Why do you need a property manager for your vacation rental?
Now, you might think to yourself, do I need a property manager that specializes in vacation rentals? I mean, how hard can it be? Well, it all comes down to how successful you want your investment to be given your time availability. If you ask anyone, “do you rather make 100% of 1 or 82% of 3?” the answer is pretty clear.
The Airbnb business model or short term rental model is the hot topic amongst investors looking to diversify into real estate. Everyone is talking about it, and it’s all over your social media feed. You have probably traveled somewhere and experienced a stay in one. Maybe you have heard the stories of people making some nice income from one. If you’re new in the business or you’re an owner-operator, here are some reasons why you need a property manager for your vacation rental.
24/7 concierge service
Just picture this, it’s Friday night, and you’re hanging with your family. The phone rings, and it’s the guest. Not only do they need more towels, because when it rains it usually pours, but they also need a pack n’ play because they brought their baby with them. I know you don’t want to make the drive out to the property, but can you afford a bad review in a business that is vitally dependent on them? I don’t think so.
A property manager will provide a quick response to this type of situation. A majority of companies offer a 24/7 concierge service, and a local team ready to assist your guests in their necessities. This will considerably add value to your customer experience, increasing positive reviews on your listings.
Maximum exposure = Maximum income
Then again, you might be able to escape most of these instances, but “if you want to maximize your income,” you can’t just list on one channel. You have to get on as many channels as possible. Considering there are thousands of them online, you now must list on as many as possible to drive quality guests to your property.
Follow the step by step, create the account, get verified, upload the pictures, create the description, and the list goes on. After many attempts and probably hours later, your listing is live. Out of nowhere, there it is, you got your first booking from that new booking portal, but guess what? The same weekend is already booked on another channel. In this case, most channels will penalize your account for canceling reservations. In these situations, we recommend a channel manager. There are many different channel managers and their features vary. Components and details like these are vital components of a wildly successful vacation home.
A property manager has plenty of experience managing multiple properties. Stratton Hospitality uses a channel manager to centralize all the bookings coming from different platforms. This advanced software will help our customers to avoid duplication and penalities. You will be able, not only to diversify the sources where you get bookings, but it will also ensure a higher conversion rate and income, compared to a single-channel listing.
Keep your home in Top Shape
Since this is a business that relies heavily on customer experience, keeping your home in top shape is a must. Constant cleaning and regular maintenance procedures such as drain unclogging and paint fixes are some of the tasks a property manager handles for you.
At Stratton Hospitality, we replace inoperative basic light bulbs as well as batteries for the smoke detectors, electronic entry lock, TV, and other remote controls as needed. We also replace AC filters every month, provide firewood if the home has a chimney, and propane gas or charcoal if the home has an outdoor barbecue.
The scope of services might change depending on the company. Generally, a property manager will focus on maintaining great upkeep of the property to increase positive reviews and returning guests.
If your housekeeper goes ghost, doesn’t answer, or quits the last minute, and you have the next guest check-in in 2 hours. Guess who will need to handle the cleaning of your rental? If you’re devoted to your vacation rental, this shouldn’t be a problem, but what if you’re not available?
Having a property manager is handy when it comes to cleaning issues. A majority of management companies offer housekeeping services before and after every guest stay.
These are some of the aspects we care about at Stratton Hospitality:
- Supply and replenishing of bathroom and kitchen amenities.
- Linen Care.
- Bed make-up.
- Trash Removal.
- Pest Control.
- Pool and hot tube services.
Guests look for consistency every time they make a booking. They expect to find their rentals just as they look in pictures. Achieving this is only possible for having a reliable cleaning team helping hosts to maintain their reputation among booking portals.
A great investment requires a great partnership
When it comes to real estate and vacation rentals, there is a potential for income well above a fixed rental. For years, investors saw real estate as passive income or preservation of capital. But just recently, the vacation rental business model has allowed investors to 3x and sometimes 4x the amount of a regular rental.
This exciting business opportunity has a lot of potential investors looking to get their hands on their first investment property and maximize their income by as much as 3X. However, as with any business or investments, there are risks, time, and capital required. More importantly, there are GUESTS, and they will require your attention. Here’s when a partnership with a property manager comes into action. It will help you to deliver a true hospitality experience and increase your income with no hassle attached.
Written by Juan Diego Serna | Finance Manager at Stratton Hospitality