I believe many Investors fail with Property Managers because they don’t have proper expectations set during the interview process. This is a flaw of the Property Management world and I believe there should be a better resource that gives a clear understanding of what a Property Manager should do for you. That being said, Property Management Services can vary wildly and you need a great set of questions to ask to get a clear understanding of what each Company can offer. Here’s the 10 best questions to ask a Myrtle Beach Property Management Company in 2024.
What services do you handle and what if any do I need to handle?
- Some companies will handle all services: Marketing, Guest Service, Maintenance / Cleaning, and Accounting. Other companies may handle some of those services for you but not all, where it won’t be as hands off. One method isn’t necessarily better than others – it all comes down to your goals and strategy.
How do you market your properties?
Marketing is key to ensuring your property stays booked. Ask about the channels they use (like Airbnb, VRBO, direct booking sites), their strategies for off-peak seasons. You want to see a diversified approach so that they aren’t reliant on one platform or strategy if things go south.
How Do You Handle Maintenance and Repairs?
Property maintenance is critical in the vacation rental business. Ask how they handle routine maintenance, emergency repairs, and who bears the costs. A proactive approach to maintenance can prevent costly issues down the line and keep your property in top condition. Maintenance work is almost always billed separately from Management Fees, and you’ll want an understanding of what these costs look like.
What is Your Communication Style and How Often do we Communicate?
Communication is key to a successful partnership. Ask how often you can expect updates and what they’ll update you on. There is a lot that happens in the Property Management / Guest Hosting world day-to-day and some items won’t be communicated to you. Expectations are so important in this relationship. Again, there may not be a “right” answer here – but you’ll want to know what to expect to see if that is what you’re looking for in terms of communication style.
How do you manage Pricing?
How will you price my rental and how do you manage it to ensure we optimize occupancy and revenue? You’ll want an understanding of how the company manages revenue. Is the pricing a seasonal price (a set daily price for season or month) or is pricing more dynamic (different prices for different days based on supply/demand)? Dynamic Pricing has become more popular as of late. In theory, it should optimize the price and occupancy you receive per night. The idea is that weekends and certain weeks (holidays) have more demand than others and you want to capitalize on those higher demand nights with a higher price than the surrounding days.
How Do You Handle Guest Reviews and Feedback?
Guest reviews can make or break your rental business. Ask how the company manages reviews, resolves disputes, and encourages positive feedback. A proactive approach to guest satisfaction can lead to better reviews, repeat bookings, and higher revenue. The difference between a 4-star and 5-star review on the OTAs (AirBnB, VRBO, Booking.com) is more significant than most realize. You want a Company who does great with Guest Service and delivers a great Rental to guests, but you also want a Company who knows how to handle Guest Reviews when things inevitably go south.
How Do You Screen Potential Guests?
The quality of your guests can impact your property’s condition, your peace of mind, and lead to community complaints from neighbors. Ask what the Company does to protect against potentially problematic guests. Unfortunately, the more strict your policies, typically the less bookings you’ll produce. There is a sweet spot between having strong, standard booking policies (age requirement, no smoking, minimum stay, etc) and not being overly-strict to generate bookings. Some good items to consider are Rental Agreements, ID Verification, clear House Rules, smart home tech (look into Minut and StayFi), and minimum stay and price.
Can you share a similar Property’s performance or Homeowner References?
Many Companies are more than happy to share a Rental Projection for the Property you have or are looking at. This Projection is just an estimate on what the Property can do. Some Companies will go high, some will go low – but I always say there is nothing better than the real numbers. Ask for an example of a similar property they have on their portfolio and ask for the rough rental numbers. Estimates are nice but it is very easy to exaggerate these.
Do you offer an Owner Portal? And if so what exactly can I see on here?
The Owner Portal is an online resource that you’ll be able to login to for items like Reservations, a live look at your calendar, and Owner Statements. What the Owner Portal can offer will vary from Company to Company, but ideally you want one, at the bare minimum, that will show live updates of your Calendar, Reservations dates and prices, and Calendar Pricing.
What is Your Fee Structure and Contract Length?
Property management fees can vary widely. Some companies charge a high Management Commission with minimal fees while others charge a lower Commision with more fees. It really does come down to the Market you’re in. In the Myrtle Beach Market, most Management Commissions will range from 15% – 25%. Understanding the fee structure upfront ensures there are no surprises later on. Similarly, Contract lengths can vary from 1 year – 10 years. A Bonus Tip would be to ask for an Owner Statement example that outlines many of the fees that could be charged. This should show you a breakdown of their fees and what the net income will look like after all is said and done.
