Many people hesitate before embarking on vacation rentals because it is time-consuming. It is certain that this mode of operation will require more involvement from you since the expected services are closer to that of a hotelier than that of a traditional lessor.
However, this mode of operation offers much greater profitability and, as the icing on the cake, it is even possible to delegate entire management and simply collect the rents.
In the following sections, I offer you an overview of the possibilities available to you.
Do everything yourself
It is obvious that doing everything yourself is the most economical solution which gives you a number of advantages. However, keep in mind that a lot of work awaits you!
|Have 100% control over your real estate assets. Since you manage everything yourself, you will make the decisions that will help you achieve your investment goals.||You need to have knowledge of the tax, accounting and administrative world.|
|You don’t need to pay property management fees.||Do all the check-in and check-out inventory yourself.|
|You will have the opportunity to learn and gain experience in the rental real estate sector. The more you learn about your real estate investment, the easier it will be for you to make it grow.||Clean the property at the end of the stay if guests have chosen this option. Housekeeping at the end of the stay if guests have chosen this option. Again, you will have to see if you need to wash and iron everything at home which is long. Or, do the machines in the laundry and then iron which requires trips. Finally, you can entrust the washing and ironing to the dry cleaner which is more expensive.|
|Beyond a simple investment, vacation rental is also a great entrepreneurial adventure. It requires managing your investment like you run a business. From finding the property to day-to-day management, including putting together a business plan and constantly looking for new clients, you will have to put on the double hats of conductor and manager. You will need to alternate between being: Property hunter Work broker Marketer Commercial Photographer Accountant Logistics task manager|
|Short-term rental is a real human adventure in which you will meet people from all over the world. Some will be simple clients that you will only meet once while others will become friends with whom you will forge a strong bond !|
These tasks should be entrusted if:
- You live far from the home you rent;
- If you own a large building stock: managing your assets in such a context requires real work and great availability;
- If you have a busy schedule;
- If you don’t want to deal with logistics management, day-to-day tasks and technical issues;
- If you have little knowledge of the real estate market, its inherent tasks, procedures, legal and financial aspects.
If you go through this option, keep in mind that you will be “hiring” someone. So be rigorous in your selection and be precise about your expectations regarding his spots.
Introduce the person to the accommodation, practical information and local shops.
Also, give it a test on a reservation to see how things go.
To find the right person, you have several options:
- Word of mouth;
This is a very practical solution since she takes care of:
- Entrances and exits;
- Washing and ironing of sheets;
- Housekeeping at the end of the stay;
- You no longer have to move: the person has complete autonomy over your apartments. To do this, send him the schedule for each month and an update each time there is a change (new reservation, cancellation).
- Specify the practical information each time: the arrival time of the tenants, the length of stay, etc.
Following the success of short-term rentals, start-ups specializing in landlord services were born: janitorial companies. There is a plethora of them today.
A real turnkey service, these offer management of the tasks associated with short-term rental: entry, exit, cleaning, laundry, etc. Some also offer ad management. In most cases, you pay for the service.
Choose the one that suits you best in accordance with your budget and your constraints.
You can, for example, ask for the management of linen and cleaning and you keep control of the check-in and check-out. The concierge service will then call on one of these janitors (usually a micro-entrepreneur) to carry out the task. This is the principle of uberization applied to the concierge.
This solution is practical because:
- Concierge services offer people you trust who are directly rated by customers;
- You do not have to embark on a recruitment with all the risks that this can entail;
- You can also use them à la carte, which means that you can call on them on an ad hoc basis, in case of overload. It offers real flexibility and freedom;
- You can delegate the less interesting tasks of short-term rental (cleaning, dry cleaning, etc.) and take care of those that are relevant to customer relations (management of arrivals and departures, reservations, etc.).
Personal services company
We don’t think about it immediately, but personal service companies are increasingly offering seasonal rentals.
They have specialized employees for housekeeping, cleaning, maintenance and even human relations. So now you can call on them for entry and exit.
You can also contact them in case of urgent need. They will then quickly send you a person to do the housework, for example.
Real estate agency management
The last option available to you is to entrust the management of your rental to a real estate agency.
There are many advantages of this third party:
- You benefit from the advice of a professional whose core business is rental: you are never alone when faced with a difficulty. You benefit from the advice and support of a professional at any time and on all matters relating to rental management. If you are wondering about the amount of rent or work to be done, charges billed to the tenant or any other subject, all you have to do is turn to the real estate agent. The latter is one, who perfectly knows the real estate market of the municipality and the district where the property is located;
- Peace of mind: by signing a contract called a “management mandate”, you give him the power to rent your property, collect the rents, carry out the work in the joint ownership meetings, pay the charges and taxes relating to the property, etc.
By delegating the management of your property, the tenant will only be in contact with the agency. Thus, a good number of procedures will disappear and you will have much less work;
- You benefit from a guarantee in the event of unpaid rents: he takes care of putting in place legal actions in the event of a problem with the tenant to recover the amounts due. In addition, real estate agencies offer a rental risk guarantee which insures you against unpaid rents generally up to € 70,000. This guarantee thus finances the recovery of the tenant’s debts and covers any damage caused by the tenant to the accommodation, up to € 7,700. However, certain conditions must be met in order to be able to take out rental risk cover:
– The accommodation must constitute the main residence of the tenant.
– The rent must be less than € 2,000.
– The rent must be less than 50% of the tenant’s income.
- You have the assurance of a home maintained and to the latest standards: With a property under rental management with a real estate agency, there is no risk of being outlawed, since the real estate agent keeps abreast of all changes in laws and standards that may apply to your accommodation, and he takes everything in hand.
It is therefore he who is responsible for maintaining the accommodation, undertaking repair or renovation work, or simply giving it a clean-up for a new tenant if necessary and if you agree.
The real estate agent can also offer you support in renovations and ecological solutions, suggesting simple arrangements to reduce heat loss and wasted energy.
- You risk less rental vacancy: the real estate agent has an excellent network of tenants looking for accommodation. So sometimes there is no need to advertise, because it can offer your accommodation to people actively looking for it.
When necessary, they have a multi-channel visibility that highlights your property: showcase, website, directories. In addition, it will contact people in research, organize visits, receive visitors, inform them, collect the files of the various rental applicants, etc.
- Management of technical problems: the administrator manages small and large incidents that may occur during the rental. Thus, if repairs are necessary, he will draw up quotes which he will send to you for approval.
- Forget about legal and financial aspects: the real estate agent takes care of setting up legal actions in the event of a problem with the tenant to recover the sums due but he also takes care of contracts, inventories, holidays of tenants.
- Benefit from its expertise and advice on the valuation of your property, taxation or wealth management.
However, rental management has a cost:
- Commission: agencies are most often remunerated by deducting a percentage from the total rental price. It varies from 15% to 25%, depending on the geographical area, the city, the size of the accommodation and it’s standing. You can choose your agency according to the type of clientele targeted;
- Work: in the event of work, some managers take a percentage according to their amount. This percentage is scalable: the more expensive the work, the lower the fees.
- Legal acts: the drafting of a lease can be chargeable, as well as its renewal. For example, in some agencies, you may be charged € 200 for drafting a lease. The tax declaration of rental income can also be a chargeable service.
To conclude, with the digital economy that connects all players at all times and wherever you are, renting seasonal is easier today than yesterday. It is obvious that doing everything yourself is the most economical solution which gives you a number of advantages.
However, some owners opt to delegate this task. This solution is ideal for the sake of saving time, energy and peace of mind. It is also interesting for people who own several houses or apartments in different cities, who live far from the rented property or who are unfamiliar with the real estate market and the tasks inherent in renting a property.
Depending on the management mode chosen, the price will vary. Either way, they will allow you to manage your property wherever you are and free yourself from legal, administrative and technical obstacles.