Three Secrets to Success in Short-Term Rental Management
If you don’t mind your real estate business, who else will?
Paul Smith, a best-selling author, speaker, real estate investor, and co-founder of Diamond Serviced Apartments and Touchstone Education, posed this question at the 2017 RealWorld conference at the Wynn Las Vegas. However, minding your business doesn’t require you to work around the clock. Smith’s definition of a successful short-term rental management business is a profitable enterprise that works even when you aren’t around.
Here are three tips from Smith on building a successful and sustainable business, all while saving time:
1. Develop a strong plan
Smith recommends starting with a defined goal and timeline. What level of profit do you want to achieve, by what time? A clear vision is instrumental if you want to be successful in short-term rental management. Doing research into your market, along with local legislation and regulations, will help you establish key performance indicators.
Once you have determined what you want to achieve, Paul recommends analyzing your KPIs by property and by month. How is each performing? From there, what adjustments do you need to make?
“Just because you’re measuring doesn’t mean you’re managing” warns Smith. “You have to do something with the information.”
2. Secure the right systems
Repeatability is key. Can you successfully duplicate your efforts property by property, month after month?
Smith’s company, Diamond Serviced Apartments, leverages Kigo revenue management software to consistently achieve maximum occupancy and increase revenue, with very little effort. Staying up-do-date with market trends is imperative in short-term rental management. With revenue management software, this work is done for you, and rates are automatically updated based on real-time changes.
Smith also emphasized the importance of a company’s marketing efforts and vacation rental management website. “If your website isn't mobile friendly, you're missing out on 2/3 of potential bookings… additionally; the average time a prospective guest spends on a listing is 2 seconds. You only have a moment to make a great impression.”
3. Hire great staff and vendors
Anyone in short-term rental management knows that there are a myriad of tasks that need to be completed for the business to stay afloat. There are communications to be sent, repairs to be made, guests to let in, and other day-to-day operations that need attention.
Instead of hiring full-time employees to manage all of these responsibilities, Smith recommends outsourcing where possible to conserve resources. Choose vendors who are trustworthy and credible. From there, hire office staff to handle the more critical pieces of your business. These people should be enthusiastic, passionate, and represent your business well.
By creating a plan, implementing great systems and hiring the right individuals, you can achieve a winning combination for success in short-term rental management.
This month, Kigo will present at The Serviced Accommodation Conference & Awards, hosted by Smith’s education company Touchstone Education. Join leaders in short-term rental management on September 30th in Doncaster, England! Tickets are available from just £99 plus VAT. Discounts are available for multiple bookings.
As a special offer for Kigo readers, Smith is also offering a discount on his new book, The Serviced Accommodation Success Manual. Save £8.97 when you apply discount code 897PROMO at checkout.