If you own a property that you use for short or long term rentals in Dublin, you have probably asked yourself if property management companies are worth it. In a city with property costs as high as Dublin, margins can often be quite thin. That is why it is essential to be as strategic as possible to continually increase your rental property income.
Everything from deciding if you are going to offer short term or long term rental options to attracting the right tenants to choosing the right property maintenance company will affect your bottom line.
So, are property management companies worth it? Let’s unpack the facts to determine what is right for you as a property owner.
Consider Your Work Schedule
The first step to determining if property management companies are worth it is to consider how much time you realistically have to devote to the property. How flexible is your schedule? Are you available to take calls throughout the day? To determine what you can take on, it is essential to be completely realistic about your schedule.
Take your personal life into consideration as well and be honest the amount of time you can devote to another project like property management.
Deciding Between Short Term and Long Term
The choice between short term and long term rental options will also play a key role in determining if a property management company is worth it for you. This is a question of preference but also one that will be highly influenced by the location of your property. In Dublin, short term and medium term lets are incredibly popular. Catering to tourists, students and business travellers is one of the best ways to increase your rental profit on a property in Dublin.
Once again, it is also crucial to consider your own schedule when deciding between short term and long term rental options. Long term rental options are relatively low maintenance during a tenancy but tend to be the least profitable. Also, while they generally don’t require much time on a daily basis, the time requirements can be unpredictable. You never know when things may break or a tenant might stop paying. It is essential for you to have regular availability and a network of electricians, plumbers, landscapers and other key maintenance workers.
For Dublin property owners, medium term and short term rental options are very appealing as they are the most profitable. These types of rentals, however, are extremely high maintenance. In fact, a single property can easily turn into a full-time job if you are maximising its rental income potential. In these cases, landlords often ask themselves if property management companies are worth it.
At Host Ready, we have found that by managing a higher volume of guests through short term and medium term rental options, property owners can maximise their profits even after paying for our services. In these cases, when rental income is increased so dramatically, it is easy to see that property management companies are worth it.
Navigating Short Let and Airbnb Rental Laws in Ireland
Another crucial aspect of property management in Dublin is navigating the often complicated world of short term and long term rental laws in Ireland. Making a mistake and getting on the wrong side of the law can be absolutely devastating to your livelihood and greatly affect your bottom line.
Property management companies, especially for medium and short term rental management, are worth it when you consider how costly a mistake can be. Short term and long term rental laws in Ireland are often difficult to interpret. It is essential to work with an expert who has a clear understanding of the ins and outs of Irish rental law.
Property Management Companies and Tenants
As a property owner, dealing with tenants on a day-to-day basis is going to be the aspect that takes the most of your time. It is a common misconception that property owners who manage long term rentals have less work to do. Of course, looking at long term rentals vs short term rentals, property owners will spend less time managing long term tenants. There is still a very unpredictable level of work coming from all types of tenants however.
As a property owner, you will be the person that tenants call if the power goes out during Sunday evening dinner or if the neighbours are playing loud music at 3 am. There are key issues like attracting new tenants and dealing with move-ins and move-outs (which can come up unexpectedly). Unfortunately, legal issues can also arise and you need to know how to manage them when they do. You never know when a tenant may need to break a lease early, damage property or simply be unable to pay. Even the best of tenants can run into unexpected issues like redundancy at work, fires and other accidents or sometimes just a mischievous child. Being a landlord comes with endless adventures and, often, more than your fair share of headaches.
While long term rentals could potentially be managed by a property owner, short term and medium term rentals make property management companies worth it. To regularly attract new tenants to a property is a serious job and one that takes marketing knowledge and experience. When you are working with guests who are travelling into Dublin from abroad, it is essential to have a flexible schedule so that you can accommodate their needs. This can mean a lot of late nights and weekends, which will seriously impact a property owner’s ability to balance personal life and work. So, are property management companies worth it if help tenants with issues in the middle of the night or management weekend check-ins? For most property owners, they most definitely are.
The other key element that can make property management companies worth it is that they have an existing network on maintenance people. This often means that they know service works who will accommodate last minute or after hours emergencies so that tenants are always having a smooth and pleasant stay which, for property owners, means more return guests and better reviews. Ultimately, it is creating this higher level of guest satisfaction that makes property management companies worth it because they increase rental income. At Host Ready, our clients with short term and medium term rentals consistently find that our services not only pay for themselves but actually increase their rental profit.
Are you ready to maximise your profits? Talk to us today about how we can create a bespoke property management package to meet the unique needs of your property.