Owning a rental property is different in the sharing economy. Rental property owners deal with more competition from people providing peer-to-peer accommodations. But hiring a property management company to manage a rental home often means a better return on your investment in Colorado. Most home owner associations discourage or outright forbid homeowners and investment property owners from using their homes as "hotels." If you tried to run an AirBnB or signed up for Home Away in the past, consider a refreshing change. Most hosts who can't handle the excessive stress of property management responsibilities, consider working with a property manager.
Maintaining a professional relationship
In the sharing economy, some people become hosts to allow guests to stay in their homes. But taking a casual approach to renters often creates problems for property owners. A property manager ensures a good professional relationship with tenants. In the sharing economy, the privacy line is often blurred. But a property manager follows proper laws.
Knowing the proper amount to charge
Another challenge for rental property owners is knowing the appropriate amount of money to charge for rent. The sharing economy, again, complicates the market rent in Colorado and other states. A property management company makes sure you don't lose tenants by raising rent. In most cases, a property owner who charges a monthly rent with a one-year lease have a better cash flow than AirBnB hosts. An experienced property manager researches the latest market rent to make sure you get the most money for what your home offers.
Other challenges easily overcome with a property manager include not knowing how to enforce the lease, collect money due to damages and handle difficult tenants who disturb the neighbors. Most hosts don't know how to properly screen people staying in their investment property. A background check and other screening tools often reduce tenant turnover and other difficulties.
By hiring a property manager to rent out your investment property instead of running an AirBnB, you no longer need to worry about keeping the home clean. Also, many guests expect a fully-stocked home with toiletries, food and coffee. At Housing Helpers Colorado, we help companies with corporate relocations as well as property owners interested in passive income. For more information on competing in the sharing economy, please contact us.