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5 Things You Should Know About Rental Commissions

The payment of rental commissions has been the accepted practice in the vacation rental industry for as long as owners have made their homes available for rental, but what are the unintended consequences of rental commissions? Below are 5 unintended consequences that you may have experienced with your rental manager.

1. Do you ever feel like your rental manager is not working for you? High rental commissions may be the culprit. Like any businessperson, your rental manager may be tempted to give the most attention to the person who funds his income. With rental commissions this is the guest. Some rental managers may inadvertently work for the guest at the expense of the owner.

2. Do you ever feel like your property is rented less than other similar properties? Often rental rotation policies are thrown-out when a rental manager is trying to find a property for a particular guest. This may result in your property not being actively marketed to a particular guest despite the fact that it is your turn in the rotation.

3. Do you ever feel like your always discounting your rates to book rentals? Given the competitive vacation rental industry, often rental managers have limited motivation to maximize your rental revenues. Getting the rental, even at a discounted rate, is the primary objective of rental manager. In some instances the rate may be less than you feel is acceptable.

4. Have you ever noticed excessive maintenance charges on your monthly rental statement? To keep guests happy while the guest is in occupancy, some rental manager consent to maintenance items that you may not approve. Some rental managers adopt the philosophy of “keep the guest happy at all cost.” This is of course an easy philosophy for them to adopt as the cost is passed on to the owner, while the rental manager cultivates a loyal guest.

5. Do you ever feel pressure from your rental manager to limit your personal usage to non-peak period? If your property is not rented, the commissioned rental manager is not paid. This may lead some rental managers to attempt to influence your personal usage days by encouraging you to use non-peak days.

To avoid the possible conflicts associated with rental commissions, VRS has adopted a low-fixed monthly fee billing structure. This ensures that VRS is working exclusively for you, the owner.

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