What Does a Vacation Management Company Do?

Posted November 7, 2022 by in Career
house with palm trees

Having a vacation property can be a lucrative way to earn passive income; however, there are many responsibilities that come along with maintaining the property, promoting it, and ensuring that guests receive the quality experience that they seek. 

While this can be done by the property owner working alone or with a team, for best results it’s a good idea to bring in experts that specialize in this specific field. That will no longer allow you to sit back and enjoy the benefits but will create an overall more effective operation.

Keep in mind, vacation property management companies are not the same as a property managers dealing with tenants. Those agencies are intended to ensure a smooth-running property as far as those that live there are concerned, which means creating an inviting atmosphere, sure, but mainly performing maintenance and assuring basic needs are met. 

Vacation management companies have to be more proactive as the guests are endlessly changing, requiring more hands-on management and a constant need to entice new visitors.

The following are some of the beneficial duties that vacation management companies perform on the behalf of their clients:

Desert house with a palm tree in front yard

Establish an Effective Rental Contract

It is of paramount importance to have a rental contract that fulfills all legal obligations and handles relevant aspects of a visitor’s stay, including the rules they must follow, what services are available to them, the agreed duration of the stay, and the relevant rates and expenses involved. 

Having professionals that can collaborate with you and ensure that the contract is watertight can be an enormous relief for vacation property owners, providing invaluable peace of mind.


One of the most important aspects of a vacation property is advertising it to bring in guests. Skillful vacation management companies will list the property on their websites, but also engage in other advertising techniques designed to catch the eye and entice prospective visitors. 

Ideally, you want a full calendar that allows just enough time between visits for the management company to perform necessary cleaning and maintenance before the room is back in action, earning revenue. 

To wit, these agencies collaborate extensively with vacation booking sites, creating effective listings to inform visitors of all the wonders your property has to offer, and setting competitive rates designed to draw customers in while maximizing returns.

Word to the wise, some management companies work under the impression that they need to fill every available lodging at all times, and to do so, they will reduce rates to the extent that it can damage revenue. 

Therefore, it is important to outline your desires with them in advance, establishing the parameters of operation. It may be best to focus on good rates that fluctuate with the market to ensure that you are not only filling up the rental facilities but doing so at rates that allow optimum customer service and bolster the bottom line.

Advanced Technology

You may not have the most cutting-edge technology to run your vacation property, but management companies that specialize in this sector generally will. 

That means they will use these services to improve the management process, from bookkeeping and accounting to taking the highest quality photographs for use in luring in prospective visitors via marketing campaigns. 

Property Maintenance

Lodgings will need to be properly cleaned and maintained to satisfy guests and regulations alike, and vacation management agencies are well-trained to perform these duties to the highest standards. 

They will be able to provide timely and efficient turn-around times to improve the guest experience while ensuring that there is as little maintenance time necessary between rentals as possible to maximize profits.

Customer Service

As experts in this field, vacation management companies know how to interact appropriately with guests, limiting instances of “nightmare vacations” and encouraging experiences that are so enjoyable they feel compelled to rave about it through reviews. 

They are trained to handle complaints, build rapport with guests, and provide amenities that enhance the atmosphere and overall experience.

Helpful Considerations for Choosing the Best VMC

While each management company comes with its own strengths, not all companies are created equal. 

To ensure you get the best fit for your vacation rental property, consider the following:

Knowledge of the Local Area

For a management service to work at peak efficiency, especially with marketing, it’s important that they have knowledge of the local area. This allows them to capitalize on locales, landmarks, and other nearby features to create a comprehensive list of reasons why your vacation rental property is the best place to be.

This is also imperative so they can have a better understanding of rates of rentals and costs of amenities so they can establish baselines that are both competitive and optimized for profitability.


While the company is undoubtedly trained to provide elite service, those that have an extensive track record are more likely to be able to promptly handle any unexpected complications or even have contingency plans in place to avoid them. 

It is always a good idea to read reviews for the company to get a taste of how their clients have felt about their experience with that agency. Keep in mind that these ratings can be inflated, so look for those with significant numbers of reviews to help establish a good baseline for comparison.

Personal Relations

As well as an agency’s quality and experience, it’s important to find a company that you feel comfortable sitting down with and having discussions about important issues and your desires. 

If you find yourself uncomfortable dealing with the company liaisons or they seem stubborn or unwilling to compromise, that is going to create an unpleasant atmosphere for you

Also, if they can’t provide excellent customer service to you, what can your guests expect under their supervision?

Sometimes, it may just come down to whether the personalities on both sides are a fit. It’s a good idea to meet with the representatives you will be working with in advance, and spend some time in their company to get a feel for how you will get along during collaboration.

A vacation management company can make your life easy, handling the legwork for running your property while giving you time to do the things in life you enjoy. With a quality agency in place, you can rest easy that your facility will feature the greatest experience, marketing, and maintenance to draw visitors and encourage repeat customers. 

However, make sure you do your research in advance. It’s always advisable to shop around, so choose which VCMs seem like they are the best fit, and take the time to learn more by reading reviews and having conversations with the management team. Doing so will yield the greatest results for you and your vacation property!

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