Is Hiring Short Term Rental Managers in Scottsdale Worth It?

Scottsdale real estate has one of the hottest markets in the state and continues to attract home buyers and investors from all over the country. It also has a thriving short-term rental market.

That's good news for property owners. It also means a lot of work, keeping up with state and local laws regarding rentals, as well as maintaining licensing, permits, and insurance.

Owners may find themselves overwhelmed with marketing, pricing, and guest support. For this reason, many are outsourcing these responsibilities.

This article discusses the many advantages of hiring short-term rental managers in Scottsdale. Keep reading to find out if this arrangement is right for you and your property.

Maximizing Rental Income

One of the main reasons to hire short-term rental managers in Scottsdale is to maximize the earning potential of your property. In volatile real estate markets, pricing is everything, and it can be difficult to hit the sweet spot. Going too high drives prospective renters to other properties, while pricing it too low means you are leaving money on the table.

Real estate managers will use a variety of pricing tools and algorithms to optimize rent based on a range of factors. These include the type of property and location, as well as things like seasonal demand and the draw of local events. They will ensure your pricing remains competitive while getting you the most rental income possible.

Professional Marketing

A related reason property owners outsource short-term rental management is it gives them access to professional marketing. This includes access to high-quality photos and accurate descriptions of the property. Managers will know how to present the listing in the best possible light.

They also will be able to target different audiences through social media or email campaigns. Improving your visibility can attract a wide pool of potential renters. All this translates to a better chance of keeping the property rented, which means more money in your pocket.

Meticulous Tenant Screening and Placement

Tenant screening is vital for protecting your investment and avoiding any safety or legal issues. Professional property managers can screen potential renters to ensure they will respect the home or unit. This reduces the chance of neglect, damage, or theft to the property and anything in it.

Additionally, they can help enforce rules while the guests are there. For instance, the property manager can address any noise violations or other disturbances. They also will be responsible for levying related penalties

Property managers can also advise you on parameters for guests. These include things like whether to allow pets or the minimum age of renters. These too can be a safety net against property damage or safety issues.

Saving Time and Eliminating Hassle

Another major reason people hire property managers for short-term rentals is to save time and eliminate stress. Like with regular rentals, short-term rental properties require building and grounds upkeep. This entails responding to guests in a timely manner.

Unlike typical rental properties, short-term rentals involve a lot more turnover. This includes check-in and check-out procedures, and preparing the property for new guests. As mentioned, you must almost constantly be marketing the property to ensure it stays rented.

Also, you may need assistance lining up contractors for cleaning, maintenance, repairs, and property improvements. Professional managers can take over these responsibilities.

They will be as hands-on or off as you prefer. For instance, a manager might solicit bids from different companies for a repair or other project, and then let you make a final decision about which one to go with. All this leaves you time to focus on more important aspects of running your real estate business.

Greater Rental Property Efficiency

Property owners cannot do everything on their own. Outsourcing management responsibilities means they do not have to take on certain tasks, but it also means they get done faster.

Professional property managers can streamline operations by leveraging relationships with cleaning companies and maintenance providers. They might outsource to vendors for particular chores or difficult tasks.

Besides conserving time, these relationships have the added benefit of saving you money. Rather than lining them up a la carte on your own, property managers can bundle these services and pass the savings along to you.

Skilled Cleaning and Maintenance Services

Regular cleaning and property upkeep are a major part of short-term rentals. Arranging this between guests' stays can be a lot of work. Letting a professional management service handle it will ensure it is done well and on time.

This extends to regular building and grounds maintenance. Even in the fast-paced environment of vacation rentals, you can have confidence that the property's HVAC, electrical, plumbing, and infrastructure are all in good shape. This gives you the peace of mind that potential issues - including with these systems or other things, like pest infestations - get addressed as soon as possible.

Coordination of Repairs or Improvements

Routine maintenance is a major priority, but occasionally properties also need major repairs or improvements. This may be for the safety of guests or simply to make the rental more attractive and competitive on the market.

Professional property managers can make recommendations regarding repairs and upgrades. They can help you make the most informed decision possible about how to proceed.

If there are issues that need addressing, a good property management company will be on top of it. Also, if these require taking your property off the market, you can have the confidence it will be ready to re-rent as soon as possible.

Professional Administrative Management

Other rental management benefits include giving you access to a variety of professional administrative services. These include bookkeeping, accounting, and payment processing.

Professional real estate companies can manage security deposits and ensure payments are properly documented. This affords the convenience of merely checking the reports and leaving the rest up to the pros.

Enhanced Property Security

Another benefit of hiring professional short-term property managers is they can suggest ways to increase the level of security on the property. They can make recommendations (and install) security measures like keyless entry systems and security cameras, which can both discourage and help solve crimes.

Managers can do regular inspections to ensure the integrity of the building and property. This can help protect your property from unauthorized individuals and create a safer environment for guests.

Legal and Regulatory Compliance

There are many specific state and local regulations related to short-term rentals. This includes everything from building code requirements to laws that govern landlord-tenant relationships.

There are national laws related to discrimination in rentals. The state of Arizona has statutes covering registration, permits, zoning, and liability insurance minimums.

There also are laws regarding fees and taxation specific to short-term rentals. The City of Scottsdale also has particular laws regarding licensing and prohibitions about things like unlawful gatherings or other activities.

These can all be a lot to sort through, and failing to abide by them can lead to fines or worse: not being able to rent your property at all. Leaving it up to a property manager can eliminate this hassle. It also ensures you are operating within full compliance with existing national, state, and local laws.

Insurance Coverage

Short-term rentals require a specific type of insurance policy. In most cases, regular homeowners insurance does not provide the type of coverage you need.

Dedicated policies offer specific protections against damage to the property and theft. They also provide liability protection, in the event that a guest or someone else is injured while on the property.

Note that companies like Airbnb and VRBO offer a basic level of insurance protection to property owners who use their platforms. However, there are caps on the coverage amounts and various liability exclusions. For this reason, many people using these services still purchase their own policies.

If you do not already have an insurance policy, a property manager can point you in the right direction. They can make recommendations based on your property value and type of rental, as well as your level of financial risk.

Heightened Guest Experience

A final reason to consider outsourcing short-term rental management is an improved guest experience. In addition to many of the services mentioned above, professional managers can promptly respond to guests. They will be equipped to address emergencies.

Property managers will also be able to make recommendations for local dining and recreational options. They can offer conveniences like flexible key exchange times. These can be particularly useful for guests arriving very late at night or early in the morning.

A better guest experience means positive reviews and repeat bookings. Ensuring customers are happy is good for growing your business and profits.

Find Professional Short-Term Rental Managers in Scottsdale

There are many advantages to hiring short-term rental managers in Scottsdale. Experienced ones can further advise you on the best arrangement based on your unique real estate goals.

Luxury Cashflow provides the highest quality property management Scottsdale has to offer. In addition to boutique management for vacation and other short-term rentals in Scottsdale, we offer real estate investment consulting. Reach out to us today to schedule a free consultation.