I spend a lot of time on this blog, and in my day job as a vacation rental manager, talking about the ‘cost of doing business’, and have referred occasionally to that cost being emotional at times as well as monetary. So….yesterday…I had cause to experience that for myself for the first time this year when I walked into Osprey Cottage after our guests had left.

We provide a cleaning service as part of our rental rate. For me, that’s pretty much a no-brainer. I’ve rented properties in France, UK and the US and have never been asked to do a complete clean of the property before I left. There’s invariably been a pre-departure checklist asking for the place to be left in a tidy condition, with kitchen surfaces wiped down, food removed from the fridge, garbage disposed of, and the dishwasher started etc. So, when we came out to Ontario I was a little surprised that it’s considered the norm here to ask guests to leave the property in an ‘as found’ condition. This goes back to the days when a cottage was opened up at the start of the season, and the owner didn’t go back until the end, relying on guests to do the changeover for them. There’s also a factor of distance and the considerable challenge of finding someone willing to drive an hour or more to get a few hours of underpaid work on a Saturday.

Anyhow, I digress and the cleaning issue is one I will come back to, as I’m finding those who have never rented before find it very surprising – if not shocking – that they are expected to clean floors and bathrooms; vacuum and dust, and remake beds, before 11am on the day they leave.

So….back to Osprey. Yes, we do have a checklist that we ask our guests to follow. It’s simple and not onerous in any way. “We have provided a cleaning service to make the morning of your departure more pleasant. However, please leave the property in a tidy condition etc, etc.” Walking in to a complete disaster area yesterday was quite the surprise. I’m not going into detail as I am sure all my readers have had this experience at some time or another but suffice to say there was probably more food on the floors – throughout the cottage – than went into stomachs during the week. Food fight came to mind. The checklist had been ignored and they just walked out. Every light left on, every ceiling fan on full blast…..it was a Marie Celeste situation.

Anyhow, rant over. We have cleaners. It was cleaned. Event over, and we have repeat guests arriving today for a two-weeker. We will not make comment, nor seek recompense for the damaged screens, because after all, it is the cost of doing business. But, if they ask to come back again…nope, nada, not ever….and I wouldn’t put them in any of our other managed cottages either. I’m not easily offended by guests and the way they leave the cottage – this is a business and rough goes with the smooth – but on this occasion….well, I’ll leave it to you to guess my emotional stance on this one. And I’m off to my anger management class!

When was the last time you checked under the beds in your vacation rental home or cottage?

Did you check the bathroom cabinet; the dresser drawers and the shelf in the nightstand?

I hope it was on the last changeover day. If not, how do you know what your last guests left behind. Dust bunnies and candy wrappers; used Kleenex and items of clothing; medications and empty shampoo bottles are just a few of the things you might find. Others I will leave to your imagination but trust me…if you aren’t looking, your next guests are.

Never underestimate how important it is to do a thorough check on each changeover and using a checklist can be the best way to ensure nothing is missed. Reminding your caretaker or cleaning team to do this can save you from complaints, negative and damaging reviews and feedback you would prefer not to have.

Photo by Mavis on Flickr

I’ve heard the phrase, “It’s the cost of doing business” on several occasions recently and thought it would be interesting to reflect on what this actually means. I use it myself at times when I feel a grumble coming on about having to replace the mesh in yet another screen door ($30 + time), or buy another set of chair cushions for the breakfast bar stools to replace the food stained ones, or spend an hour draining and refilling the hot tub because bathers have been wearing thick coatings of sun screen, contrary to instructions.

At what point do you say that this is more than can be accepted as fair wear and tear, or reasonable cost to absorb? Is there a notional figure, that once reached is then passed onto the rental client as a deduction on a damage deposit?

Dealing with damage, and situations where a property is not left in an acceptable condition, is an area some owners fail to plan for, and when presented with an issue that needs immediate attention or decision making, can be stressful. It’s worthwhile taking some time to think about how you might deal with a range of scenarios so when you are presented with one, you’ve got a bare-bones strategy for dealing with it.

I will usually overlook genuine accidental damage under $100 when the renters have called and let me know that something has been broken or damaged. I appreciate their honesty and since most have since rebooked again and again, the leniency has been rewarded. At other times, we’ve found evidence of damage that has been clumsily concealed which is irritating, particularly when it has impacted on the enjoyment of the next guests. That needs more thought as to whether a claim should be made and would take into account other variables such as whether the property was left in a good condition on guests’ departure.

Each situation needs to be assessed individually and given a lot of thought. The ‘cost of doing business’ can impact on emotions as well as pockets so having a plan is the key. Do you have a plan?

With the vacation rental season in full swing most owners, myself included, approach changeover day with a mixture of trepidation, anticipation and sometimes, confidence. Whatever we expect, there are times when we’re surprised, either by the pristine way in which the property has been left by the outgoing guests, or by an ungodly mess.

When I first started renting out, I allowed myself to get irritated at the small things that rental guests had (or had not) done. Finding the patio umbrella up when we had asked them to take it down; a life jacket left in a boat instead of being hung up on the appropriate hook; or perishable items left in the fridge, were just a few of the little things that could wind me up. And if there had been any damage, it had an impact way beyond the minor issue I would now see it to be. I’d have a rant, get upset and want to make an immediate charge on the damage deposit, for what I now see to be an emotional reaction, rather than taking the time to reason it out.

This is not to say I will condone blatant disregard of my checkout list, or obvious non-accidental damage beyond wear and tear, but my attitude has swung around in the last few years and my tolerance level has risen to a point where I no longer have any stress. It’s all to do with a quote I live by more and more these days:

“If you change the way you look at things, the things you look at will change”

Now, instead of arriving at the cottage wondering whether it will be in good shape or bad shape, I simply expect to arrive, do the changeover and create a welcoming environment for my next guests. If it takes an hour extra, well that’s just fine because another time it may be a much quicker turnaround.

I know there are owners out there who have a more rigid attitude and may not agree with my approach, but it works for me and for many other professional owners, so maybe there is something in a more flexible attitude to our guests varying standards. Let me know what you think.

There is little doubt that having a hot tub is an advantage in attracting low and shoulder season rentals. When there’s a lot of choice for prospective renters looking for an out-of-season break, extra amenities can be the deal decider, so the more options you can offer the better chance you have of converting a casual enquirer into a confirmed renter. Hot tubs and saunas come high on a renter’s wish list. I’ve put a hot tub in each of my properties and they have paid for themselves in a relatively short time with marginally increased rental rates and higher occupancy. However, there is a cost in terms of the time and effort involved in maintaining a healthy chemical balance and ensuring optimum water quality, as well as educating guests in the safe use and operation of a tub.

I was interested to read Joyce Copeland’s article about hot tubs on her Beach Vacation Rental site.  I met up with Joyce during our recent road trip and discussed this briefly. She isn’t a fan of hot tubs but that isn’t the reason for her cautious approach – it is more to do with the potential for litigation where a renter makes a complaint about an illness or condition that ‘might’ have been triggered by poor hot tub maintenance. Without legislation requiring specific hot tub maintenance regimes ( as is now the case in California), I wondered how an owner could respond to this type of claim.

Asking the question of an insurance broker elicited a fairly vague response suggesting a liability waiver together with regular maintenance, but he also said we need to watch what happens south of the border as it will ultimately affect us here in Canada. I took this to mean there have not been any claims yet, but it may well happen soon.

I’ve now put a system in place at my vacation property that provides a dated record of the chemical balance, additions and maintenance issues. In the unlikely event that a guest lodges any claim with regard to the hot tub, we can provide evidence it is being maintained in accordance with the manufacturer’s recommendations. In addition, the detailed instructions included in the Cottage Guide ask our guests to let us know if they have any concerns at all about the quality of the hot tub water, along with warnings about user safety. We’re able to respond within an hour if there are any problems.

Good maintenance involves frequent monitoring of PH and bromine/chlorine levels; filter cleaning, and other checks to keep the water sparkling and in healthy condition. Irregular maintenance, or relying on rental guests to make chemical additions, is not good practice, and can result in problems. 

While we might object to the litigious nature of society, it’s a good opportunity to become more accountable or squeaky clean in terms of your hot tub!

An appliance break down at any time of the year is a challenge, but when the fridge stops working on a hot summer day, it’s important to have a game plan in place.

We’re fortunate in living so close to our vacation rental that it’s just a 10-minute drive to get there to manage any problems but if you live further away you need to have a strategy for managing essential appliance breakdown.

For those who know me well, you will be aware I operate on the GAMI principle. Neither I nor my other half has any clue about do-it-yourself stuff. He was a navigator in the RAF for 35 years so can tell you anything you need to know about air-to-air refueling and getting from the UK to Cyprus in order to arrive before the bar shuts. I was a psychotherapist and hypnotherapist, so could make you cluck like a chicken every time the doorbell rings, but our combined DIY expertise amounts to changing light bulbs and operating a sink plunger.

We lived in military housing for many of those years and if anything broke down we Got A Man In hence the GAMI principle. This trend has continued and since we’ve been in Ontario and renting out cottages, have always made sure we have a reliable source to call on in case of emergency in any of the properties.

Here’s a few keys to successful problem management if you, like us, are not that handy:

· Make a list of emergency issues that may arise that would need fast response. These could be breakdown of an essential feature such as the refrigerator, heating supply, or a problem with a water source. Then, write down a plan for dealing with each issue. Include contact numbers for maintenance people and contractors and make sure your caretaker has a copy. If you use an agency to handle your rentals, give them a copy too.

· Create a good relationship with someone local to your property who can be called upon to deal with minor issues. Often this is simply to decide if a contractor needs to be booked. We recently had a call from a renter who said the dishwasher wasn’t working at one of our managed cottages. The local contact was able to pop round and establish they had not turned the dial far enough to engage the programme. This brief visit prevented the expense of an emergency callout to a repairman.

· Source a reliable electrician and plumber who can be contacted in case of an emergency. Find out their emergency call-out rates and get an estimate of response times. Note the phone numbers of local appliance repair companies, and check they could handle the breakdown of your appliances is something occurs.

· Provide renters with an alternative source of appliance for emergency use. For example, buy a portable electric/propane fridge that can be used in case of an emergency. A propane camping stove can also be very handy in the event of a power outage. A charcoal BBQ and a bag of charcoal is useful to have on standby in case of your propane BBQ becoming unusable for any reason.

You might sail through every season without a single issue but being prepared for the unforeseen is really good practice. When something does go wrong you can bet your bottom dollar it will be when you are just about to head off for a few quiet days away, or when a bunch of people have just arrived for a family event. Better to be safe than sorry!

I’ve received a lot of emails recently about damage deposits for vacation rentals, and what circumstances should occur before a charge is made. This is a thorny issue and one that needs some thought and reflection before making a decision. Where do you draw the line on additional cleaning? What constitutes normal ‘wear and tear’? Is the situation bad enough to accept the invariable stress that will follow? There are no hard and fast rules here – this is a judgement call on the owners’ part, but there are a few guidelines here that may be helpful.

Tell your guests what you expect

It’s important to be clear about what you want your guests to do. If a cleaning service is included, then be specific about how you want the place to be left. If you want the property left in an ‘as found’ condition, provide a cleaning checklist for them as a reminder. If you leave your guests in no doubt as to their responsibilities it makes it difficult for them to challenge you in the case of a dispute.

Keep a digital camera to hand to record damage

Any claim for additional cleaning or damage will result in an argument. On every occasion we have had to deal with a claim, the guests have argued the details, and refuted any suggestion they did not comply with the Terms and Conditions of the Agreement. Taking pictures with a date and time stamp is the best way of proving your case should it come to court.

Assess cost of replacement items fairly

Renting out a vacation home comes with risk. During the course of a rental, there is the potential that a glass or two will be broken and a plate or mug might be chipped. This is acceptable wear and tear in my estimation. If you have left your best crystal glassware or heirloom china for the guests to use, don’t expect them to be cared for in the way you would.

Get an immediate quote in cases of significant damage

Where there is major damage, get a quote for repair or replacement as soon as you can. Get everything in writing; have photographic evidence and contact your own insurance company to discuss a potential claim. The damage deposit should cover the deductible with your rental insurance taking care of the rest.

Be objective at all times

It’s easy to get very upset, particularly when a rental group has abused your trust in them by leaving the place in a mess. It may cost you extra in your own time, or money for additional cleaning, but if you balance that against the other times when the property is left in immaculate condition, you might just want to write it off to experience and simply decide never to rent to the people again.

It would be wonderful if each changeover was easy and without incident, but that is unlikely in the vacation rental business. Taking the rough with the smooth and accepting that standards of cleaning do vary will help you when assessing whether you should claim or not.  My yardstick is simply this:

If it will cause me more stress and aggravation to make a claim rather than just accept it as a disappointing episode and move on, then I’ll take it on the chin, and look forward to better guests next time.

Photo by Vibrant Spirit on Flickr

Some years ago when I was sourcing properties for marketing to our UK clients, I viewed a cottage on Kennisis Lake in the Haliburton Highlands. The owners showed me around their slightly messy property and then said it would be the last time they would be there for the summer since it was fully rented. I asked who did the changeovers and was completely taken aback by their response.

‘We’ll be back in early September’, the owner said; ‘we expect our guests to leave the cottage clean and tidy for the next group of guests, so we don’t need to keep running up there every week’.

I was shocked then, and even more so now I’ve had a lot of experience in the different standards rental guests have, when it comes to departing our cottage. At times I can walk into the place and honestly wonder if anyone was actually there during the previous week. And then, there are the occasions where I spend a couple of hours cleaning and tidying up after a less than diligent family have left.

Here’s some reasons for adopting a good changeover schedule:

Checking for damage

Unless there is a thorough between-rental check, how will you know if there is any claim to make on the damage deposit? The only way would be to receive a call from incoming guests to report an issue but even then, you could not know which of the previous guests to charge if something is broken or beyond repair.

Replenishing cleaning materials

Renters will find any excuse not to clean before they leave a cottage, and lack of cleaning supplies is a common one. This can then become a downward spiral as each set of guests leaves the cottage ‘in the same condition as it was found’. Cleaning materials must be checked and replaced for the start of each new rental.

Carrying out general maintenance

Without a weekly check of interior and exterior aspects of the cottage, issues may arise that will open an owner to complaints or even liability claims. A broken deck step; missing oars; torn screens; light bulb replacement, are just a few of the things that may require attention.

Managing bedding hygiene

Many owners don’t consider that comforters or bedspreads  require laundering after every rental use, however they do need regular inspection for stains or soiling of any nature and replaced when required. Pillows sometimes need to be replaced during a season, and blankets benefit from a regular wash and freshen up.

Topping up paper supplies

Guests expect to have some paper products supplied for them. Paper towels, bathroom tissue, coffee filters etc. Imagine driving that last 15 minutes down the cottage road at 10pm then finding that someone forgot to pack the toilet paper! So, the changeover schedule should include at least a get-you-in pack of paper products.

I would be highly suprised to find any responsible vacation rental owner who doesn’t have their property checked between rentals. But for those who don’t think it’s necessary, please think again and give your rental guests some respect for the money they have spent to rent your property.

I’ve been having some interesting conversation recently with the founders of We Check it Out. Angela Balan and Jeff Sopik have partnered to bring their unique business and management skills to cottage country in the form of a membership package. Their current plans are designed for owners who need occasional checks to be made on the cottage when they are not there, and to cover emergency situations. It’s a lot like CAA membership in that it provides peace of mind together with access to a pool of trusted contractors for any maintenance issues that may arise. I like the idea and have been wondering how it could be adapted to meet the needs of cottage owners who rent their properties out and need assistance with the changeover process.

One of the biggest issues that face owners who plan on renting out, is how to manage the changeovers. Think about it….if you can’t see yourself making the trip up to the cottage every weekend to check readiness for the next renters, who is going to do it? There are a few choices and given the importance of the tasks that have to be done in that short time frame, it is worth starting early in your search to find that elusive caretaker or property manager.

Do it Yourself Costs

Before I start talking about paying someone else to do it, let’s consider what it actually costs to do the job yourself. If you have to make a 400km round trip you’ll pay around $50 on gas. Add on four hours of driving time plus a couple of hours at the cottage and that pretty much takes up a full day. And, since you only have a limited period of time between one set of renters leaving and the next arriving, there won’t be much time to relax on the dock, or enjoy a boat ride.

Then there’s the issue of a problem arising during the rental. Let’s say the water pump stops working or the hot tub clouds up and needs an application of chemicals. Or a storm passes through and you hear from the renters that the roof is leaking or a falling branch has broken a window.

If you have plenty of free time, are pretty handy and are able to respond immediately to a problem, then I can see it won’t be an issue for you. But, unless you can get to the cottage within a few hours of an emergency happening, you should seriously consider making a connection with someone who can deal with these challenges. Here’s a couple of examples from renters in cottages last summer:

A barbecue wasn’t working – it was an older model and a part had finally parted company with the rest of it. The renters had planned on a barbecue meal to celebrate a special event that night. Resolution: the caretaker drove into the local town and purchased an assembled model and delivered it to the cottage.

After a power outage the water pump failed to operate when the power resumed. Resolution: The property manager called by within 2 hours to reset the pump ( a 2 minute job).

What stops you from hiring someone?

I know of many owners who say they wouldn’t dream of hiring someone to do their changeovers or maintenance. The most common reasons for this are:

• ‘No-one knows my cottage like I do’

• ‘How can I trust someone else to check everything is OK and nothing is missing or damaged?’

I appreciate these reasons are valid. Cottages can have quirky systems that require specialized knowledge to maintain and operate, and a much loved property can be filled with antiques and items of family value. However both these objections can be overcome by careful preparation for third party property management, selecting the right person for the job, and educating that person thoroughly.

What are the options?

Apart from doing it yourself there are three options for your property management:

Ask a Neighbour

Let’s say there are neighbours who live in the cottage community year round; they are a helpful and friendly bunch and one or two have already mentioned they would be happy to ‘watch out’ for your property while you are not there. Sounds good? Well, this could be a great option given that your neighbour is familiar with the area and knows all the local contractors and service providers. He’s also willing to do the job for ‘a few beers’ so although you plan on paying him, it looks like the cost could be minimal.

This can work but there is a real potential for dispute if you are not clear what you expect them to do. Neighbours may not be willing to ‘be on call’; their enthusiasm can wane quickly, and you really need to consider how your friendship could be affected if it doesn’t work out as you expect.

An agency was concerned about complaints they were receiving from renters about the cleanliness of a property. The owners’ neighbour was conducting the changeover at the end of each rental but was not carrying out all the tasks required to ready it for the next rental group. On a couple of occasions, he had forgotten to even check the cottage between renters saying, ‘Something else came up that I had to take care of”. If this had been a business arrangement it would have been fairly straightforward to deal with, but because the owner had only an informal and verbal agreement over the tasks that should be undertaken, it was difficult for him to manage a working relationship with his neighbour. If you want to maintain a friendship, either have a written agreement or don’t go down this route.

It is unlikely that a neighbour/friend will carry liability insurance so it would be wise to check with your insurance broker before you begin to make payments for work being undertaken in your property. Consider the worst case scenario – your neighbour slips on your deck steps while they are at your property doing a changeover and subsequently launches a lawsuit against you for the injuries sustained through your ‘negligence’. Although your rental insurance may cover a claim by a renter, it may not be sufficient to keep you safe from litigation by a ‘worker’ at your property.

Local handyman or contractor

Rather than approaching a neighbour, you might have people in your area who advertise basic handyman skills. We often find these are retirees – often local cottage owners – who like to do odd jobs to generate some additional income. In many cases, once you start talking about the tasks that need doing, you’ll find an enthusiastic response and a couple who will work together as caretakers for you. This is just a step-up from hiring your neighbour – the difference is they are already looking for this type of work and you in a great position to create a long standing relationship and provide them with consistent work over a period of time. I talk to many owners whose property is in the very good hands of local caretakers and they are extremely satisfied with the arrangement. However, as in my comments above, check they carry appropriate liability insurance.

The drawbacks of using independent self employed contractors are that they may be unreliable if they take on too much.

Property Management company

A pricier but more professional approach would be to find a dedicated property management company. There are more of these in the popular cottage country areas – check you local Chamber of Commerce office for information as most will be registered with them.

What you are paying for are skilled workers experienced in all aspects of cottage management who are likely to be fully bonded and insured. What you will have (hopefully) is a professional service that gives you confidence in their ability to manage your changeovers and deal with any emergency that should arise.

Preparing for third party management

Whoever you choose, your most important task is to brief them thoroughly on what you want done. Be as comprehensive and detailed as you can, otherwise you may find something important has been left out. Things you might do without thinking like removing lint from the dryer filter or checking all drawers and under beds for left items need to be mentioned. Schedule at least an hour to go through each room to familiarize them with the layout and arrangement of the property. Don’t forget the outside. Checking that there is plenty of barbecue propane, that the oars and paddles for the boats are in the right place, and that outdoor furniture is clean, are all additional tasks that need to be carried out.

Finally, prepare a folder that contains the following:

• A changeover checklist that gives room-by-room instruction.
• Restocking list that includes all the items that may need to be replenished or replaced for the start of the next rental – this should inlcude paper products, cleaning supplies, tourist information, firewood etc.
• A series of photographs showing the property as it should be at the start of each rental. These are helpful when renters may have rearranged furniture.
• Copies of your renter checkout documents and survey sheets that will be left for the next group of renters.
  

If you are asking your rental groups to leave the property in an ‘as found’ condition, your caretaker shouldn’t need a lengthy time to complete the checklist – depending of course on the size of the property. My rule of thumb for a moderate size property would be that if it takes more than an hour to do the changeover, then it may be cause for deduction from the renter’s damage deposit.

It’s a good idea for your caretaker to bring along a digital camera, just in case there’s been any damage or the place was left in a mess. Photos are indisputable proof particularly if they are time stamped on the day of the renters departure. If he or she doesn’t have a camera and the means to download photos and email them to you, provide a few disposable cameras and get them mailed to you for processing.

I find that most of my renters leave my cottage in a pristine condition and it is simply a matter of running through the checklist and replacing used items.

So, what should you be paying for this service?

The rate will depend on the amount of time the caretaker will be present at the property, together with the distance they travel. Be fair with this. If he or she needs an hour or more to make a round trip to your property and you allow 2 hours for the changeover, they will only have time to do one per day, unless they manage other cottages in the vicinity. Offering too small an amount may not be enough to encourage them to take the job. Take into account any outdoor maintenance that is required – lawn mowing, raking, weeding etc.

Here’s some examples:

An owner on Belmont Lake pays a local cleaner $30 for a changeover in her 700sq ft cottage for which she charges $950 per week.

At a $3000 per week cottage north of Huntsville, the owner pays his caretaker $150 for a changeover in his 5 bedroom property.

Changeover at a 3 bedroom Viceroy in the Haliburton Highlands costs the owner $50 for the service provided by a local resort owner. Lawn and yard maintenance is done by a property management company at $75 per visit. This cottage rents for $1500 per week.

Using a percentage of the rental rate may be useful yardstick. 5% seems to be a reasonable level to work at, however it really depends on where the property is, how far someone will have to travel to carry out the changeover, and the scarcity of suitable caretakers in your area.

Finally, it may be an option to opt for a full cleaning service if this is the only way to get someone to do it for you. This is what I am going for in 2008. I am paying a cleaning team to spend 3 hours at my cottage and do a complete changeover. I’m asking my renters to leave it tidy with all the dishes loaded in the dishwasher, and the beds stripped (I provide linens). The rental rate will be increased to cover the additional cost, I get my Saturday back, and my renters will be very happy they don’t have to spend the last morning of their vacation cleaning the place.

We’ve decided to offer a complete cleaning service with our cottage rental this year. In the past, like most cottage rental owners, we have asked our renters to depart the property on the final day, leaving it in an ‘as found’ condition. In most cases, I am relatively happy with the way it’s left but I’ll always spend a couple of hours cleaning to meet my standards and making it ready for the next guests in my own way.

On our recent vacation in Arizona we stayed in a rental villa, and the departure checklist simply asked us to strip the linens off the beds and leave them in the laundry room, and tidy the kitchen with the dishwasher loaded up. Since we were leaving really early in the morning, not having to do a thorough clean was wonderful.

So, for an experiment in 2008, I am including cleaning in my rental rate which will rise by $150 to cover the service. I’ll employ someone locally to come in for 3 or 4 hours and pay them $100, and provide them with a detailed checklist of tasks they will need to do. I expect it will be much easier to find someone willing to do a longer clean than a quick changeover check. I’ll  also leave my guests a checklist so they know how they should leave the property, as I don’t want to find dirty dishes on counters and beds still made up.

I’d be interested in knowing if any other owners do this, or are intending to do so for next year.