Beach house self-management vs Property managementcommunity
Do you think it’s better to manage your own beach house property vs Property management firm? Well, every investor will often face this conundrum after buying their own beach house property. If you have doubts about which one would be the best option we’d like to make that easier for you.
What is a self-managed property?
A self-managed property is where the owner and the landlord are the same person. The landlord will not only have a say in the tenant selection process but also take care of any day-to-day operations that are necessary to keep the property up to date. That includes background checks of tenants, financial records, repairs, and maintenance for the property.
What is property management?
Property management is done by a property management company where a property agent/manager is allocated a certain number of properties to look after. This might include managing both residential and commercial properties. Property management is particularly popular for owners who choose to holiday let or rent their beach houses for short stays.
The property management firm manages, organizes, and maintains the overall upkeep of a beach house property. The agent will look after all the administrative duties that are involved in managing a property such as taking bookings, screening prospective guests/tenants prior to their stay, organising any repairs, maintenance, or cleaning required, and attending to emergencies that may arise. A property management firm can make the responsibility of renting their beach house relatively stress-free for the owner.
Beach house self-management vs Property management
Beach house self-management
|If an owner is self-managing the property they need to be aware of all the rental laws and obligations. They require to be up-to-date with all the latest regulations to maintain a beach house property||Property management firms are experts in their field and will ensure all of the necessary guidelines and laws are followed.|
|The landlord needs to have insurance for any potential property damage and necessary contracts in place with a handyman if any damage occurs within the beach house.||A Property agent will ensure that any damage to the property is fixed. They usually have different tradies on a contract which makes it easier for the tenant and landlord to stay stress-free.|
|Finding the right tenant is important. But a self-managing landlord with little to no experience might not have know-how. It’s a risk to understand if a tenant might be suitable to rent a beach house and have the ability to afford the property.||A property management firm has the experience to help identify the right tenant by looking at their history, credibility, and financial situation before agreeing to accept the guest/tenant to stay at the beach house property.|
Is it worth having property management for your beach house?
A beach house property is an expensive investment, so owners may be reluctant to engage an agent to manage the property due to the perceived additional cost for this service. As an owner of a beach house rental, you need to decide if property management is an expense that you can afford and if it will add value to your life by saving you time and potential stress.
You may save the agent’s fee by self-managing your own beach house rental, but a dedicated property manager would be able to manage bookings, screen guests/tenants, and attend to any emergencies or urgent repairs promptly as they would have a list of reliable, trusted contacts on hand to resolve any of those issues. Depending on your situation, self-managed property and property management firms both have their pros and cons.
Engaging a property agent to manage your beach house rental is usually a wise and safe decision, to ensure a good return on investment with a little cost associated with it, and in most cases, the fee can be claimed as a tax deduction.View all articles