Wherever your rental property is located, unless you live very close by, you’ll probably be handing over the day to day running of your holiday let to a management company. In this article, we look at 5 key areas where they should be able to improve your holiday property investment’s rental performance and income.1) Marketing
People won’t book your property if they don’t know that it exists. They need to know where it is, what it’s near, what it contains and that it’s available.
Given that the majority of holiday bookings these days are made via the internet, you’re going to need a management company with a significant online marketing resource, with a customised database and a worldwide reach.2) Bookings
There are sophisticated reservations systems out there, which can introduce more flexibility into the way your property is rented out while simplifying the process.
Your management company should be able to use these systems and software packages effectively on your behalf to reduce void periods and maximise occupancy.3) Rental rates
Good management will keep a close eye on the local, national and international vacation rental market and ensure that your rates remain attractive and competitive, while still delivering the best returns.
Occupancy and room rates are key factors in your income, and you need to be able to react fast to what the market tells you.4) Onsite 24/7
A permanent management presence will nip any problems in the bud, be they guest welfare or property issues - without them ever becoming your concern.
Your management contract should mean you never get unexpected requests for money for replacements or repairs. It should also cover all day-to-day operations, such as cleaning and maintenance.
In short, it should ensure that your income is totally effortless on your part.5) Income delivery
Your relationship with your management company should mean you never have to chase a rental payment again, or even issue an invoice.
Your income should be paid directly into the account of your choice on predetermined dates by your managers; the whole process should be automatic, accurate and completely predictable.Quality management is key
Good management can make property investment a walk in the park; poor management can turn it into a nightmare.
James Harrington, Business Development Manager for sector specialists Emerging Property
has this advice: “Not all property management is the same. Do make sure your management company are experts in your field; if you have a rural cottage as a holiday let, go to a rural cottage specialist. If you have a suite in a resort in the USA, go for a specialist US resort management company. If it’s a serviced apartment on the North Devon coast, look out for a firm with a track record in the West Country holiday market. “The more specialised the management, the smoother and more profitable the whole operation becomes.”
Holiday property management is very different from just owning a buy-to-let. Rental periods are much shorter and hopefully come in rapid succession; administratively and operationally, they’re a lot of work.
You’ll be better off leaving it to the experts.