Often, owners want to generate rental income from their beach condo or home in Ocean City, MD. Since Ocean City is a resort real estate market, properties can make great vacation rental investments. To take advantage of the vacation rental market, property owners target the late spring, summer and early fall months of the year.
If you’re considering buying an Ocean City, MD Vacation rental property or renting your existing property, you’ll want to consider these 3 ideal ways to manage your rental property.
Ocean City, MD Vacation Rental Companies
There are several Vacation Rental Companies in Ocean City, MD. Rental management companies are equipped to manage your rental property from bookings, to the turnover and to collecting and distributing rental deposits and income.
It’s not uncommon for property owners to live out of town. This can make it difficult to manage your own rental. It’s not as easy as confirming bookings and collecting rental income. There's more work! Some of my clients have successful managed their own rental property. For those looking for more help, hiring a rental management company may be a great option.
Management companies are responsible for:
- Venting renters
- Scheduling bookings
- Collecting deposits
- Coordinating check in’s and check out’s
- Arranging cleaning services after check out
- Responding to maintenance issues
The goal of a rental company is to make your rental as hassle free as possible. This lets you enjoy your property and the reward of passive real estate rental income.
Commissions and service fees
If you hire a vacation rental company in Ocean City, MD, different companies can charge differed rates. Commission rates can be as much as 16% of the total rental income collected.
You’ll also be responsible for cleaning services and maintenance charges. Cleaning services take place at every turnover. The turnover is the period between check out and check in. Cleaning rates vary depending on the size of your property.
General maintenance is your responsibility too. If damage occurs to your property by the tenant, the rental company will help you collect money for repairs. Rental companies also have local resources available for maintenance and repair needs.
Helpful related article: What Properties Make the Best Ocean City, MD Vacation Rentals?
Vacation Rental by Owner
Managing your Ocean City, MD vacation rental property has become more common with websites like VRBO.com and AirBnB. These sites let you easily:
- Advertise your property at a nightly rate (which you can set, or a recommended rate is suggested)
- Schedule bookings
- Coordinate with tenants
- Receive reviews from tenants about their stay
The online exposure these websites provide is amazing, and is a great option if you want to manage your own listing. I’ve seen one bedroom oceanblock condos rent for as much as $28,000 using online websites like VRBO.com and AirBnB, compared to some rental companies which may only get $8,000 to $12,000 for the vacation rental season.
The biggest downfall is the check in/check out process with tenants. With past clients, I’ve discussed different ways they have coordinated this process.
1. Installing an electronic door lock with a combination that can be assigned remotely. This can allow you to assign a code to a tenant for a period of time, and change it when they leave.
2. Mailing keys to the tenant before arrival, and requiring the key to be mailed back and the cleaning report to show no damage before the deposit is returned.
Service fees
There are a variety of online vacation rental by owner websites out there. Many charge a percentage of the total rent collect as a service change or an annual flat fee.
You're responsible for managing cleaning services and maintenance, so it’s helpful to have a list of helpful local service providers for everyday maintenance needs.
While service fees are a part of your rental expenses, there's other costs to homeowners that you need to consider. I explain more about the common costs with vacation Rentals in Ocean City, MD in my blog.
Hybrid Vacation Rental Approach
If you don’t want to manage your rental property, you can hire a vacation rental company to utilizing their management services. You can also advertise your home on websites like VRBO.com or AirBnB to maximize your internet exposure for your rental listing and refer prospective renters to your management company.
Often, rental companies will reduce their commission when you refer a prospective renter to them. This saves you the hassle of managing the booking other than connecting a renter lead to the rental company. The rental company manages the rest.
If you’re considering buying an Ocean City, MD vacation rental property, you’ll want to make sure you’re buying the right property to maximize your passive real estate income. To save time, you’ll want to plan your options with a local Ocean City, MD Realtor®.
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