How to Manage your Rental Cabin

The question of which is the better option has no right or wrong answer. It all depends on your individual circumstances.By the end of this video, You’ll know whether the headache is worth the extra coin -or- if the additional cost is worth the freedom

1. Self Management - Pros

   1. If you believe in the saying “if you want it done right, do it yourself.” Self Management might suit you well. You often save on management fees, have a bigger say on who rents, cleans, and have more control over your ratings and property overall. But this control comes hand in hand with requiring a lot of time, effort, and liability.

2. Self Management - Cons

   1. Self Managing an overnight rental takes a lot of time. This is a full time, always on call job. Make sure you really have the time to devote to planning, taking pictures, marketing, regular inspections, dealing with guest bookings, complaints, replacing used or broken items, scheduling cleaners, & scheduling regular maintenance.
   2. It also helps to have “boots on the ground” nearby. If you’re looking to self manage but are a long drive away, think about what to do in the case of a crisis? Things like a Water leak, door code not working, Smoke detector battery is low, cabin is destroyed by teenagers, can’t get a cleaner there last minute, wifi router needs to be reset, a guest stole your coffee maker?
   3. Do you have someone that could drop and run over to the property? It’s always a great thing to have. Some companies like HEP offer 24/7 service calls, but just be prepared to have a hefty bill.
   4. Is having this responsibility on your shoulders already making you hyperventilate? Maybe a PRO is right for you.

3. Hire a pro - Pros

   1. With a PRO you’ll have much more free time and less hassle. Just cash your check at the end of the month. They provide their own linens, cleaners, toiletries, lightbulbs, batterikes, They will handle scheduling, maintenance, advertising, and deal with complaints. This is truly hands free passive income.
   2. Property management companies have a better understanding of the market & are well aware of the nuts and bolts of overnight rentals. This takes the guesswork out of things especially for Newbie investors.
   3. The fee you pay them for managing your property is also a write off! Every dime that goes to the property management company can be deducted as an expense for your blossoming overnight business. Sounds great right, what could go wrong? Well there are a few downsides to hiring a property management company.

4. Hire a Pro - Con

   1. The biggest downside being - The FEES! Most property management companies will charge roughly 20% of the gross rents and sometimes even more.
   2. Be careful because some companies may add fees on top of this 20% for various reasons, so be sure to find a Pro you can trust. I suggest meeting with several Companies or people and reading over their agreements thoroughly. If you’d like a list of the Property management companies I suggest, text me with the works “Property Management Companies”

Now that you’ve decided whether to DIY or Hire a Pro for your Rental Cabin, How can you estimate your rental income?

Tune into our video next week to gain some helpful tips and tricks on estimating what to rent your Smoky Mountain Retreat for, how often it will be rented & make sure the return pencils out for your