As a second homeowner, there are some considerations you should make before starting the search for a professional property management firm.
Having a professional property management firm take care of your home affords you many distinct advantages. One of the most important advantages is having someone onsite should something go wrong. A professional property management firm is on duty 24/7. If a major storm occurs, they can assess the condition of your home and take immediate steps to repair and minimize the damage. They can ensure that your driveway is clear of snow or storm debris. They can handle renters who are too noisy or disruptive to neighbors. Another important advantage is that a professional property management firm will ensure that your home is in presentable condition by keeping it clean and well maintained. In short, a professional property management firm safeguards your property and protects your asset.
While this is your home, strangers will use it. Can you tolerate the fact that people will use your home and there will be additional wear and tear on the property? In addition there will be more likelihood of damage. Veteran vacation rental managers caution that it is important to be emotionally detached and NOT emotionally invested in a home that is in a rental program.
Vacation rental managers advise that homeowners should consider that once they agree to rent their home with a professional property management firm, they should consider the home as a business with obligations on both parties. The vacation rental management company will provide you with many services and benefits. In turn, you must expect to deal with maintenance, cleaning, and home upgrade issues. Keeping the home competitive in the rental market is as important as having the home available for rent.
Once the home becomes a part of a rental program, the home is no longer available on an unlimited basis to you as the homeowner, or to your family or friends, particularly during high rental periods. Second homeowners should realize that the renting of a home is a contract with a third party and you cannot have access to the home until the guests depart.
There are financial ramifications to consider. While generating income is desirable, you must evaluate the related tax considerations, funds needed to bring a home up to rental condition, and additional costs associated with renting such as contributing to marketing co-op funds, increased utility fees, and certain maintenance fees. A tax advisor may be needed to determine whether in fact this is a good investment for your property.
Once you decide to put your home in a rental program, research vacation rental management firms in your area. One consideration is whether the firm is a member of the Vacation Rental Managers Association (VRMA). VRMA members are the leaders in the vacation rental industry, so their qualifications are excellent.
It is important to note that there are regional differences, depending on where your second home is located. Many property management companies have minimum standards and requirements not only for furnishings and supplies, but also for owner usage, preventive maintenance, etc. Ask questions to determine the conditions to place your home in the rental program of a property management firm.
You should also look to see the type of homes that a firm offers. Are those homes similar to your second home? Are those homes in a similar location? Once you determine a short list of potential vacation rental management firms, be sure to set up an interview to discuss your home. In certain cases the firm may want to preview your home, so be sure to advise them of your home's qualities and condition prior to interviewing to ensure a good fit between your home and the other homes in the firm's inventory.