Whenever we first chat with prospective clients, they ask what separates us from others in the area. First of all, we LOVE so many of our “competitors” (they’re actually our friends and peers more than they are our competitors). In describing who we are and what we do, the first thing we tell our clients, is that we are PROUDLY a VLS Licensed firm with a VLS licensed agent.
That’s usually met with some pretty blank stares, some shrugs and an, “......ok…..”.
So, here’s what it means:
In the state of Tennessee, in order to care for, manage, and collect/disperse revenue from a property that is not your own, you are required by the Tennessee Real Estate Commission to obtain your Vacation Lodging Specialist license for both your firm, as well as an agent of your firm, who will serve as a primary responsible party in the eyes of the Tennessee Real Estate Commission.
This license means that you’ve undergone adequate training, you’ve established a local business presence, and you’ve proven to the state that you have both rental ESCROW and business OPERATING accounts, so you’re not commingling clients’ money with your own.
A lot of our clients don’t know why or how this might affect them, and the truth is, it MAY never affect them, BUT if a management company is without either OR both their firm and agent license, they are liable to be fined $1,000 per property, and receive a stop order for their business, meaning your reservations would be canceled, resulting in a potentially devastating loss of revenue!
We understand different firms and structures are right for different kinds of clients, and we are absolutely not always compatible with a property owners’ style, but we ALWAYS recommend property owners ensure that whoever they partner with to care for their property is able to provide proof of both of their VLS licenses. It could make a substantial difference in the success of your property!