Short-term renting is gaining more and more popularity both in the world and in Bulgaria. That's why the question "Do I need professional property management?" is becoming more and more common.
In this article, we will shed some light on this matter to help you decide for yourself whether you need this service.
What is property management?
Broadly speaking, it is a real estate management service as a business that involves keeping the property in good condition, renting it out, and taking care of the needs of the tenants. What are the duties of the property manager? Depending on the contracted service, the property manager partially or fully relieves the property owner of the following concerns:
Pricing Pricing is of particular importance to the success of a rental property business. Here we can say that in both long-term and short-term rentals, inappropriate pricing can lead to losses and lost profits. Property managers need to know the real estate market in the region well in order to determine the right price for the property. Bad practices are often seen that harm both the property owner and the property the manager. The most common such mistake is artificially inflating the price to "try to find tenants at that price." This rule applies to all types of tenancies and an experienced property manager will advise you on how not to lose potential income.
Short-term rental pricing is a much more dynamic topic as it depends on a number of different factors familiar to professional property managers. The most common mistake is setting a "fixed" price per night regardless of the day, season and other factors. Finding the right tenants What do we call "suitable tenants" and is it enough for someone to simply "pay their rent" to be a good tenant?
Here again, there are both similarities and significant differences between long-term and short-term tenants, but in both cases, an experienced property manager knows how to screen the tenant to minimize the risks of fraudulent use of the property. Accommodation of tenants
Tenant accommodation is a more dynamic business when it comes to short-term rentals. However, long-term tenants also need some attention (providing access, fixing minor damages, improvements agreed with the owner, changing lots, etc.).
With short-term rentals, tenant placement occurs between 10 and 20 times a month, which is a serious and time-consuming commitment. Often, accommodations are related to guests' arrival in the city or resort, early or late flights, personal plans, and more. The property manager is involved in this process, so you have more time for yourself and the freedom to make personal plans.
The dynamics of short-term rentals are serious, especially in certain seasons (depending on the location of the property). The organization of cleaning in relation to the occupancy, reception and departure of guests, as well as the timely removal of minor damages that may negatively affect the stay of the next guests, is of particular importance for the business. As you know, reviews play a major role in platforms like Airbnb, Booking, VRBO, etc. Any carelessness can cost you real losses on current and future bookings.
Collection of payments Keeping track of payments for short-term rentals is essential, as well as creating a proper policy for collecting payments according to the duration of the reservation, how far in advance it was made, and through which platform it was made. Experienced property managers know the pitfalls in this case and could assist any owner and save headaches in this regard.
Sending tenants It is the property manager's responsibility to be present when long-term tenants leave to ensure that no permanent and costly damage is caused to further damage the owner. In short-term rentals, timely detection of damages is also of particular importance.
How much does the service cost? Property managers usually charge a percentage on a monthly basis, which is relatively uniform around the world and varies between 10% and 20%, depending on the service package you choose. Depending on the relationship established, the property manager can make it much easier for you by taking on some or all of the duties. A professional property manager sees your property as a business that should be as profitable as possible.
