8 Points to Follow When Choosing a Villa Management Company in 2023
Do you own a villa that you want to rent out? Have you invested in one or more objects? Like the majority of people who invest in real estate, you will opt for a villa management agency to take care of your property.
The selection of the professional rental manager must be based on objective criteria guaranteeing that your real estate is in good hands. What are the parameters to take into account? How can you be sure to choose the right villa management agency that will allow your investment to maintain excellent rental profitability? Let’s clarify!
Why hire a villa management company?
Direct rental management has its advantages, particularly… it is free. You have complete control over what happens in the property: research, visits, and selection of tenants, amount of rent, inventory, drafting of the lease contract, signing of the lease, responsiveness in case of concerns, better relations with tenants…
On the other hand, managing alone requires time, involvement, and above all, motivation. Also, if you are hundreds of kilometers away, managing yourself can quickly become a challenge in case of damage or claims, unpaid rent, etc. Look at our property management service if you want professionals to manage your real estate.
1. Choose a villa management agency
according to its area of expertise
The first thing to find out about before choosing your real estate agency to manage your property is its specialization. Indeed, some real estate agencies will rather be focused on transactions rather than on the rental management of properties, which they will then put in the background… Whereas it is a part of real estate life that should not be neglected!
Selecting an expert property management agency: step-by-step guide
|1. Assess your property type||Determine your specific property type, such as residential, commercial, vacation rental, etc. Different property management agencies may specialize in specific property types.|
|2. Research agency specializations||Conduct research to identify agencies that specialize in managing properties similar to yours. Look for agencies with experience and a proven track record in handling properties of the same type.|
|3. Check industry affiliations and certifications||Look for property management agencies that hold relevant industry affiliations or certifications. These indicate a commitment to professional standards and ongoing education, ensuring adherence to best practices.|
|4. Review client testimonials and references||Read client testimonials and request references from property owners who have worked with the agency. This feedback offers insights into the agency’s expertise, level of service, and client satisfaction.|
|5. Evaluate property management processes||Inquire about the agency’s property management processes and services. A reputable agency will have well-defined procedures for marketing, guests screening, maintenance, and financial management.|
|6. Consider local market knowledge||Choose an agency with in-depth knowledge of the market where your property is located. They should be familiar with rental trends, regulations, and pricing strategies to manage your property effectively.|
|7. Assess their marketing strategies||Inquire about the agency’s marketing strategies for promoting rental properties. It should have a strong online presence, utilize effective ad channels, and demonstrate a proven track record of attracting guests.|
|8. Communication and responsiveness||Evaluate communication practices and responsiveness to inquiries. The agency must have clear communication channels, be accessible to address concerns, and provide timely updates on property management matters.|
|9. Fees and contracts||Review the agency’s fee structure and terms. Ensure that fees are competitive and reasonable. Carefully read the contract to understand obligations, termination clauses, and additional charges.|
|10. Personal consultation||Schedule a meeting with shortlisted property management agencies. It allows for direct interaction, where you can ask questions, discuss your property’s requirements, and assess their expertise and professionalism.|
We advise you either to turn to an agency specializing in property management, as there are more and more of them, or, at the very least, a multi-specialized agency, particularly a dedicated cell (and agents!) to rental management.
2. Look at the experience of the property management team
Choosing your villa management service is above all choosing a team. Find out about its competence and know-how. In particular, this allows you to control whether the service is managed internally or outsourced to a partner. If the agency subcontracts, identify its partner to ensure the quality of its service. Thus, at least obtain answers to these questions:
- The identity of the partner;
- The number of properties it manages;
- The presence of staff close to your villa;
- The procedure in the event of a dispute.
If the agency manages internally, ask if the team is dedicated to this service or if it is only one of its departments. Do not hesitate to inquire about the number of properties delegated to the department. Free access to this information can also be a sign of transparency.
3. Pay attention to the duration of the contract
and termination fees
The duration of the signed document should not be too long from the start of your cooperation. If you are disappointed with the management, it is important to be able to change agency without having to wait too long.
Also, discuss the terms of the search rental mandate with your agent, depending on what you too want:
- Exclusive: a single agent has to find the client, and you cannot end the contract before the pre-established end date.
- Semi-exclusive: there is only one agent, but you can also look for your clients.
- Non-exclusive: you can search for your clients and ask several other agents to do so.
Consult the termination fees charged by the agencies you have pre-selected to make your final choice so as not to have any unpleasant surprises if you wish to terminate your contract prematurely.
4. Take notice of the management agency’s reputation
Rely on the responsiveness, availability and friendliness of the agent you have on the phone or who receives you, but also on his professionalism. Also, you have many online tools and social networks (Google customer reviews, Facebook, Twitter, forums, etc.). The comments left is a good way to see if the quality of service is there.
Tools and methods for scrutinizing villa management agency reputation
|Online reviews and ratings||Google reviews, Yelp, TripAdvisor, online review platforms|
|Testimonials and references||Agency-provided testimonials, Client references|
|Social media presence||Facebook, Instagram, Twitter, social media engagement|
|Industry affiliations and certifications||Industry association websites, Certification bodies|
|Local business directories||Local business directories, chamber of commerce listings|
|Word-of-mouth recommendations||Recommendations from property owners, real estate professionals|
|Online forums and communities||Online forums, Property management communities|
|Case studies and success stories||Agency’s website, promotional materials|
|Online search and news articles||Internet search engines, news websites|
|Personal consultation and interviews||Direct consultation, interviews with agency representatives|
The quality of the photos and announcements will help you understand agencies’ professionalism and involvement in the search for clients. If it exists, look at the pictures of the rental property on the ad sites and the agency site in question.
5. Look at fees of your villa management company
One of the essential elements that will make your choice towards a particular agency will be the amount of fees. Pay attention to the details, and don’t be seduced by overly attractive prices. Look systematically and meticulously at the services and guarantees included in agency A’s fees, then in agency B’s, etc. For instance:
Example of property management company’s fees
based on the % of the revenue:
How much do we charge for our property management services?
Our company offers different packages for our services. Those are always charged only from the revenue. What does it mean? Math is quite simple, you make money = we make money. Therefore, we need to make sales, generate income and manage the properties up to the highest expectations. We must make profits and deliver results.
What kind of property management packages do we have?
There are 4 packages (for short-term rentals),
that are based on the % of the revenue:
The package includes:
- Managing Airbnb account (regular photo and description reviews and updates)
- All communication with guests
- Reviews for the guests and responses to such from the guests
- Managing quick replies
All OTA channels + Marketing
The package includes:
- Managing 35+ OTA channels (communication with guests, processing reservations, descriptions, and so on)
- Direct bookings (from our website)
- Marketing campaigns: Google ad campaigns, Instagram and Facebook marketing, Microsoft, LinkedIn, Twitter ads, etc.
Marketing + Check-in/Check-out
The package includes:
- All that is included in the 15% package.
- Check-in procedure - our trained manager meets the guests at the designated time and does check-in, answers all the questions and does a tour of the apartment.
- Check-out procedure - the manager will check out the guests according to the rules, and review the property for any damage.
- Reports of any damage/repair works needed to the owner.
The package includes:
- All that is included in the 20% package
- Cleaning and maintenance
- Resolving issues with the clients
- Peace of mind of the owner
On average, the fees charged are between 12% and 23% of the rent collected. To find out more or to hire a pro property manager, you can familiarize yourself with our villa management service.
6. Check a support availability of the
Considering the time difference, choosing a company that offers round-the-clock support and assistance is crucial if you are not in the same time zone as your villa. An effective villa management company should be able to offer 24/7 support to villa owners and guests. Here’s a list of key points:
- Guest satisfaction and positive reviews.
- Timely response to emergencies.
- Peace of mind for property owners.
- Efficient communication and coordination.
- Swift issue resolution.
- Effective maintenance and repairs.
- Streamlined operations and efficiency.
- Guest loyalty and repeat bookings.
- Competitive advantage in the rental market.
- Enhanced property reputation.
You should be able to be reassured at all times and receive a quick answer to your questions. The villa staff should also be available by phone for your guests in case of any problems. Entrust the complicated work to an experienced company that knows the market well, and relax, your property is in good hands.
7. Make sure the villa management agency
works with Airbnb
All villa management companies can handle e-commerce distribution and make sure your property is available on online booking sites like Airbnb. Future guests are likelier to book seasonal properties under the Superhosts listing because they know they deal with a professional.
Pros & cons of Airbnb usage by villa management companies
|Increased exposure to a wide range of potential guests||Management fees for agency services|
|Professional management of various rental tasks||Limited control over certain property decisions|
|Pricing optimization for maximum rental income||Standardized guest experience|
|Guest screening and assistance during stays||Reliance on a third-party agency|
|Streamlined operations and automation||Compatibility with local regulations|
Why is Airbnb Superhost status important? Airbnb rewards hosts who meet certain requirements with a particular profile badge that sets them apart. Airbnb Superhosts enjoy increased visibility and top placement in search results, leading to increased traffic, conversions, better occupancy, and increased revenue.
8. Check the seriousness of the villa management
Because of the sums at stake, it is vital to ensure the seriousness of your rental manager. The first good practice is to find out about the reputation. For instance, check the agency’s reviews. You will usually find them on Google (thanks to the Google My Business listing appearing to the right of search results).
Beyond the reviews, look at the quality of the agency’s listings. Blurry photos or sloppy texts can betray a lack of seriousness. On the contrary, well-kept property sheets are an encouraging sign of the professionalism of the team in charge. It is also best to contact the company to determine its plans for follow-up.
Are you ready to choose your rental management agency, but do you want to remain cautious? So, sign a short mandate. In case of a bad experience, you can thus leave more quickly. Find several companies and compare their prices and services. This practice ensures you make the best choice based on available elements.
As a conclusion
Now you know how important and careful you must choose a villa management company. It is not easy to entrust your property to the first person you meet, but you really need to approach this issue responsibly. Here are the criteria to take into account when looking for a villa management agency:
- a perfect reputation ;
- a good knowledge of markets;
- an excellent real estate network;
- 24/7 support availability;
- work with Airbnb;
- acceptable fees.
Our team CHM Inc. has been doing it all 1000% for many years. We know all the intricacies of the vacation rental market and know how to win a client’s attention from the first message. And if you want to get quality villa management, don’t hesitate to get in touch with us!
Frequently asked questions about
villa management companies
1. Why do I need a villa management company?
A villa management company can provide several benefits and services that can be valuable for villa owners. Here are a few reasons why you might need a villa management company:
- Property maintenance. A villa manager can take care of the regular maintenance and upkeep of your property. By outsourcing these responsibilities, you can ensure your villa is well-maintained and in top condition for yourself or your guests.
- Rental management. If you rent out your villa to vacationers or long-term guests, a management company can handle the entire rental process on your behalf. They can market your property, handle bookings, screen potential clients, collect rent, and manage check-ins/check-outs.
- Guest services to enhance the overall experience for visitors. This may include arranging airport transfers, organizing tours and activities, providing concierge services, and addressing any issues or inquiries that guests may have during their stay. By excellent guest services, you can attract more renters and enhance their satisfaction.
- Financial management, including rent collection, expense management, and financial reporting. They can keep track of income and expenses, provide you with regular financial statements, and ensure that you stay compliant with any applicable tax regulations.
- Local expertise can be provided by villa management agency if you own a villa in a different location than your primary residence. They have knowledge of the local market, regulations, and contacts, which can be beneficial for navigating any legal or administrative requirements.
- Peace of mind knowing that your property is being professionally managed. You can rely on their expertise and experience to handle various tasks, and they can act as a point of contact for any issues that may arise.
The decision to hire a villa management company depends on your specific needs. It can be particularly beneficial if you don’t have the time, expertise, or desire to handle the day-to-day management of your villa or if you want to optimize the rental potential of your property.
2. How do you find tenants for a villa?
Finding tenants for a villa involves a combination of effective marketing strategies and reaching out to potential renters. Here are some steps you can take to find tenants for your villa:
- Use online listing platforms;
- Make a professional photography;
- Create a property website;
- Do a social media promotion;
- Do local advertising;
- Use networking and referrals;
- Collaborate with villa management agencies;
- Get reviews and testimonials;
- Use targeted marketing;
- Respond promptly.
Comply with local regulations, licensing requirements, and tax obligations related to renting out your villa. Establishing clear rental policies, including terms, conditions, and cancellation policies, is essential to ensure a smooth rental process for you and your guests.
3. How much involvement do villa owners have?
The level of involvement of villa owners in managing their property can vary based on their preferences, available time, and the services provided by a villa management company if hired. Here are a few factors that can determine the owner’s involvement:
- Self-management. In this case, the owner is responsible for all aspects of the property management, including marketing, guest communication, bookings, maintenance, and financial management. This requires significant time, effort, and hands-on involvement from the owner.
- Partial management. Villa owners may opt for a more hands-on approach but still seek assistance in specific areas. An owner may handle the marketing and guest communication themselves but outsource tasks like cleaning, maintenance, or check-in/check-out procedures to local service providers.
- Villa management companies to handle various aspects of property management. The extent of involvement can vary depending on the services the management company provides. Owners can customize their agreement with the management company based on their specific needs and preferences.
Villa owners need to communicate their expectations and level of involvement with any hired management company. This helps ensure that both parties clearly understand their roles and responsibilities, resulting in a successful partnership.
4. What is usual screening process like for villa guests?
The screening process for villa guests can vary depending on the specific villa, its location, and the policies of the rental company or individual owner. However, here is a general overview of the usual screening process for villa guests:
- Reservation inquiry. Guests typically begin by making an inquiry or reservation request for the desired villa. This can be done through a rental agency, a booking platform, or directly with the owner.
- Initial communication. Once the inquiry is received, the villa owner or rental agency will typically initiate communication with the guests to gather more information and discuss details such as dates, number of guests, special requirements, and any specific needs or preferences.
- Guest information. As part of the screening process, guests are usually required to provide certain information, such as their full names, contact details, and the purpose of their stay. In some cases, guests may also be asked to provide identification documents, such as passports or driver’s licenses.
- Background check. Depending on the rental policy, some villa owners or rental agencies may conduct a background check on the guests. This could involve verifying the provided identification, checking for any criminal records or past incidents, and sometimes contacting references or previous hosts.
- Rental agreement and payment. Once the screening process is completed and the villa availability is confirmed, guests must typically sign a rental agreement. Guests are also expected to make the necessary payments like a security deposit, rental fees, and any additional charges or taxes.
- Arrival and check-in. Guests may be required to present identification again, sign additional paperwork, and provide a security deposit if not paid in advance. The villa owner or a representative may conduct a brief orientation, explaining the villa’s amenities, rules, and answering to guests questions.
The specific screening process may vary, and some villas may have more stringent requirements or additional steps depending on their location, exclusivity, or the rental agency’s policies.
5. Why shouldn't I manage my villa myself?
Here are a few reasons why you may choose not to manage your villa yourself:
- Time and effort: Managing a villa requires significant time and effort, which can be challenging if you have other commitments or live far away from the property.
- Expertise and experience: Property management companies have industry knowledge and experience in handling guest interactions, marketing, setting rental rates, and ensuring legal compliance.
- Marketing and exposure: Property management companies have established marketing channels and online platforms to promote your villa and attract bookings.
- Guest screening and security: Hospitality management companies have processes to screen guests, verify identities, and securely handle reservations.
- Maintenance and repairs: Property management businesses can handle routine upkeep and sporadic repairs for villas by utilizing their network of dependable suppliers and contractors.
- Local support and emergency response: Companies that manage properties offer on-site support during emergencies to ensure the security and satisfaction of their visitors.
You may choose the strategy for maximizing the potential of your villa rental by evaluating the time and effort you can devote to managing the property as well as your familiarity with the local market.
6. What happens if guests do not pay for the villa rental?
The typical procedures if visitors fail to pay for the villa rental include correspondence, payment reminders, imposition of late fees or penalties, use of the security deposit, and conceivably the filing of a lawsuit to recoup the unpaid amounts.
7. What should I expect regarding yearly villa maintenance costs?
The cost of maintaining a villa annually can change depending on a number of variables, including the size, location, amenities, age, condition, and maintenance requirements. The precise prices will depend on your particular situation, but the following are some typical maintenance charges that villa owners might incur:
- Routine maintenance. This covers routine duties like mowing the lawn, maintaining the pool, controlling pests, and general care. Depending on the size of the property and the frequency of services needed, these fees may change.
- Repairs. Plumbing, electrical systems, HVAC (heating, ventilation, and air conditioning), appliances, and structural components of the villa may require repairs over time. The cost can vary greatly depending on how complicated and extensive the repairs are.
- Renovations and upgrades. You should set aside money for renovation costs if you intend to renovate your villa, whether replacing old fixtures, increasing energy efficiency, or rebuilding the kitchen or bathrooms. Depending on the size and type of the project, these costs can vary greatly.
- Insurance. It is essential to have appropriate insurance coverage for your villa, including property insurance and liability insurance. The cost of insurance premiums will depend on factors such as the location, replacement value of the property, and coverage limits.
- Property taxes. Property taxes are typically assessed annually and vary depending on the jurisdiction and the assessed value of the villa. Research the local tax laws and consider property taxes when estimating annual maintenance costs.
- Association fees (if applicable). If your villa is part of a homeowners association (HOA) or a community with shared amenities, you may have to pay monthly or annual association fees. These fees can cover the maintenance of common areas, security services, and other shared expenses.
Create a budget specifically for your villa’s maintenance costs, considering these factors and any other unique considerations. Additionally, consult with property management companies or other villa owners in your area on this issue.
8. How long will it take to rent my villa?
While it’s challenging to provide an exact timeframe without specific details about your villa and its location, there are a few strategies that may help expedite the rental process:
- Consider setting a competitive rental price that offers good value for the amenities and location of your villa. Conduct research on similar properties to ensure your pricing is attractive to potential tenants.
- Utilize various advertising channels to increase the visibility of your villa. It can be online rental platforms, social media promotion, local listings, and real estate agents specialized in rentals. High-quality photos and detailed descriptions are also must.
- Be proactive in responding to inquiries and showing your villa to interested parties. Timely communication and flexibility in scheduling viewings can demonstrate your professionalism and help generate more interest.
- Ensure that your villa is well-maintained and visually appealing. Consider staging the property or investing in professional photography to showcase its best features. A visually attractive listing can attract more potential tenants and speed up the rental process.
- While it’s crucial to conduct thorough tenant screening, streamlining the process can help expedite the overall timeline. Have a clear process in place, including the necessary documentation and criteria for tenant selection.
Implementing these strategies may increase the likelihood of renting out your villa within a shorter timeframe. However, please remember that the rental process can still vary depending on market conditions, location, and other factors specific to your situation.
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