Managing a vacation rental property can be a demanding task. Even on the best days, it has many challenges. Maintenance, cleaning, bookings, cancellations, special requests, complaints... And the list goes on.
Vacation property management comes with many challenges but there’s no reason to despair. Today’s hotelier has a wide variety of tactics and tools. In order to help you handle your rental properties, we’ve put together a short guide below. It’s been designed to familiarize you with some of the best practices for vacation rental management.
With our vacation rental management guide we’ll try our best to help you with the ins and outs of managing vacation rentals. In addition, we’ll discuss the time, money, and energy you can save by using a vacation rental management software.
There are many ways to manage vacation rental properties. You can, of course, choose to handle the properties yourself, or you can use a vacation management rental software that we will discuss below.
If you don’t have the time or desire to engage in such an approach, you can hire a property management firm to handle your rentals for you. Different property management firms offer different payments and fee structures. As you’re about to see, each of these has their own advantages, and drawbacks. Read on to see which one might work best for you!
Under a commission-based fee structure, you pay a percentage-based commission to the property manager each month. This means, of course, that the amount you pay is directly proportional to your rental income.
The advantages of such a model are quite obvious: when you make less money, you pay less money. What’s more, a commission structure encourages your property manager to optimize your profits: after all, when you make more, he makes more. Naturally, before agreeing on a commission model, be sure to be clear on the exact rate the management company will charge.
As its name implies, under a fixed-rate model, you pay a property management firm a set fee each month. Rather than fluctuating based on how much you’ve taken in, as in a commission model, here the flat fee remains consistent.
On the one hand, this means that you might find yourself paying more than you’d like for vacation rental management during slow months. At the same time, however, it also means that, during months with especially high bookings, you’ll see much higher profits, as the property manager won’t be receiving a higher cut.
Under this fee structure, you, as the property’s owner, are guaranteed a fixed monthly income from your rental. Whether your property received twenty bookings, or two, every month you’ll receive the same amount from the property management firm.
Under a Guaranteed Income Model, then, you’ll never have to worry about not receiving money, or even losing money, on your rental property. At the same time, though, you’ll be missing out on income spikes that might come with a rise in bookings. Rather than going to you, any income above the monthly fixed amount will go directly to the property management firm.
One of the biggest tasks when managing a rental property is, unsurprisingly, that of handling bookings. On your own, it can be both tedious and difficult to juggle new bookings alongside current ones and last-minute cancellations.
Without the right tools, it can be far too easy to find yourself facing problems such as overbookings or double-bookings. In addition, if you have reservations arriving from multiple sources (such as third-party sites, etc.), then managing all of this manually can seem a truly Herculean task.
For all these reasons, one of the most important steps you can take is to find a good vacation rental software. With the right application, hours of stress and headaches can be made a thing of the past with the click of a button. Our vacation property management software has been expertly crafted to save you time, energy, and, most importantly, money.
For successful vacation rental property management, a good management application is a must. Today’s top designers of vacation rental PMS system, such as SabeeApp, have crafted software to fit all your property management needs. With a user-friendly application and a dedicated technical support team, you won’t need specialized IT knowledge in order to take your rental property to the next level: all you’ll need is SabeeApp!