Have you just bought an investment property in Costa Rica, or possibly thinking about it? If so, then it is a great time to start considering how the new home will be managed. It is strange that today Property Management is still generally looked at as an out of pocket expense, since what it actually does is something quite different. “Managing a property” involves much more than first meets the eye, and can actually be quite overwhelming. We believe that the idea of investing in rental property is to make one’s quality of life better, not to be bogged down by a home’s maintenance and booking logistics. That is why hiring the services of a Property Management firm is key to maximizing your profits and not using up all your time doing this.
The biggest headache in dealing with your rental property is by far going to be the “middle of the night” phone calls from disgruntled tenants letting you know that the “toilet is overflowing”. The only thing that can be done to “put out the fire” so to speak is to fix the presented issue right away. Knowing that there is a dedicated company to do so on your behalf is another factor to take into consideration. In order to avoid being bothered with situations like this, having a Property Manager is vital. They will handle the problem right away, and you will not be woken up at two thirty in the morning.
Then there is the misconception that hiring a company to manage your rental property will create an added out of pocket expense. This is not so. We all know that bad news travels faster and farther than good news, and if guests are not having their concerns resolved in a timely manner they will most likely speak badly about their experience. This will sooner or later affect your occupancy rate. When a problem is fixed right away, the guest will be appreciative of the fact that someone cared enough and made an effort to make their holiday a pleasant experience.
Routine preventative maintenance inspections done by a Property Manager help minimize these issues in more ways than one. For starters, if something is replaced or fixed before it becomes a “bigger” problem, you are in fact helping make sure things don’t break down during a guest’s stay which results in better reviews and more importantly steady growth in overall bookings. It also enables the owner to save even more by fixing something preventatively rather than replacing it completely when it eventually breaks down. Small issues that are attended to in a timely manner can usually be repaired, thus extending the life of a product or appliance considerably sometimes even many years!
Scheduled visits to your property are key to discovering possible issues early on in order to avoid larger down the road problems. Knowing that somebody qualified is doing this with your best interest in mind is a tremendous asset. Property Managers will provide detailed income and expense reports, cash statements every month, as well as end-of-year tax reports for your accountant or financial advisor. Additionally, PM’s will manage your security deposit escrow funds and make sure you are in compliance with local regulations.
With the peace of mind you get knowing all the above things are being consistently taken care of in a professional manner, you free up more of your valuable time to do other things. Best of all, the cost of hiring a management company is offset by the savings they provide you with on an ongoing basis. There are many other benefits to hiring the services of a competent Property Management firm that are not mentioned here, so feel free to contact us and we will be more than happy to discuss them with you. Save time and enjoy life!