Are you looking on the internet for a property manager for your vacation rental? Stop. Don’t hire an internet-only tech based property management company. Why? They are not local and hands on your property. A San Francisco or Denver-based person in a cubicle has no idea where your property is or what is going there. You need a local, professional, property management company. What to know why?
A new client called and said they were working with a Denver-based company when they learned from a neighbor that the police came to their new property. After the dust settled, the “guests” decided to have a large, loud party. People were parked on neighbors’ lawns and the noise kept on until the police arrived very late.
The owner learned from the cleaner that the property required not only heavy cleaning but many items were broken or damaged. The owner spent $3,000 on repairs.
The internet tech-based manager had no clue
The internet tech-based property manager located many states away in a different time zone had no idea. The police did not know who to call and as it happened, the internet company did not tell the property owner that a permit was required in the city. Fortunately, the permitting department was not informed of the disturbance by the police department. Of course, the Denver-based company had no representative on site to deal with the police.
Later that week the owner called us and we took over the management of the property. One of our tasks is to drive by the property periodically e.g. each week for a view of the outside. We visit during turnovers also.
This is just one example of many that have driven vacation owners to local property managers. We have obtained many clients from the San Francisco tech-based and other internet companies who were very displeased. I have participated on a number of forum sites where I hear the same complaint from others.
It seems that every month a new tech start up thinks they can manage property from a basement or high rise.
People require attention and the best guest experiences are gong to come from personalized attention. This means human beings making contact with guests on site.
New investors are looking for a low-priced manager
What I have found is that new investors are trying to save money in most cases so they look for rates first. Some will contact local property managers and decide to go with the internet people because it’s easy, they just open an app.
The idea of managing property from afar is interesting. Your investment rental properties are the most valuable assets you may have other than your own home. How can you trust it to someone who has never seen it? Really? Short-term rentals are real properties, they require maintenance and attention. Trying to rely on cleaners to inform you when something requires work is just not smart.
Do you think that the San Francisco people have actually met with the cleaners and inspected their work? No, of course not. A very valuable asset managed by people with no vested interest, who have never seen it. Excellent stewardship of valuable assets.
Local managers provide a sense of security
Rental owners should expect much more from those who are responsible for their property. Property management services offered at the location where the property is should provide a sense of security. Real estate investors should know better than to entrust their property to strangers. You may say, well guests are strangers, true. It’s not the same thing.
If during that one day in the winter when the water hose freezes and breaks, who will be there to turn off the water? How about when that squatter moves in during the slow period, Is anyone in the Denver tech based basement going to fly out and evict them?
Check out the chart below. A list of items supplied that property managers often encounter. Learn how a tech, long-distance-based company would deal with them vs the local vacation rental property manager. This list is by no means complete.
COMPARE TECH/INTERNET/REMOTE MANAGER SERVICES TO LOCAL PROPERTY MANAGER SERVICES
| Task/Item | Tech Manager | Local Manager |
|---|---|---|
| Vetting repair businesses | Telephone calls, internet search | Personal recommendations from actual customers where work can be observed |
| Police presence at property | May or may not know, telephone | Manager on site to work with police and diffuse situation |
| Discover illegal substances | Probably don’t know | Manager discovers, evicts or warns |
| Spot leaking toilet | If cleaner misses they dont know | Inspection finds before next rental, has it repaired |
| Overbooking issues | Possibly put in another property if they have one in the area that is vacant | Put into another property or contact other property managers with relationship to accomodate. Works in reverse. |
| Damage caused by guest | Have contractor assess or cleaner | Manager with experience will assess and have the issues resolved at the lowest possible cost in the shortest time |
| Guest decides not to leave | ? | Manager meets with guest, requests they leave if not contacts local authorities with whom they have a relationship to evict. |
| House needs exterior paint | No one to notice | Manager looks at the condition of the property on a regular basis and schedules maintenance program |
| Owner can’t find remote | Speaks to guest tells them to look | Manage brings a new one and helps look for the existing one |
| Last guest left hose turned on | No one to notice | If freezing weather, manager will inspect property early in day to insure no water breaks |
| Hurricane approaching | Call guest and ask to leave | Manager will determine if hurricane is actually going to land in area and not two states away and keep guest informed. |
| Recommendation for local food | Tell guest to look on internet | Manager will inform guests of places they have eaten and how to get there, hours best dishes etc. |
| Guest wants to rent a boat | Check internet | Manager will tell guest of discount provided to guests of Christies and details about the rental process |
| Guests have too many cars to park | ? | Manager will explain areas where they can legally park extra vehicles including other properties they manage |
| Best place to see a Mardi Gras parade | Internet | Manager will tell guests where they go, how to get parking and where to sit |
| Obtain city permit for vacation rental | Probably don’t know a permit is requried | Manager will assist the property owner in obtaining the correct |
| Pay sales taxes and complete reports | Probably not | Christies reports monthly to State for taxes |
Most Internet/tech based Managers don’t do this
One of the larger companies charges a fee that does not include cleaning, maintenance supervision, or virtually anything to do with the actual property. What they do is post your property on the internet and coordinate with the guest to arrive there. The rest is all on the property owner. This company was reviewed by Rabbu.com. Their name starts with an E.
Another larger online company charges a list of fees and offers a linen service program and other programs with monthly fees pushing your cost higher and higher. Again, all coordinated from that basement or tower office in the far-off city.
The best property management companies are ones that operate in a defined geographical area where they can physically get to each property. A poor property manager is one who is not paying attention to the inventory of towels and regular maintenance. The right property management company will do simple things. For example:
A property manager for a local property management company will occasionally drop off donuts in the morning to guests. It’s a simple thank you for staying. Another has dropped off small gift baskets when a special occasion comes to his attention. The folks in the tech-based San Francisco tower are not likely to fly out and drop off a dozen donuts.
Local property managers have a real reputation not only to make sure the guest’s stay is excellent but because they are a member of the community. Bad news travels fast. Rental management companies need all of the goodwill they can get because they are competing with the lazy approach e.g. the tech groups.
Local Managers required
Many cities and counties require that the property manager be local. The rules below for Sonoma County are an example. Do you wonder why they ask for a local property manager? I was told by an individual working for a local city. There is a great deal of mistrust among the general public about vacation rentals in general. Most of the reasons why residents don’t like them is based upon rumors and misunderstanding.
The cities and counties have had bad experiences with removing tech-based property managers or even when owners try to manage their properties from afar. These few bad experiences are sufficient for them to be concerned that the public may latch on to future issues and force them to stop allowing short-term rentals. There is zero faith in a tech-based remote property management company’s ability to step in and fix an issue or prevent one form
Christies guest book
Christies, creates a “guest book” for each property that is specific to that property. It’s intended to inform guests of all of the amenities of the property they are staying in and to convey the rules. This book is particularly necessary for condos to help ensure compliance with local condo rules.
We could send an email to guests about all of this but does anyone expect a guest to remember what was sent or refer to an email months later? This is just one customer service that a local property manager can provide to help improve the guest experience.
One of the things that online property managers provide is technology. Reports etc. Local property managers hire experts too to create a similar experience for their guests. Christies provides an owner portal that not only provides a consolidated calendar but links to third-party sites, financial results, copies of signed documents, recommendations for setting up new properties, and much, much more.
The information we provide comes from hands-on experience. Our data was not created by scanning the internet for suggestions.
Do tech-based operators know about houses?
Can one assume that most of the employees at the tech companies have years of experience not only as good property managers but understanding issues related to home maintenance? When a guest contacts them about a problem, they look up their local contractor and make a call. When there is a problem, we may know the source since we know the properties.
I just received a call that the refrigerator was not cooling well. I called our local contractor who works on all things refrigeration and he went there and fixed it. This may sound simple but it’s not. When the West Coast manager calls, it’s to a larger company that may be too busy for an immediate fix. When we call our local contractors, they respond promptly because they know it’s important to us. Plus, they all know how to interact with guests who may not be happy at the time.
A good property management company will charge a fair price for their services. It’s difficult to list all the times that someone on our team went to a property when a guest asked for a hair dryer (an old one stopped working) or to drop off extra pillowcases because their children had an “accident”. How about times when they could not get the TV to work with their streaming service and one of us stopped by to help? Do the people in those cubicles do this for their clients?
Can the tech-based operators clean for a fast turn?
How about a fast turn? A last-minute guest books the afternoon that a guest has left in the morning. All of the cleaners are busy with other properties. Our manager will go out and clean the property. We want the property to be in good condition when the next guest arrives. Is there an additional charge for any of the above to the owners? None. It’s all part of what local short-term rental property managers offer every day.
Another time, the air conditioning went out on a property. We were fully booked. The manager found a motel that would take our guests even with their dog (that was a trick). He helped them move their luggage. There was no cost to the guest and they received a full refund for their stay. This was our decision, not a third-party decision. The next time I need help with my luggage I will call the Denver tech-based call center for help.
About those communities that require local property managers. There are several on the Mississippi Gulf Coast where I am located. Very often property owners contact an Internet property management company about their short-term rental business. They decide to sign up and are not told that the City will not permit them to use a non-local property management company. If these companies are so great with technology why do they accept a client who must have a permit?
Often permits are required but tech-based manager lists them anyway
This is the incompetence of the first order. I often look at short-term rental listings and find that some of these same companies have rentals in areas where permits are required. It’s a matter of time before the city checks on vacation properties and just find no permit is in place.
The vacation rental business is changing. Airbnb went from one million properties in 2018 to over four million in 2023. More properties on the market mean the short-term rental market is changing. This means more internet start-ups touting lower prices and more services.
These rental companies attract new property owners by dazzling them with terrific reports. Unfortunately, as much as they try to promise the performance of the vacation rental, they can not. The fact is that there is so much competition that occupancy rates are reflecting fewer guests to any single property.
A good rental property management company will utilize all of the power of technology, the same power that the Denver-based people use. With artificial intelligence available to everyone, it’s more difficult to differentiate your business. Local property managers differentiate their business by being there and knowing their clients. They are passionate about the area and can tell stories to guests about it. All of the property management software in the world will not make up for this personal touch.
Guests like to have the property manager dropping by
I will often visit a vacation rental and talk with the guests about the area. They are usually eager to learn about the best restaurants from someone who has been there. They want leads to rent toys or the best place to fish. All of this is provided by knowledgeable local property managers.
When I receive a call from a potential guest asking about the area, I can speak with them for a long time. Many of our guests return because their stay was so pleasant. Not just the actual property but those donuts as well.
Online reviews can be scrubbed and they are. Local property managers place a guest book where guests take the time to write great comments. These unfiltered comments provide great information to the property managers and owners. This is part of guest communication.
Granted it’s the back end but the front is equally good. Every guest will receive a phone call from the property manager. The whole point is to ensure that their stay is an excellent adventure. This communication also helps to prevent negative reviews.
Regular property inspections are important
Regular property inspections are a key difference between the San Francisco tech-based folks and the local property manager. The rental manager for that short-term vacation rental is representing the local rental management company that they may be an owner in. This makes a difference because it’s not just an employee performing the inspection.
Not only are the inspections looking for things that must be cleaned better, replaced, or repaired, but they are also checking for compliance with local regulations. Particularly if there is a permit in place, the property managers are looking for items required in the permit.
The major irony in the need for this article is that while the internet folks can go to the capital markets and get millions of dollars to invest in their untested business, local property managers must fully fund their efforts on their own. These smaller businesses with a vested interest in ensuring a good property value for their client’s property must struggle through all of the internet noise to be found.
Local property managers compete on the internet with start-ups
Local property management firms use the internet to advertise their services but are often overcome by the sheer dollars dumped into the Internet to advertise the distant rental management agreement program.
Something that is of potential benefit for property owners is that many local property management companies offer long-term rentals to the public. We recently suggested to a client that it was in her interest to rent her property for the long term due to the current crowded short-term market. Many rental property owners are likely to go this route. The difficulty of doing this on a national tech platform is all of the rental rules in every state.
Consider the worst-case scenario. You selected a bad property manager in Denver. There was damage to your home and how to you recover from them? You are in one state and your property is in another state. Many states require property management companies to be connected to a licensed real estate brokerage (Christies is) or to have a license.
If there is an issue at your property and the local property manager caused it, there are out-of-court remedies. Rental agreements in these states must follow guidelines to comply with the law. Don’t use internet tech based vacation property management companies.
Services provided by Christies Gulf Beach Rentals:
- Complete set-up. You buy the house, condo, or townhome, we do all of the work. Including ordering furniture and furnishings plus decorating. Completely turnkey.
- Supervising work to get the property in good condition means working with contractors to replace windows, doors, and other types of work necessary to convert the property from what it is to what it can be.
- Provide accounting services.
- Pay all of your bills each month including utility, mortgage, etc.
- Much more is offered, ask us. All of the above is at additional cost and over and above the services provided to manage the property and guests.
- Visit ChristiesGulfBeachRentals.com and read our blog articles and check out our site and other properties that we list for rent. Contact us if you are interested in having Christies manage your Mississippi Gulf Coast property.by using the button below.
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