While this is obviously a big problem for sellers, it's even more devastating for owners who typically have a short window each year to secure significant rental income.
Branson, MO (PRWEB) February 16, 2016
Despite the fact that a good portion of the country is still blanketed with snow and plummeting mid-winter temperatures haven't yet bottomed-out, prudent property owners are wisely preparing for the 2016 selling and renting season - which can rapidly shift into high gear as soon as March. In anticipation of this annual event, Branson, Missouri-based cabin, condo and vacation rentals company BransonCondosOnline.com is warning property owners of a major pitfall: using the same Realtor to sell and manage their vacation rental property.
"To maximize their property’s appeal and value, each year thousands of property owners across the country invest money and time on everything from replacing windows and doors, to installing energy efficient HVAC systems, and the list goes on," commented Florin Nemes.
"Unfortunately, many of these people don't realize that using the same real estate company to sell and manage their property is not in their best interest. It could end up costing them tens of thousands of dollars, and in some cases could mean that their property remains on the market or vacant much longer than necessary. While this is obviously a big problem for sellers, it's even more devastating for owners who typically have a short window each year to secure significant rental income."
The three key reasons why property owners should avoid using the same real estate company to sell and manage their vacation rental property are:
1. Make sure everyone is working hard with the property owner’s best interest in mind.
Real estate companies that both sell and manage nightly rentals are categorically in a conflict-of-interest position. If they sell the property, they lose the residual income from the management side. The reason this "one stop" scenario is allowed is because the nightly rental business is unregulated (unlike long term rentals), and not because it is a better approach.
2. Avoid certain managers.
Selling is a distinct area of focus, and so are nightly rentals. It is virtually impossible that any individual or company is the best at both. It is much smarter and safer to work with separate professionals. Some managers even charge a fee each time a unit is shown, or will not allow showing within 48 hours of a guest checking in or out!
3. Hidden fees and loss of revenue.
Read your management contract! There may be additional fees associated with rentals coming after your closing date. Do not lose the opportunity to generate additional revenue, like a referral fee, by recommending the new owner to your management company.
Sometimes, it's difficult to tell -- especially for property owners who are not local -- that a real estate agent or their company is making money from multiple sources. Clues that this may be happening include agents or companies who: want to meet everyone who visits a property so they can deliver a sales pitch; have their own cleaning and maintenance team; sell timeshares; are developers; and own units in the same complex.
Added Nemes, “While these clues in themselves aren't evidence of a conflict-of-interest, as they say, where there's smoke there's usually fire. Property owners should ask questions and demand answers to protect their interests and investments.”
BransonCondosOnline.com is a vacation rental portfolio management firm, serving families in the vacation rental market in wonderful Branson, Missouri. The company seeks to maximize owners return on investment and does not act as an agent or broker for real estate transactions.
For additional information, visit http://www.BransonCondosOnline.com, phone 417-BRANSON (417-272-6766), toll-free 800-266-3651, or email info(at)BransonCondosOnline(dot)com