For those entering the short term property investment space, the expectation of holiday rental management is seldom the same as the reality. Many new investors make the assumption that management is one of those things that will take care of itself. Or, they may assume that they will think about that when the time arises. Not many property owners have a solid understanding of rental management, after all.
While getting bookings and bringing in income might seem like the most important thing in this business, both of those are directly affected by holiday rental management. Without a strategy in place on how you will manage your property every day, you will quickly find out why a well-managed property is booked out more frequently (and consistently) than a poorly managed property.
Today, we’re taking a look at the realities of holiday rental management to see how they stack up against the expectations that many new investors have when purchasing holiday property.
Holiday Rental Management: Expectation vs Reality
What exactly does holiday rental management mean? How important is it really to ensure that your property is managed professionally? Is short term rental management just another cost to avoid, or should you be seriously thinking about how to get the most from your rental investment? Let’s take a look at some of the typical expectations to find out.
Expectation 1: Management is a waste of money, with no real value
At any given time on platforms such as Airbnb, there are hundreds of villas and apartments being offered to prospective guests. Do you truly understand what guests look for when choosing holiday rentals? Or, are you simply assuming they want what you would want when browsing accommodation? In almost every case, one of the top criteria for the average guest is a high level of service. Guests want to enjoy a stress-free holiday, starting from the moment they make enquiries, and ending when they check out. Management is the single most important factor separating a positive experience from a negative experience. It’s the little things – regular housekeeping, welcome packs, guest concierge, 24-7 assistance, fresh flowers and a stocked fridge. It’s also the bigger things – clean swimming pools, fresh towels and bedding, fully equipped kitchen, free WiFi, working appliances. It’s the difference between being personally met and welcomed when arriving, and having to collect keys without any interaction. Not only is management not a waste of money; it is one of the best things that you can do for your investment. A well-managed rental will always get good reviews, repeat bookings and a solid reputation.
Expectation 2: Management is easily something you can handle on your own
Time and time again, we have seen that self-managed rentals can never compare to professionally managed rentals. Trying to do it on your own will almost always result in low booking rates, guest complaints, endless headaches and a great deal of stress. Even if you do not have a day job and you have time to dedicate exclusively to managing reservations, dealing with guests, organising housekeepers, maintenance, handling day to day management and also marketing your property, you will have trouble doing everything on your own. Unless of course, you are an experienced holiday rental manager with ample experience. Forking out a fortune for individual services quickly adds up, too. This is one of the main reasons that many property owners turn to the experts. Holiday rental management offers a simple, cost-effective way to ensure that your property is run efficiently at all times. It encompasses a huge range of services, from active marketing across diverse channels to day to day maintenance, bookings management and guest services. It allows you to focus on all the other things you have on your plate, with the peace of mind in knowing that your property is in good hands.
Expectation 3: Management can be scaled down to only the barest of essentials
You could, of course, strip things down to the absolute basics. You could outsource a housekeeper to keep things clean. You could skimp on the concierge and simply provide guests with room and board instead of offering them an inclusive accommodation experience. You may save some money with this approach. But, if you are serious about succeeding in the short term rentals space, you may find that you battle to compete against the many properties that are providing their guests with a superior stay. You may also find that your bookings start to dwindle, or that your reviews are either non-existent or less than glowing. Providing guests with an ‘ok’ villa or apartment is very different to providing them with an amazing accommodation.
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A good holiday rental manager will work with you to create a tailored solution that is designed especially with your property in mind. Working with a professional short term rental property manager can be the best move that you could ever make for your investment, with the potential to grow your returns like nothing else.
Interested in learning more about holiday rental management? Contact Totalstay today and let us know how we can take your holiday rental to the next level.