Are you planning to rent out your vacation property but don’t have the time or expertise to manage it yourself? A property management company can be a great solution.
These companies specialize in managing vacation rentals, handling everything from booking guests to cleaning the property after each stay. But how much do property management companies charge for their services? Let’s take a closer look.
What services do property management companies offer?
Before we dive into pricing, let’s first explore the services that property management companies typically offer. These can vary from company to company, but here are some common ones:
- Listing your vacation rental on various platforms like Airbnb, VRBO, and HomeAway
- Handling guest inquiries and bookings
- Coordinating check-ins and check-outs
- Cleaning the property after each stay
- Maintaining the property (e.g. fixing appliances, landscaping)
- Managing payments and taxes
How much do property management companies charge?
Property management companies typically charge a percentage of your rental income in exchange for their services. The exact percentage can vary depending on factors like the location of your rental and the level of service you require. Here are some typical ranges:
- 15-25%: This is a common range for full-service vacation rental management. In addition to the services listed above, these companies may also handle marketing and advertising for your rental.
- 10-15%: Some companies offer a more limited set of services (e. just handling bookings and check-ins) at a lower percentage.
- $200-500 per month: In some cases, instead of taking a percentage of your rental income, property management companies may charge a flat monthly fee.
It’s worth noting that some property management companies may also charge additional fees for services like deep cleaning or repairs. Be sure to ask about any additional fees before signing a contract.
Is it worth it?
So, is hiring a property management company worth the cost? Ultimately, that depends on your individual situation. Here are some factors to consider:
- Your availability: If you live far from your vacation rental or have a busy schedule, hiring a property management company can save you time and hassle.
- Your expertise: Do you know how to handle guest bookings and payments? Are you handy enough to fix any issues that arise at the property? If not, a property management company can provide valuable expertise.
- Your rental income: If your vacation rental brings in significant income, paying for professional management may be worth it in order to ensure everything runs smoothly.
Conclusion
In summary, property management companies typically charge between 10-25% of your vacation rental income in exchange for services like booking coordination and cleaning. Whether or not hiring one is worth it depends on factors like your availability and expertise, as well as the amount of rental income you generate. Consider these factors carefully before making a decision.