Property and Rental Management
Imagine you have been eyeing your dream property for months. You have figured out how you will finance your purchase and have investigated each and every step of buying real estate in Nicaragua. But one big question remains: who will take care of your dream home after you buy it? Whether you are buying a property to rent on Airbnb or purchasing your dream vacation home, you will need some form of assistance to manage your property and put your mind at ease. Property Management and Rental Management are typically viewed as two distinct services in the beach towns of San Juan del Sur and Tola. In this article, we will explain the difference between the two and how your property can be managed from afar, out of necessity, or by choice.
Property Management
Property Management is defined as the overseeing of residential or commercial real estate – including apartments/condos, detached houses, as well as land – that is owned by another party or entity. Roles and responsibilities vary depending on the type of property but in general, a Property Manager is responsible for:
Paying Bills – included but not limited to: annual property taxes, electricity, water, internet / cable, services and vendor fees and HOA fees
Paying Employees – cleaning staff, caretaker, pool cleaner, and, gardener
Maintenance and Repairs – keep the property in the best condition possible through general maintenance and repairs and/or updating, as well as supervising any work that is performed on the property
Manage Financial Budget and Records – maintain budget of income and expenses while keeping detailed records of what is occurring in the house
Collect Rent – receive and manage rental income from renters
Rental Management
A Rental Manager’s primary role is to acquire renters for a property and to ensure that they have an enjoyable experience while staying at the property. They are also responsible for:
Marketing and Sales – actively marketing the property to potential renters through rental platforms such as Airbnb, VRBO, and social media
Check-in & Check-out – clean & prepare home before renters arrive, check inventory, and clean home after renters leaves
Manage Rental Experience – speak to renters before and during their stay to make sure there are no issues and that the rental is meeting the guest’s expectations
Provide Feedback to Owner – based on comments from guests, keep owner informed of feedback regarding any improvements that need to be made to the property such as updating linen or a faulty A/C unit, in addition to providing suggestions to elevate the customer experience
It’s important to note that Property & Rental management services in San Juan del Sur and Tola should be viewed on a case-by-case basis, as each property and owner will have different needs and expectations.
Choosing a Property and Rental Manager
There are a variety of options for Property & Rental Management in Nicaragua. These services are provided by real estate agencies, management companies and individuals. In most cases the same individual or company can provide both Property and Rental Management, if desired. Based on your individual needs you will want to select someone that aligns with your particular goals for the property and understands what you expect from them. Your real estate agent will be able to share options for providers and can assist in selecting the appropriate party.
If you are buying a vacation home that you do not plan to rent, only a Property Manager will be necessary as you will not have renters coming and going. If you are purchasing a property with the intent to rent it out as much as possible, you will want to select a Rental Manager with proven experience in marketing short-term rentals. Identifying your goals and objectives is key to choosing the appropriate management service.
Cost
In San Juan del Sur, Property Management services can cost approximately $100 – $150 USD per month, depending on the location of the property and the extent of the services being provided. Rental Management services generally cost 20% of the income produced via rentals. In Tola, Property Management services range from approximately $250 – $300 USD a month whereas Rental Management services generally cost 30% of the income produced via rentals. As mentioned above, one provider can be used for both Property & Rental Management which could potentially lower the overall fee. Also, based on your desired services a customized package can be created for your specific needs.
For example, if you plan to actively source your rental clients and handle all the communication with them before and during their stay, a Rental Manager would be flexible in pricing, especially if they are only greeting the guest for check-in / check-out while remaining on standby during the guests’ stay. Similarly, if you’ve acquired a long-term renter for your property who will be paying all the monthly bills and paying rent directly, you may only need a Property Manager to pay your annual tax and handle any unplanned repairs that arise.
Whether you need the full package of comprehensive services or a customizable option, rest assured that there are individuals and companies on the ground in San Juan del Sur and Tola who can provide exactly what you need.
Why Use Property and Rental Management?
The large majority of our clients do not live in Nicaragua full-time and spend the majority of their time outside of the country. Hiring a Property & Rental Manager can help you design a truly “hands-off” investment that allows you to focus on your priorities at home while outsourcing the management of your real estate in San Juan del Sur and Tola. Additionally, local managers have established relationships with rental platforms, as well as contractors and services providers, saving you a countless amount of time and energy.
If you are seeking a true armchair’s length investment, contact us to help you identify your real estate goals and the people on the ground to help make them a reality.