holidayhomeinformation.co.uk

string(20) "what-you-should-know" string(24) "management-and-marketing" string(32) "managing-your-property-from-afar"

Managing your property from afar

Andrew Wilson, Holiday Home Management Ltd, October 2007

If you are renting out a holiday home and live some distance away you will obviously be unable to organise the changeovers yourselves or react quickly to any issues with the property.  There are a couple of options, either hiring a local cleaner directly or engaging a property management firm who manage a number of such properties in the vicinity of your holiday home.  Both options have pros and cons which are outlined below.

Using a local cleaner

Benefits

• A one to one relationship, so if there are any issues with your property you know exactly who to deal with
• You will be able to ask the cleaner to do exactly what you want for your guests e.g. if you want to supply a specific welcome pack to your guests a directly employed cleaner will be able to do this for you
• Likely to be cheaper than contracting a property management company, especially as VAT is unlikely to be charged on services

Considerations

• You will have to invest in all of the linen and towels yourself, potentially a few hundred pounds or more.  These will also need to be replaced every year or two
• Little back up in event of sickness or holiday
• If standards are not up to scratch you will need to deal directly with your cleaner on the issue, and it can sometimes be harder to do this with an individual rather than a company
• Invoicing may not be in place and you may have to pay employer's national insurance contributions
• If guests do have issues with your property they are more likely to come directly to you, rather than issues being sorted with the property management company

Using a Property Management Company

Benefits

• Local support from a specialist management team.  A property management company are likely to have expertise in a number of areas including guest services, maintenance, logistics etc
• A one-stop shop solution. This will cover all aspects of holiday home management eg liaison with letting agents; guest pre-arrival contact; meet & greet; cleaning & servicing on departure; liaison with maintenance companies/appliance delivers, etc
• The capacity to respond to guest calls 24/ 7. Managing across a number of properties should allow resource to be able to respond to calls no matter what the hour
• A broad range of resource. This can assist in minimising owner costs i.e. no need to send in an expensive plumber for a reported leak if it just needs a small amount of silicone around the side of the bath, which can be sorted by the management compnay.  However, if a plumber is required a property management company will have a list of pre-approved suppliers to allow a quick resolution, thereby limiting the guest's inconvenience and additional impact on owner through a compensation claim. A property management company will be able to manage maintenance issues on your behalf, saving you time and inconvenience
• Fully vetted staff. Staff should have been interviewed and have Police and credit checks
• Induction & training programme. Staff will be trained on standards and work should be quality checked
• Back up. A property management company will have a number of staff to cover staff holidays/illnesses etc
• Linen and towels on a per changeover basis. The use of a commercial laundry contract means no upfront purchase costs for customers for multiple sets of linen and no ongoing costs for replacing spoiled items
• VAT registered and fully invoiced. VAT can be claimed back if owner is VAT registered and charges can be off-set against owner's tax bill
• Keyholding. Keys will be held in a secure, alarmed unit, linked to the local Police station.
• Insurance & accountability. A property management firm will have its own public liability cover in case of injury to their staff

Considerations

• A property management firm is likely to charge more than a directly employed cleaner, especially as they will have to charge VAT on their services
• You may be tied in to an annual or minimum length contract
• You will have to use the company's standard linen and towels
• If you have any issues with standards you are likely to have to speak to the company's managers, as opposed to directly to the cleaner
• A property management company are likely to invoice for all call out charges, whereas if you employ a local cleaner directly you may benefit from some ‘goodwill' visits to manage issues

--------------

Holiday Home Management Limited (http://www.holidayhomemanagement.co.uk/) are one of the South West's leading property management companies, representing a large portfolio of properties across Devon and Cornwall.