What to Look for When Deciding on a Vacation Rental Management Company

Owning real estate can be one of the most profitable and rewarding ways to invest your wealth. Real estate provides investors with predictable income, long term rent growth and property appreciation, and a hedge against inflation. As the world’s largest asset class, there are many different types of real estate that you can invest in. One of the best has proven to be vacation rentals, which typically generate higher returns than other forms of real estate. However, owning and managing a vacation rental is time consuming and challenging.

There are many aspects to consider in order to successfully operate a vacation rental. Most people and individual investors use a vacation rental management company to manage their properties. Vacation rental management companies should manage all aspects of the business so the owner does not have to, usually charging 20-30% of booking revenue. Contracts are usually one year in duration.

It is vital to find a vacation rental management company that you can trust, who treats your property with the utmost care, and who provides comprehensive professional service covering all aspects of rental ownership.  These are core tenants of a reputable vacation rental management company, but they can be quite challenging to find in today’s environment. For example, our full-service vacation rental management company, Halo Home Management, based out of Naples and Marco Island, Florida incorporates these three pillars in everything we do.

Trust	Care	Professionalism
Our business is built on trust. We provide Owners with easy accessibility, open communication, and property insights.	We treat each home like our own, maintaining the property, vetting guests, and safeguarding the investment.	We provide complete home management services to unlock both your time and profit.

Further, vacation rental management can be broken down into four distinct service functions: revenue management, guest placement, operations, and home care. When choosing a vacation rental management company, make sure to discuss each of these areas to understand the company’s strategy and service offerings.

Revenue Management	Guest Placement
Dynamic Pricing: Use smart pricing tools and real-time data to price your home. Knowledge of the Local Market: Leverage our in-depth knowledge and expertise of the area. Rental Objectives: Deliver results based on our clients’ investment objectives. Community Restrictions: Understand community rules and restrictions related to vacation rentals.	Guest Analysis: Asses the optimal guest mix Social Media: Create brand awareness and strategically target our guest mix  Channel Management: Use online platform, the MLS, our existing networks, and direct bookings to source guests. Guest Retention Programs: Create loyalty and referral programs to drive repeat bookings.

Operations	Home Care
Scheduling: Manage all bookings and guest touchpoints. Vendor Management: Coordinate vendors for recurring services, maintenance, and repairs. Inventory Management: Manage supplies, sourcing, and specifications. Guest Experience: Provide materials and services to enhance experience.	Vetting & Behavior: Use technology screening tools and provide insurance coverage to give peace of mind. Turnover Inspection: Comprehensive checks after each stay to maintain the home.  Extended Vacancy: Perform comprehensive checks and issue weekly reports with pictures.

Once you have a good understanding of the services and strategy the vacation rental management provides, you need to consider which product offered by the manager best fits your rental objectives.

For example, some homeowners want to rent out their property year-round in order to maximize income. Others may want to use the property for personal use, renting out the home while they are not around to generate some income that offsets carrying costs. Furthermore, different communities and locations have different rental restrictions, especially in Naples and Marco Island, Florida. Whether it is the minimum stay duration allowed, or the number of leases you can have a year, all of which impact the potential of your property and what can be accomplished.

Most vacation rental management companies will explain their various products and offerings so you can work together to choose the best one for your investment. If a vacation rental management company only offers one product, be sure to review the contract and ask targeted questions so you fully understand your rights to use the property. Below are some of the products we offer to provide examples of what to expect.

Products

Performance 365	Performance Flex
Description:	Description:
Year-round rental managed by HaloHomes to maximize income.	Blend lifestyle with performance. Allows for some personal use throughout the year.
Restrictions:	Restrictions:
No personal use allowed.	Request personal use of the property throughout the year. Restrictions based on availability.

Seasonal Traditional	Seasonal Snowbirad
Description:	Description:
Year-round rental managed by HaloHomes to maximize income.	Enjoy your home during high season and rent out while vacant to generate revenue.
Restrictions:	Restrictions:
No personal use allowed from Nov.-April. Personal use allowed from May – Oct.	No personal use allowed from May – Oct. Personal use allowed from Nov. – April.

Real Estate is a great investment, with vacation rentals offering some of the highest returns on the market. However, owning and managing a vacation rental is time consuming and challenging. Many homeowners fail because they do not understand what services are required, they struggle to deliver those services, and they lack the time required to provide a great vacation rental experience for guests. Therefore, it is important to find a vacation rental management company who can help manage and optimize your investment. Most vacation rental management companies charge between 20-30% of booking revenue and require contracts of one year or more in duration.

When researching vacation rental companies, make sure they incorporate trust, care, and professionalism throughout their business. This will give you the peace of mind you deserve regarding your investment.

Further, vacation rental management can be broken into four distinct service functions: revenue management, guest placement, operations, and home care. Ask the companies you are considering to walk you through their services and strategies to address these elements.

Finally, work together to understand the vacation rental manager’s different products and service offerings to select the best option that meets your rental objectives and maximizes your rental income!