Common Questions About Vacation Rental Homes
A dual benefit of vacation home ownership is the opportunity to personally use your vacation home AND gain additional income while your property is not in use by yourself through short-term vacation rentals. Hutchinson Island Real Estate will help you maximize your rental income while ensuring that your home is well maintained.
Below you will find some common questions that we are asked by property owners regarding renting their vacation property through Hutchinson Island Real Estate. Please take a moment to look over the questions and see the answers that are provided. If you find that you have additional questions that are not covered here, feel free to contact us and we will be happy to get you on your way to earning additional income on your property.
1. What fees are associated with your managing our rental home?
Hutchinson Island Real Estate charges a management fee on every rental that is secured for your property. If your property is vacant, we DO NOT collect a management fee. After deducting management fees and expenses from gross rental revenue, the owner receives a majority percentage of the net rental revenue. A detailed description of our management fees and percentages is included in the Rental Management Agreements which we can provide you upon request.
2. How much money can I expect to gross on my rental?
Because so many factors are taken into consideration when determining a gross rental price of your property, we cannot give you a definite answer without having seen your property. The things that we take into consideration are the units condition, location, and size. Once we have a chance to evaluate your specific unit, we'd be happy to give you an actual rental price.
3. How and when do I receive my rental payment from your company?
We process the revenue for each month at the END of the month. You can expect to receive your money by the 10th of each month for the previous month. The reason that we process your rental income at the end of each month is because it allows us to send you your monies on all rentals throughout the month at one time. Some months, you may have several short-term rentals on your unit.
4. As a property owner, what do I personally pay for?
Property owners are responsible for maintaining and personally paying any mortgage, utility, HOA, property tax or insurance payments associated with the property ownership. If your property is requiring maintenance service, we will arrange the proper contractor to come out and make any repairs and then bill you directly from our company. If you are receiving rental income that month, the monies paid to a contractor will be directly taken out of your rental income. We try to make sure that no work is done on your property without your permission. However, if we have a true emergency while a renter is in your unit, we may need to get a contractor out immediately. In that case, we will always make an attempt to contact the property owner first, and if they are unavailable, we leave a detailed message of the emergency and how the company has handled it.
5. How do you handle accounting, payments and tax reporting?
As a property management company, we are ethically and legally required to follow certain accounting and reporting practices. On behalf of the property owners we collect rental income, disburse necessary repair or tax-related payments. We send you an IRS recorded W-1099 form at the end of each year showing the rental income you received throughout the year. Accompanying that 1099 form, you receive an expense report on your unit showing all expenses you incurred directly through the management company. It is your responsibility to work with your accountant to file the appropriate tax forms relating to your rental income.
6. What services does Hutchinson Island Real Estate Rental Division provide?
As a full-service vacation property management company, we handle all your rental needs from start to finish. We do the following for all of our property owners:
- Reservations, cancellations and dispute
- Renter management and relation
- Housekeeping and cleaning
- Opening, closing, check-in and check-out services
- Property marketing and advertising
- Preperation and enforcement of rental agreements
- Arranging and auditing maintenance and repairs
- Owner statements, disbursements and tax reporting
7. What determines which units get rented first?
First and foremost, the potential renter's requirements determine which units are presented during the reservation process. After we have determined which units will best fit that renter and availability has been met, the renter makes the decision which unit they would like. We do not encourage one unit over another. We simply make sure the renter has all the information they need on each unit to make an informed decision so that when they arrive they have a memorable vacation experience.
8. What do I need to provide in my rental?
As part of owner preparation, we will provide you with a detailed list of things we recommend you have in your rental unit. We do have some items that are mandatory such as appliances, furniture, television, dishes, linens and other items that would be needed by renters.
9. What if something is stolen or damaged in my property?
If the stolen or damaged item is minor and attributed to the guest or considered an expendable item, we handle replacement or repair at no cost to the owner. We would charge the renter and deduct the money from their security deposit. In the event of major damage, the owners insurance would provide coverage. Our property managers perform a thorough inspection before and after each rental to ensure your property is in intact and secure.
10. What cleaning requirements do you have?
A well kept vacation home results in successful rentals. Both for the protection of the owner's property and the well-being of the guests, we require our staff professionally cleans each property once initially when first joining the rental program and then after ANY use. Renters are charged for their cleaning upon making the reservation and owners are billed against their rental income for theirs.
11. What fees do you collect from renters?
In addition to the basic rental rate and required taxes, we also collect a security deposit, cleaning fee, and electricity charge. The owners are reimbursed for their electricity at the rate of $5 per day.
12. Does a renter have my contact information?
Yes. We have a full experienced sales department that will be happy to assist you with the sale of your home. The sales department may be reached by calling (772) 229-1300 or by email at [email protected] If you do decide to list your property, we would be happy to continue to rent your property while it is being shown. We arrange with renters the ability to be able to allow Real Estate agents to show your property even while it is rented.