Luxury properties carry a high price. When tenants move into luxury residences, they expect property owners and managers to overdeliver. Tenants expect high standards of service, which is why luxury property management differs greatly from standard property management.
In this article, we’ll share some of the best industry-standard tips on managing luxury properties, keeping tenants satisfied throughout their occupancy.
Luxury Property Management: The Difference
Managing luxury properties is a whole new ballgame compared to managing mid-range single-family units, apartments, duplexes, and many more. It takes an experienced property manager to successfully maximize the investment of these upscale properties.
In most cases, instead of serving tenants, managing a luxury property involves maintaining the upkeep of the property year-round for owners who might come home at moment’s notice. Exceeding expectations is expected — from making sure that fresh blooms are in the entryway to washing the owner’s sportscar, managing a luxury property requires maintaining high-class standards.
The same goes for luxury rental properties. Luxury condominiums and apartments offer amenities that you can’t find in a standard apartment, such as heated swimming pools, indoor spas, fitness centers, and a concierge. Tenants expect a high standard of living.
Tips on Managing Luxury Properties in Style
If you’re a luxury real estate owner, you shouldn’t go for the cheapest bargain when it comes to selecting a property management company. Your luxury property is a valuable asset that requires equally top-rated services. Would you have your Ferrari washed at the local carwash? Definitely not.
Luxury property management firms manage properties differently. They are familiar with the unique demands of high-end properties, from luxury condominiums, estates, waterfront villas, and so on. Here’s how they manage luxury properties in style:
#1 Offer an experience, not just a service
Luxury properties differ from ordinary properties because of the lifestyle attached to each piece of real estate. Using a one-size-fits-all strategy simply doesn’t work with luxury properties, as every property has its demands which are usually requested by the owner. Managing a luxury property requires understanding the history of the home and its inhabitants to truly offer services that exceed expectations.
#2 Provide luxury services
Luxury residences come with amenities such as a co-working space, rooftop lounge, 24-hour gym, etc., and services like valet parking, room service, and much more. Tenants, who pay thousands of dollars in rent every month, expect that everything will be maintained at the highest standards of quality year-round. It’s essential to keep quality in mind when dealing with every aspect of luxury property management.
#3 Know where and how to market the property
While marketing strategies for rental properties typically work across all types of real estate, finding tenants for a luxury property is a bit more challenging. The applicant pool will be much smaller since the price tag won’t appeal to the general public. This, however, works in your favor as you won’t have to screen as many tenants — they’re also more likely to be qualified, considering how much they’re willing to spend on rent.
#4 Offer open channels of communication
Tenants in luxury properties expect premium services and that includes providing multiple channels of communication. Living in a luxury building comes with certain perks, such as having someone carry their groceries to their unit or having their car ready when they come downstairs during the morning. Whether it’s a 24/7 hotline, chatbot, or online ticketing system, tenants need a way to communicate these custom requests to the property manager.
#5 Work with reputable vendors
To manage luxury properties in style, every maintenance or repair job must be performed by a skilled team of handymen, plumbers, cleaners, electricians, carpenters, and other service providers. You can’t just hire the first vendor you find on Craigslist. You should only work with vendors who have a keep eye for detail. In addition, requests made by the tenants need to be addressed as quickly as possible.
#6 Manage proactively
Don’t wait for tenants to complain about unstable Wi-Fi or flickering lights in the elevator. You need to take a proactive approach to luxury property management. This means regularly conducting inspections without interrupting your tenants’ day-to-day life. For instance, perform maintenance checks on elevators at hours when tenants aren’t likely to be using them. Tenants expect perfection — after all, they did pay a pretty hefty price.
#7 Use property management technology
This is especially helpful if you’re managing multiple luxury properties at once. It would be impossible to keep track of monthly payments, maintenance schedules, and more by simply relying on memory. Use property management tools such as AppFolio to streamline all of your processes and to organize your documents. You should also consider providing tenants access to these apps so that they can review their balances from the convenience of their mobile phones.
#8 Work with luxury property managers
If you own a luxury property and you want to leave the headaches and hassles to the experts, you need to find professional property managers who specialize in this type of service. The most successful real estate investors often partner with third-party property managers to oversee the daily operations of their properties, whether residential or commercial. Be sure to look into the company’s portfolio and to ask the right questions. Managing luxury properties is vastly different from managing mid-range ones.
As you can see, managing a luxury property requires one to maintain exceptional standards of service. The rest of the processes, such as tenant selection, eviction management, financial reporting, and rent collection are generally the same as managing standard properties. However, with luxury properties, managing to perfection is key. In managing luxury properties, you need to know what your tenants might need — even before they tell you.
Luxury Property Care specializes in the management of upscale properties, such as waterfront villas, luxury apartments, vacation homes, and many more. Our expert property managers have decades of experience in leasing million-dollar listings as well as managing luxury property investors’ assets.