Hi - I own a vacation rental property (short term rental) and this is the first time I've worked with a property manager. Essentially, from the moment I signed the agreement, I feel like I've just handed over the keys to my property and have lost all control over it. I need to know if this is just how it works or if this is out of the ordinary. Some of my issues:
- My monthly income statements are incomplete. The property manager takes money off the top and the statements list only what is left over as "gross rental income" and then shows the commission charged. There's no explanation of where the $200 taken off the top goes. I asked and was basically given a "don't worry your pretty little head about it" answer, that those are just "fees for doing business." Is this normal? ...I expected an itemization, just as I tracked when I was managing the property -- $XXXX is the total collected from the tenant, minus...taxes, cleaning fee, damage insurance, etc. *NOTE* Our contract provides zero information on those fees/charges. Am I in the right to demand these details? Otherwise, what's to keep them from taking whatever they feel like off the top?
- On the topic of fees, our agreement does say that the commission includes the cost of cleaning (which is why I agreed to a commission that's a bit higher than average in this market), but on their reservation site, I noticed they are charging the tenants a cleaning fee (which is basically just subtracted out of the total rental rate -- meaning I'm technically paying for it since it's money I'd have otherwise gotten). They insist this is allowable as their "business expense" -- am I crazy, or does this seem contrary to the agreement?
- If I want to stay at my own property for more than 14 days during the peak season -- even if it's to do repairs/maintenance -- the property manager is saying that I must pay them commission based on the current rental rate . And ANYTIME a friend or family member stays there, they are saying I have to pay commission. Their commission is also 25%, so it's no drop in the bucket. Is this customary?
- I reserved an owner stay recently and requested an early check-in. Check-out is 10 and there was a tenant staying, so I just wanted the prop mgr to prioritize the cleaning so that I could get in around noon. They denied my request, telling me I can check in at the normal check-in time (i.e. same as for any renters). I balked and then they replied "the EARLIEST you may arrive is 1pm." I know I cannot enter the home when there is a tenant there, but I have a hard time with someone telling me when I "may" and may not enter my own home when there is no tenant staying there. Am I being unreasonable?
- They initially refused, time and again, to set the rental rates at the rates I gave them -- rates that I've determined to be the market rate, as the place has been renting for successfully at those rates. They finally changed it after refusing to for two months. In the meantime, they were booking the place at rates that won't even cover my expenses, much less turn a profit. I do have the right to set my own rates, right?
I guess I'm just confused, and I feel completely powerless over what is the biggest investment I have. It is my property, and I was under the impression that the property manager is supposed to be working for me -- simply managing it, doing the same job that I had been doing but no longer have time to do -- but instead, they are operating as if they own the property -- like they fully control it and can do whatever they want with it, including managing the funds however they want, charging me to stay in it.
Any insight that anyone can provide is greatly appreciated.
Thanks! Erin
