First off, you own a vacation rental property and want to start booking guests and making income. Problem is, you live out of state or country and need a competent person to take care of your vacation home. Therefore, you need a vacation rental property manager.
Vacation Rental Property Manager – The Key to Rental Success
Due to the vacation rental needs absentee owners like yourself have, you need professional help to maximize rental income, minimize expenses, and create a profitable business. The vacation rental property manager provides marketing, accounting, maintenance, cleaning, and guest service tasks. Undeniably, this saves you a ton of time and money.
Whereas you could probably rent your vacation home out yourself, DIY vacation rental businesses come with unique challenges.
Self Managing My Vacation Rental: Is Do-It-Yourself Vacation Rental Management Possible?
Surprisingly, many owners ask themselves, “Can I manage my own vacation rental successfully?” My answer is, it depends. Read on to see if you are prepared for the task. Today’s average vacation rental owner lacks time or doesn’t truly understand the cons of owning a vacation rental.
How Much Time Does it Take to Manage a Vacation Rental or AirBnB
Firstly, do you have at least 20 hours a week to dedicate to managing your own vacation rental business? Because if you do not have the time, you have a near 100% chance of failure. But why am I so negative? I am realistic. Succeeding at a vacation rental business requires the owner to wear many hats, including, but not limited to the following: marketer, accountant, customer service, photographer, interior designer, and sometimes housekeeper… If you have a full-time profession or are a business owner, I cannot possibly fathom the pain you will put yourself in by self-managing your vacation rental.
Cons of owning a vacation rental
Secondly, do you have the money to cover hidden costs of ownership and costly mistakes you will make? Despite what your real estate agent may have told you when you made your dream purchase, you can’t sit back and collect rent checks without professional help. Guests are often unhappy and seek compensation, leave bad reviews, and call you in the middle of the night. They may damage your property or bring bed bugs in their suitcases, the possibilities are truly endless. If you are not prepared to deal with at least several guest emergencies as a new vacation rental owner, you may need professional help.
Cons of Vacation Rental Ownership
- Time necessary to succeed is high
- Tax implications
- Vacation rental wear and tear
- High upfront investment
- Popularity of AirBnB and HomeAway network saturated markets
- Competition is stiff, you will have to accept lower rates if you don’t stand out
- Emotional toll is high, you may experience anxiety being far from your vacation home
- Hidden costs
You can also view pros and cons in a US News article here.
Knowing this, are you ready to take the plunge?