Property Management – Selecting the right agency
On the whole, the people that are the most successful in letting out vacation rentals or holiday homes are those owners who find tenants for themselves.
This however, requires a level of commitment that most owners can simply not afford. For non-resident landlords, who cannot dedicate the time to managing their property, it is far simpler to use a local letting and property management agency in Croatia.
Property Management Croatia
Agencies – at least the good ones – can attract guests from Croatia together with bookings internationally. But when considering property management Croatia, expect the agency to take a sizeable commission, and to argue that this will be more than covered by the extra bookings they can generate for you during the season. This however may or may not be true.
Larger agencies that publish glossy brochures are best contacted well in advance, such as during early autumn before the season kicks off. But if you’re interested in your property being advertised and/or managed for the coming summer season; you will find smaller agencies more flexible to take your property at any time.
In the more desirable locations, you will also find property management agencies in that will gladly manage and rent out your vacation rental for you. Some of them will be local estate agents, but there are many that operate from abroad. If you decide to use a Croatia property management company, the choice of agency you decide upon is critical.
Both in Croatia and abroad, some of the Croatia property management agencies are excellent, but unfortunately some are crooks, bumbling and inefficient. At worse these agencies may hold on to your rent for long periods of time, or rent out your accommodation while telling you it is empty – pocketing the rent themselves.
To get your property on their books, agencies may also charge you a sign-up fee and do absolutely nothing to market or rent your property out for you. In the past, many agencies assumed that because foreign owners were based thousands of miles away that they would never find out, about any additional bookings. As such, property management Croatia is a field where it is important for owners to be cautious and demanding of any agents they decide to use.
Selecting an Agency
When selecting property management Croatia, consider these various checks:
– Find out if the company is a registered Croatian property management agency and whether or not their staff is professionally experienced. Many Letting & Management services are offered as an add-on to estate agents, who should have staff with the relevant experience.
– Check the premises, and make an initial judgment call on whether or not the staff seem welcoming, professional and efficient, while checking for evidence of significant letting activity.
– Check how capable the agency actually is at property management. A great idea to action before buying your property, is to ask the property management company what type of property they think would be best for letting purposes in the area, and how many weeks rental they think you will be able to sustain annually. Ask them, how much income they think they could generate for you after the deduction of expenses and their agency fees.
– Request references, preferably from overseas clients and follow them up. Telephone the owners to see if they are happy with the overall performance of the agency, and whether their service and financial projections given have been met.
– Take a look at the type of marketing the agency does. If the agency relies only on passing trade or foot traffic, then you can expect the less popular locations not to achieve good results.
– Ask to see a sample information pack/brochure they would send to a potential client/guest. You will be able to judge a lot from this; think about if it is, or perhaps is not the image you want for your property.
– Ask to inspect two to three properties that the agent is already managing. If they are dirty or badly cared for, then the chances are that yours will be to.
– Check carefully what kind of contract the agent offers you. It is also sensible to get your contract checked by a lawyer before you sign, as some give you far more rights than others. Make sure that the contract entitles you to full reports showing when the property was let and for how much; these must give a breakdown by week, and not per quarter or half-year. You should insist on a full breakdown of all expenses incurred in connection with the property, and ensure that the contract gives you the right to dismiss the agency on fairly short notice.
We hope that helps, but for more advice please don’t hesitate to get in touch and view our property listings – we’d love to help.