I live in a desirable ski town. Several local property management companies specialize in renting furnished condos and mansions to the wealthy. These property management companies might be able to get $10K-$15K/month rent for a furnished 3 bedroom on a 3 month lease. Certain tenants will spend $60K to be here for the summer, or a little less for the ski season. Renting to locals, however, you might get $3-4K/month for a yearlong lease. The issue is that the companies take 50% of rents as a fee, and then tack on a lot cleaning costs with their preferred vendors. In practice, you could gross $10K with one of these companies and only net 40%, so you might as well rent to locals. For the property management company, most of their rental pool is second-homes, so the owners aren't concerned about the economic return.
It would be great to cut out the middleman.
How do you find these rich tenants? Are they looking at some secret website I don't know about?
From the customer point of view, it seems like a a lot of the value of the property companies is tied up in their personal relationships and their guarantee of luxury. How does a private individual position their property to be an attractive option?
