If you’re a landlord or just looking to make money with real estate, it’s crucial to understand how to manage a 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.
How to manage your property and success
Entrepreneurs have become obsessed with rental property and not just long-term rentals. The rise of AirBnB, and the eager rush to convert condos and homes into short-term, transient rentals has the real estate world reeling. If you’re looking to get into the fray, heed the advice from property managers who are dominating the short-term rental game.
While short-term rentals are on a steady rise, long-term rentals have also long been a source of the Holy Grail of all income: passive income. Real estate is a prime example of one of the best ways that we can create a passive income from a real-world asset that increases in value over time. The best part? Even if you put 15 percent or 20 percent down on a property, you still receive 100 percent of the rental income. Music to your ears, right?
Well, what’s not so obvious or straightforward is particularly how you go about managing that property. If you don’t have the time, no problem. Kakdoma Barcelona Property Management Service is designed to take away the stress and hard work involved in owning a property in Barcelona in which you don’t live. If you have the time, and you’re just starting out, then you likely want to save the hefty fee that often comes along with property management companies that take the reigns. But, you better be prepared to put in the time, because you won’t find this easy to do.
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 have 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.
Work with a knowledgeable real estate agent
A realtor’s knowledge of the vacation rental business is often varied. Some have great firsthand insight into the industry. Others know little to nothing about it. And, while they might be able to offer property management tips whatever their expertise might be, it’s important that you work with agents who understand the business, especially in the early stages of finding, buying and managing homes that are intended to be used as vacation rentals.
Provide easy-to-use instructions
When guests go on vacation and rent a home, they don’t want to spend all their time figuring out how to use that home. Make it simple for them. How do you use the A/V systems? What about the TV, Cable or Apple TV? How about any music systems or the laundry? Great property management companies will actually go through and detail out all of this for you so that you won’t have to do it yourself. But, if you do it on your own, be extremely thorough and meticulous.
Ensure proper levels of inventory
One of the biggest reasons why guests rent homes and travel in groups is so that they can cook and eat their meals together. Some of the best memories created are around the eating and dining experience for the guests. So don’t hamper it by lacking kitchen essentials. Properly stock the kitchen and other home essentials to ensure that nothing is lacking. If you’re unsure, find a great property management company to help you identify what’s missing.
Be realistic about your pricing
One of the biggest mistakes that home owners, and sometimes even property managers, make when renting out a home is to set the pricing too high. Be realistic about your approach here. Do the research. Check what others are charging and do overprice your home. Finding that sweet spot might be hard, but that’s the trick if you want to have high occupancy rates. This is one of the property management tips that could make or break your year when it comes to financial growth.
Build redundancy into your inspections
Even talented people with high levels of attention to detail will miss things. Many property managers and owners managing their vacation rentals on their own leavel inspections to the housekeeping or maintenance people performing the service. Since it’s incredibly difficult to inspect your own work, find a secondary inspector to overlook things. Let them test all the systems and inspect everything prior to the guest’s arrival to ensure everything is perfect.
Take preventative maintenance seriously
Create a preventative maintenance plan for your home and execute on it diligently. That’s a cornerstone to property management of your property. You don’t want a boiler to bust during a peak rental stay with sub-zero temperatures, resulting in irate guests. 95 percent of these issues are preventable with the proper maintenance of care of your home. Not only will you avoid having to pay double overtime for repairs in a situation like this, but you’ll also avoid having to refund all or part of a guests rental fee. Take this seriously.
Property Management in Barcelona
Kakdoma Barcelona Property Management Service team is able to offer a range of services which can include: property inspections, inventory compilations, rental fee collection, bill and tax payment services, organizing repairs and maintenance, coordinating contractors, prepare tenant notices, provide detailed management reports, arrange refurbishments of a property, if needed. Property Management Services can be tailor-made to suit each client and their needs.
We are dedicated professionals offering personal service, paying close attention to our clients’ needs and responding efficiently. Our Home Management Service team was established to offer complete peace of mind to the owners that their property will be looked after and maintained in top condition. Contact us today and let our experience and knowledge of the Property Management in Barcelona work for you.
Source: Entrepreuners Europe