How to Attract Profitable Short-Term Rental Properties and Ensure Satisfied Owners

Inventory growth has been a buzzword in the short-term rental industry, but do successful managers approach it differently? Are there more thoughtful ways to expand your portfolio and establish long-term trust with your owners? The answer is a resounding yes.

On Wednesday, May 31, 2023, industry leaders and experts gathered for an insightful online conference titled “Growing Your Property Portfolio and Sustaining Owner Satisfaction in Short-Term Rentals“. The event, hosted by Thibault Masson, Founder of Rental Scale-Up and Head of Product Marketing at PriceLabs.

The panel included D. Brooke Pfautz, the CEO and Founder of Vintory, Marcus Rader, the CEO and Co-Founder of Hostaway, and Richie Khandelwal, the Co-Founder of PriceLabs. Each panelist brought a unique perspective to the discussion, and shared actionable insights and practical advice for pre-acquisition due diligence, multichannel marketing, and owner retention.

This article will share the key takeaways from this enlightening discussion, equipping you with the knowledge and tools needed to expand your property portfolio and ensure long-term owner satisfaction. Whether you’re a seasoned property manager or just starting out in the industry, these insights will prove invaluable in your journey.

What are effective strategies for identifying and attracting prime short-term rental properties?

Pictured above: PriceLabs’ World STR Index that reports global short-term rental market trends, with metrics for the next and previous year, refreshed monthly.

1. Use data to identify high-performing areas: Utilize market data and analytics tools to identify areas with high demand for short-term rentals. Look for trends in occupancy rates, average rental prices, and seasonal fluctuations.
2. Understand the local market: Having a deep understanding of the local market can give you an edge. This includes understanding the local regulations for short-term rentals, the types of properties that are popular
3. The vacation rental industry is recession-proof. Even in times of economic downturn, people will still seek out vacation rentals. Keep an eye on the tide using tools such as this real-time Ychart of U.S. GDP growth.

What are the most successful ways to promote my services and attract property owners in the short-term rental market?

1. Richie:
   • Show data that demonstrates your success: Use data to show potential owners how your properties are performing compared to the market. This can be a powerful selling point.
   • Provide revenue estimates: Help potential owners understand how much they could make from their property. This can be particularly useful for owners who are new to short-term rentals.
   • Target underperforming properties: Use tools like PriceLabs’ Market Dashboard to identify properties that are underperforming in the market and specifically target them with your marketing efforts.
2. Brooke:
   • Update your website: Your website should work as a persuasive sales funnel. Spend time updating your property management services page to make it more appealing to potential owners.
   • Leverage a well-designed landing page: This is critical for converting website visitors into leads. The landing page should include key messaging, unique selling points, features and benefits, trust icons, and risk reversals.
   • Use direct mail: This can be an effective way to reach potential owners. You can use list brokers to find absentee property owners, and then send them direct mail that highlights the benefits of working with you.
3. Marcus:
   • Highlight your local knowledge: If you’re a local property manager, highlight your deep understanding of the local market. This can be a key selling point for owners.
   • Show your commitment to service: Show potential owners that you’re committed to providing excellent service. This could include sharing testimonials from satisfied owners or providing data on your response times.
   • Be ready to adapt: The vacation rental market is constantly changing, so be ready to adapt your marketing strategies as needed.

How can I use data to make better deals with property owners and ensure their long-term satisfaction with my services?

1. Richie:
   • Use data to set expectations: Use data to set realistic expectations with owners about potential earnings and occupancy rates. This can help prevent dissatisfaction down the line.
   • Provide regular performance updates: Regularly provide owners with data on how their property is performing. This can help them feel more confident in your services and can also help identify any potential issues early on.
   • Use data to identify opportunities: Use tools like Priceless Market dashboards to identify properties that are underperforming and could benefit from your services.
2. Brooke:
   • Use data to inform your decisions: Use data to make informed decisions about which properties to take on and which to let go. This can help ensure that you’re focusing your efforts on properties that will yield a good return.
   • Regularly survey owners: Regularly survey your property owners to gauge their satisfaction and address any concerns. This can help you maintain good relationships with your owners and reduce churn.
3. Marcus:
   • Use data to improve your services: Use data to identify areas where you can improve your services. This could include things like response times, maintenance issues, or guest satisfaction scores.
   • Be transparent with owners: Be transparent with owners about how their property is performing and what you’re doing to improve it. This can help build trust and ensure long-term satisfaction.
   • Use data to negotiate better terms: Use data on property performance to negotiate better terms with owners. For example, if a property is consistently performing well, you might be able to negotiate a lower commission rate.

What’s the best way to share information with property owners and get new properties up and running quickly to start making money?

1. Richie:
   • Use data to inform owners: Regularly provide owners with data on how their property is performing. This can help them understand the value you’re providing and can also help get new properties up and running quickly.
   • Provide clear guidance: Provide clear guidance to owners on what they need to do to get their property ready for rentals. This could include things like cleaning, maintenance, and setting up the listing.
   • Use technology to streamline processes: Use technology to streamline the process of getting new properties up and running. This could include things like automated onboarding processes or digital contract signing.
2. Brooke:
   • Communicate regularly: Regular communication with owners is key to getting new properties up and running quickly. This could include regular updates on the onboarding process, as well as any issues that arise.
   • Use a checklist: Use a checklist to ensure that all necessary steps are taken to get a property ready for rentals. This can help ensure that nothing is overlooked and can speed up the onboarding process.
   • Leverage your team: Leverage your team to help get new properties up and running quickly. This could include having a dedicated onboarding team or using a project management tool to track progress.
3. Marcus:
   • Use a property management system: Use a property management system to streamline the process of getting new properties up and running. This can help reduce the time it takes to get a property ready for rentals.
   • Be transparent with owners: Be transparent with owners about the process of getting a property ready for rentals. This can help manage expectations and ensure that owners are satisfied with the process.
   • Focus on quality: Focus on ensuring that each property is of high quality before it’s listed. This can help attract more guests and generate more revenue in the long run.

How can I retain owners?

1. Richie:
   • Provide regular performance updates: Regularly provide owners with data on how their property is performing. This can help them feel more confident in your services and can also help identify any potential issues early on.
   • Be responsive: Be responsive to owners’ concerns and questions. This can help build trust and ensure that owners feel valued.
   • Use data to demonstrate value: Use data to demonstrate the value you’re providing to owners. This could include things like increased occupancy rates or higher rental prices.
2. Brooke:
   • Regularly survey owners: Regularly survey your property owners to gauge their satisfaction and address any concerns. This can help you maintain good relationships with your owners and reduce churn.
   • Provide excellent service: Provide excellent service to both owners and guests. This can help ensure that owners are satisfied with your services and are more likely to stay with you.
   • Be transparent: Be transparent with owners about how their property is performing and what you’re doing to improve it. This can help build trust and ensure long-term satisfaction.
3. Marcus:
   • Protect your staff from difficult owners: If an owner is causing stress or discomfort for your staff, it may be time to let them go. This can help ensure that your team is able to focus on providing excellent service to the remaining owners.

Which owners should you let go?

1. Richie:
   • Let go of owners of underperforming properties: If a property is consistently underperforming and not yielding a good return, it may be time to let go of that owner. This can help you focus your efforts on properties that are more profitable.
   • Let go of difficult owners: If an owner is consistently difficult to work with or causes unnecessary stress for your team, it may be time to let them go. This can help ensure a healthier, more productive working environment.
2. Brooke:
   • Let go of owners who don’t align with your values: If an owner consistently behaves in ways that don’t align with your company’s values or expectations, it may be time to let them go. This can help ensure that your team is able to work effectively and maintain a positive work environment.
   • Let go of owners of properties that don’t fit your business model: If a property doesn’t fit your business model or target market, it may be time to let go of that owner. This can help you focus your efforts on properties that are a better fit for your business.
3. Marcus:
   • Let go of owners who are difficult to work with: If an owner is consistently difficult to work with or causes stress for your team, it may be time to let them go. This can help ensure that your team is able to focus on providing excellent service to the remaining owners.

Conclusion:

Successfully scaling short-term rental businesses requires a strategic approach to identifying and attracting prime properties, maintaining strong relationships with property owners, and focusing on quality service. By utilizing data-driven decision making, streamlining onboarding processes, and fostering open communication, you can ensure long-term satisfaction for both property owners and guests.

Additionally, knowing when to let go of underperforming or difficult owners allows you to concentrate your efforts on more profitable properties and maintain a positive work environment. Implementing these strategies can lead to a thriving short-term rental business that benefits both you and the property owners you serve.