10 Tips for Choosing Property Management Solutions

Jan 9

Given that real estate property values generally appreciate over time, it's unsurprising that they're the best long-term investments for many Americans. Indeed, according to a Yahoo! article, a 2024 Gallup study revealed that 36% of surveyed Americans choose real estate as their top investment pick. It's considerably higher than stocks or mutual funds (22%), gold (18%), or certificates of deposit or savings accounts (13%).

So, if you plan to invest in 2025, consider exploring real estate.

However, purchasing is only one part of real estate property investments. Just as crucial is choosing property management solutions that you can rely on, as they'll be the backbone of your operations.

Luckily, Luxury Cashflow has you covered. Join us as we share practical real estate management advice and tips on selecting management services in this guide.

1. Establish What You Want From a Property Manager

The first step in management and property service selection is determining what you want them for in the first place.

For example, your best bet is to partner with a company offering management services for short-term rentals (STRs) if you need help with vacation rental management. Conversely, you should opt for luxury rental management for residential properties if you plan to rent your luxury home to high-income tenants long-term.

2. Determine the Type and Level of Service You Need

Pinpoint the services you want your soon-to-be manager to provide. Some companies offer stand-alone services, while others specialize in comprehensive property management. At the very least, the provider you choose must be an expert in the following services.

Professional Photography and Marketing

As a study published on Nature.com points out, neuromarketing research has found that the human brain can process visual information 60,000 times faster than information derived from reading text. It also explains that customers use digital photos as a factor when making hotel booking decisions. So, visual aids, plus written information regarding a property (e.g., facilities, services, and prices), help expedite consumers' accommodations selection process.

For those reasons, your chosen property management solutions should include professional photography. Their marketing services must also include creating engaging listings for your property on platforms like Airbnb and VRBO.

Setting Up Channel Managers

Channel managers are software tools that enable property management professionals to "syndicate" listings. Syndicate here means creating and publishing listings on multiple booking platforms simultaneously. The tools also help streamline the process with automatic updates to:

Property pricing
Dates of availability
Reserved dates

Moreover, the updates occur in real-time across all platforms, virtually eliminating the need for manual management of each platform.

Considering the benefits of channel managers, your chosen property management firm should be utilizing them. They should also handle the set-up and integration on your behalf.

Booking Management

Depending on your needs and preferences, you can have your property manager handle all booking-related tasks, such as:

Responding to prospective guest inquiries
Blacking out all reserved and paid bookings
Facilitating guest check-ins and check-outs

Guest or Tenant Relations

Your property manager must always be available to manage guest or tenant relations, whether you hired them for your long-term rentals or to manage your luxury Airbnb investments. They must respond timely to inquiries and concerns to help maintain high guest/tenant satisfaction and happiness.

Property Maintenance

The property manager you choose should:

Have a network of trusted, vetted, and highly experienced contractors and vendors for necessary property maintenance
Coordinate all property upkeep and repairs on your behalf
Oversee all service appointments and confirm the contractor's work and service quality

3. Choose a Local Property Management Company

Choosing a local provider of property management solutions is imperative for legal compliance, particularly for STRs. Many places in the U.S. have laws regulating vacation rentals, which vary from state to state and city to city. A highly experienced and skilled local manager understands the STR laws specific to your property's location.

An example of a city with short-term rental regulations is Scottsdale, Arizona. As explained on the city government's website, all properties in the city rented for 30 days or less must have a Scottsdale license. Property owners and operators must also adhere to requirements involving:

Safety
Health
Neighborhood notifications

So, if your rental property is in Scottsdale, look for short-term rental managers in Scottsdale, AZ. Being local can also give you peace of mind, knowing they're near your property and can attend to it anytime, especially during emergencies.

4. Explore the Pros of Full-Service Property Management Solutions

Data from Niche.com shows that the median Scottsdale home value is $709,900, more than twice the national median of $303,400. Nearly half of all homes here (46%) even have prices exceeding $750,000!

So, if you own a luxury property here, its value is likely upward of $1 million. With such high stakes, your property deserves full attention and care, even more so if you rent it to guests or tenants. For this reason, consider investing in full-service, optimal management solutions in Scottsdale, AZ.

With a full-service property manager on board, you can delegate all the host or landlord duties you'd otherwise have to do yourself. From professional marketing to guest/tenant relations and property maintenance, your manager will handle all these (and more!).

5. Look Into Credentials and Qualifications

Your property manager should be a licensed real estate professional. It's even better if they're National Association of Realtors (NAR) members.

NAR Realtors have exclusive access to:

Extensive and accurate market data
Property listings
Local realtor associations
Educational opportunities
Professional networks

NAR members must also adhere to the Realtor Code of Ethics, a set of standards serving the public's and NAR clients' best interests. So, with a NAR property manager, you can rely on a real estate professional who prioritizes fairness, integrity, and honesty.

6. Verify Your Prospects' Work Background

Choose a property management solution provider with extensive experience managing properties similar to yours. For example, if you plan to rent your property as a luxury Airbnb in Scottsdale, you should partner with a highly experienced manager specializing in luxury short-term rentals.

Explore your prospective manager's service portfolio, too. See how much revenue their clients generate annually. A yearly revenue of six figures in the luxury property segment is a good sign.

7. Confirm the Property Management Firm's Availability

Always remember that being a host or landlord can be a 24/7 job. After all, property damage caused by emergencies can happen anytime, even at midnight. For instance, a burst pipe can cause water damage to your property, while a hailstorm can cause broken glass.

So, for your peace of mind and that of your guests or tenants, ensure your property manager is available 24/7.

8. Consider if the Manager Can Help Expand Your Investment Portfolio

Over time, you may want to explore other opportunities for short-term rental investing in Scottsdale. You could also venture into other Arizona Airbnb investing hotspots, such as Phoenix or Paradise Valley.

If you choose a licensed real estate professional who's a member of NAR now as your property manager, you can rely on them to help you buy investment properties in the future. It can save you time and effort since you no longer have to search from scratch.

9. Partner With a Manager With Experience Selling Properties

Investment real estate property owners and landlords leave the landscape for various reasons, such as nearing retirement and wanting to cash out on their equity.

Even if you think it's too early to dwell on something so far ahead, you must still consider the prospect of selling your property in the coming years. It's even more crucial if you own a luxury home, the value of which is beyond the typical American homebuyer's budget. Its higher-than-average price can make selling it more complex and time-consuming,

Therefore, you should consider hiring a property manager who is also highly experienced in selling luxury real estate. Their skills, expertise, and knowledge of the luxury property sector can help simplify the sale process and get you the best possible price.

10. Take Advantage of a Free Consultation

A free rental property consultation is an excellent way to learn about your property's income and profit potential. A reliable property management company can give you these insights using their local knowledge and technology. They'll provide an accurate pricing analysis based on:

Your property's location, condition, and features
The historical performance of comparable properties
Current market demand
Real estate trends in your area

A consultation also lets you gauge a prospective Scottsdale property manager's attributes, personality, and professionalism. Remember, you may be in a long-term relationship with them, so they must be attentive and responsive to your questions and make you feel valued from the start.

Keep These Tips for Choosing Property Management Solutions in Mind

Identifying your needs and preferences, checking credentials and qualifications, and working with a member of NAR are among the most crucial strategies for choosing property management solutions. So, use all of our tips, as they can help you navigate your options and make more informed decisions.

If you need high-quality, full-service rental management solutions for your Scottsdale, Paradise Valley, or Phoenix luxury property, Luxury Cashflow is happy to help! Our founder, Ross Greenberg, is a luxury rental expert and REALTOR® who established the company in 2019. Since then, Ross has helped clients acquire over $70 million in real estate assets, generating up to $450,000 annually.

Ross Greenberg