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

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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How to Get Top Dollar for Your Vacation Rental – Every Day of the Year

It’s one of the most common mistakes made by do-it-yourselfers renting out their own vacation rental properties.

It inevitably results in less-than-optimal rental revenue.

The mistake? Charging the same rate … every day of the year.

annual revenue for property owners

Maintaining a set fee for your vacation rental means it’ll at times remain unoccupied when it could be earning you money. At other times, you’ll reach a state economists call “excess demand.”

When the latter happens, owners may say things like, “My place is booked solid for weeks.” Property owners in this boat may not realize it, but they could be losing big bucks by not charging enough.

Fortunately, there’s an easy way to avoid these losses.

Software technology is available that continually scans supply and demand on comparable properties and even hotel rooms. It takes into account holidays, special events, and even site commissions, to optimize rates daily across all travel sites, including Airbnb.

Daily rate optimization raises annual revenue for property owners by 15%-25%. And all that money goes right to the bottom line.

This lucrative technology is out of reach of typical property owners, but it’s standard for all clients of One Fine Flat, the full-service vacation rental property management company.

Think of daily rate optimization as a key to proper “revenue management.” Because it is.

Schedule a complimentary consultation with us on optimizing revenue from your vacation rental property … every single day.

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Optimizing Revenue From Your Vacation Rental Property Requires More Than Airbnb

Maximizing income from your vacation rental property means making the most of Airbnb. But vacation property management is about much more than Airbnb management.

airbnb property management

Many advertising textbooks discuss the contribution of reach to marketing success. By reaching more prospects for your vacation rental, you raise demand. As a result, you command higher fees.

To make this happen, your property should be shown where short-term vacationers are searching. Besides Airbnb, your property can and should be listed on 50+ sites, including Booking.com, Expedia, HomeAway, KAYAK, TripAdvisor, and VRBO – plus Google, social media sites, and other online locations.

Now, you may be thinking, How on earth will I ever be able to do all that? Short answer: You don’t have to. Even if a property owner somehow manages to pull all that off on their own, they’ll find it hugely difficult to track reservations from multiple sources and avoid double-booking. But the right full-service property management company will take care of all of these listings and resulting reservations for you, and let you largely sit back and collect a check each month.

To find the ideal service in that sea of property management companies, it’s not enough to search for Airbnb management companies. They’ll tend to be good at only one aspect of vacation rental property management. Quite possibly, for lower fees than an Airbnb-only company, you can get full-service vacation rental management that ensures your property’s presence is optimized wherever it belongs.

See for yourself by speaking with One Fine Flat. Take the next step and schedule a complimentary consultation on optimizing revenue on your vacation rental property.

“One Fine Flat always has their customers and clients in their best interest. They are very professional and their rates are very reasonable. This company’s ultimate goal is to make sure you get the most for your property IF done within the necessary tools needed to have a successful vacation rental. Highly recommended if you want your home to generate income!” – Chrissy Taks on Google