Frequently Occurring frauds at Vacation Rental Houses by property managers / caretakers.
This is just a glance of the frequently occurring frauds that a vacation home owner may circumstantially face while relying entirely on the property manager or a property care taker and owner himself maintaining a complete distance from looking after the affairs of your vacation rental(s). The basic idea here is not to generate any state of uncertainty or doubt, however to stimulate owners to be extra cautious and vigilant. Because of their hectic and busy schedule it becomes unmanageable for them to manage the end number of properties; a manager was hired to look after your belongings, and by the time you realized it was too late. To quote “a termite has been hired which will eat up your rental business”.
Some of the common frauds which might occur in home owners absence:-
You may keep a track record of the visitors by maintaining a book which is being checked on a regular basis however there are certain visitors who might accommodate themselves just for a night stay and the manager in your absence may make handful amount of dollars minus the documentation of which you might be unaware. Keeping a secret / duplicate interim receipt book is one easy way to manipulate receipts. This way the deal will be fruitful both for the manager and the traveler. In order to avoid this miss-happening make periodic and surprise visits at the regular intervals or install a computer T.V.camera (CCTV) at the entrance door or outside the rooms.
Go Cashless: If you’re still accepting cash from renters, this is still an issue! You may put a big warning sign board message for visitors to know that NO CASH IS ACCEPTED at your property!
At times managers acts as a commission agents as well for the other property owners as well. One need to be extra vigilant in order to ensure the agent is not acting as a spy for a 3rd party and generating profits/money for other’s rental property.
Ineffective management of the expenses is just another reason of fraud. The cost of the day to day running, repair and maintenance, handling of creditor payments and receipts is another pain for property owners which requires proper expense management system in place.
Did I put my trust in the wrong person? One of the most frequent and common issue which most of the property owners face is relying or trusting too much on one person. Trust is a tricky thing and trusting someone is a good idea but keep a cautious check and keep asking yourself if you have put your trust in the right person.
Custom automation of daily tasks via a property management software can be an ideal support solution for your growing vacation rentals business.