Having a luxury or vacation home can be a wonderful thing, but what about all the days when you’re unable to use it? Renting your home out can be a hassle when you have to obtain permits/insurance, deal with the guests, maintain the property, etc. On the other hand, the extra income from renting your home out is certainly appealing. Websites and apps such as Airbnb, HomeAway, and VRBO allow you to turn your property into a short-term rental opportunity. But if you’re hundreds or thousands of miles away from your luxury home, how do you deal with the upkeep, interactions, and maintenance that comes with running a rental?
That’s where management companies come into play. Taking the burden of maintenance and customer service off of the homeowner’s hands is worth the relatively small cost that’s paid out to these companies.
“These rental-management companies maintain the online listings, with some masquerading as the homeowner to answer questions from potential guests. They then book guests, coordinate key handoffs, schedule cleanings and – of increasing importance – help the homeowner navigate local regulations.” – WSJ
Homeowners are welcoming the benefit of renting out their luxury homes and using the short-term rental income to offset the costs of owning it. Of course, every state is different, and the laws may not allow you to rent out your home if you’re not present (Santa Monica, CA for example). And remember, as you consider potentially entering the rental market, the earnings from short-term rentals can fluctuate depending on location, time of the season, and space.
It doesn’t hurt to look into the option, though, as the seasons change and you’re traveling less to your other home. Here are some companies to check out: The Lease Killers, Guesty, Kigo, and (for European properties) Hostmaker.