The importance of Management Companies
Management companies vary by location in the services which they offer. A management company in Orlando could specialise in short term rental properties and second homes or it may concentrate on seasonal rentals and annual leases.
All over Florida there are companies offering property management services, so how do you choose the one which is right for you?
If you have bought a single family home in the Disney catchment area which is located within a short term rental zone then you are going to be able to rent out your property. In this case your property management company should be located close to where your property is and be able to show you records of occupancy for similar properties.
You may discover that some management companies will not be willing to take on a condo. This is because the majority of short term rentals in the Disney Orlando area are single family homes. Many short term rental condos are located closer to Downtown Orlando and are most likely to be condo-hotels with onsite management.
Management companies provide diverse range of services depending on location and the expertise of the company. This can be due to the seasonality of business, especially on the coasts.
You will find property management companies that offer key holders and maintenance as a basic service; long term, seasonal and annual management and full service short term rental management inclusive of bookings services.
Do not confuse a vacation property with an investment property.
Investment Property – An investment property is by definition an appreciating asset and / or an income stream. A regular rental income throughout the year with minimal outgoings should provide between 5-8% if purchased and managed correctly.
Vacation Home – A vacation home is a property which you will visit several times a year; and possibly retire to in the future. A vacation home can turn you a profit when you sell it and it can deliver a little cash flow each year if it is successfully rented out. Possibly enough to pay your management costs, a little maintenance and maybe even a couple of flights.
Speak to Orlando Property Management companies before you buy the property.
We work with a number of property managers and have discussed at length and in detail which type of property they wish to take under management within their preferred areas.
Being able to acknowledge the difference between a vacation home buyer who wishes to rent out their property on a weekly or seasonal basis and the distinct requirements of an investor who needs to rent out their properties on annual contracts is ultimately critical. Our management companies understand which properties in which areas, work as rental properties for our owners.
By listening to qualified advice based on real life scenarios, future owners of rental properties should be able to take advantage of our years of experience based on what actually works. Our property managers do not wish to take properties under management which will not perform or meet our criteria or those of the owners or tenants.
Property management companies know which locations, which floor plans and what price ranges are in demand. By discussing this before buying a property, especially an investment property you will be able to calculate whether the property you are about to buy genuinely represents a good investment.
A key point when interviewing property managers is to ask about their occupancy rates and their ROI (Return on Investment) for the owners. Many property management companies will tell you that they have 90% occupancy levels on short term rental properties; but at what cost? Are they achieving a genuine service to owners or are they churning their bookings out to tour operators at little above cost, in essence barely breaking even on the outgoing costs of the owner?
A professional property manager will manage everything for you. From the maintenance, to the tenants, the book-keeping and taxes to the day to day challenges that experienced landlords understand only too well.
The last thing that a property manager wants is an owner on the phone every day complaining about every little thing. Instead an experienced manager would rather not take a property under management if they do not genuinely feel that it meets the requirements of their market. We interview our prospective owners as much as they interview us and by doing so we get to retain our owners as they understand from the get go what we do for them.
As an investor or second home buyer, you want a property manager to tell me up front if the property is viable for them and better still if they tell you before you buy it.
Our property managers offer diverse services dependent on the location of the property.
Orlando Property Management is for the most part driven by short term rental demand, however if you are looking to invest here we have an excellent management company who only deals with long term rentals and annual leases.
Short term rental management
Vacation homes are ideally located within upscale gated communities or within an easy drive of the theme parks
Long term annual rental management
Condos, town homes and single family homes should be located within good neighborhoods or communities and close to employment centers, schools, hospitals and with easy access to major infrastructure.
As well as several English speaking property management companies in Orlando we are now working with Spanish and Portuguese speaking managers who assist our Latin American buyers.