Property Management Cost 3 posts by 3 users

Posted: 02/28/2008 at 07:34AM

I have the opportunity to bid on a cottage for property management. It is a little different than just managing a rental for the fact that the leases are ranging from one week to a month. Check in is 3pm and check out is 10am. I would be in charge of cleaning entire cottage, doing laundry of linens, etc. Taking care of lawn in optional. I'm on call 24/7 and have to check the place out after any severe weather. How do I bid this one and what should be the rate? It is on Lake Michigan in West Michigan area. Thanks for your thoughts.

Brian

Posted: 02/29/2008 at 01:59AM

Brian,

Check on the licensing laws. Short term rentals normally fall under a different set of rules. You might need a business license in addition to a real estate license to manage this type of property.

Vacation rentals is a well established field. If there are other rentals in the area call around to the management companies and see what they charge. They are always looking for new business so they will tell you their rates if you have a property that needs managing.

25% up to 50% of the gross rent is not uncommon. 50% tends to be where someone owns a room in a hotel or resort.

There are some dedicated mailing lists or forums for vacation rentals. It can be a fine business. It is very different from RE investing and normal property management. The rules for eviction do not apply. More like how a hotel treats a guest who has not paid.