Property Management for your Vacation Rental

Property Management:
There are essentially two types of property management: on site and off the premises.

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On Site Management:

Many condo projects have on-site property management. Property management in the sense that you can reserve and pay for stays – like a front desk. (The majority of projects have a manger for things like general care, landscaping, pool maintenance, etc this person is completely different than rental property management.)

On site property management is up to 50% of the nightly/weekly/monthly rate. Some on-site management companies also take a set % or fee “off the top” for advertising expenses.

Programs vary so I will connect you with the on-site manager once we find the property (properties) that appeal to you.

The benefits of on-site management are different with each company but generally include a front desk, housekeeping services, web site and property specific advertising.
The theory is that it benefits them as well as you so they heavily market your property and generally have higher % occupancy than off-site management.

Some are independently owned and some are Hawaii or National Franchise “names” like Outrigger, Best Western, etc.

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Off – Premises Management Companies:

These management companies generally manage numerous properties ~ homes & condos, either in certain areas of each island, on specific islands in the State of Hawaii, or statewide.

The fee for this type of management is generally 20% to 30%.

Each management company offers different services that may include: Advertising/Website; Booking, contracts, cleaning services, etc

Many of these programs offer discounted percentages if you bring in your own guests from owner advertising sites like www.vrbo.com

I often suggest that when you choose an off-site management program, select one that manages one or more additional units in the complex, because they are then familiar with the project and can book “overflow” from one unit to the other.

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Owners may increase the occupancy by advertising on For Rent By Owner web sites and generating additional guests.. However, bookings still go through the management company. Some management companies will decrease the fees for owner generated guests.

With either type of management, you are entitled to set aside any time frames in which you would like to use the property at no cost or penalty except cleaning fees.

Many management companies will permit you to have bills (electric, cable, water, etc) sent directly to them and in the end they send you the net. I call this “no headache” management. Many will also keep a certain amount of funds on-hand in your account for incidental maintenance issues.

Almost all property management companies will give you a list of required “supplies” in terms of towels, linens, dishware, etc at the onset of managing your condo or home.

The more updated and stocked your property is, the more likely gust will return.I have had two Hawaii visitors tell me that they book the same rental every year because there are games in the closet and their kids love them!

Established rentals generally have higher occupancy than new ones
“New” vacation rentals often take up to 6 or 8 months to “gear up”
You can increase your occupancy by emailing everyone you know & include the management company contact info for bookings and advertising on Vacation Rental by Owner sites.

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