Management Options for your Canmore Vacation Property
Short-term management options for your Canmore vacation property.
Running a successful short-term rental in Canmore can be an onerous job. Many people find themselves asking “How do I manage my vacation property?"
I best manage my vacation rental property”? Self-managing and utilizing a rental pool are the most common ways and which you choose will depend on what your financial and lifestyle goals are.
If you live locally, or relatively close to your investment property, and you wish to take an active role in your business, you will likely want to “Self Manage”.
If you are a tech-savvy owner with marketing skills, you may want to set up and manage your own Air B&B and VRBO accounts. This entails reservations, cancellations, guest relations etc. Should a toilet clog or a key break off in a lock during someone’s vacation, you can expect to utilize your handyman skills or manage the necessary emergency contractors. Cleaning is something you may be tempted to do yourself but remember - cleaning is one of the most critically important parts of your business…..a negative review for a suite that was inadequately cleaned or even missed on the cleaning roster can permanently damage your online reputation.
Still under the umbrella of self-management is utilizing a third-party management company. This is a competitive industry and growing industry. Many property managers are willing to negotiate a fee that ensures long-term commitment and owner satisfaction. You are looking at a cost of approximately 15-20% of your total gross revenues. The property manager will advertise your suite, deal with all of the reservations, cancellations, guest relations and contractors. Make sure to ask if insurance and cleanings are included in the fees because often these are an additional cost to the owner.
If you are looking for the lifestyle of a vacation property but self-managing is not for you, the most hands-off way to manage your investment is to opt for a unit with an on-site rental pool. These are getting harder to find as Property Managers become more common. When you are not using your unit for personal use, simply inform the manager and they will place your unit into the pool of available units in the building. They actively market and fill according to demand. The rental pool takes care of insurance, cleaning, reservations, all guest relations and customer care.
Revenues are pooled and shared, as are the expenses. Owners are typically paid a net amount on a monthly basis. The fees for this type of management can come in around 40-45% of gross revenues. Due to the idea that a suite that commands a higher rental price (better views etc) will share revenue equally with one that commands a lower rental price, many owners are choosing to explore other options.
If you do not want the involvement of self-managing, this may end up being an ideal situation for you - you can own a fabulous place that you can take advantage of and as long as your revenue is at or above your expenses, there is no overall costs to own and there is potential for revenue.
Ultimately each investor is unique with individual wants and needs. Whether it's true self-management to help achieve more aggressive revenue goals, a rental pool that provides great lifestyle options or somewhere in between, there is a way to manage your property to accommodate your personal goals. Talk to a member of our team to fine-tune the best plan of action for you and your investment.
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