Vacation Property Management
About our Vacation Management Program
Do you need help managing your vacation rental home? VHS Property Management takes your vacation rental management to the next level—allowing you to enjoy the revenue from your rental without the day-to-day upkeep. We are your local vacation rental and property management company and we know what it takes to operate a full service Property Management company.
We Help Piedmont Area Homeowners Grow Their Rental Income
Onboarding
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Fill out Property Information Form and familiarize ourselves with the property.
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Initial coordination and preparation of the property (cleaning, maintenance, etc.)
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General account setup
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Register property with county and set up sales tax payments
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Create Inventory List and stock property
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Coordinate professional photos
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Coordinate the creation of website for the property
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Create online presence through Airbnb and VRBO
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Create House Guide, Community Guide and Welcome Packet
Management Fee Includes
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Coordinate cleaning after each guest
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Bookkeeping / Paying Sales Taxes
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Monthly/Yearly Financial Statements
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Yearly 1099
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Guest communication
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Coordinate cleaning services for the property’s “deep clean” twice yearly
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After hours emergency services
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Coordinate lock/door code changes after each stay
Guest Communication
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Initial guest welcome emails
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Coordinate door codes for guest access
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Handle all guest correspondence during their stay
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Contact guests during their stay to provide quality customer service
Monthly Property Check
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Manage stock inventory
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Change furnace filters bi-monthly
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Overall visual survey of property to ensure quality control
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Ensure property and community guides are updated
Yearly Inspection by Third Party
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A thorough visual property inspection will be conducted once a year by a professional home inspection company. An inspection report will be prepared and provided to the owner.
Other Services
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Coordinate Maintenance and Repair Dispatch
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Coordinate Yearly Inspection by Third Party
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Coordinate Lawn & Landscape Care
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Coordinate Snow Removal
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Coordinate Pool Care
Investor Considerations
ABOUT VACATION RENTAL PROPERTY EVALUATION AND INVESTMENT
Having a vacation rental property is an increasingly popular way to make money on with real estate. The notion of vacation rental investment has gained significant traction in recent years, and for good reason: the development of the economy, along with the introduction of the private accommodation sector, has made it significantly simpler for families to take more vacations on their own.
HOW TO EVALUATE A VACATION RENTAL PROPERTY
Assume you've already done your research and found a property you want to buy. How do you evaluate the potential of a vacation rental investment before making a purchasing decision? Here are some suggestions to help you determine the potential of a vacation rental:
Assume you've already done your research and found a property you want to buy. How do you evaluate the potential of a vacation rental investment before making a purchasing decision? Here are some suggestions to help you determine the potential of a vacation rental:
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Rate of occupancy
Simply advertising your vacation property on Airbnb does not ensure you will make money. To generate money with vacation rental property, you must acquire bookings and have a high occupancy rate. This is why, before purchasing, it is critical to determine the vacation rental occupancy rate. The Airbnb occupancy rate is calculated as follows:
The Airbnb occupancy rate is the number of booked nights divided by the total number of available nights.
Most people believe that the finest vacation rental has the highest occupancy rate. Larger occupancy rates, however, do not necessarily translate into higher earnings. A good occupancy rate permits the host to charge an average rental fee that optimizes vacation rental profits.
Flow of cash
Another important indicator for assessing vacation rental potential is cash flow. Here is the cash flow calculation formula:
Monthly rental revenue minus monthly rental expenditure = cash flow. Property tax, mortgage payments, property insurance, rental income tax, property management costs, utilities, and cleaning fees are examples of expenses. Positive cash flow occurs when rental revenue exceeds rental property expenditures. When the reverse occurs, the property is referred to as a "negative cash flow property," which no real estate investor ever desires.
The capitalization rates
The capitalization rate will show you how much revenue is generated by the investment property's worth. The formula is simple: Annual net operating income (NOI) /Vacation rental price = cap rate
The difference between gross rental income and operational expenses is the net operating income (taxes, insurance, maintenance costs, etc.).
Some real estate professionals agree that a fair cap rate for vacation rental homes should be between 8% and 12%.
Return on investment in cash
The cash on cash return will show you the percentage of profit you may expect based on the amount of money you put down when purchasing a vacation rental property. Here's how it works:
Annual pre-tax cash flow/total cash invested Cash on cash return. The cash-on-cash return on vacation rental homes will vary depending on aspects such as income property type, investment property location, etc.
Rent-to-value Ratio
Another method for determining profitability before purchasing a vacation rental property is to examine the rent-to-value ratio. This ratio compares the annual vacation rental income to the overall value of the property. The rent-to-value ratio for short-term rentals varies greatly, with most falling between 3% and 10%. Ideally, you should purchase a rental property with a rent-to-value ratio of 5% or higher.
HOW TO INVEST IN A VACATION RENTAL PROPERTY
Contrary to popular belief, owning a vacation rental property is not the same as regular real estate investing. Purchasing a vacation rental property necessitates a thorough study of the local market and predicted earnings. So, before making an offer and starting the process of purchasing a vacation rental property, every potential vacation rental buyer should be aware of the following information:
Do Your Homework
We've all heard it before: the golden rule of real estate is location. Simply said, a property's location is more significant than anything else; it's the one thing that can't be changed in the end.
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Conduct a Comprehensive Market Analysis
Once you've reduced your search to one or two suitable places, it's important to dig deeper into the market and demand. Would you prefer to spend your holiday in this area? Consider practical factors such as what kinds of attractions are nearby and how their popularity peaks and ebbs throughout the year.
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Recognize the Rhythm of Vacation Rentals
You must understand what to expect throughout peak and off-season seasons. You should also have an estimate of your total monthly costs. You must consider the fact that you will need to furnish and clean the property every few weeks.
Determine your expected income and expenses.
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While rental income will certainly be contingent on the area you live in, most landlords should expect to set the weekly rental rate at 10 to 20 percent higher than your expected monthly mortgage payments. However, it’s worth noting that landlords in high-demand areas could get away with asking for even more (that’s just one reason why market research and drawing comparisons are so important).
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Promote Your Property
Nothing is more important than advertising your property. Search for a good platforms that can help you effectively promote it.
SHOULD YOU MANAGE YOUR VACATION RENTAL OR HIRE A PROFESSIONAL PROPERTY MANAGER?
Being a vacation rental owner can be an exciting and profitable venture. However, it may necessitate a significant amount of your time and effort. This is wonderful if you are handy and a hands-on owner, but it may be more than the average short-term rental owner wants to invest in.
Being a vacation rental owner can be an exciting and profitable venture. However, it may necessitate a significant amount of your time and effort. This is wonderful if you are handy and a hands-on owner, but it may be more than the average short-term rental owner wants to invest in.
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In self-management, you need to know the basics, for instance; you will need to design your listings, take good photos for them, manage bookings from the various site you have listed, keep up with calendars, and give responses to questions from potential buyers.
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However, if you hire a professional Vacation Rental Manager, you won't have to go through much trouble. A full-service vacation rental property manager's skill and experience can maximize your return on investment while providing the full spectrum of management capabilities that you would provide with your blood, sweat, and tears.
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A skilled vacation rental property manager handles everything from setting up your listing with great images and web-optimized text to booking and replying to visitors and having your home cleaned and maintained.