4 Reasons To Hire A Vacation Rental Management Company
For many property owners, leasing their property as a short-term vacation rental would provide a higher return on investment than a long-term lease would. As the short-term vacation market expands, owners must spend more time thinking on strategy and investment choices to ensure the highest possible ROI.
By 2020, millennials are expected to spend $1.4 trillion annually on vacation travel. Millennials tend to look for unique experiences when traveling, and short-term vacation rental properties have emerged as strong competition from traditional hotels for this demographic. As the market grows and short-term rental sales rise, more property owners will also need to weigh the cost savings of self-management against the value of a professional property manager’s expertise in the field. Trying to figure out which choice best fits with your personal business model only grows more imperative as the number of bookings you receive grows.
Here are Four Reasons to Hire a Vacation Rental Manager
1. Technology has Increased the Need for a Timely Response
Thanks to technological advances, we now live in a highly-connected world where communication can happen instantly. The downside to this for business owners is that this has affected customers’ expectations for how long a reply should take. To be competitive in the short-term rental market, managers generally have to be ready to respond to inquiries, personal needs, and rental issues within hours, if not minutes. As for booking volume increases, you will soon be faced with deciding between taking guest communications on as a full-time job or hiring competent staff who can handle messages for you.
2. Hiring a Manager will Increase Profits
Many owners find it difficult to effectively market and advertise their properties. Take into account the various algorithms every short-term rental website uses when displaying properties and it quickly becomes overwhelming for the average homeowner. Luckily for them, good property managers know how to optimize property listings to ensure that they rank high on the various marketing channels. Someone who is on hand to offer helpful advice on how to write marketing copy, suggest amenities that are popular with current guests or take new photos that show off all the best parts of your property can work wonders for the number of bookings you receive.
3. Management Companies Offer More Flexibility
Hiring a manager is also beneficial if you live far away from the property you operate. Not only do you have someone who has a network large enough to ensure that cleaning and maintenance can be handled efficiently and cost-effectively, but you also have someone who understands the ins-and-outs of vacation rental upkeep.
4. Hiring a Manager Can Reduce Your Taxes
Did you know that management services may qualify as a tax-deductible expense? You may also be able to deduct mortgage interest, maintenance costs, property taxes, cleaning fees, insurance fees, and your utility costs. All of this can lower the amount of tax you owe to the IRS at the end of the fiscal year.
Without a doubt, a short-term vacation rental business is lucrative for property owners. For an owner who does not want to take the risk of trial-and-error, it makes more sense to hire a company that knows what they’re doing. For more information on vacation rental management software or services, contact Voyajoy today.