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7 Questions Your Need to Ask Before Hiring a Rental Property Management Company

Written by MerGo Group on . Posted in Blog, Property Management Insights. No Comments on 7 Questions Your Need to Ask Before Hiring a Rental Property Management Company

We’ve seen it too many times. A new property owner gets in over their head and calls the first rental property management company they hear about, only to realize a year later they’ve made a terrible choice. A good rental property management company will help you get the best return on your investment property and alleviate a whole lot of stress. Unfortunately, they’re not all as great as they might seem.

If you don’t ask the right questions during the initial vetting process, you may end up with a company that doesn’t have your best interests in mind. In order to avoid that, try asking these six essential questions to make sure you’re dealing with a professional.

Boston Rental Property Management

1. Ask for references!

Any rental property management company worth their salt will have plenty of references on hand. But for some reason, new owners are often hesitant to ask for references or would rather take a company on their word.

Property management companies get asked for references all the time, so you should never feel bad about asking—especially if you’re new to the industry. Always ask for references from current landlords and tenants in addition to reading any online reviews you can find. If a company is struggling to find a reference or if something seems fishy, look elsewhere.

2. “What kind of fees do you charge?”

Unfortunately, a lot of rental property management companies can be shady in the way they charge for their services. They’ll sneak in management fees, invoice markups, and even add on a percentage to all repair services. Some will also charge a flat monthly rate, which might sound nice from your perspective, but means they have no incentive to get the best rent for their tenants or make sure the rent is collected.

Be sure to ask specific questions about their pricing, including what fees are involved in various situations. If their pricing seems too good to be true or it’s so complicated they can’t explain it in a few sentences, you might want to stay away.

3. “How many units and employees do you have?”

This is a great question to ask because it will give you an idea of how quick their response times will likely be. A company that manages a lot of units could be good because they have plenty of experience, but if they only have a few employees, it could spell disaster.

Look for companies that have a considerable number of units with enough employees to reasonably manage them. Smaller companies are not necessarily bad; the important thing is that they have enough people to handle all of the units they manage—including yours!

4. “Do you have a property management system?”

Some rental property management companies aren’t much more than a few guys working out of vans with a to-do list on a notepad. Pro tip: you don’t want that company looking after your investment property.

Any qualified property management company will use a legitimate property management system, just like a store uses an inventory system or a sales team uses a CRM. You can start by asking them if their system tracks maintenance issues, tenant communication, and financials. If it doesn’t—or if they start telling you about how they don’t trust computers—you’ll want to steer clear.

5. “How many tenants have you evicted?”

This is an important question that most people don’t think to ask, but the response can be very telling of what kind of company you’re dealing with. If they’ve never evicted anyone, that’s a red flag. They’re either lying to you—which is problematic—or they’re telling the truth, in which case you’d be better off with a company who has experience with evictions, just in case you ever needed it.

On the other hand, if they say, “Oh, we’ve evicted tons of people,” that could also be a red flag. In our experience, it’s better to be in the middle than on one side of the spectrum here.

6. “Do you have an in-house maintenance crew?”

Some property management companies utilize in-house maintenance crews while others contract out all of their work to outside vendors. In our experience, in-house maintenance crews have faster response times, are more reliable, and can be held more easily accountable when things go wrong.

Property management companies that rely solely on outside vendors are often more expensive, as they charge a markup on their services. But more importantly, because they’re at the whim of the vendor’s schedule, your tenants might experience long wait times for repairs. As you can imagine, this can cause problems down the line.

7. Review the contract!

Okay, this isn’t a question, but it’s extremely important. You absolutely must review your contract—and be extremely thorough about it—before you sign on with a rental property management company! All contracts are different, and some can have stipulations that might not coincide well with your property.

For example, some contracts may lock you in for the calendar year instead of coinciding with your rental lease, which is not ideal. You’ll also want to look at how much notice you have to give before quitting, so you don’t have any surprises when it comes time to move on.

And finally, be sure to keep a record of everything the company has told you over the phone, in person, or via email. Once you get the contract, make sure it all matches up to what they’ve told you. If they try to pull a fast one on you, that could be an indicator of bad things to come.

So whether you’re currently looking for a property management company or you’re considering switching, we hope these questions will help you make the right decision. If you have additional questions or you’d like to hear about our property management services, feel free to drop us a line! We’d love to hear from you.

5 Boston Property Management Mistakes All Self-managers Need to Avoid

Written by MerGo Group on . Posted in Blog, Property Management Insights. No Comments on 5 Boston Property Management Mistakes All Self-managers Need to Avoid

Looking to get into Boston Property Management on your own? Make sure to avoid these costly mistakes.

Boston property management is a competitive business that attracts investors looking to make a quick buck in a budding market. But the reality is that owning and self-managing rental properties in Boston isn’t nearly as glamorous as it may sound. Between tenant issues, scams, and urgent maintenance problems, a lot of people quickly find they’ve bitten off more than they can chew.

But in the same vein, there’s a reason Boston property management has the reputation it does. With the right attitude and the right knowledge, it is certainly possible to make a lucrative business out of owning and self-managing properties in the Greater Boston Area.

We’ve seen a lot of people succeed and a lot more fail. If you’re thinking about self-managing a rental property in Boston, here are a few mistakes to avoid.

Mistake #1: Not getting the right repair services

There are a lot of home repair services in the Greater Boston Area, but as a property owner, you need to be extremely selective. Obviously, you’ll want to find a reliable company that does good work and can handle quick turnaround times. (Trust us, you will have tenants calling you day and night asking when their sink will be fixed.)

What might not be so obvious is that, as a self-manager, you could be missing out on the discounts that every other property management company is getting. When a property management company establishes a relationship with a repair company, they get a heavily discounted rate. As a self-manager, you’ll want to do your best to get those discounts.

That might mean forming your own LLC or just having a candid conversation with the service to let them know you’re serious about property management and you’ll be bringing them more business in the future. You could also lie to them about how many properties you have, although we’d strongly advise against it.

Mistake #2: Not knowing Massachusetts tenant-landlord laws

We’re not going to beat around the bush here—Massachusetts is one of the most difficult states for landlords to operate in. In order to avoid wasting your time and money on lawsuits and scams, you’ll need to get clear on a lot of state-specific laws.

Without going too in-depth (that’s for another post), let’s cover a few basics. First and foremost, there are strict anti-discrimination laws that will determine what questions you can and can’t ask on an application and restrict you from discriminating against many types of prospective tenants. People with good intentions will often screw up here, and just one small mistake could mean a costly lawsuit.

Additionally, you’ll need to comply with laws surrounding when tenants must receive their security deposits, how much the security deposit can be, and when you can begin the eviction process. There are still more laws when it comes to how you construct your lease, how you evict a tenant, and what information you must disclose to your tenants.

We’ve just scratched the surface here, but know that you’ll need to do plenty of research and, most likely, hire a lawyer before you even think about self-managing a property in Boston. If you have questions about this, feel free to drop us a line.

Mistake #3: Being too nice to your tenants!

You’re a nice person, right? Well, being a nice landlord could be your downfall. Unfortunately, there are a lot of ways tenants will try to get out of paying rent or avoid paying for damage they’ve done. We guarantee you’ll get plenty of sob stories, illegal tactics, and even a fake lawsuit or two.

In order to avoid being taken advantage of, you need to be strict and direct with your tenants. Your livelihood depends on it.

Mistake #4: Missing crucial times of the year

Timing is crucial for property owners and managers in Boston. When it comes to putting your property on the market for rent, starting a lease and sending renewals, you need to be on your game and make sure you’re doing everything at the exact right time. If not, you might take a financial hit or, even worse, you could face legal troubles.

Property management companies are well-versed in these dates—because they deal with this stuff day in and day out—and can make sure their property owners are complying with the law and getting the most out of their rental property. When self-managing, you’ll want to do your research or get in touch with someone in the industry to make sure you’re doing things right.

Mistake #5: Inconsistent procedures and protocols

Property management companies might get a bad rap for having too much red tape and formal processes, but there’s a reason why they’re set up that way. When managing a property, you need to be sure to follow a standard set of procedures and protocols with all tenants. This becomes even more important when you’re dealing with multiple properties.

If you simply try to handle everything on a case-by-case basis, you’ll quickly run into troubles. When legal issues arise, you need to be able to clearly explain—and prove without a doubt—what happened and how you dealt with it. Creating standard procedures and protocols means you’ll be able to handle every situation the same way and you’ll have a clear paper trail of everything that happened.

Ultimately, self-managing properties in the Greater Boston Area can often be more headache than it’s worth. For only a small fee (we charge a flat 5%) you can take all of these problems (and more) off your plate. If you want to see what we can help you with, submit a proposal! We love chatting about this stuff.

The Berkshires: An Up and Coming Destination for Tourists and Investors in the Boston Area

Written by MerGo Group on . Posted in Vacation Rental Management Insights. No Comments on The Berkshires: An Up and Coming Destination for Tourists and Investors in the Boston Area

When Boston residents want to escape the city, there is one place that immediately comes to mind: The Berkshires. Over the past few years, the Berkshires have become an increasingly popular destination for those in the Greater Boston Area looking to explore the more rural areas of Massachusetts.

With this increase in popularity, many people are also becoming interested in acquiring a second home and turning it into a passive investment through websites like Airbnb and VRBO. So let’s take a look at why the Berkshires are exploding in popularity and how everyday people are using this time to turn their second homes into income-generating businesses. 

Berkshires: The go-to getaway for Boston residents

The Berkshires have always been a prime getaway destination for Boston residents looking to get out of the city, but over the past year, the COVID-19 pandemic has accelerated this dramatically. With lockdown rules limiting interstate travel, the Berkshires has become one of few places that Boston residents can “get away to” while staying properly quarantined. Just a few hours outside of the city, it is now the go-to destination for a weekend getaway.

It’s no surprise! Small towns like Great Barrington, Stockbridge, Pittsfield, Lenox, and Sheffield are premier destinations for tourists year round. In the warmer months, these areas have some of the best hiking trails and swimming holes in Massachusetts. In colder months, there are a number of alpine ski resorts and plenty of opportunities for snowshoeing, cross-country skiing, snowmobiling, and other winter activities. In recent years, the food scene in the Berkshires has also improved, with restaurants catering to city-dwellers looking to get away while experiencing the same quality of food they’re used to in the city.

To accelerate things even further, many city dwellers are now realizing they can essentially work from anywhere with an internet connection. Taking a two-week working vacation is now possible for many of Boston’s office workers, and the Berkshires is an ideal location.

The booming vacation rental market

With this influx of people to the Berkshires, there has been an overwhelming demand for lodging. Hotels are few and far between in the Berkshires, and most people looking to escape the busy city aren’t interested in staying at a hotel in the first place. They want somewhere they can call home for the weekend—a cabin in the middle of the woods or a cozy one bedroom home in a small town. 

Just take a look at the numbers: Between 2019 and 2020, internet searches for the Berkshires increased by 30%. In the summer of 2020, an Airbnb spokesperson was quoted as saying, “As guests search for cottages or pet-friendly retreats with plenty of outdoor activities nearby to continue safely social distancing, listings in the Berkshires are specifically popular among families, as listings meet their new, emerging needs for increased cleanliness, privacy and control over their travel experience and environment.” Weeklong rentals are becoming more common, and pet-friendly destinations with WiFi and kitchens are more sought after than ever. 

The result of all of this commotion is that many people are realizing they can turn their second home into an income-generating property, while others are looking to buy a second home with the interest of turning it into a profit center while also using it for their own vacations.

Making the decision to buy and monetize a second home 

Making the decision to buy a second home, either for personal use or as an income generating property, can be an exhausting and complex process. It might sound like a fun side project, but the reality is that the process of finding the right home, completing updates and renovations, making sure that it is marketed to the right audience, pricing, and keeping track of guests can be tiring and exhausting.

While the idea of owning a second home may seem cumbersome and overwhelming, monetizing a second home, when done correctly, can be both personally and financially rewarding. This is where we are seeing a shift in the market, where individuals who may have been scared of owning a second home are now able to not only purchase their dream home, but also monetize it and ultimately have an additional source of revenue. Websites such as Airbnb and VRBO have become the norm for people when booking vacations and getaways, making the vacation rental market even more accessible and enticing.

Now, more than ever before, individuals are buying second homes, in specific vacation destinations, with the intention of listing them as vacation rentals. For anyone considering this path, you should understand your options when it comes to managing it. If you’ve never managed a vacation rental before, doing things like calculating optimal nightly rates and marketing your home can be challenging and confusing.

Finding your management solution

Ultimately, there are three ways you can go about monetizing a vacation rental. You can manage it yourself, you can partner with a management property management company to split up the responsibilities, or you can utilize a full-service property management company that will take care of everything.

We fall into the latter category. As a full-service property management company, we take all the guesswork out of buying and monetizing a second home, with a focus specifically on the Berkshires. We manage all aspects of running a vacation home from marketing and pricing to booking to guest communication and any on-site services. And for those that don’t currently have a second home to monetize, we assist in finding and purchasing the right Berkshires home for your needs.

We understand that some owners want to manage the property themselves or they may want someone to handle one aspect of the process, like booking or marketing. But regardless, we think it’s important to understand all of the options out there. If you’re interested in learning more about how we can help you make your dream of a second home not only a reality but an income-generating investment, just click here for your free proposal. We’d be happy to discuss your goals and show you how we can help you achieve them. 

Our Process: How We’re Cleaning Properties During Covid

Written by MerGo Group on . Posted in Property Management Insights. No Comments on Our Process: How We’re Cleaning Properties During Covid

As the coronavirus continues to affect our daily lives, we’ve all had to make major changes. For all of us at Mergo, that means working from home as much as possible, conducting video tours of properties, and working with our tenants who have been financially affected by this crisis.

But as June 1st came closer, we soon realized there would be an even more important change we’d have to make involving how we clean our properties during turnovers. In the current climate, a simple vacuum and dusting job isn’t enough to ensure a property is free of COVID-19. So over the past few weeks, we’ve worked with our cleaners to totally revamp our turnover system to ensure that all of our properties are completely safe for our new tenants.

We thought we’d share a bit about what we’ve been doing to improve our cleaning process for both turnovers and common areas at all of our properties.

Getting Up to Code

The first thing we did when this pandemic hit was to work with our cleaners to verify that all of their cleaning products complied with the EPA’s criteria for use against COVID-19. According to current research, the virus can live on many hard surfaces for up to 72 hours—so it is extremely important to make sure you’re using the right chemicals and cleaning routinely touched surfaces. During turnovers and regular cleaning, our cleaners are equipped with N95 masks and gloves which are replaced between every home to ensure they are not spreading the virus between properties.

Our cleaners have also gone through training on how to disinfect for coronavirus and are following the CDC Guidelines for Cleaning and Disinfecting Community Facilities in our multifamily properties. All common spaces are cleaned and disinfected regularly, with special attention to doorknobs, keypads, buttons, and light switches.

Placing Notices

When you have multiple people going in and out of a multifamily property and using common facilities, there is a high risk of contamination. Even if everyone is doing their best to be safe, there are still some little known situations where the virus can be spread without you even realizing it.

To combat this, we’ve placed notices in many of our common areas to help inform and remind our tenants of how they can limit the spread of coronavirus. In properties with shared laundry facilities, for example, we’ve put up notices to avoid shaking out laundry prior to putting it in the machine (which can spread coronavirus pathogens in the air) and to use the warmest possible water when cleaning clothes.

We also have general notices on many of our properties that cover the importance of:

  • Handwashing frequently, and for at least 20 seconds.
  • Washing produce after returning from the grocery store.
  • Cleaning hard surfaces with an approved cleaner or 60% alcohol solution.
  • Wearing masks and gloves whenever possible.
  • These notices also have phone numbers and contact information for various local facilities if a tenant does suspect they have coronavirus.

Deep Cleaning During Turnovers

Our biggest priority at the moment is to ensure that all of our properties are safe during turnovers, as old tenants leave and new tenants move in. Most of our turnovers have already occured in the first week of June, but we’ll be seeing many more properties turn over in September and sporadically throughout the next few months.

We’ve always used a thorough turnover process that includes maintenance checks, property walkthroughs, and a deep cleaning. But these days, “deep cleaning” has taken on another meaning. We’re now focused on sanitizing in addition to cleaning.

As a result, we’ve broken our cleaning procedure into two parts. First, we clean as we normally would—with soap, water, and other household cleaners—including cleaning carpets with a professional carpet cleaning company. We’re also making sure to clean deeper, going into all the hard-to-reach places where COVID could stay hidden like the tops of window fans, areas behind refrigerators and stoves, and window blinds.

Once the cleaning process is over, we disinfect. This is done by either using disinfectants from the EPA’s list of disinfectants or by using a 60% (or higher) alcohol solution. In many cases, we spray hard to reach areas with an alcohol solution to ensure that every square inch of the home is disinfected.

Need Help?

This is just one of many ways we’re working to make life easier for both our tenants and owners during these difficult times. Feel free to incorporate these cleaning tips into your own management process, or if you’d like to see what Mergo can do for you, just get in touch for a free proposal. As a full-service property management company, we can help with everything from finding tenants to cleaning, evictions, and more.

How We Manage and Monetize Vacation Rentals

Written by MerGo Group on . Posted in Vacation Rental Management Insights. No Comments on How We Manage and Monetize Vacation Rentals

In today’s rental market, vacation rentals are becoming more and more common. Websites like Airbnb, VRBO, and Booking.com have made vacation homes a viable option when looking for housing for a vacation, weekend getaway, or even for a business trip and have created a fast-growing vacation rental market.

As a result, many people are either turning their second homes into vacation rentals or buying new properties with the goal of self-managing and making a quick profit on the side. But while managing a vacation rental property may seem like a straightforward income generating undertaking, any small misstep can cause a loss of bookings and ultimately revenue. 

This is where we play a key role. With more than 7 years of experience in the property management field, we are well-equipped to handle every aspect of the vacation rental management process. From updating and remodeling to listing and managing the property, we take a start-to-finish approach to ensure that our clients are getting the most return possible on their second homes with little to no involvement on their part.

Curious how we do this? Let’s take a look at our process.

Preparing the home for listing

Our process starts far before the first guests book your home. We always start with an exploratory meeting where we discuss your goals, wants, and needs as they relate to operating and managing a vacation rental. 

Are you only interested in maximizing your return on investment? Do you want to use the home yourself, and if so, how frequently? Are there certain times throughout the year that you’d like to have it to yourself?

These are all questions that will help us better serve you and come up with the correct plan of action.

From there, we take a look at the house itself. Updating the property with new paint, appliances, furnishing, and decorations can significantly increase your revenue generation. We are equipped to handle every aspect of this process, but ultimately defer to you on how much you are willing to change the property. We will do as much or as little work as you’d like, and we are ready to advise you on the most cost-effective upgrades that will affect your revenue.

Once the house is set up for guests we determine the optimal nightly rate, bedroom layout, and guest amenities. We use a dynamic pricing model that is regularly adjusted in order to keep the property competitive within the market while maximizing revenue. This includes running software that advises our pricing model as well as staying updated on local events to optimize bookings and generate the highest possible revenue.

Properties are listed on multiple direct booking sites and third-party channels such as Airbnb, VRBO, Booking.com and MerGo’s own direct booking site. We also use our proprietary Superhost profile which is awarded to hosts that receive consistently good reviews and feedback from guests (only 17% of Airbnb hosts have this credential). This alone can dramatically increase the price and frequency of rentals.

Managing the property

Once the property is listed, we take over all aspects of the day-to-day management of your vacation rental. That means managing booking and rental requests, communicating with guests, managing any onsite services (cleaning, maintenance, trash collection, landscaping, pool/spa cleaning, snow removal, etc.), collecting rent/fees, managing all guest turnover, and financial reporting.

To put it simply, we provide a turnkey solution so that owners can sit back while their property generates revenue for them. We communicate with guests before, during, and after their stay to ensure their satisfaction. That means sending check-in instructions, directions to the home, checking in on them during their stay, and following up to gather reviews and feedback.

These are the types of things that make a huge difference in revenue generation for vacation rentals. If you’re not putting effort into every single booking that comes your way and doing everything you can to ensure your guests’ satisfaction, it can and will hurt you in the long run. There’s no way around it—quality and customer experience are absolutely vital to the success of any vacation rental property, and that takes time and effort.

We also handle any issues that may arise with guests. From complaints to insurance claims, if anything goes wrong we stay on top of it while keeping you informed.

Owning a revenue generating home

The rest of the process is quite simple. We collect all booking revenues, as well as any charges or other amounts received. We then remit payments to you on a monthly basis, once fees and additional expenses have been deducted.

We also include a monthly account statement for all of our owners that outlines all revenues and expenses incurred over the month. This paints a clear picture of how much profit you’re generating from your vacation rental property.

And that’s it! As of the time of writing this post, all of our vacation rentals have turned a profit within the first year of managing, which includes covering the cost of all upgrades and furnishings. 

We are currently managing vacation rentals in the Berkshires and on Cape Cod, with more areas to come in the future. The Berkshires in particular have been shown to be exceptionally profitable, with low upfront investment and high returns in both the winter (ski season) and summer. 

If you’re interested in learning more about how MerGo can help monetize your second home or get into the vacation rental market, just click here to request a free proposal. There is no better time to start monetizing your second home or purchase a home to use as a vacation rental!

Getting Into Brookline Property Management? You Better Get This One Step Right

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The key to Brookline property management (or any location) is finding the right tenants

It’s no secret: Brookline has become a residential hotspot for young professionals, families, and everyone in between. With a lower cost of living than downtown Boston or Cambridge, a quick commute, upcoming restaurants, and a quieter atmosphere—it has a lot going for it.

As such, Brookline property management is attracting new investors, property owners, and a whole lot of tenants. But with all this activity, we feel the need to point out one thing to the newcomers out there. Ask any experienced property manager what the most crucial, make-or-break part of renting a property is, and they’ll all tell you the same thing…

FINDING GOOD TENANTS!

(Especially in bustling neighborhoods like Brookline!)

Good tenants will make your life a breeze. Bad tenants can turn your life into a living nightmare. Seriously, we sometimes have nightmares about bad tenants, but thankfully, they’re only in our dreams. In real life, our clients have great tenants because we do our homework and have a number of built-in precautions that weed out problems before they occur. This allows us to easily select the best tenants available.

Curious how we do it? Read on to find out.

Incentives for rental agents

To find the best tenants, you need a rental agent who has a vested interest in putting the right tenant in your unit—not just the first one that applies. Your average rental agent is going to disappear after they’ve found someone for your unit, so it doesn’t make a difference to them whether the tenant is destroying your house with massive parties or relaxing every night in front of the TV.

The best way to avoid this is to work with a full-service property management company who has a vested interest in putting the right tenants in the properties they’re managing.

At Mergo, we handle all brokerage in house. This means that when we look for tenants, we know that we’re going to have to deal with them for the entire year. As such, we are always looking for the best tenants to make our lives easier. In fact, bad tenants don’t even affect our clients because we’re the ones that have to deal with all the issues they create. So it’s always in our best interest to find the absolute best tenants for your properties.

Getting your message out there

In order to find the best tenants, you need to cast a wide net. It’s pretty straightforward—you’ll never find the best people if you can’t reach them. That’s where marketing comes in. When renting out a Brookline property, you need to be hitting all of the outlets available to you—that means posting them on the MLS (multiple listing service), as well as services like Zillow, HotPads, Zumper, Apartments.com, Trulia, and more.

When it comes to Brookline—and any location in the Greater Boston Area—posting on the MLS is most important, because it puts your property in front of every licensed agent in the city. The only catch is that you have to be a licensed agent yourself to post it!

At Mergo, we post all of our units on the MLS and use software to post to every major online service automatically. From there, we scan all applicants and work to find the best ones. This is a significant advantage of working with a full-service property management company, as this can be a time-consuming and expensive process to handle on your own.

Our vetting process

Once we’ve found some strong candidates, the vetting process begins. This is where you might find some surprises. It’s easy to make a good impression for a walk-through, but the real truth comes out when you get everything down on paper.

To properly vet our candidates, we get a photo ID, credit report, income verification, tax statements, Rental Housing Association (RHA) application, past landlord references, and a deposit for the first month’s rent. Yeah, it’s a lot—but it’s worth it.

Once we have all of that, we review everything to look for potential issues. If anything feels off, they’re not the right candidate. There’s no beating around the bush here—this is an intense process that takes time. But time spent here is well worth it because it prevents bigger problems from occurring in the future.

This is yet another reason that many property owners opt to work with a full-service management company like Mergo. We handle this entire process for our clients and send them a short synopsis of each qualified candidate after we’ve reviewed all of the documents mentioned above. That way, our clients can pick whomever they prefer while knowing that every candidate that crosses their desk is already going to be a good fit.

If you’re interested in getting involved in Brookline property management or need help finding the best tenants for your property, get in touch! We’d love to help you find a great tenant and take property management off your plate.

This Is What’s Really Involved in Rental Management

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What does a rental property manager actually do?

We often talk about the different aspects of “rental property management” and “multifamily property management,” but we’ve never taken the time to clearly outline all of the responsibilities of a property manager in one place.

Until now.

If you’ve ever been curious as to what a property manager actually has to deal with on a day-to-day basis (or a lease-to-lease basis), this post will cover all the basics. 

Setting and reviewing the rental price

We shouldn’t have to explain why this is important, but we’ll do it anyway. Rental property owners want to make the most money possible off their properties—which is why we do extensive research on each property to find the maximum possible rent price. We set this in the beginning and then revisit it every lease cycle to ensure the price accurately reflects the value of the home. If a rent increase is needed, we’ll reach out to the tenants and get it taken care of.

Making initial repairs

Before a home is rented, everything needs to be in working order. And while “working order” can mean different things for different people, for us it means double-checking everything in the house—from kitchen appliances to windows, heating systems and more—and ensuring they’re up to our specifications. Even the stuff you don’t see (like insulation, plumbing, and issues with rot or mold) is checked before a new tenant comes in. We do this the first time we rent a property as well as in between all lease cycles, so every new tenant starts with a clean slate.

Collecting rent

No one wants to be the bad guy, but sometimes it’s necessary. And that’s what a property manager is for—we’re the ones collecting rent, and we’re not in the business of letting late payments slide. Being strict is the name of the game here, and we’ll do what needs to be done to ensure rent is paid on time for all of our property owners.

Evictions

Even though we do our best to get qualified tenants in all of our properties, issues can (and likely will) occur from time to time. If a tenant needs to leave, they need to leave—and that means an eviction. While we don’t find ourselves needing to evict tenants regularly, we do have experience with it. A bad eviction can result in a ruined house and significant loss of revenue for the property owner. We do our best to ensure evictions go smoothly, so our properties stay in good shape and our owners get paid. (This is far easier said than done, but we’ve learned a thing or two over the years.)

Checking in on properties

A lot of property owners think that once they find a few good tenants, their job is done. If only the world worked that way. 

One crucial job of a property manager is to schedule routine visits to check in on all of their properties. Even if you have great tenants, it’s impossible to know what’s actually going on in the house without checking for yourself. We’ll do routine visits a few times a year to make sure the property isn’t in disrepair or our tenants aren’t up to anything illegal. This alerts us to any potential issues before they become a major problem, and it also lets us establish a friendly rapport with our tenants.

Routine maintenance

When most people think of property management, their mind immediately goes to maintenance. And it’s true—a big part of our job is fixing routine problems that pop up in the properties we manage. Maintenance is something we take pride in because we have fast response times and we handle all maintenance requests with care and efficiency. But to be clear, this involves more than just fixing a leaky faucet here and there—it means developing relationships with contractors, forecasting maintenance costs for all your properties, and developing a system for intaking, processing, and resolving maintenance requests.

Financials

Property owners need to keep track of all the financial data related to their properties—like expenses, revenue, profit, and loss (plus a whole lot more). As property managers, we take care of all that stuff so the owner can rest easy, knowing nothing will fall through the cracks. We also work with accountants to ensure everything is in order before tax season hits.

So there you have it! These are the primary responsibilities of a property manager. If you currently own property and have someone managing it, they should be covering all of these duties at a bare minimum.

In reality, we do a lot of things outside of these core tasks—but for the most part, this is what every property management company should be handling. When it comes to commercial real estate and multifamily properties, things get a bit more complicated.

Don’t think your property manager is handling their core responsibilities as well as they could be? Give us a call or send us a message. We’ll fill you in on our process and see how we can help.

8 Furnishing Tips for Your Vacation Rental

Written by MerGo Group on . Posted in Vacation Rental Management Insights. No Comments on 8 Furnishing Tips for Your Vacation Rental

The way you furnish your vacation rental can help the property stand out. It’s an important component of getting bookings on virtually every booking site: Airbnb, VRBO, Guesty, Booking, and more. Wondering how to furnish your vacation rental in a way that will make it stand out and encourage potential guests to appreciate everything your property has to offer? Consider these important tips. 

 1. Invest in stain-resistant furniture. 

You need furniture that will stand up over time. You may not know who is actually renting your property, whether it’s a family with young children who may accidentally spill or a group of college students on a spring break extravaganza who may not be invested in keeping everything clean and tidy. Even the most careful renters can have an unexpected spill. By investing in stain-resistant furniture, you can increase the odds that your furniture will hold up over time, preventing unsightly stains or the need to replace it. 

2. Know where to go for bargains.

Both Amazon and Ikea are a great place to find bargains on the items you need most often, from the best furniture for a vacation rental to accents like throw pillows, blankets, and rugs. You may also want to check out local home goods discount shops to find the products that will best fit your rental, going too low on your budget will result in a decrease in booking revenue. 

3. Consider a fun theme.

There are several ways you can bring a theme into your vacation rental. Some themes are based on popular franchises: Ski Huas, for example. Others are based on the local area, or offer something fun and unique for the kids. Take a look at your frequent guests, then consider what they will be most likely to appreciate from a vacation rental theme. In many cases, you’ll be able to use that theme to attract a unique target audience. 

Leveraging your location is also a great way to come up with a theme for your vacation rental property. Rentals near a popular theme park might include aspects of the popular characters from that park. Are you in the mountains? Focus on bears or decorate in plaids to bring that theme into your rental. Near the beach? You have a host of water-related options, including fish, sailing, and even mermaid-themed rooms. 

Not only does a theme make your property more attractive, it can make it more memorable–and that may increase the odds that you’ll get repeat visits from past guests. 

4. Use furniture to cover up the home’s flaws. 

Any property can, over time, develop flaws that may impact the way both guests and potential guests may see it. Do you have a stain on one wall? A flaw or rough patch in the flooring? Arrange the furniture so that it covers up those flaws. Not only will it help hide the flaws in the listing, it will make the property feel more pulled together when your guests visit.

As you’re choosing furniture, consider any potential flaws of the room before you make a purchase. For example, if you have an oddly-shaped room, you may want to set up a nook in the corner for reading or enjoying a cup of coffee. If the room is relatively small, you may want to choose furniture that fits the space, rather than opting for oversized furniture that will seem out of place in the room. With careful decorating, you can minimize the property’s flaws and make it look its best.

5. Prioritize good lighting both inside and out.

As you’re considering how to furnish a short-term rental, make sure you take lighting into account. That may mean:

  • Adding lighting, including lamps and fixtures, in rooms that don’t have adequate overhead light.
  • Installing clear task lighting in the kitchen.
  • Using bedside lamps to help make it easier to relax in bed. 
  • Adding extra lamps so that guests can choose how much lighting they want as they’re relaxing in the property’s living spaces.
  • Checking the outdoor lighting to ensure that it adequately illuminates the area.

A dark property may not feel inviting to your guests. When they can light up the property, on the other hand, they may feel much more comfortable.

6. Create a workspace within the property.

Many people now have the ability to work remotely, either on a part-time or long-term basis. As a result, you may find that many of the guests visiting your property will be working throughout their visit. Create a dedicated workspace where they can get away from the bustle of the rest of the household and focus on getting work done. Depending on the size of the property, that might be a dedicated workstation in the bedroom or an office with all the connections a working guest might need. Consider including:

  • An extra monitor
  • An area with a power strip or plenty of outlets
  • Soundproofing in that area of the house
  • A comfortable office chair and ergonomic desk

While guests might have to work through part or all of their vacations, you can make the experience much more comfortable for them by taking their needs into consideration. 

7. Add accents that highlight the property’s themes.

Make your property stand out with accents that will highlight the property’s themes. You don’t want to go overboard with decor, but you do want to add those personal touches that will give the property life and personality. Consider accents like:

  • Decorative throw pillows
  • Unique artwork
  • Interesting dishware that fits your theme

As you decorate the property, consider what little accents you can put in place that will help your property stand out and make your guests feel more at home. 

8. Create intimate spaces throughout the rental property.

Part of creating a stunning vacation rental is creating intimate spaces where your guests can go to have quieter, more intimate conversations or to get away from the crowd. Arrange furniture in intimate conversational groupings, pulled out slightly from the wall to encourage that sense of connection and communication. Design smaller areas of the property where people can go to get away from the bustle: a patio area, a hammock hanging in the backyard, or a reading nook, for example. Those intimate spaces can help renters feel cozy and comfortable–and increase the odds that they’ll have a positive experience with your rental.

Are you looking for a way to market your vacation rental more effectively or to set your property up for success? Mergo helps vacation rental owners find more business and prepare your property to better meet the needs of your target audience. Contact us today to learn more about our services and how they may benefit your vacation rental.

How to Optimize Your Berkshire Vacation Rental Booking Revenue via a Dynamic Pricing Strategy

Written by MerGo Group on . Posted in Vacation Rental Management Insights. No Comments on How to Optimize Your Berkshire Vacation Rental Booking Revenue via a Dynamic Pricing Strategy

Dynamic pricing is a pricing strategy that takes into account real-time market conditions to set prices. This means that prices can fluctuate based on factors like demand, competition, and seasonality.

For example, let’s say you have a vacation rental in the Berkshires that you typically list for $475 per night. However, you notice that there is a spike in demand for vacation rentals in the area during the summer months. As a result, you decide to raise your prices to $750 per night during the summer season.

Why Use a Dynamic Pricing Strategy for Your Berkshire Vacation Rental?

You can use our rental ROI calculator Here to see what kind of revenue you should be generating with your vacation rental home.

There are several reasons why you might want to use dynamic pricing for your Berkshire vacation rental. First, it can help you take advantage of periods of high demand. By raising your prices during these times, you can increase your revenue without having to increase your occupancy rates.

Second, dynamic pricing can help you stay competitive with other vacation rentals in the area. If your competitors are raising their prices during certain periods, you may need to do the same in order to stay competitive. By using data to adjust your prices, you can make sure that you’re always offering a fair price for your rental.

Finally, dynamic pricing can help you manage your occupancy rates throughout the year. By lowering your prices during off-peak periods, you can encourage guests to book your rental during these times. This can help you fill up your calendar and avoid having too many vacant days.

How to Implement a Dynamic Pricing Strategy for Your Berkshire Vacation Rental

If you’re interested in using dynamic pricing for your Berkshire vacation rental, there are a few things you’ll need to do first:

1) Gather data on market conditions: You’ll need to track data points like occupancy rates, average daily rates, and length of stay in order to set accurate prices. You can use tools like Airdna and PriceLabs to help with this.

2) Set price thresholds: Once you have some data points, you’ll need to set price thresholds for each time period. For example, you may want to increase your prices by 10% when occupancy rates are above 80%.

3) Automate your pricing: Once you’ve set your price thresholds, you’ll need to automate your pricing so that it adjusts in real-time based on market conditions. You can use tools like Beyond Pricing or Rentals United to help with this.

4) Review your results: Finally, it’s important to review your results on a regular basis and make adjustments as needed. This will help ensure that you’re always getting the best possible rate for your rental.

Get in touch with us Here to see how we can help you optimize your rental rates.

Running Your Property Like a Business

Written by MerGo Group on . Posted in Property Management Insights. No Comments on Running Your Property Like a Business

The key to getting a lucrative return on your investment property is simple: Treat it like a business! (Because it is a business!)

The number one mistake we see first-time real estate investors make is that they treat their investment property as a hobby. They act like it’s just another line item in their portfolio, and they end up running into major issues down the line.

The reality is that owning and managing an investment property can be a lot of work. It’s not as simple as buying a mutual fund—there’s a lot of red tape, legal issues, and even physical labor involved. And just like any other investment, there are inherent risks.

The key to avoiding those risks and getting the best return on your investment is to run your property like a business. Here’s what we mean by that…

The legal issues

There’s far more to managing an investment property than finding a tenant and collecting a check every month. The reality is that if you try to cut corners, it will almost certainly come back to haunt you—we’ve seen it happen more times than we can count.

The most pressing issue when you first start out will be getting legally compliant. There are a lot of legal documents you need to have in place for an investment property. If you think you can skate by without these, you’re going to be in for a rude awakening. 

Just as an example, here are a few of the documents you need to have right off the bat when running an investment property in Massachusetts:

A proper lease (written by a lawyer or a real estate professional!)

An apartment condition statement
A rent security deposit receipt
A mold addendum
A property addendum

If you don’t have these documents, you’re putting yourself at serious legal risk. It goes without saying, but the legal issues you’ll face from this will punch a massive hole in your returns (or put an end to your real estate career before it even begins).

But those are just the forms… There are many other legal issues you have to deal with when running an investment property. 

You need to make sure you’re not discriminating against prospective tenants, which is actually more complicated than it might sound. You may technically be discriminating against someone without even knowing it. If you’re not aware of the laws around this, it can be a simple mistake that will lead to disaster.

You also need to be extremely careful with how you handle security deposits. There are many laws around what you can do with security deposits, where you can hold them, how much you can take out and for what, and what kind of interest you need to pay when returning the deposit to your tenants.

If you’re not 100% clear on any of these legal issues, your investment property faces serious risks. 

Creating processes

Every business has processes. You could argue that any business is simply a collection of processes—and property management is no different. We have hundreds of systems and processes in place to help us efficiently and effectively manage all of our properties.

If you want your investment property to be successful, you need to have certain processes in place. You can’t just expect that things will “work out” on their own.

Tenant screening is a classic example. People who are new to property management will often go with their gut, picking a tenant just because they “have a good feeling” or they were referred by someone trustworthy.

There’s certainly a time and place for a gut check when screening tenants, but there are a lot of other things that need to happen first. You need to be running credit checks, establish a credit minimum, follow up with multiple references… And more importantly, you need to have a system for making sure all of that stuff happens efficiently so you can get the right person in the door quickly.

Tenant screening is just the beginning, though. You’ll need to have processes and systems for taxes, bookkeeping, rent collection, the list goes on… 

If you’re expecting to simply buy an investment property and receive a check in your mailbox every month, it’s not that easy. There are a lot of things you’ll need to put in place before that happens—and even if you do get started without these processes, you’ll need to get them in place if you want to keep things rolling.

The lesson

We don’t like scaring people away from investing in real estate, but we’ve seen our fair share of horror stories. If you’re interested in managing your own property, you need to make sure you cover all of your legal bases and get at least a barebones set of processes in place to make sure things are running efficiently.

If you find yourself needing help or you feel like you’re in over your head, just get in touch. This stuff is our bread and butter—as a full-service property management company, we handle everything from tenant screening to legal documents to rent collection. 

But either way, the lesson here is simple. Run your property like a business and you’ll get paid like a business owner. Run it like a hobby, and you’ll regret ever investing in real estate.