Choosing A Vacation Rental Manager

In St Lucia and around the world, more and more individuals are looking for ways to increase income and increase return on investment (ROI).

So you found the perfect property which can be used for vacation rental and at the same time serve as a second home in the event the property is not rented. After all, the property is in a touristic area, location is perfect as it is sunny at least 80- 90% of the year, 10 minutes to a nearby beach, pool and easy access to shops. But now you have to figure out how can you increase your ROI. You have approached a few vacation rental companies and a management fee could run from 10 to 25% depending on the experience and length of time in the business for the vacation rental company or manager.

You move swiftly in purchasing the property as you have located the ideal vacation rental company or manager. You purchase new furniture, do some painting, new towels, sheets, kitchen appliances, all the items you would require if you were on holiday in your new investment project. After all you have been to a few vacation rentals and found furniture need updating, kitchen lacking utensils, pool is green and so on.

Sign a management contract, wave goodbye to your property and after all wait for that monthly check.
Two to three months go by your manager confirms no rentals for your property. Well it’s only two to three months so these things take a while you thought. In the fifth month your place is rented and you just knew things would get going sooner or later. The next rental is in month twelve for four months. Great!

At the end of the third month you are told the client is refusing to pay for his stay in the fourth month. While the manager tries to get the tenant out by force, an eviction, very little communication is relayed between you and the manager. One email takes weeks to get answered. Then you are told the tenant was forced to leave but the property is trashed! Furniture needs replacing, food is everywhere, graffiti on your walls and soiled mattresses.

Choosing the right vacation rental manager is very important. Find out how long they have been in business. Usually a seasoned vacation rental company would have seen at least many situations therefore knowing how to protect your investment. Vacation rentals are widely considered as short term rental and though the laws may vary from country to country, the practical method in such situation is to make sure all the monies are paid upfront. Depending on the value of your property, a deposit will be taken from the tenants and refunded once the property is thoroughly checked after their departure. An experienced manager will guide you from start to finish in getting the property ready for rentals and stress that irreplaceable items should be locked away and taken out while you, the owner is residing in the property. Do research, ask questions during the process, is just another way to try to get loose ends covered.

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Gateway Villas
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St Lucia
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