Rental real estate is the best way to generate positive cash-flow. With the boost in Puerto Vallarta real estate market, things have been working well for the investors. Acquiring rental property is the first step towards achieving financial freedom.
The next step in hiring a vacation rental property management company will decide your investing career. If you are able to choose the right team, then you’ll spend less and learn more. On the other hand, if the team your hire is not competent to manage your property, you won’t be sleeping well.
As an investor, you must ask the right questions while interviewing these companies and make sure you make the right decision. Consulting friends and asking them about referrals will help you decide better.
Here are some questions you need to ask before hiring a vacation rental property management company.
Before getting on the percentages, it is good to start with a question like this. It will help you gauge the company easily. Through this question, you will be able to know about how experienced the company is. Hiring a company with local exposure is the best thing to do as they will know all the ins and outs. They will also know where to advertise and look for tenant leads.
Once you know what the company is capable of, you should ask about their contract terms and fees. Usually, the fees charged are 20-25% of the rental income. This is a position where you need to establish what you can afford. There are several service providers out there with different packages. Your job is to pick the best among your price range.
Looking at the contract terms is also important. They will help you keep the way outs in mind—in case you land a poor management company. Add a clause that puts you in the driving position so that you don’t have to worry about the management of your property.
This is where most of the landlords bite the dust. Ask the company about the services that are part of the deal. For example, some companies charge an extra fee if their employees head out in case any guests need help.
Ask whether the package includes cleaning, marketing, visits, and financial accounting. You can make a list of must-haves so that when you step in the conversation, you know what is required.