If you’re a landlord or just looking to make money with real estate, it’s crucial to understand how to manage property the right way. It’s not just about knowing how to fix things when they break. As a property manager, especially as a first-time landlord, you’ll be forced to wear many hats.
How you manage that property is going to either make or break your chances for success.
- Get to know your home
When you first purchase a new property, your first step should be to really get to know the home and all the systems that comprise the home. Each of your home’s systems has a specific service interval and lifespan. The last thing you want to happen when you’re renting out your home is for one of these systems to fail and have the cause be due to the lack of preventative maintenance or care.
- Plan to reinvest in your home
If you’re running your home as a vacation rental, you have to plan to reinvest in it with part of the revenue you earn from the home during the year. This will keep your home in ideal condition and tip-top shape as you rent it out. Remember, the more guests you have, the more “use” your home or condo or apartment will experience. This is especially true if you have a luxury home and people are paying top-dollar to rent it.
- Create a financial plan
Understand you much your home will likely generate in revenues, which is dependent on three key factors.
- The specific location within the destination
- The level of luxury of the home
- Its size and amenities
Professional vacation rental management companies use data to accurately predict the revenue of a home. Without access to that data, you’ll have to do your due diligence and scour sites out there on the web and research rates. However, advertised rates aren’t always a prediction of the revenue you can expect to receive and you’ll be far removed from knowledge pertaining to occupancy rates.