We understand that owners don’t hire Property Managers frequently, so it’s important to find the right fit on the first try. Sometimes owners don’t know which questions to ask, and it can be difficult to compare options. That is where we can help! We can help guide you in the right direction so that you find yourself a great fit on the first try, and get you set up for success. I’ve attached a Quick Summary of highlights to look for in a Property Management Company.
Our Management Company Comparison is designed for you to print it, and use it as a reference when interviewing other companies. It’s more important to us that Owners find the right fit, versus trying to increase our inventory.
| Rockies Rentals | Company 1 | Company 2 | |
| Company Start Date | 2005. Incorporated in 2010 | ||
| # of Units | 26 Units | ||
| Unit Value | $19,002,000 | ||
| Management Commission | 25% Commission +2% for OTA Reservations (AirBNB, VRBO) | ||
| Listing Fee | Billed Annually, $75/Max Occupancy | ||
| Cleaning Fee | Paid Directly by Guest | ||
| Other Fee | Out of Pocket Expenses +15% | ||
| GST Agent | Yes | ||
| WCB Registrant | Yes | ||
| Trust Account | Yes | ||
| TOC Business License | Yes | ||
| Chamber of Commerce Member | Yes | ||
| VRMA Member | Yes | ||
| AirBNB Listing Management | Included | ||
| VRBO Listing Management | Included | ||
| Professional Unit Photos | Included | ||
| Unit Virtual Tour | Included | ||
| Unit Floor Plan | Included | ||
| Direct Booking Website | Yes | ||
| Local Office | Yes | ||
| On-Call Service | Included – 24 Hours | ||
| Dynamic Pricing | Included | ||
| Bed/Bath Linen | Included | ||
| Guest Management | Included | ||
| New Unit Setup | Included | ||
| Non-Resident Tax Admin | Included | ||
| Guest Related Maintenance | Included | ||
| Grocery Delivery | Yes | ||
| Condo Meetings | Included | ||
| Notes |
Company Start Date: Is a company new? Or is this “not their 1st rodeo”? If you are considering a younger company, there should be a lower price to accommodate for the lesser experience. … because experience is valuable.
# of Units: Again, this relates to experience. Specifically, does the Property Manager have experience with the Building or Resort where your property is located. Are they frequently in that area of town, or will they need to make long trips attend to your property?
Unit Value: There is a difference between managing a $400k Condo and a $4 Million Private Home. This can also be a measure of trust. Typically, the more or the higher value of assets under management, the higher the level of trust in the Property Manager. Each of those Homes/Owners represents someone who chose to work with and stick with *this* Property Manager.
Management Commission: This will be the single largest expense for any Property Owner. The good news is that Property Manager’s pay for themselves. They either save Owner’s lots of $$$, time, or headaches. Or they secure more revenue because Renters pay more for professionally managed unit, Property Manager’s have a broader marketing reach, and stay on top of daily pricing changes. There are some important questions to ask here: Is the Commission calculated on Gross Revenue *before* or *after* the Cleaning Fee is calculated? What revenue is included in Gross Revenue?
Listing Fee (Annual): Many Property Manager’s learned a Hard Lesson during COVID. All of their income was based on a percentage of Gross Revenue. Then comes COVID, and 0% times $0 = $0 (but the Property Manager’s still had to keep the staff working to answer calls and maintain homes). Sometimes Annual Listing Fees are to cover the costs of keeping a home in the inventory (even if it never rents). Sometimes Annual Listing Fees are due to the Property Manager providing services beyond just serving Guests.
Cleaning Fee: Who pays for it? Is it included in the Gross Rental Revenue (and therefore, commissionable?)
Other Fees: It can be a sneaky Property Manager trick to advertise a Low Commissions, and then fail to disclose any Up Charges. A great question to ask is “May I see the Year End Statement for a similar property?”. The Year End Statement will highlight if any sneaky upcharges have been applied.
GST Agent: Is the PM collecting and remitting GST on your behalf? This is very important for Short Term Rentals (under 28 days)!
Trust Account: Can the PM tell you what a Trust Account is, do they have one, how often is it reconciled, and who reconciles it? If they don’t know know, run. A Trust Account allows someone (usually a Lawyer, Trustee, or Property Manager) to deposit, manage and withdraw the money on behalf, and to the benefit, of a third party (in this case, the Owner). It is common for Property Managers to be unaware that the Rental Deposit is not their money (until they earn their commission). This is one of the biggest risks in hiring a Property Manager. At any given time, Property Managers have hundreds of thousands of someone else’s money — hopefully in a Trust Account. If the money is not held in a Trust Account, that’s Bad News for everyone.
Local Office: Is the PM located in the location of your rental property? Can the PM receive deliveries? Meet Renters in person? Have they committed a physical space? This helps determine if you PM is serious and committed. Garage Offices are great, but local offices show stability.
Direct Booking Website: This one is more important than most people realize. Online Travel Agents (OTAs, like AirBNB or VRBO) add a 15-17% Service Fee to the cost of a Rental Property. This means the Renter was willing to pay 15-17% more, and that money went to some far-off Tech Company. A Direct Booking Website means that extra income stays with the Owner and Property Manager. As well, Property Managers can be removed from the AirBNB/VRBO Booking Platform on a whim. All eggs should not be stored in one basket. Only advertising on one or two OTAs, and not pursuing Direct Bookings, is a sure-fire way to lose oodles of revenue.