author Call Us: +506 2289 5125

Compare Listings

5 Tips to keep Property Management on their Toes

Estimated Reading Time: 5 Minutes

5 Tips to keep Property Management on their Toes

Nothing is more important for absent real estate investors than having high-quality property management.

Unfortunately, some property managers prefer to catch a good wave instead before they take care of your business and their own. Often, they don’t strive for perfection and don’t worry much about your return on investment.

It is important to understand property management’s mindset first. It is important you understand that you made your property investment in a country where the word mañana is a much-used response when things are not going as wished. The mañana response is used daily by those who are not punctual, not professional, and leave important things to do for tomorrow.

If you don’t live in Costa Rica, you should learn as much as you can about your options before you make an investment in a rental property. You can check out Rooftop Real Estate Management for more great ideas.

Since vacation rentals are booked online, everything moves too fast to leave even the tiny little details for the next day. Therefore, it is crucial to keep property management on their toes.

5 Tips to keep Property Management on their Toes

Here are a few suggestions on how you can keep property management on their toes and look after your investment.

1. Hire the Right Property Management Company

One of the most crucial things you’ll have to do before hiring a manager is doing your research. Are you looking for a formal company or just a person “in charge”? How long has the manager done this kind of work? It’s important that the person in charge is fluent in Spanish and can also communicate well in your language. Does the management company have the necessary support team for repairs and emergencies?

Even if the company is able to serve you well, it’s necessary to control their work, in some way or another. You can keep property management on their toes by obliging them to send an inspection report on a regular basis.

2. Advertise the Property

Decide if you want to do the advertising and bookings yourself or not. Your property management company should have the ability to advertise and market your property well. Decide, before you start the advertising, if you want to rent long-term (minimum one year), by the month, or as a vacation rental.

When renting as a vacation property, the first year is always the most difficult one. Discuss which advertising platforms the manager uses and why. A few are Airbnb, HomeAway, and VRBO. Also discuss how much commission each one charges, and which ones are the most cost-effective.

A well-functioning reservation system is vital so there won’t be any double bookings. You can keep property management by creating a monthly reservation report.

5 Tips to keep Property Management on their Toes

3. Rent Collection

An important aspect of owning investment properties is the collection of rent. But it’s also vital to be able to make utility payments, replace inventory, make repairs, pay property tax and HOA fees on time.

Keeping track of payments might not be simple as rents are often collected by the different online platforms.

Don’t forget that you’ll have to charge VAT on your sales, and also pay income tax, so you’ll need a local accountant or have your property management company take care of it.

You also want to control that your property management company doesn’t rent your unit without telling you.

4. Upkeep And Maintenance

Every time a tenant leaves, it’s necessary to check everything. Create a simple, step-by-step report that takes only a short while for a complete revision. Do not forget to charge a tenant when something is broken or missing. Replacement of inventory can be expensive, especially if your property is far away from the Central Valley.

And let’s not forget regular maintenance but most important repairs. A waterpipe always seems to start leaking on a Saturday night at 11 pm. Or a toilet that’s overflowing because you dropped your wallet and flushed.

Now it will show how important a support team is. This team should include skilled workers such as a plumber, an electrician, and painters? Can they give 24-hour support, even during the weekends?

5 Tips to keep Property Management on their Toes

5. Retention Rate

Very few property management companies are able to keep a high retention rate. This means that a long-term tenant stays after the legal 3 years of the lease agreement and renews for another 3 years. Or that a tenant who leased your vacation rental for a week, comes back over and over. Tenant retention is one of the most profitable strategies for property managers as well as rental property investors. Keep your property management on their toes by telling them you expect a high retention rate from them.

Feel free to leave your comments on this blog. If you like this article, please feel free to share it on your social media.

Contact the AE MLS Costa Rica

If you like this blog, subscribe to our newsletter by clicking the banner below.

 Click here to subscribe to The Easy Times

Facebook Comments

Ivo Henfling

Your West-side of San Jose real estate agent, covering Escazu and Santa Ana, Rohrmoser and Ciudad Colon. If you are looking to buy a home in Costa Rica or invest in a condo anywhere in the Central Valley or looking for any property for sale in Escazu or Santa Ana, you need to contact Costa Rica real estate agent Ivo Henfling. Ivo has been selling Costa Rica real estate on the westside of San Jose, in the locations of Rohrmoser, Sabana, Escazu, Santa Ana and Ciudad Colon for over 20 years and can show you hundreds of happy buyers of real estate in Escazu and those other areas. For Ivo, a deal is not a good one unless both buyer and seller are happy.

Related posts

Should you buy or build a pied-à-terre in Costa Rica?

Estimated Reading Time: 8 Minutes Have you achieved the desired level in life to start thinking...

Continue reading
Ivo Henfling
by Ivo Henfling

How to Deal with Smoking Neighbors in your Condominium

Estimated Reading Time: 7 Minutes Does having smoking neighbors bother you with increasing...

Continue reading
Ivo Henfling
by Ivo Henfling

The Cheapest Way To Transfer Money To Costa Rica: Currency Brokers

Estimated Reading Time: 6 Minutes When you purchase a property in Costa Rica, and your savings...

Continue reading
Ivo Henfling
by Ivo Henfling

Join The Discussion

This site uses Akismet to reduce spam. Learn how your comment data is processed.