Why Many of the Highest-Earning Vacation Rental Owners Use a Full-Service Property Management Company

Orlando Property Management

Let’s say you’ve decided to become one of the 2.9 million hosts on Airbnb. Your aim: earn as much money as possible – as fast as possible – while enjoying your vacation rental property each year.

As you consider the possibilities, you find yourself saying something like, “Surely I’ll earn more if I keep all the revenue, rather than turn over a percentage to a vacation rental property management service.”

If that’s you, consider this: whether you act as your own vacation rental property manager or hire a full-service vacation rental property management company, your bottom line will ultimately depend on this simple calculation:

Revenues – Expenses/Costs = Profits

To optimize profits, let’s start with the revenue side. Your vacation rental property absolutely should be listed on Airbnb – and on 50+ other sites. You’ll want listings to take full advantage of each site’s unique characteristics, with words and photography that compel viewers to act.

After your listings go live and you begin hearing from potential guests online (in the vacation rental property management industry we call them “inquirers”), you need to respond to each inquiry in a complete, polite, and timely manner – even if it’s 10 p.m. and you’re exhausted after a long day. If you don’t, you’ll reduce the quality of the experience before a guest even walks through your door.

While communicating with inquirers, it’s important to not “double book” – a common mistake among do-it-yourselfers in vacation rental property management (particularly when listing on multiple sites). When you book different guests for the same dates, someone ends up being disappointed.

A key contributor to revenue is, of course, pricing. Anyone who prices their property at the same rate throughout the year is guaranteed to be missing out on substantial income. Optimal pricing means scanning supply and demand of comparable properties daily – factoring in holidays, special events, and hotel room prices.

Vacation rental owners who attempt to perform price optimization manually tend to find the process time-consuming and almost impossible to pull off.

Fortunately, the right full-service vacation rental property manager will use technology to perform daily rate optimization … as part of their fee. And get this: the increased revenue from daily rate optimization may cover the entire cost of your property manager!

Now let’s return to communication, which by no means ends at the inquiry phase. Booked guests need to hear from you before arrival. If a problem comes up during a stay, they’ll want it quickly addressed. This is particularly true of urgent issues – including the 3 a.m. type. And after each stay, your guests should be encouraged to do something that contributes heavily to revenue: post a review.

On that note, let’s look at a significant contributor to ratings on sites like Airbnb: the expense side. Your property should be thoroughly cleaned before the arrival of guests (the right property manager will include this as part of the management fee). The unit should be sufficiently stocked with starter supplies like shampoo, toilet paper, dishwashing liquid, and more (the right manager will also include this as part of the fee).

So, feel you’re up to the task? If your answer is a big “HECK NO!”, you’ve discovered why many of the highest-earning vacation rental owners use a full-service property management company. 

Find out more about optimizing the bottom line of your vacation rental using Airbnb and other sites. Download Capitalizing on the Vacation Rental Boom: 8 Keys to Success.

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The Best Vacation Rental Property Managers Are Strategic

As we pointed out in our last post, when managing vacation rentals promoted on Airbnb and elsewhere, the devil is indeed in the details.

But there’s more to the art and science of vacation rentals than optimizing tactical elements like listings, pricing, cleanliness, customer service, and use of the latest technology.

There’s the strategic side. For example, determining if it’ll be cost-effective to make a major furniture investment in a Palms Place Hotel and Spa vacation rental in Las Vegas. Or whether that next vacation rental property purchase should be in the Mondrian South Beach condo hotel on Miami Beach or in Fort Lauderdale’s Conrad hotel.

Best Vacation Rental Property Manager

Most owners of second homes and investment properties who go into vacation rentals lack the skill to make the right strategic moves entirely on their own. That’s’ where a full-service vacation rental property management service comes in.

When deciding on the Big Stuff, your property management company should be a key resource. After all, they’ve repeatedly seen what produces the best return on property investment for owners. Strategic advice is a value-added service you should expect from your manager.

Find out more about acting strategically and optimizing all major elements of vacation rentals, on Airbnb and everywhere else. Download Capitalizing on the Vacation Rental Boom: 8 Keys to Success.

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In Vacation Rental Property Management, the Devil Is in the Details

Let’s say you own a gorgeous property in a spot popular with vacationers. You should be a shoo-in to earn big bucks from vacation rentals – right?

Maybe.

Even if your property sits in a prime location in Las Vegas, Miami Beach, or Fort Lauderdale, it’s not enough to simply post your vacation rental on Airbnb and expect the money to keep rolling in.

To succeed, you need to optimize a full set of factors, starting with the fact that your property profile should appear on 50+ sites (yes, there’s more to vacation rentals than Airbnb). In every listing, your property profile should be complete and compel the right viewers to book a stay. On that note, listings should be well-written, with professional-grade photography.

Full Service Airbnb Management

So that’s THE big secret?

Actually, there’s considerably more. Your property also needs to be consistently stocked and cleaned like clockwork after each stay. If that doesn’t happen, reviews – and occupancy rates – will be lower. And to ensure higher revenue, you should use what’s called “dynamic pricing,” with fees to your renters optimized on a daily basis.

“Touchpoints” before, during, and after each stay are critical for success. Inquiries from potential guests need to be answered promptly and thoroughly. When a guest requires assistance during a stay, someone in a position to help must be readily available. And because so much depends on ratings, after each stay, a review should be solicited, to help maintain your edge over comparable properties.

Your property needs to be carefully inspected after each stay, to identify wear and tear, including items in need of repair. When repairs are required, they should be done promptly, before they compromise the experience for a guest and yield a less-than-stellar review on Airbnb or elsewhere.

On top of all that, local policies and special events can (and do) at times create challenges and opportunities. Vacation rental property management isn’t first-rate unless those aspects are adequately addressed as well.

Okay – that about does it. We know it’s a lot. Now here’s the good news: You don’t have to go it alone. The best full-service vacation rental property management company for you will handle those tricky details, so you sit back and collect a check each month.

Schedule a complimentary consultation on potentially relying on One Fine Flat to sweat the details and enable you to make the most of your vacation rental opportunity … every single day.