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You need to be fluent in how to use linux, at least the basics such as securing your server, checking log files, updating software, etc. You also need to know what to do if something breaks.
Does your hosting company offer a control panel on their VDS's? This will help make things easier as you won't have to work completly from the command line.
If you know nothing about server administration, you may be better off going with a company that offers a fully managed VDS. That way, you will still have full control but also have somebody there to help you if things go wrong. Again, look for a host that offers cPanel/WHM on their servers as this will makes things alot easier for you.
Another option is to get a VDS, but hire a server admin to take care of it for you. A server admin isn't needed however if you get a fully managed server.
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