Buying a Vacation Rental Home on Oahu Hawaii – Part 11
How much $$:
One of the biggest concerns for VRBO rental owners is the cost. Your goal is, of course, to find a management company that has a commission fee that you feel is reasonable for the services that they provide. This depends greatly on the area of the home and the services that are included.
Some important things to look for and questions to ask when doing your research:
Some management companies charge a commission in addition to a management fee. Make sure you ask the company you are interview to disclose ALL FEES in writing. Then, make sure you read the fine print so nothing is a surprise down the road. Strictly speaking about a commission structure, my research tells me that you want to be somewhere between 25-30%. A commission lower than that may cut into their marketing budget ultimately affecting you!
Review all of the different fees that they charge. Some charge a lot, some are more reasonable but may have a higher commission share; it is your job to calculate all of that. You know the old saying that “it takes money to make money”? Keep that saying in mind when you weigh your management company options.
Reservation Agents need to be well educated and strong sales people:
You should have peace-of-mind that, if a potential guest calls your management company, the reservation agent will be able to give the guest accurate vacation rental information about your property. They should be able to really tell them about the property and the great features it has. It’s a good idea to only consider working with management companies that send their reservation agents to visit properties so they get to know the property that they are selling.
Some property managers dictate to the owners when they can and cannot use their own properties. For instance, they may tell you that you can’t stay in your home for Spring Break, Christmas week, or Fourth of July week. If vacationing at your home is a priority make sure to look for a property management company that does not stipulate when you can stay.
Mahalo For Reading.