Every rental property investor knows effective management of the asset is the key to success. After you've splurged the cash and bought an investment property, you might think that most of the hard work is now behind you. That's not the case!
As long as the property is under your ownership, it's going to require day-to-day management. Depending on the purpose of the property, you're going to either deploy short-term or long-term rental strategies.
In this article, we're delving into the nuances of short-term or rental vacation management and long-term property management.
Dig in!
Property Use Dictates Management Strategy
Choosing a property management strategy depends on the use of the property.
If it's a vacation home, for example, it's a no-brainer that you'll need short-term rental management. The property will be used for short stays - from as short as one night to no more than 90 nights in High Point City.
You cannot use a long-term management strategy for a vacation property. Guests are always coming and going, which requires you to engage in ongoing screening services, for instance. The rate of wear and tear is also typically higher in vacation rentals, which means you must do property inspections and maintenance more often.
How Management Strategy Informs Investment Decisions
Before investing in a rental property, it's essential to consider the management strategy it will require. With this information, you'll be in a better position to make a smart decision and maximize rental profits.
For example, let's say you're the kind of property investor who loves being actively involved in the management of your properties. Unlike long-term rental management, short-term management is more involving and can require you to be on-site every day.
If you don't have the time to dedicate yourself to everyday management tasks, you will want to reconsider investing in a short-term rental property. If you have to, you might have no choice but to relinquish its management to a third-party short-term rental management company.
This isn't to say long-term rentals don't require full-time management. However, if you find a good tenant and the property is in excellent condition, you can expect fewer visits to the property.
The Cost of Rental Vacation Management vs. Long-Term Management
Whether you're self-managing or outsourcing the management of your rental property, the cost implications must be considered.
Most owners self-manage because they want to save on the cost of paying a property manager, but those savings can be offset by inefficiencies that come with self-managing.
If you're outsourcing, most providers will charge a percentage of the property's revenue generation, but generally, the cost of outsourced short-term rental management is higher considering the increased workload.
Master the Art of Rental Property Management
Mastering the art of rental property management requires a blend of knowledge, expertise, and dedication. By staying informed about rental vacation management and long-term rental management, you'll be able to make good investment decisions.
And don't forget that you can always outsource your property management tasks. In High Point City, NC, PMI Piedmont is ready to manage your vacation rentals. We have a team of licensed and experienced real estate investment and property management professionals.
Schedule a consultation with us today.
