Isle of Palms Winter-Spring 2018-19

22 www.IsleOfPalmsMagazine.com | www.ILoveIOP.com | www.IOPmag.com Protecting Your Investment What to Consider When Hiring a Property Manager S o you’ve made an investment in a vacation rental property, and now you must determine whether a property-management company is right for you. You’ll first need to decide the level of management services you’re looking for and whether you would prefer a more hands-on or hands-off approach. Denise Holtz, founder and president of the Charleston-based South Carolina Vacation Rental Management Association, a grass-roots organization that launched four years ago with the aim of changing the short-term rental scene in downtown Charleston, explained that managing a short-term rental is not for everyone. You have to collect money, set aside funds for repair projects, prep the house and answer midnight maintenance phone calls. Generally, you need to list your rental property on multiple websites, and responding quickly to inquiries is challenging. Holtz, whose VRMA group advocates before the Legislature for property-owner rights and common- sense regulations governing short-term rentals and was responsible for the passage of Charleston’s short-term rental ordinance in 2018, said hiring a company to oversee your vacation rental “takes all the headache away from you.” “A property manager is a good intermediary between a guest and an owner. Large investments can get emotional. A property manager keeps the emotion out of it,” he said. Karen Keys, director of sales at Turnkey Vacation Rentals, noted that property managers provide industry expertise to make the best of everything. TurnKey has revenue analysts scrutinizing market rates and lists property rentals on approximately 45 different websites. Keys remarked that handling a rental yourself “takes a lot of time and energy, and it’s pretty inconsistent” because of seasonal fluctuations. While every property-management company is different, most charge fees of anywhere from 15 to 20 percent of a rental’s gross revenue, according to Holtz. You might also pay an annual subscription to list your property. Since companies vary, when the time comes to choose a property manager, it’s critical to do your research and ask By Colin McCandless as many questions as possible. “I encourage people to interview with at least a couple (of property managers). You’re entrusting this person with a large investment,” advised Holtz. Keys recommended asking management companies for references. “You have to get someone who’s going to do what they say they will do,” Keys commented. Keys said that TurnKey utilizes technology to help with the safety and security of the home, vetting guests to prevent potential fines and damage to rental property. They frequently inspect rentals and evaluate their condition, providing recommendations on a regular basis. “A manager should keep an eye out and track everything for you,” stated Keys. “Some common mistakes rental owners make are not knowing how to properly market their property and not responding in a timely manner to inquiries, which adversely affects their home ranking on websites,” explained Holtz. Keys suggested that a great question to ask a potential property manager is how they help with your home- listing performance. A quality listing is the “primary marketing piece,” Keys said, and a detailed, accurate listing and great photos are vital components of achieving consistent bookings. “Bad photos on listings are a red flag,” Keys cautioned. “I think some owners might feel a bit of a sticker shock paying for management services,” added Keys. “When you look at the full range of services and the expertise they bring, it’s really worth your while to let a management company handle your property.”