Many owners ponder the question of hiring a vacation rental manager vs. self managing. Self-managing is certainly the lowest cost option, but hiring the right vacation rental manager can mean more profits and less hassle.
Advantages
Hiring a vacation rental manager means less work for you
This one is obvious. Take the time to research and hire a quality vacation rental property manager, then sit back and collect the rent checks. Most vacation rental managers should be fully capable of handling all the marketing, cleaning and maintenance associated with your home.
It is certainly still a good idea to make visits to check on your home, monitor guest reviews and other things to ensure your manager is doing their job.
Vacation rental managers are more skilled than ever
This is especially true if you own a property in a major vacation rental market. There is nothing like competition to bring out the best in a business and this is the case for vacation rental management companies.
Online reviews hold vacation rental managers accountable, and, as with a restaurant owner, we are only as good as our last meal served so to speak. Good vacation rental managers are obsessed with giving the guest the best experience possible every time.
More marketing opportunities for your vacation rental
It is common knowledge that you need to have your vacation rental on the major listing sites such as Homeaway, Flipkey and Airbnb. Your vacation rental manager should list your property on these sites as well.
Extra marketing, beyond just the big listing sites, is what can set your vacation rental apart. Your manager may have a company website that gets a lot of traffic or they might have a Facebook page with tons of followers. A decent size vacation rental management company will generally have a good clientele in place. This should mean more bookings for you.
Better service for your vacation rental guests
Vacation rental management companies will typically be able to respond more quickly to guest issues. This is not a part time job or side hustle for them. It is their business. Many companies are available to guests 24 hours a day by phone, but it is difficult for owners to provide this level of service.
Managers also have more experience and a better network of service providers to handle a variety of maintenance issues more quickly.
Less risk
I mean less risk for you both in terms of liability and financially speaking.
Vacation rental managers have experience marketing a variety of properties to their fullest potential. It is a little scary as a new owner trying to find business. That is not as big of a worry if you hire a manager.
Managers are well versed in local safety regulations and ordinances. They should make sure your vacation rental is safe for guests and complies with local regulations.
Disadvantages
Hiring a vacation rental manager cuts into your bottom line
Vacation rental managers typically collect a percentage of your gross income, thus reducing how much you can make with your vacation rental. Self-managing your vacation rental allows you to keep all your rental income.
You will have less control
A good property manager will encourage the property owner to get involved. I like my owners to have input on rates, how the property is marketed and other things of that nature. There will be a limit to how much you as the owner can be involved, however.
Your property manager is there to do the job you hired him to do. There are a variety of decisions on a daily basis that you will have to entrust him to make. This can be disconcerting to some vacation rental owners.
You will have a hard time building rapport with guests
Your vacation rental manager will be the one getting face time with your guests. It is very likely that your guests wont even know who you are.
I encourage owners to make a property binder to add a personal touch to their vacation rental. It is still almost impossible for the owner to get any direct communication from their guests.
Your property might get lost in the shuffle
It is possible for your property to get neglected if your vacation rental manager has a large inventory of rental properties. They might choose to focus their efforts on the homes that are more profitable for them. This is why I don’t always recommend going with the largest or most popular vacation rental management company in your area.
Conclusion
I am a vacation rental manager by trade, so I am a bit biased here. A good manager will earn every bit of the fee which you are paying him. They work very hard and put in a lot of behind the scenes effort, in addition to providing advice and guidance. I have also seen my share of bad managers. Do your research, find the right vacation rental manager and you won’t regret it.
That being said, is self managing a good option as well? Of course.
I have seen many owners that were willing to put in the time and effort have great success self managing their vacation rentals. Your own unique circumstances are the biggest determining factor as to which is the best option for you.
