What services do mgmt cos provide?

[NewUrbanGirl]

I've always self managed rentals, so have not investigated the services that management companies provide for their commission.
Can anyone in the know share what these companies provide?
I think they work with prospective and current renters, give out the keys and manage the cleaning crew.
What else? Do they provide any of the following?
-cleaning costs (labor and materials)
-maintenance (monthly and emergency repair)
-administration and payment of state and county taxes
-hotel license and compliance with DBPR
-marketing (do they pay for VRBO, vacationrentals, SoWal rental site or any others?)
-linens

 

[Chuckster]

greetings Urban Girl,
I logged on tonight and read your post. I noticed that no one had responded, so let me try. My wife and I own Sandie's Services. We have been in business in South Walton for approximately 12 years. Typically, we provide as much as the owner needs. We have lots of satisfied clients...

I'll give you an example: a "little" beach house we manage in Grayton Beach.
We set up an internet account for the property and pay the setup fee ourselves. We communicate with past and prospective clients via email/phone, we confirm reservations and fax the rental agreements.
The client returns the signed agreement and the payment to the owner. We then make sure the property is ready for check in.
The owner purchases all linens, towels, hand towels and we make sure the linens are ample, clean and fresh for each new client. We provide all the soap, paper products, and cleaning supplies for the house.
After checkout, we see that all laundry and cleaning duties are accomplished as soon as possible. We quickly inspect for any damages and determine what portion of the damage deposit, (if any), should be withheld. Typically, we receive the damage deposit up front to reserve the reservation and as mentioned, the main payment is sent directly to the owner. We hold the damage deposit and then return it to the client. Concerning maintenance, we do check the property regularily and take care of any "minor" issues. If a substantial issue arises, we notify the owner immediately. (ie. washing machine, dryer, ac, pool, plumbing, electrical, etc.) We have a list of reputable local handymen, businesses, etc. which have proved dependable. The owner will make the call on any issues regarding significant maintenance. We follow their direction. (we don't spend other people's money without explicit instructions) Concerning taxes, licenses, etc. : we have never been involved with any tax or licensing issues. Thankfully, the owners handle these issues, and for good reason. I hope this information is helpful to you.
If you are interested in finding out more about our business in South Walton,
feel free to call Sandie @ 850-758-6007, cheers, Chuckster

 

[Matt J]

NewUrbanGirl, a management company takes care of anything the owner doesn't want to. Like any service you pay a fee or percentage based on the level you require. Most rental companies will monitor the rental unit, market it, and basically act as the agent. Some owners prefer this and don't wish to deal with the guests.

I am curious how you maintain a hospitality license if you wash linens in your rental units. The DBPR doesn't like that as the water in a residential unit will never get hot enough to properly sanitize the linens.

 

[Mermaid]

We use Regal Properties who have an office near Shades restaurant at the end of 30-A. We are very happy with them! We pay 12% commision but there are other levels of service they provide--just take a look at their website; it's all laid out for you to choose if you're interested. To answer your specific questions (and I speak only for the commision level we're committed to):

-cleaning costs (labor and materials)
Yes, they arrange for the cleaning crew to come in; we pay a separate fee.
-maintenance (monthly and emergency repair)
Yes, they arrange for necessary maintenance as needed if we request; emergency repair is taken care of immediately; we pay a separate fee.
-administration and payment of state and county taxes
We prefer to do this ourselves and we are authorised to do so.
-hotel license and compliance with DBPR
I am pretty certain we take care of this (this means my husband does )
-marketing (do they pay for VRBO, vacationrentals, SoWal rental site or any others?)
We are automatically listed on Regal Properties website but all other advertising is on our own dime.
-linens
We provide our own linens and towels, which is our preference, but I think this is rather unusual as most rental companies require you to pay into their linen pool.

SWGB: even though we use our linens, we have several sets which we rotate and they're professionally cleaned off premises.

 

[Matt J]

Mermy, I believe that is acceptable. However the old standby was a line in the rental agreement that said something like, "Start linens and towels in washing machine". The only other problem with providing your own linens is if they were to get mixed in with the rental companies laundry, you can kiss them goodbye. Unless they are very distinct from the rental companies linens it's gonna be hard, if not impossible, to find them again.

As to maintenance, I assume that it is an hourly fee? Also, do they disclose the mark up for parts?

Also after looking at the website, why are they not listing the properties they represent? I realize the you already have a listing on VRBO or similar, but it wouldn't hurt to have it in more places.

 

[Mermaid]

Mermy, I believe that is acceptable. However the old standby was a line in the rental agreement that said something like, "Start linens and towels in washing machine". The only other problem with providing your own linens is if they were to get mixed in with the rental companies laundry, you can kiss them goodbye. Unless they are very distinct from the rental companies linens it's gonna be hard, if not impossible, to find them again.
Trust me, SWGB! Our sheets would never get mistaken for anyone else's. Particularly the Tommy Hilfiger set that's green and covered with alligators.

As to maintenance, I assume that it is an hourly fee? Also, do they disclose the mark up for parts?
Honestly, we've needed emergency service for two things only: the a/c went out and the bill we received was exactly in line with what we've always paid for service calls ourselves, so we didn't quibble. The other time a handyman had to put up the bath shower curtain rod that somehow came loose of its moorings (I don't even want to ask :roll. The bill for that was either $25 or $30, which, again, we didn't feel was unreasonable. But you do bring up a very good point about fees and mark-up. I wouldn't have thought of asking about that.

Also after looking at the website, why are they not listing the properties they represent? I realize the you already have a listing on VRBO or similar, but it wouldn't hurt to have it in more places.
Young man! Get your eyes checked. www.regalpropertiesfl.com It's all there, up front and central. And if you want to play Santa Claus for me, you can ante up the fees to advertise my condo all over the place.
__________________

 

[Matt J]

My apologies, I swear I looked and looked and couldn't find the rental listings. Thanks.

I should have been clear on the maintenance issue. Generally if an outside vendor is called, i.e. a/c repair, the management company doesn't mark up that invoice since they have to provide a copy of the invoice from the servicing company.

It sounds to me like their rates are very reasonable and actually very competitive with other management companies in the area. I know of a few that lure you in with low commissions and then nickel and dime you to death with maintenance fees.

I've been on both sides of that fence and trust me it's no fun explaining why a 60 watt bulb costs $60.00+. ;-)

 

[wrobert]

-hotel license and compliance with DBPR
I am pretty certain we take care of this (this means my husband does )

What is it that you guys are talking about here? I thought that SFD could be rented as is, why this hotel license stuff and where does it apply?

 

[Matt J]

What is it that you guys are talking about here? I thought that SFD could be rented as is, why this hotel license stuff and where does it apply?

F.S. 212.03 Defines any establishment renting for less than 6 months is due 6% sales tax.

F.S. 509.242 Defines what establishments fall under the definition of Public Lodging Establishments.

F.S. 386.207 Covers the actual administration of PLE laws.

There's plenty more, but most people don't realize that if they rent under 6 months at a time they are governed by many more laws than a long term rental.

 

[wrobert]

F.S. 212.03 Defines any establishment renting for less than 6 months is due 6% sales tax.

F.S. 509.242 Defines what establishments fall under the definition of Public Lodging Establishments.

F.S. 386.207 Covers the actual administration of PLE laws.

There's plenty more, but most people don't realize that if they rent under 6 months at a time they are governed by many more laws than a long term rental.

I just find it interesting that DBPR is involved. We are starting to get a lot of code cases where actual residents are complaining about the investors who have what amount to this mini-motels running. I have been struggling with where you draw the line between a single family dwelling and an actual commercial enterprise. Since I do not need DBPR to rent out my house and it appears these vacation rental ventures do, the line may become much clearer. I wonder how this is going to sit with convenants that strictly prohibit commercial operations and this obvious commercial use. Thanks for the reference I will review this weekend.