Moving2Madrid recommends the best monthly property rental management partner
This article explains why it is important to use a professional agency to manage your monthly property rental and introduces you to Moving2Madrid’s preferred monthly property rental management partner.
Why rent your apartment on a monthly basis?
As readers of this blog know, it is usually more profitable to rent your apartment short-term. However, there are three important cases in which renting it monthly makes more sense:
1- You have a luxury apartment.
The monthly rental market is mostly composed of corporate rentals. Most short-term renters neither appreciate, nor want to pay for, luxury apartments. Therefore renting monthly can achieve better returns for higher end apartments.
2- You have a large (3-5 bedroom) apartment outside of the tourist area.
Most short-term renters only want one or two bedrooms. If your apartment is larger than this, and located close to the business centers of Madrid (for example by Plaza Castilla), your property will likely achieve greater returns when rented on a monthly basis.
3- You want to be cautious with respect to structural and market changes
Although the Madrid Ayuntamiento has currently introduced much milder Airbnb regulation than Barcelona, there is always the possibility they will follow Barcelona’s lead and stop issuing new short-term property rental licenses. We do not think this is likely as recent research by the Spanish Government’s National Commission on Markets and Competition (CNMC) has found no evidence that Airbnb has driven up Spanish rents and property prices. Moreover, the agency is actually challenging all attempts by the city governments of Madrid, Bilbao and San Sebastián to limit the activities of Airbnb and other accommodation websites. However, if you are cautious, monthly property rental is a good way to hedge your bets.
This is also true of pricing changes. Currently, short term tourist rentals are the most profitable for landlords. However, pricing could change. Being able to rent monthly allows you to cover all bases.
Would you like to learn more about the advantages and disadvantages of renting your apartment on a short-term vs. monthly or yearly basis? Or perhaps you would like help searching for, and purchasing, a property in Madrid? Regardless of your request, we are here to help so don’t hesitate to arrange a free consultation with one of our property search experts.
Why work with a property manager for your monthly property rental?
Working with a professional property manager will give you better pricing, higher occupancy, an increased range of services, higher quality ratings and a better distribution channel for your rentals.
Better monthly property rental pricing
You will get better pricing with our monthly property management partner. This is because our recommended monthly property manager has a proprietary database of monthly pricing data in Madrid PLUS a proprietary pricing algorithm.
This midterm pricing algorithm factors in market and property seasonality (according to historic and market data), size, availability and the number of existing bookings to define a monthly mid-term price for your property. Or in other words, the algorithm uses data and market trends to adjust your property’s price each month so no revenue is left on the table. This allows them to achieve pricing on your monthly property rental that is, on average, 30% better than that found in the broader market.
Although many people focus on achieving a high rental price, having a high occupancy is arguably even more important. In fact, Time’s Money Magazine published an article recommending the Top 5 Ways to Make More Money on Your Rental Properties. Their number one tip was to decrease vacancy.
Our monthly property management partner does not just offer decreased vacancy rates, they actually guarantee 100% occupancy each month. This not only means less worry for you, but a guaranteed rental means you get a fixed income every month.
Increased range of services
Our short term rental property management partner is unique. They have a partnership, and the backing, of the Marriott hotel chain. In fact, they are the exclusive manager of Marriott’s foray into the home rental market. Thus they have the experience to know what maximizes rental returns in monthly property rental markets. They offer the following services to all of their customers:
- Professional photography
- Interior design
- 24/7 check-in
- 24/7 customer service
- A dedicated property manager
- 5 star cleaning service and bed linens
- Home maintenance
- Daily pricing revisions to maximize your rental yield
- Listings on all the optimal channels for monthly rentals
- Daily pricing revisions to maximize your rental yield
Excellent ratings for your property
Our monthly rental property management partner, due to the scope of their business (they are by far the biggest player in the monthly property rental market) and their backing by Marriott, knows what it takes to get good reviews.
To put the quality of their service in perspective, you can compare the ratings of their properties to similar properties on the relevant platforms. On average, their properties achieve 20% more five stars than comparable properties.
Better distribution channels for your monthly property rental
The majority of monthly rentals are done to corporate clients. They require a B2B sales approach, as opposed to a B2C sales approach. Our recommended monthly property manager specializes in B2B sales, and has access to specialized channels. This allows them to maximize occupancy rates, which enables them to offer you a monthly guaranteed rental return.
Why choose our monthly property management partner vs. other luxury management companies?
There are over ten monthly property management companies in Madrid. Spotahome is a large player, but they cater mostly to the student population. Since the monthly market is mostly corporate clients, luxury management companies are more suitable choices for Moving2Madrid clients.
We vetted them all, and discovered that our recommended monthly property management company is clearly the best. In short, it offers you the quality services of a boutique management company with the advantages, and security, of a large corporate player.
Best in class technology and pricing
As we mentioned earlier, our recommened property management partner has a proprietary database of monthly property rental metrics. This is one of their key selling features. Almost all other property managers have to rely on short-term pricing data, like that found in Airdna or Idealista, as there does not exist a publicly availabe database with monthly rental statistics. Moreover, their proprietary pricing algorithm allows for dynamic pricing. This means your property will not go unrented on days when pricing is low, nor will you leave money on the table in periods of peak demand. This enables our recommended property manager to take it one step futher than their competitors and guarantee their clients a fixed monthly return.
They are cheaper to work with than other property managers
Our recommended monthly property rental manager charges a flat 15% fee, our recommended short-term property rental manager. This is the lowest in the market. For example, Home Select both charge 25%, which is typical of other, smaller property managers. This is why we love our recommended monthly property manager: they simply have the best quality to price ratio in the market.
Summary of their advantages
- Experience in 11 cities in 8 countries
- Biggest player in the market in Spain, and more than 50-100 properties in Madrid: not too much, not too little.
- Dynamic pricing model with proprietary pricing algorithm
- Proprietary database of monthly rental statistics
- Dedicated property manager
- Same quality of property management as experienced in Marriott hotels
- Marriott’s corporate backing
- Best service to luxury ratio of other monthly property managers in the market
- Featured in Forbes, BBC, Bloomberg, NY Times, El Mundo and more
Finally, for our risk-averse clients, our monthly property management partner has a very large presence in Barcelona. They have experienced the very strong Airbnb regulation imposed by local authorities and managed to deal with it effectively and profitably.
CASE STUDY: 38% increase in earnings on a sample Barcelona property
Our recommended monthly property manager recently released case studies on some of the properties under their management. In a very thorough one, they demonstrated how they were able to increase earnings 38% on a sample Barcelona property.
What to expect in the future
Our recommended short term property rental management partner has just secured a new round of funding for $30 million. We are all very excited about this. It will enable them to solidify their presence as the world’s leading monthly property manager.
They plan on using this money to invest in new pricing technology and expand their proprietary pricing database. This will enable them to further maximize their customers’ rental returns and smoothly manage their growth as they expand their presence in existing markets and enter new ones.