Tag: vacation rental management
“In House” Services Lack Transparency For Vacation Rental Home Owners
What Are “In-House” Services in Vacation Property Management?
I’m often asked by potential clients, “What ‘in-house’ services does your company provide?” This is a great indication a sales pitch has been provided by another vacation property management company. ‘In-house’ refers to services provided by staff or employees of the vacation management company such as cleaning, HVAC repair, handyman work, and many others. It is specific work completed by the staff of the company… and billed by the company to the home owner. These services are not provided by 3rd party, independent providers like outside cleaning companies and HVAC repair companies. The services operate and originate within the management company.
How “In-House” Services Could Be Problematic
When a home owner selects a property management company, the relationship shares the same responsibilities as that of a real estate agent. Those legal responsibilities are Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care as written in SC Real Estate License laws. We, as licensed professionals, have a fiduciary responsibility to represent our client’s best interest first.
How can management companies represent a client’s best interest if the company decides how much a service, provided within their company, should cost for their client, the home owner? It seems like an obvious conflict of interest and a lack of transparency and the fiduciary responsibility previously mentioned.
Remember, your vacation management company should be working for you… and not vice versa. You are hiring someone to represent your best interest as the client and home owner. At dunes properties, we do not staff maintenance personnel, HVAC repairmen, or cleaners. We coordinate 3rd party providers so prices can be negotiated lower for our clients. It is the correct way to offer vacation property management and offers transparency to clients.
Similarly Troubling…
Unfortunately, it has become commonplace for legacy management companies to charge their clients a percentage of invoices. In my opinion, it is a terrible practice and also seems to be a conflict of interest. How can a company represent a home owner’s best interest if the company orders service and then receives a percentage of “mark up” on the work performed? It is arguably a legal kick back. Always check your management agreement for counter-intuitive inclusions like invoice mark ups.
by Wes Walker
Vice President of Vacation Rentals
Dunes Properties of Charleston
(843) 513-1604
Related Reading for Vacation Rental Home Owners…
- View all tips for vacation rental owners
The Importance of Professional Photography
The Importance of Professional Photography
Although this may seem like common sense, it is surprising how many legacy property management programs overlook this #1 in marketing a vacation rental home or condominium. The web has changed how customers absorb information. The importance of visual has not changed, but the speed in which a customers needs to experience the vacation home through photograph has changed dramatically.
Kerrin Sheldon with Fast Company suggests we have 20 seconds to capture an audience with visual. Other web specialists suggest this number as close to 5 or 6 seconds. Still, the argument and statistics support the claim; a web visitors needs to experience your vacation property almost instantly. VRBO & Homeaway have always supported this concept as these sites originally charged property owners by the number of photos uploaded. The more vacation rental photos, the higher your listing would place. Flipkey, a vacation rental search platform purchased by TripAdvisor, completed a study revealing HD photography increased bookings by 98%.
Still, the number of vacation rental photos alone will not guarantee success. More is not always better… if the photos are not fantastic. Photos must be attractive, accurate, and present not only the vacation rental, but the experience the vacation rental home or condominium offers to the guest. Professional photos often convey the message, “this vacation rental property receives lots of attention and therefore care.” This is vital to capturing vacation rental guest interest. Also, many traditional management companies forget the potential guest’s perspective. Guests wish to see amenities, decor, and styles… not just the view and the beds.
Most professional photographers will provide dozens of great, high definition pictures for only a few hundred dollars. Considering the potential return of tens of thousands… it is a wise investment. One which can make or break a vacation rental strategy.
by Wes Walker
Vice President of Vacation Rentals
Dunes Properties of Charleston
(843) 513 1604
Related Reading for Vacation Rental Home Owners…
- View all tips for vacation rental owners
Vacation Rentals And Home Warranties: A Unseen Expense
Are Vacation Home Warranties Good For Vacation Rental Owners?
The short answer is no. Home warranties are famous for delayed responses and low price (value) technicians. Still, I can consider the argument of home warranties are good values… but for primary residences only. Even then, I find they are frustrating and typically without complete resolution.
For vacation rentals, large and important purchases / repairs are mostly likely needed during a busy season of high use. Think refrigerators and air conditioning systems. These season are often filled with vacation guests paying thousands in rental rates for a few nights of relaxing vacation time.
When a system needs repair, the guest often expects an immediate result… regardless of what they would expect at home. Warranties add lots of delays, and more delays create potential liability for the home owner. The longer a guest waits, the more likely a credit or refund is expected.
My advice… ignore the home warranty unless it’s January or February. Otherwise, it is likely the perceived savings of a warranty plan will turn into an unseen expense with the move or refund issued to a understandably hot and frustrated vacation guest.
by Wes Walker
Vice President of Vacation Rentals
Dunes Properties of Charleston
(843) 513 1604
Related Reading for Vacation Rental Home Owners…
- View all tips for vacation rental owners