Pros and Cons of Short Term Property Management
By: Shannon Watson •
A good Investment
The Grand Canyon.
Golden Gate Bridge.
The Statue of Liberty.
Walt Disney World.
What do they all have in common? Their reputations precede them as world-renowned travel destinations. Savvy investors can reap benefits. How? Short term property rentals in high-demand areas.
Investors who recognize the demand that many vacation destinations in the US hold can invest in a property, cash in on a lucrative short term rental market now, and sell the property at a profit later. The key is choosing areas with a strong economy and a thriving tourism industry to help ensure the investment will pay off in the future.
The current trend with US travelers is the rental of a fully furnished vacation home or condo over a hotel or motel. This has led to a rising number of property management firms specializing in short term rentals to assist foreign property owners with the maintenance of their investment. Choosing a reputable company can allow the owner to rest assured with the knowledge that their property is under professional care and scrutiny.
Property management companies handle the marketing of the property to ensure the return on your investment. They also coordinate any permits and insurance required to meet local statutes. A quality company will also maximize income by varying rent during high demand times such as spring break or winter holidays.
Professional short-term management companies will coordinate cleaning and property maintenance. What could be wrong with that? Unfortunately, the wise investor will take steps to make sure this process is transparent.
Avoid the pitfall of utilizing a management company that self-deals by utilizing its own resources to handle cleaning and maintenance. The company may know someone who is clearly a great resource, but they may also be getting a cut by using and recommending those they know. If it’s done well, self-dealing can be a win-win; however, if it’s low quality it can cost the investor more than expected. The key is to know what you are paying for before you pay for it.
Short term property management