Owning a rental property can be a very lucrative investment if done correctly, however, it is very time-consuming, which is why many short-term rental owners opt to hire a professional vacation rental property manager.
Owning a vacation rental can help you pay off a mortgage on a second home, invest in a vacation property overseas, or even lead to larger investment opportunities that can grow over time. There are a few ways you can choose to rent out your property, each option varying in revenue potential and administrative tasks:
Now, how do you decide which option is the best for you? And more importantly, when do you take the leap from managing your own short-term rental to hiring a property management company to do it for you? Below are some of the signs that your rental property is ready to take that next step:
1. It’s taking up too much of your time
Managing a short-time rental can take up to 40 hours per month in administrative tasks. For most property owners, this can be a huge time investment that may not be worth the financial returns. A property management company will manage all of the administrative tasks for you, from cleaning and maintenance to guest support and revenue management.
2. Your ratings are beginning to drop
Hospitality is an art form and it requires a strong attention to detail. In order to stand out from your competition, providing your guests with exceptional customer service is a must. If this is not your forte, you should consider hiring a property management company with hospitality and customer service experts that can provide your guests with a memorable stay.
3. You’re not making enough money
Keeping up with competitive pricing requires a lot of time and skill. Without the proper data software, revenue management technology and financial knowledge, it can be easy to fall behind. Most property management companies like Naya Homes has a team of dedicated data science and revenue professionals who will manage your pricing strategy.
4. It’s becoming difficult to stay up-to-date on tax laws & regulations
If you have invested in a vacation property overseas, or in a different state, it may be hard to keep up with ever-changing local laws and regulations. Hiring a local property management company ensures all tax laws and regulations are followed and ensures your short-term rental business is up to code.
5. You’re struggling to keep up with guest demands
Between replying to your guests’ needs (both prior to arrival and during their stay), guest service can take up a large portion of your short-term rental administration. Hiring a property management company to manage all guest requests in a timely and professional manner can make or break your short-term rental company.
Is property management worth it?
If done correctly, property management can boost your earning potential by 3x each month. With professional revenue management, professional hospitality expertise and the time saved on day-to-day administrative tasks, hiring a vacation rental property manager is the best thing you can do for your short term rental or vacation rental.
Interested in hiring a property management company in Mexico? Visit nayahomes.co to start boosting your rental’s earning potential and minimize your operational headaches.
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