Managing a property rental particularly luxury villas often involves multiple administrative tasks such as supervising repairs, handling maintenance, marketing and advertising, collecting of rent and responding to requests and complaints from guests. With this to-do-list in mind, as a villa owner, you may be interested in hiring the services of a property management company that specialized in luxury villa rentals.
What Does Property Management Company Do
A villa management company in Phuket and Koh Samui can provide a variety of services including marketing the property, screening and selecting tenants/guests, evaluating the property to determine an appropriate rental rate, drawing up lease agreements and collecting rents. They can also evict tenants when needed, maintain, remodel or repair the property, perform periodic inspections on the property and provide accounting services. The situation of every property owner is different, and there are several factors and scenarios that influence the owner’s decision to hire or not.
When to Hire a Property Management Company
Hiring a property management company is a personal decision that could prove to be very beneficial, but it may not be right for all property owners. A property owner should consider several factors when hiring a property management company. Below are some scenarios;
Your rental property is located far from where you live
The greater the distance between you and your property, the harder it is to manage it effectively. If your investment property is located near you, you can make regular visits to inspect, maintain or even greet guests. However, if the property is far away, you cannot respond quickly to emergencies, handle guests requests and complaints or maintenance issues. The cost and time of getting to your property will also add up. In such a scenario, hiring a property management company is invaluable as it will save you time and money, and it ensures all issues are handled quickly.
You do not want to be involved in the management of your property
Many villa owners would love the challenge of marketing their property and maintaining it
on their own. However, some owners view their properties as vital investments which require professional management. If this is the case, then hiring property managers may make sense. You may also hire a management company if you do not have the experience of managing and marketing your property for short term rental purposes.
Your time is limited
You may have the experience required to manage a property. However, if you have another full-time job, you cannot devote enough time and attention to the property. Time is money and property management takes time. If you have limited time and you cannot give enough attention to your property, then the success of your property could depend on hiring a property manager.
You can afford the cost
Hiring the services of a property management company is not free. Assess your finances before hiring a property manager. These companies may charge a fix fee or a commission between 10% and 25% of rent revenue collected. However, a good property management company should help you well to make the most out of the bookings to break even with the expenses and cover the operational cost or even make more profit.
You are suddenly overwhelmed by management tasks
You may consider hiring a property manager if your business is growing or your properties have increased and you suddenly feel overwhelmed. Hiring a property manager will ensure you restore stability and regain control of your properties.
You do not want to be an employer
You become an employer when you hire a resident manager or an employee to assist in managing the property. As an employer, you will have to handle several legal and human resource obligations. However, by hiring a property management company, you avoid being an employer since the company is an independent contractor with its own legal and human resource obligations.
Finding the Right Property Management Company
When hiring a property management company, make sure they deliver what they promise. Ask for recommendations from colleagues, peers or fellow property owners who has gone through the process. Interview several companies and make sure all questions you have are answered. The most important thing is to ask for reference of previous and current clients of the company prior to deciding of hiring them.
Owning a multi-million dollar luxury property in the island of Phuket and Koh Samui for investment purposes can be one of the best decisions one will ever make. However, if the property is not well taken care, it can become one of your worst nightmares.
Featured image credit: Malaiwana Phuket