How to select the best property management company for your vacation rental investment

Many who purchase a second home or condominium in Destin, Florida choose to make their home a beach vacation rental. This can be a great way to help offset costs of second home ownership if managed correctly. There are benefits and potential pitfalls, which is why hiring an experienced property management company to manage your real estate investment is a wise business decision.  

But how do you select the best property management company for your real estate investment? We recommend new owners ask lots of questions.

After more than 34 years in vacation rental and property management business, Newman-Dailey Resort Properties has helped homeowners ask the right questions and make smart choices when it comes to their vacation home investment. Here are 5 key questions to ask when selecting property management company for your vacation rental: 

How will you protect my investment property?

A property management company should be forth right in how they will protect your home. Ask them about systems they have in place to protect your investment property and keep expenses down. Do they have a preventive maintenance program? What do they do if a rental home becomes infested with bed bugs? How do they handle grill maintenance? What fees are charged? Do you mark up your maintenance or housekeeping fees? Are there any additional costs or changes to the management fee for online bookings? 

Are you a licenced property manager? Do you have any industry certifications, references or industry awards?

It is important that you know who is representing you and have documentation that it is a registered business with the state that your rental property is located. At Newman-Dailey not only is the company a licensed real estate and rental company since 1985, but the team is proud to share industry certifications and awards. The company is registered with Better Business Bureau and has received the Torch Award for Marketplace Ethics on two occassions. Memberships and certifications including Emerald Coast Association of Realtors (consistently ranked within the top 10%), member of the Vacation Rental Managers Association, HomeAway Advisory Board, Vacation Rental Housekeepers Association (Housekeeping and Laundry Manager Eddie Gray named Housekeeping VRHA Executive of the Year). Local membership, leadership roles and recognitions with Destin Area Chamber of Commerce, Walton Area Chamber of Commerce, Emerald Coast Convention & Visitors Bureau and Walton County Tourist Development Council (recognized with Van Ness Butler Jr Tourism Award for visionary leadership in the tourism industry as well as Chairman Award for Community Service and Ann Gibson Award for Service). Community voted awards are also a sign of leadership and positive reputation. Newman-Dailey is honored to be voted Best Property Management Company and Best Homeowner Association Co. on the Emerald Coast by the readers of Emerald Coast Magazine. 

How many members of your team will represent me and how will they protect my real estate investment? What is your relationship with local service companies?

It is important to have a team supporting your real estate investment. From accounting to marketing to guest relations to housekeeping to after hours needs and repairs, you'll want to know the hard working team that is in place on your behalf. In addition, your vacation rental home is working hard for you. The added wear and tear often results in added maintenance and needed repairs. Ask potential property managers how maintence and repairs are handled and billed. Does the company mark up vendor bills or do they pass along invoices and savings to you. More importantly, does the management company have a stable pool or reliable vendors to conduct repairs on your behalf. What is the approval process and what is the company's policty on routine maintence to ensure any small issues do not become big problems. Newman-Dailey has been building relationships with the most repuable vendors and repair technicians for more than 30 years. Our collection of properties are given high piority when air conditioning units break or appliances fail that can result in big saving to owners. Newman-Daiely believes in keeping costs low for our owners. At Newman-Dailey, property owners receive added value and care for their investment. In fact in a survey of Newman-Dailey homeowners, 95% of owners reported being satisfied and extremely satistied with Newman-Dailey as their property management company.  

What fees does the company charge?

It is imporant to discuss not only the property management fee but also what is included and what will billed a la carte as fees and expenses. Commission rates should be negotiated up front with all fees and expenses outlined. Revenue goals for the property should be set and based on a fair assessment of other rentals of a similiar size and location in the area. Watch out for companies that provide unrealistic projections to gain your business initially but do not have a track record of high revenue producing properties. Be sure to ask the company to provide back up and references that demonstrate the company has achieved these revenue goals for other properties within their portfolio.

How are guests screened? 

Who is staying in your property is an important aspect of ensuring your home is well cared for and maintained. What is their system for screening renters to ensure they meet minimum age requirements and abide by the approved party size that the home will reasonablely accomodate and in some Florida counties occupancy limits are required by law. The City of Destin has adopted a Short Term Rental Ordinance which limits the number of guests each vacation rental home can sleep based on the number of bedrooms. What policies does the rental management company have in place to protect you? Ask to review the guest contract. Do first time guests receive a door code and go directly to your vacation home or does the company welcome your guests and review your home's features and the rental policies. This is your investment! You deserve a business partner who truly cares about you and your home. 

Ready to learn more about vacation rentals and property management? 

Learn more about Property Management online or request a prospectus outlining property management services offered by Newman-Dailey Resort Properties by calling 1-800-225-7652 or email: [email protected]. Newman-Dailey believes owning a vacation rental home should be a fun and rewarding experience. 

See you @ the beach!