Whether you have opted for a short or long term rental, Airbnb property management services remain particularly time consuming, especially if you are not an expert in this field. Indeed, many charges must be carried out concerning the hiring of a real estate. This concerns at the same time the fiscal, administrative, legal requirements and technical aspects.
In order to relieve you of these various constraints, you consider signing an Airbnb property management contract. But it will be necessary to establish a mandate of real estate management according to the rules in full force and especially in order to optimize your investment.
An Airbnb property management mandate with a limited duration
As you know, establishing a business or vacation rental management mandate implies defining a duration of commitment. A necessity when you have made an investment in a property in Paris, France or in London, United Kingdom. But don't forget that the contract involves both parties, i.e. both you and property managers or the property management company. According to the law in force, it is impossible to establish an Airbnb property management contract for a noticed period longer than 30 years. In concrete terms, it will generally be for a notice period of between three and nine years, as this corresponds to a period of tax exemption. Make sure to get a sample contract before signing.
The lessor benefits from a protection thanks to the Chatel law concerning the tacit renewal of the management mandate. Thus, the agent will have to inform you when the contract comes to an end and this within three to one month.
However, the lessor remains within his rights to terminate the management of the contract but for that he will have to send you a registered letter with acknowledgement of receipt. Once again, the lessor will have the obligation to respect a three months notice.
At the time of the signature of the management mandate of furnished or traditional vacation rentals, two copies will have to be signed by property owners and each party will keep a copy.
Only hire a manager with a professional card
Just as there are obligations regarding management fees, the same applies to the lessor. This time, it is the Hoguet law that prevails by stipulating that only professionals with a specific card are able to sign a management mandate.
The contract between a real estate agency and a landlord will have to respect the previous good condition. The card is still issued directly by the Chamber of Commerce and Industry and is renewable every three years. Therefore, do not hesitate to ask the lessor to present you this card to guarantee that he has all the necessary skills, but also a civil liability.
However, other precautions must be taken and the business or vacation rental management mandate implies obligations of the agent. Therefore, on the contract you must find the company name of the lessor, the name of the prefecture that issued the professional card, the details of the management fee and extra Airbnb management fees, the missions as well as the evidence of a financial guarantee fund.
Once these precautions have been taken, you can commit yourself to the professional with complete confidence.
How does rental management work?
Whether you have opted for an investment in seasonal or long-term rental, the principle remains the same. Indeed, the administrator will have to find a tenant and it is thanks to this one that you will be able to generate incomes. On the contract that you signed, specific mentions must indicate the diffusion of an advertisement, how the visits are carried out as well as the study which will be set up concerning the solvency of the candidates.
If there is any doubt about the applicant's income, a guarantor may be required. If the candidate meets these criteria, the property manager will take care of drafting the business or airbnb property management agreement, property damage, emergency repairs, deep clean, insurance coverage and additional services. If you decide to rent an empty apartment, the lease will be established for a period of three years, renewable. The renewal is automatic, that is to say that without any precision from the lessor or the tenant, the lease will be renewed according to the same conditions as before.
If, on the other hand, you have chosen a furnished rental, the lease will generally be established for a period of 12 months. But the period can be reduced to nine months if the tenant is a student. Again, if no further details are provided at the end of the lease, it is automatically renewed.
Establishing a contract with the tenant is an absolute necessity to describe both the characteristics of the property, but also to determine the security deposit and of course the amount of rent. Once the rental management mandate has been signed, the agent will be able to look for a tenant in case of vacancy.
Receive your rents with peace of mind
The contract between a real estate agency and the property owner remains absolutely necessary so that you can receive your rents in all peace of mind. However, you do not receive the rent directly, it will be the role of the administrator who will have to collect it. These different amounts will also be used for the provisions for charges. On the anniversary date of the lease, the trustee is within his rights to revise the rent according to the reference indices and the cost of construction index.
If ever an unpaid rent occurs, the property manager will have the obligation to do what is necessary to reactivate the tenant and in certain situations to launch litigation. On a quarterly basis, the landlord sends a management report to the property owner. But at the end of the year, another obligation is to be taken into account, concerning the annual regularization of the charges.
But it is always better to take out additional insurance against unpaid rent to avoid being deprived of income.
The UpperKey Solution for You
As you can see, rental management involves meeting a number of criteria. On your end, you're probably looking for a way to generate regular income without spending time on administrative and tax headaches. The solution is to turn to UpperKey. This vacation rental management company is able to guarantee you perfect management of your property on a long-term basis or on a seasonal basis.
Once the management mandate has been established, you have nothing to worry about, because the agency takes care of everything. If you have any concerns, you can always contact your privileged interlocutor and he will answer with great pleasure. Don't forget, rental management with UpperKey will be very simple, so don't hesitate to contact us to sign a management mandate as soon as possible.