Vacation Home Management
Property Managment – Short Term
At Worldvest, we remain an objective and trusted source of information for our clients by not owning or aligning ourselves with one specific short-term rental property manager. Instead, we use several strategic partners in property management and base our referral decision on the specific community and goals of the client. Each property management company has it’s own strengths, so the homeowner must be matched with the company that specializes in the service that homeowner needs most.
Pros and Cons of Small and Large Property Management Companies…
Small property management companies tend to excel in personal service, and attention to detail. Thus providing the highest level of physical maintenance of the property. However, smaller companies tend to not have the highest marketing budgets and provide fewer bookings then their larger competitors.
The larger property management companies enjoy larger marketing budgets and can generally provide a larger amount of bookings. However, due to the size of the companies, most tend to loose some of that attention to details that the smaller, personalized company can offer.
In either case, the homeowner should plan on marketing their property as much as possible, thus allowing for the best of both worlds. Doing so is actually easier then one might think. We offer several marketing plans for our clients to utilize and tailor to their own specific needs.
Average Property Management Costs:
|
$100 – $150 |
|
Property Management – Bookkeeping, payment of bills, general stewardship of the property. |
|
$70 - $90 |
monthly |
Pool Service |
|
$70 - $90 |
monthly |
Lawn Service (if not included in homeowner associate dues). |
|
$20 - $40 |
monthly |
Minor Maintenance – This is either charged on a monthly flat fee, or on a per trip basis. |
|
$50 – $120 |
monthly |
Cleaning – Based on size of home.. |
|
20% - 30% |
per clean |
Retail Reservation Commission |
|
10% - 20% |
|
Trade Reservation Commission |
|
$20 - $50 |
|
Homeowner Reservation – Flat Fee |
Rentals Services
Rental services are generally provided by a property management company. However, homeowners are also encouraged to market their property through other services such as travel websites, and local marketing. Average rental incomes vary greatly by community, check with your Compass Agent for your community of choice.
Trade Bookings
Generally are large volume reservations that come from the travel trade industry. Although large volume, the rates are much lower. These are very useful to generate a base of reservations that can be supplemented with both retail and homeowner reservations.
Retail Bookings
A customer books the home directly with the property management company and bypasses the myriad of tour operators and travel agents who are generally involved in most trade bookings. In this case, the net amount to the homeowner is higher, even though the rental commission charged by the property manager is generally higher then on trade bookings.
Homeowner bookings
An excellent source of bookings, these are just as they sound, a booking that is procured by the homeowner, thus maximizing the net revenue to the homeowner. Over time, a good home will switch from being mostly filled with tour operator bookings to retail and homeowner booking because of repeat bookings. In order to accomplish this, the home must be carefully outfitted with the proper amenities to generate consumer loyalty. Our real estate professionals will guide you in this process in conjunction with our décor partner, 4Front Furniture.
Guaranteed Rental: Fact or Fiction?
Although a desirable idea at first glance, the very nature of a guaranteed rental program is questionable. It is generally better to go with the ebb and flow of the market, as the end result would be better at the end of the year. There are no guarantees in life, business and especially not in investing.
Most guaranteed rental programs normally follow one of the following type of programs.
Guarantee the number of weeks rented but not the rental amount. This results in lower income then if in a standard rental program.
Guarantee a flat rate of income per year, but below market rental value, as they need the margin for error.
In our opinion, the age-old adage generally holds true, “If it sounds to good to be true…”
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