Renting your condominium

Most people that have purchased a condominium in Nuevo Vallarta have done so primarily as an investment, with usage as an added benefit. The initial returns are the pre-sale profits, followed by property appreciation and the rental income of your unit. The first two occur when you purchase, but the rental process is something you can maximize with a little bit of effort, creative thinking and understanding of how the process works.

One of the many questions I am asked has to do with services that will be provided by the management hired, directed and controlled by the Board of Directors of your condominium project. An important fact to remember as an owner is that you are as much a part of the condominium association as anyone else involved, including the owner/developer. The project management will do what you vote them to do. True, the developer will control the association in the beginning, but as soon as 50% plus one unit has been delivered, the control will be turned over to the owners.

Let the management take care of the project, but have your own property management team to take care of you, your unit and most importantly, renting your unit. Lloyd Property Management Services will: pay monthly bills, inspect your unit on a weekly basis to open the windows and doors for air circulation, inspect for problems, meet your renters to check them in and do a walk through, provide maid service, take care of maintenance and repair, and check them out. This management team will provide every service you need, including picking you up at the airport, to getting you a private chef and even food shopping for you.

My experience as a real estate developer in the United States was that home owners associations could be a nuisance to everyone. As in life, everyone has their own agenda, and trying to get more than a few people to agree on anything can be next to impossible. Anyone who has ever lived in a condominium project will certainly relate to this. The difference here is that everybody will have one important thing in common that will keep them together in their thinking: renting your condominium as much as possible, with the least amount of problems. I don't think that the owners association management will have your best interests at heart in renting as will your own property manager.

With that in mind, consider that there will be a process, but everything will get worked out to provide a smooth operating system, helping everyone attain their goals.

To achieve maximum results in renting, you need both your property management team and your own efforts.

Each owner needs to do some homework

1. You are going to need a way to communicate with your potential renters. This means starting a new e-mail account with an address that is catchy and self-explanatory as possible. Start thinking of a name you can use. I was in my dentist's office the other day and saw a large postcard with pictures of a condominium, with a view of the ocean, and the address on the card was rentmycondo@yahoo.com.

2. Take some time and examine some rental web sites. Check out several rentals that are doing what you will be doing. Study them well. Which ones have the most weeks rented? What is it about their sites that would attract you as a potential renter? Become an expert on Puerto and Nuevo Vallarta. This is a business you have bought and you need to know the competition. It's not a matter of luck that two people who own condominiums at a particular resort, have different amounts of weeks rented for essentially the same types of units.

3. Start making a list of places where you can post pictures and information of your condominium for others to see. When you are shopping or doing errands, look for places you can get free exposure. Grocery stores, post office, your place of work, the golf course, anywhere you go may have a bulletin board. You just never see them unless you are interested. How about the offices of your doctor, dentist or chiropractor, to name some? These professionals have dozens of people in their offices daily. I am sure that if you ask, they will be happy to let you leave your information sheets for others to see and pick up. When people see what you have to offer, they may become your clients. How about your local Starbucks? That could prove to be a gold mine.

4. Probably the place where you will have the most luck will be within your own sphere of friends, co-workers, relatives and people you see on a regular basis. You know people who would love to rent your condominium to vacation. Don't be bashful in talking to others about how excited you are with your new investment. Do not wait, start now.

5. How about charity events? Anyone who buys a new oceanfront condo is wealthy enough and probably involved in some charity event or social activity every year. When you have an opportunity, you could donate a week in your condo. It will accomplish several things: Giving money to a worthy cause always makes us feel good, and think about all the other wealthy people who will see your advertisement about that wonderful condominium on the beach in beautiful Puerto Vallarta. How many calls do you think that will generate? And, it's a tax deductible event. Isn't that a great idea!

6. Another inexpensive way to communicate is through flyers. I used to get a large package of flyers in the mail every month, and I always looked at them and found interesting things. Check it out in your area and see what it would cost to send one out every month.

7. How about the travel section of your newspaper? It may prove to be too expensive to use, but should be tried at least once to see what kind of return you get for the money you are spending.

8. I have one client who does nothing more than run a three line ad in his local newspaper, and has a minimum of twenty weeks rental per year.

9. The internet will be your best choice for a long-term ongoing ad campaign. You need to paint a word picture about your condominium, as well as using photos to deliver your message. Beachfront projects have the amenities that people on vacation want. You need to make sure that everything is talked about in your ad. Do not try to save money by using just one rental site. Like fishing, the more hooks in the water, the more fish you will catch. Also, Nuevo Vallarta is now considered one of the premier golf destinations. Why not make a deal with a few of the Vallarta golf courses for some gift certificates and offer two rounds of golf as a part of your package. I bet you could get them at a discount, because the golf courses also want people to play, they have a repeat business just as you do.

10. I have been asked several times about furniture packages. What to get is a question that does not have any one good answer. But, think about yourself and what you felt when you went to an expensive resort. Was the furniture nice, pleasant to look at, and sit on? To be really successful here, you need repeat business. You will never reach twenty plus weeks renting to first time users. My suggestion is to buy nice color coordinated mid-line furniture that is sturdy enough to have a good wear factor. Many people seem to like wicker types of furniture; it fits the area and weather, and is beautiful. Mexico is also famous for its wrought iron furniture. Also, be prepared, good furniture is not inexpensive in Puerto Vallarta.

Mattresses are also very important, Mexicans seem to like them rock hard. Get ones that are softer, nothing will kill your repeat business faster than clients that can't sleep well. When you buy televisions, think about getting the flat screen, high definition models that bolt onto the wall. They may cost more, but the men in the family will be so impressed that they will want to come back again. Buy a nice welcome mat that will greet your guests when they arrive. Make a deal with your property manager that for a small fee, they will put a bowl of fruit and some flowers in the unit just before your renters arrive. Remember when you went to that expensive hotel and found the chocolate on the pillow, it's a very cheap, but effective detail.

11. Nuevo Vallarta has become a golf destination. You should investigate the cost of a small ad in golf magazines. I play golf and read at least two of the magazines, including the ads. I don't know if the return is worth the expense, but it has to be tried a few times to find out.

12. If you own a business and have employees, what about using a few weeks as rewards for work performance? If you are in a business where you sell something, why not offer a week as a reward for a big order?

13. In the resorts I have rented from, they always have a list of rules and regulations that apply with that unit. People that rent like to know what is expected of them. Ask your property manager for a fact and rules sheet, and include another sheet with a list of good local restaurants, entertainment tips and interesting places to visit. Excellent service is the key to repeat business, and you should try to do extra things to get your client to return next year.

14. Create a follow-up program. Perhaps some kind of an email form that asks how things went, if everything met with their expectations and if there is anything that could be done to improve their experience. Then send another email in a few months, asking if they want to book again next year. Get creative, publish a monthly newsletter. Do something that keeps the clients thinking of you.

15. How about a referral program? For every referral that rents for a week, you could give the person one day free when they rent. There are lots of ways to get creative and these details will help keep your condominium full.

These are some ideas that could help you to be successful in renting your condominium. Think about them, try the ones that suit you best. Once you find what works for you, stay with it. All of these suggestions should prove to be helpful in renting your condominium.

But an important factor to take into account is that renting your condominium requires effort and time. Lloyd Property Management, with its professional management and rental services, is willing to perform these tasks for you, so that renting your condominium can be a fun and profitable investment experience in Mexico.