Orange Beach, AL Property Management

White Shores Realty. Got two condos with him and they do great. Charges 18%.

Robinson

I am new to it. I'm walking into it as a vacation property first, investment second. It would just be really nice to not be able to use my condo much. I am looking for suggestions to meet with companies to see what they offer. The previous owners used a group in NY that charged 30% but I would like a local group.

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Wonder if any management companies don't own properties and don't have a conflict of interest?

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Sounds like an opportunity.

Wyndham/Resort Quest is spectacular. I used Meyer for 4 years prior. Their cleaning crews are terrible. The difference after changing to Resort Quest as dramatic. Rentals with both were about the same. Customer service for both was excellent.

If you don't want dirty floors, don't use Meyer.

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I personally buy this argument less and less. Vast majority of rentals now come through vrbo, home away
Etc .... and that is the same whether you pay the 18 or 35. 20 years ago - I get it. Now - not so much

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Would you pay for a low end lawyer also? You get what you pay for, and almost always going with a better rental company with higher rate is worth it financially to your net income.

The idea that all properties are on VRBO is simply false, especially at 18%. All vacation rental companies have their own website and their chief goal is to get leads to their company. Placing individual properties on VRBO, Airbnb, flipkey, etc. is only something your better companies do and that is because it takes time. Something that 18% with low end properties doesn't pay for.

There are many 2 bedroom and smaller condos that gross rent for $30,000 while there are some properties in Destin that literally gross rent for $400,000. My family and I have two properties that rented for over $100,000 in 2016, they grossed over $270,000 combined all said and done. The fact of the matter is there's a HUGE difference in income levels with rentals. When I say prime property I mean a property that rents for $80,000+. Many rental companies may give you a lower rate to get these "prime" properties. If you are getting a low rate on a property that gross rents for under $40,000 then they are not spending the effort needed to maximize your income.

A couple recommendations OP:

1.) look at the other units in your building and who manages them
2.) If most units are with one or two companies, don't go with that company!
3.) BUT!, ask those companies for a pro forma of rent. It should be pretty accurate
4.) Get a pro forma first, then get their % they charge. Figure out your best net

Chances are most companies will send that all out together.

The reason I say don't go with the company that manages a lot of units is because you will just be one of many unless you are the penthouse or something. Its a great way to control your bottom line, but you will never maximize your rent that way. You want a company that is looking to enter the building or build their limited portfolio there, so they'll max you out to help them out.

1 bedroom loft?



You about to have some losses for your taxes

When you say prime properties for beach condo's please be more specific. Do you mean a certain square footage, amenities, number of bedrooms? Which properties stand out? Would you consider Turquoise prime? Any others?

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I'm in the business and unless you have a top notch and I mean prime property, you probably aren't getting very good service at 18%. Anything under 20% you really need to question. If you are happy with them at 18% then you may be happy underachieving.

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Last year we grossed 95k on our 3 bedroom at Phoenix West II, and we used it ourselves for 2 weeks in the summer. Place stays packed, and no complaints. Units there sell for around $700+ if you want to do the math on investment/return, though we paid less when we bought it. I don't think we're underachieving, but maybe it's a "prime property".