by Chris Price

Created on: October 30, 2007

Owning a second home in a popular vacation area is a dream that many of us have. The reality is that this is now a more affordable option, particularly if it is rented out during the periods when you are not able to take advantage of it. You could advertise and market the property yourself to potential renters or you can employ a property management company to do this for you. Having someone else to help feather your financial nest egg may be a good option to consider, but it needs careful planning to make it a successful venture.

The main advantage of having a good property manager is that you will have someone on hand, particularly if you live a distance away, who can deal with any problems to prevent any risk to your property. They can make sure that the landscaping, pool maintenance and pest control is kept up to standard to prevent major repairs or replacement of equipment through neglect. They will give you advice on how to present your home to make it attractive to potential vacationers and possibly help you to gain those bookings that are so vital to meeting the expenses of your new home.

A good manager may charge you a start up fee for setting you up with your rental business. For this they will advise you on the legislation requirements, obtain the relevant licenses, and help you to register for the sales tax in the county where your property is based.
Charges will vary depending on the company and what they are offering in each of their packages. Make sure to get a contract listing all the duties and relevant costs of the services that they will be responsible for during the contract period.

There can be disadvantages to having a property manager if you have employed a less than reliable company. Unfortunately, like every business, there are those unscrupulous examples where they will take your money but do not follow through on the work. Again, if you live far away, it is difficult to keep things in check. You could get to know your neighbors, or contact the HOA, and ask them to keep you informed if there are any problems. This way you can deal with your property manager promptly and hire someone more reliable if necessary.
Try and get a recommendation if you can, or ask a property manager you approach to supply you with names of current clients who can vouch for their service so that you can get an idea of the standards they set.

Finally beware of those who make fantastic claims of how many bookings they can get you. Not only is this illegal, but it is also a sign of bad practice as no one can predict the future of the market. The most anyone can promise is that they will endeavor to get you as many bookings as they possibly can.

Five Quick Ways To Choosing a Good Manager:

Get recommendations from others that rent out property in the area.
Look at their website remembering that this is the site where your property will be listed. The quality of the site may be indicative of the quality of their service and may not attract the right market.
Look at the number of services they are offering. If they only offer one service do they have the flexibility to meet your requirements?
Ask them questions. If they appear to be evasive consider this carefully.
Do you get on with them? This may be important if you are to have a long and successful relationship.

The correct management team behind you can take the stress away from looking after your home from a distance, help you gain bookings and give you the peace of mind that your property is being taken care of. With their professional support you can swiftly get on the road to greater financial independence and give you more time to enjoy your investments.

Good Luck!

Learn more about this author, Chris Price.
Click here to send this author comments or questions.