Mid Term Rental Property Management (Denver Market)
Member since 2023 · 19 posts · 9 votes
Mid Term Rental Property Management (Denver Market)
Most Popular Reply
Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votesEncourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.
To avoid going through the same poor experience, keep reading.
Even if someone give you a referral, don’t make the mistake of assuming that PMC will meet your expectations, just because they met the expectations of the referral source.
We also can’t believe how many owners hire the first PMC they speak with!
Then they complain their expectations aren’t being met!
In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.
It's often a case of not doing enough research, as they don't know what they don't know!
Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!
So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.
EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!
This also leads owners to ASSUME simpler is better when it comes to management contracts.
The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!
We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.
We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:
We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.
EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!
P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊
Logical Property Management4.9453 Reviews
6 Replies
- 3yJoey BanasihanPro MemberInvestor · Boise, ID · Member since 2019 · 233 posts · 188 votes
Hey @Maria Matthew! Here are some of my thoughts, hopefully they provide some value.
There are a lot of resources out here in BP around Distance Self-Managing and hiring a property management, but it comes down to your goals. MTR management, pending one which platform you use (AirBnB, VRBO, Furnish Finder, etc.) is very doable but also depends on your current property and how you have it set up. The needs for MTR are going to look different and the turnovers are less often. I have a friend in Colorado Springs using a property management company through AirBnB for two MTRs and they charge 20%. Every property management company will provide a breakdown for their services and it just comes down to your goals for the property and quality of life you desire while traveling.
Pending on the type of MTR travelers you receive and your space, with MTR you are providing the same things as a STR, but most of the necessities (paper towels, toilet paper, cleaning supplies, etc) are going to be fronted by you, but necessary for you to keep them stocked week by week or month by month (based on the expectations you set up from the beginning). Other amentities such propane may be needed to be restocked but it depends on the type of service and experience you want to provide to your guests.
I go on and on and on around lots of details and such, but I will message you and happy to walk through everything with you so you can feel confident making a decisions moving forward.
- 3yAllen DuanPro MemberProperty Manager · Los Angeles, CA · Member since 2022 · 590 posts · 463 votes
I find the hardest part of managing a MTR from afar is finding an excellent team. This includes your cleaners, handymen, and other needed to help operate your MTR locally. Everything else can be done remotely or with software. If you have the time for it and are willing to build it out, it's definitely doable. Treat like a business with systems and team members in place and it'll run like a business.
We charge 15% for our MTR management fee, that's around where most managers charge. We do full service management, essentially everything needed to maintain and run the MTR.
- 3yPhillip AustinPro MemberProperty Manager · Denver, CO · Member since 2023 · 236 posts · 204 votes
@Maria Matthew I sent you a DM. Happy to help answer any questions!
- House Hacking Specialist · Denver, CO · Member since 2016 · 411 posts · 396 votes3y
@Maria Matthew by now I hope that you have came to conclusion what route to go with your MTR property. But, if you are still on the hunt for feedback here is my 2 cents.
When you say self-manage, how much of the business are your self preforming vs managing. If you are doing all of the cleaning and laundry, I would recommend a PM.
On the other hand, if you self-manage and hire our cleaning and laundry (very common) but manage pricing, guest communications and any maintenance I would recommend continuing to self-manage.
Coming from someone that self manages (from a 15 minute drive), here are are some of the challenges I run into not being onsite anymore:
- Exterior quality. Are trees overgrown, grass dying, snow removal, etc. I typically do a drive by once a week. Since you are not able to do that, I would rely on your cleaner for a second set of eyes. For some reason, if you do not trust their judgement have them snap a few photos.
- we planted a good amount of flower in the spring. Went we are out of town we will hire neighbor or handyman to water them (especially with the heat we have been going through)
-and a random one that is more of a pet peeve of mine. Make sure your furnace filters are getting replaced.
-Taking out the trash weekly
Regarding MTR PMs, I have found anywhere from 15%-20%. 20% seems to be more common. What is included in that fee depends on the company. It is safe to say they will be handling all cleaning, laundry, guest communication, pricing, and maintenance.
Hope the helps
- Investor · Orange County, CA · Member since 2014 · 363 posts · 408 votes3y
If you can get the systems in place, self-managing is quite possible.
Many mid-term rental operators are forced to self-manage because most markets don't have a mid-term rental property management company.
I travel quite a bit while managing 46 mid-term rentals but I have a good VA, cleaner, and contractor.
- 3yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
Encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.
To avoid going through the same poor experience, keep reading.
Even if someone give you a referral, don’t make the mistake of assuming that PMC will meet your expectations, just because they met the expectations of the referral source.
We also can’t believe how many owners hire the first PMC they speak with!
Then they complain their expectations aren’t being met!
In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.
It's often a case of not doing enough research, as they don't know what they don't know!
Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!
So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.
EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!
This also leads owners to ASSUME simpler is better when it comes to management contracts.
The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!
We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.
We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:
We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.
EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!
P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊
Logical Property Management4.9453 Reviews
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