How to Select a Rental Management Company
Vacation rental managers are not all created equally. Chances are if you are in a high demand vacation rental destination your options for rental management are abundant. Once you decide against going the vacation rental by owner route it's time to get serious and select a management company to suit your needs. To narrow down the search you must decide on what's most important to you. Typical responses from property owners include proper upkeep of the home or condo and creating a hassle free free relationship. Although rarely mentioned first, rental income is also a top priority among investment property owners. Although what is offered by each company may very here are a few common types of rental companies in most major destinations.
Small Rental Companies (Mom & Pop)
Because this industry is still fairly new, many small companies give a shot at managing vacation rentals. With the development of owner rental websites reaching your target clientele has never been easier. These companies tend to come and go and generally attract owners by offering the lowest commission and management fees. If the company manages to remain small then you should receive ample care and attention. The reason for a high turn around with small rental companies is the job is much harder than they initially anticipated. The companies that are successful general become mid-sized rental companies. Although you feel you will get more attention from the small company often their resources are limited leading to a lower annual rental income.
Mid-Size Rental Companies (The Sweet Spot)
This is our favorite type of vacation rental company. Mid-size companies come with the resources to attract customers and the staff to maintain your property. Although this is the sweet spot of vacation rentals, finding a mid-size company can be a challenge. Chances are the mid-size company in your destination is hoping to become a large company. If you are in a smaller market then the mid-size company may be seen as the large company although generally it's hard to tell. This form of rental company is also generally more flexible than a large company both with their commission and services offered.
Large Vacation Rental Companies (The Power House)
Although large companies do not exist is every market this style of company is the easiest to find. Chances are you will see them everywhere in your town. The large company attracts owners just that way, by being easy to find. Large rental companies also have the most resources and often partner with big names like Expedia, Priceline, and other national brands to market your property. Large companies also are less flexible with their commission and services. Many times they dictate how and when you can use your property among other things. This is a good option if you do not intend to be somewhat hands on and do not want a say. Right now there are only a few power house companies and as the market grows keep you eyes open for a new style of management- The Mega Vacation Rental Company.