You may have noticed that we, StepsAway Asset Management, Inc. (StepsAway AMI), claim to manage the vacation rental properties described on this site. At the same time, we direct anyone interested in becoming guests of the properties to contact the property managers for availability and pricing information. That probably seems strange to some readers. If we are the management company, why would we also need a property management firm?
As the asset managers, we provide recommendations and services to maximize the financial performance of the assets – the properties. In the example of these vacation rental cabins, the decision to offer them as short-term rentals followed our analysis of the potential best uses of these assets for the highest return on investment. Following the decision to offer the properties as short-term rentals, StepsAway AMI prepared the properties for that purpose.
Once the properties were ready for guests, we hired our local, expert property managers – StepsAway Montana, LLC. They provide the marketing, lead management, bookings, property cleaning, and routine maintenance management for us. Most importantly, as a licensed property management firm, they handle all the guest payments, deposits, lodging taxes, and owner distributions.
Our contracted property managers are highly skilled and experienced in preparing each home to be a vacation rental. They assisted with staging and interior design consultation, while StepsAway AMI acquired the recommended furnishings, furniture, and appliances. They also provided a complete list of required residence inventory and advises us on any changes needing to be made to improve each property’s desirability to future guests. The marketing of each began with professional photography of the property and the creation of effective marketing on all the major vacation rental websites.
The services provided for the preparation of the properties as part of our asset management responsibilities included many, often overlooked, actions. The county zoning requirements have grown over the last few years in an effort by the county to effectively manage this relatively new, and popular, real estate phenomenon. For instance, in Flathead County, a short-term rental not on a city serviced sewer system, requires a permitted septic system. This single requirement required StepsAway AMI to coordinate the design, approval, installation, and inspection of septic systems for two of the three West Glacier properties presented here. This was done, not because of any issue with the prior septic systems, but only because those systems were not originally installed under a county permit. Interfacing with the county zoning department, the engineering firms and the septic system installers was all handled by the asset managers.
The application for a short-term rental license requires an application to Environmental Health Services of the Public Health Department. The application covers topics ranging from owner and property information to water supply and wastewater treatment to physical requirements, laundry facilities and housekeeping. Granting of the annual license allows one to begin accepting vacation guests.
The infrastructure of the properties is also the responsibility of the asset managers. The selection of the utility providers includes the basics – gas, electric, water – but also those services that are demanded by today’s vacation rental guests – internet, and satellite and streaming TV. These services are also billed to and paid for by the asset managers on behalf of the property owners.
The asset management services continue beyond the initiation of the vacation rental activities. In coordination with the property managers, the properties require periodic / seasonal maintenance activities. In West Glacier, MT, this translates to a significant fall and spring cleanup! The fall activities are primarily focused on preparing the properties for the harsh, winter conditions. In the spring, the focus is on preparation of the properties for the multitudes of dependable Glacier National Park guests. Any major repairs required, or desired property improvements are implemented by StepsAway AMI.
Our definition of asset management is one that is focused on the property owner’s balance sheet. The activities that add value to the asset, the property, and the business fall into the asset manager’s domain. For us, that has included major financial decisions. StepsAway AMI has recommended the timing of refinancing of the properties, as well as choosing the lender and terms of the new mortgages. We have owned the negotiation of the short-term rental property insurance policies also. Our service includes paying not only the monthly utility bills, but also the semi-annual tax payments, all repair bills, all needed replacement furnishings, furniture, and appliances and any extraordinary or unexpected expense relating to the property and the business of the property.
It follows that we view the definition of property management to be one that is focused on the property owner’s income statement, specifically the top-line income for the property. Setting the parameters of guest rental – nightly rates, minimum stays, cleaning fees, etc. – are all aimed at optimizing the income for the property and are clearly the responsibility of the property manager. Even more important are the qualitative aspects of the role. Guest satisfaction in our social media world translates directly to acceptable nightly rates and occupancy levels. That fact alone justifies the hiring of a separate, highly successful property management firm. In our case, it also explains why we have enjoyed our very successful relationship with StepsAway Montana, LLC .
The combination of solid asset management with experienced, skilled property management can maximize the financial return for any property. Asset management focuses on a healthy balance sheet, while property management directly addresses the need for strong revenue. We hope that we have explained why a property owner would benefit from utilizing both services, and specifically why StepsAway AMI uses StepsAway Montana, LLC.