an empty property.
Maintenance and repairs are essential to the running of a short-term let. If you are aiming for five-star reviews and accommodation, you need to know that the best materials and tradesmen will be used. It is also imperative repairs are done with a quick turnaround and ready for the next guest.
What will the rental property management company do to ensure people know about your property? It is not enough for them to just place it on Airbnb and let the platform do the rest. Perhaps they will set up individual social media profiles or put them on other websites.
Fees for rental management services can be quite varied, averaging around 20% to 40% of the income. Aside from the breadth of the service they offer, there are a few other factors that may determine how much it costs.
Location is an important factor. If a property is in a tourist area, you may find costs reduce due to competition. However, situate your property in a remote location and costs increase as it is harder to reach.
Property types themselves can also dictate the fee. With a small property, upkeep and management are less. Even the condition can impact the price, as older properties need more renovation and repair.
There are also three ways in which Airbnb management services may want to be paid. Make sure these suit your needs before you decide to hire them.
A guaranteed payment model is where the company pays you a flat fee all year round. You will get income even if the property is vacant, though you won’t benefit from high seasonal demand.
The opposite is a flat-rate model, where you pay them a fee. This does not change and must be paid monthly. It is great when bookings are plentiful, but you will also have to pay it even if the property is empty.
Commission models operate by taking a percentage of any booking made. The higher the property price, the more their fee increases.
The best way to check reviews for a rental property management company is to ask for a list of properties they run. Scan through the comments and ratings left by guests.
Keep in mind that some people will complain regardless and some gripes may not be the fault of the company. For example, they can’t do much about the location or noise in the streets outside. Maintenance, communication, and cleanliness are down to them and these should have favourable responses.
The company themselves should be able to find testimonials to provide you with from current clients. In some cases, you may even be able to speak with the people directly and ask their opinions.
There are several advantages to finding a local rental management company. On a personal level, they can provide guests with insider knowledge and recommendations you would not get from larger companies. They will know everything from the best transport routes to restaurants.
Sound knowledge of local regulatory rules will also prevent you from getting fines or penalties. Local housing authorities may have rules on landlord and tenant housing or short-term letting. As these change frequently, it helps to have someone who has their finger on the pulse.
On a practical level, a local company can get to your property quicker. If a problem occurs, they can deal with it or send someone local to do so.
The key to this is communication. No one will leave good reviews or return to a property if they cant get in touch with the people who run it. If a guest needs help or advice, they should have a quick and easy communication channel with your management company.
Their approach to service would also fall under this category. Do they leave anything for customers to feel welcome? Perhaps they include welcome packages, notes or even local guidebooks.
Finally, ask them how they will communicate with you. What will happen if a problem occurs, and how will you know? They may have monthly emails or newsletters that they send out to keep you informed.
Now you know what to look for in rental management company, you just need to find someone to deliver it. Know what you want from a company and decide how much of your revenue you are willing to spend. Even with higher fees, you may find that the increase in bookings makes up for the loss.
GuestReady should be your first stop. Our worldwide company has local representatives who can deal with all your management needs. Click down below to use our income simulator or send details of the property you want to be managed.