If you own vacation rental property, you might be surprised to learn that one of the most important steps you can take to turn a profit is to hire a great property rental agent. If you are new to vacation property ownership and are tempted to go it alone, here are a handful of reasons to resist the urge:
1. Maximize your time: If you hire a rental agent to handle the day-to-day tasks associated with managing your income property, you will have more free time left to identify additional investment opportunities. Even if you are just starting out, renting a single vacation property, we’re convinced you will enjoy the passive income and wish to expand.
2. Marketing your property: An experienced rental agent will intuitively know exactly where to advertise your property as well as the method for creating compelling marketing materials. And since empty units don’t bring in income, filling vacancies quickly through effective ad campaigns equals money in your pocket.
3. Setting the rent: Don’t make the rookie mistake of looking to the classifieds to see what other landlords charge for similar properties. Although that may provide a ballpark figure, relying on it will likely leave money on the table or leave your property vacant far longer than necessary. Any agent worth his or her salt will conduct thorough market research before working with you to set a rental price that will provide a win-win for you and prospective tenants.
4. Finding perfect tenants: Why handle the headaches and the details inherent in tenant management? Don’t even let yourself be tempted to approve a tenant with a hard-done-to story, who could potentially bilk you out of timely rent or even eventually result in the need to evict. Experienced rental agents screen tenants for criminal backgrounds and security checks, run credit reports, verify employment and collect previous landlord references, all of which will keep your rental relationships strictly about business.
5. Handling money: Securing payment directly from clients can be difficult or even awkward. In contrast, an efficient billing system ensures timely payments without excuses. This type of collection is particularly important if you own a limited number of properties, or if you’re like most people these days—where cash flow is a concern.
6. Managing tenants: In addition to finding good tenants, a leasing agent will manage all aspects of the tenant-landlord relationship. This is particularly important for vacation rentals, when properties are occupied by so many people. Rental agencies will handle routine and emergency maintenance, which is especially necessary in Lake Arrowhead and the surrounding areas—where small, undetected issues like water leaks can morph into major headaches unless someone is in charge. Hiring a housekeeper is fine for cleaning-related issues. But most maids do not excel at property management, so shouldn’t be left to supervise maintenance on vacation properties.
7. Administer vendor relationships: If you own property, you’ll likely have a steady stream of maintenance workers, tradesmen, contractors, suppliers, and vendors through the doors of your rental. A good rental agent will make sure you get you the best work for the most competitive price, and oversee necessary repairs and improvements.
8. Oversee housing regulations and property laws: Are you aware of every applicable law and regulation associated with renting and maintaining rental property? The list is especially long in California. But wherever your property is located, you must be mindful of local, state and federal regulations, as well as fair housing laws. A rental agent will make sure your investment remains lawsuit and levy-free by making sure everything is in compliance.
9. Live locally so you don’t have to: If you manage your own properties, your investment opportunities are limited to a very specific geographical location. If you hire a rental agent, you won’t be tethered to your rental properties, so you will be able to take advantage of investment deals (and personal vacation days) wherever your heart desires.
10. Maximize your profit: Many rental agents charge a one-time sign-up fee along with a percentage of your property’s monthly rent. The rate runs anywhere from 6-10%, which means that property management pays for itself.
If you own full-time or vacation rental space in Lake Arrowhead or the surrounding areas, consider letting the licensed agents at Arrowhead Property Rental manage your property. If you’re in the market for a great place to vacation in Lake Arrowhead, let us take a crack at turning it into a happy and memorable time. For your convenience, we are open seven days a week and are located in Lake Arrowhead Village on the upper level, overlooking the lake. Our experienced and knowledgeable team will guide you and anticipate your needs, whether you are vacationing or relocating to the area. Call today: (800) 244-5138 for special requests and dates or book online.