Property management in long distance vacation rentals

[Mikaela Casey]

I am looking to buy my first long distance vacation rental. I have done research and found a few property management companies in the city. I am wondering if this is the best route, or if a service like vacasa makes more sense for the convenience factor? Any input is greatly appreciated! Thank you! 

[William Anderson]

If you are just playing around with STR, do it yourself, lots of fun. The guest calls at 11:00 PM and wants new batteries in the remote. The sink leaks in the kitchen and they don't call. The cleaner comes a day later and water is everywhere. Just kidding of course. This is one of your biggest investments. Treat it like a business from day one. If you can't make money having a great property manager take care of the property then perhaps owning an STR is not for you.

I am telling you from many years of experience that it's impossible to effectively manage your property remotely.  I pay 15% for the property manager and that's it.  They take care of everything including those calls when the AC goes out.  I factored in the 15% along with a maintenance budget when I bought each of my properties.

If you can't fit in 15% then buy your property for less or charge higher rents.  If that does not work, find another type of investment.  One thing it took me a while to understand was the value of my time.  I could grow my wealth by duplicating my efforts.  Yes, lower income at first but the big bucks come as a portion of a larger number of rentals, products, etc. 

For many years most of my STRs were in Spain.  I had three excellent property managers.  I never received a single call from them for issues.  If it broke, they fixed it.  Every month I looked at my deposits and reports, that was it.  This was a true passive income business.

I am closer in proximity to my current STR therefore I do stop by and meet guests from time to time just to get their reading on my property. If they pass along any issues, I notify the property manager who takes care of them. I meet with the property manager about once each month to discuss strategy for the next quarter and the next big season which I could do via phone. This is where I hear all of the horror stories that have already been solved.

Sorry for preaching for what it's worth, start out the right way.  Create a budget, create a business to own the property, buy at the lowest price, and rent at the highest end of the market.  Be sure that your property manager has the correct checking account number and routing number for your profits.