Last week at VRWS 2024 in Porto, industry heavyweight Richard Vaughton from Yes Consulting delivered a powerful presentation aimed at solving one of the toughest challenges for short-term rental managers: how to achieve higher profits while keeping overheads in check. Managing 50 to 300 properties is no easy feat, and Vaughton’s deep dive into performance metrics revealed just how much variation exists in how companies allocate resources—whether in staffing, marketing, or technology.
In his no-nonsense style, Vaughton set out to uncover whether the most profitable operators had some “magic” formula. Was it market knowledge, superior staff management, or perhaps tech-driven bookings? His conclusion: There is no single “golden bullet,” but there are clear indicators of best practices—smart technology use, lean staffing, and a laser focus on profitability. For managers facing tighter margins and increasing regulatory pressure, these insights couldn’t be timelier.
Key Metrics Every Property Manager Should Track for Profitability
Vaughton’s presentation made it clear: successful companies know their numbers inside out. For short-term rental managers, the following metrics are crucial in identifying where your business is thriving and where it needs improvement:
Net Profit per Property
Vaughton’s analysis showed that properties generating consistently low or negative net profits are dragging your portfolio down. Managers should set a clear threshold and offload properties that fail to meet it. This creates room to invest more in high-performing assets.

Profit per Person
Another standout metric from Vaughton’s talk was the emphasis on lean staffing. By calculating the profit per person employed, managers can better understand if their operational teams are over- or under-utilized. According to his data, there’s often significant variance in how efficiently companies manage staff costs across portfolios of similar sizes.

Technology Spend as a Percentage of Gross Income
As tech costs rise, Vaughton advised keeping a close eye on this metric. Striking the right balance between tech investment and operational efficiency is key—whether you’re running a lean team or managing hundreds of properties. His guidance was clear: keep technology costs down without sacrificing essential automation tools that help scale the business.

Strategies for Maximizing Margins
Beyond tracking the right metrics, Vaughton provided a playbook for boosting profitability without scaling back on service or guest experience. Here are the top strategies he highlighted:
Focus on High-Quality, Compliant Properties
Vaughton emphasized the importance of maintaining a portfolio filled with high-quality properties that meet regulatory standards. Not only do these properties tend to attract better guests, but they also reduce the risk of costly compliance issues and penalties, creating long-term stability for your business.
Add New Revenue Streams to Each Booking
Upsells, booking fees, and shared income from local partnerships can provide an additional revenue boost. Vaughton encouraged managers to explore creative ways to add value for guests, whether through local experiences or premium services, which can significantly increase per-booking revenue.
Cut Technology and Operational Waste
As tech becomes an integral part of property management, Vaughton advised streamlining tools to avoid overlapping functionalities and excessive costs. Managers should regularly audit their tech stack and assess whether each tool is truly contributing to operational efficiency or simply adding unnecessary expenses.
Offload Unprofitable Properties
One of Vaughton’s strongest recommendations was to cut underperforming properties. Keeping unprofitable listings in your portfolio not only strains resources but also diverts attention from properties that are driving real returns. Setting a clear minimum profit threshold and regularly evaluating properties against it is key to sustaining a lean operation.
The Power of Scale
A major theme in Vaughton’s presentation was the importance of scale. He made a compelling case for why expanding your portfolio—if done strategically—can unlock new efficiencies and opportunities for revenue growth.
Amortize Costs
As you scale, certain fixed costs, such as technology, marketing, and operations, can be spread across more properties, making each one more profitable. For example, marketing costs don’t necessarily double just because you double your number of listings; instead, the cost per property decreases, increasing your margin.
Leverage Better Deals with Vendors
Vaughton noted that with a larger portfolio, property managers gain more negotiating power when it comes to dealing with vendors, suppliers, and service providers. This can result in significant savings in areas like cleaning services, maintenance, and even software subscriptions.
Reinvest Profits for Growth
Scaling creates the financial bandwidth for reinvesting profits into areas like brand development, higher-quality properties, or expanding to new markets. As Vaughton stressed, companies that continue to grow are better positioned to weather market fluctuations and regulatory challenges.
However, scaling should not come at the cost of quality or compliance. Vaughton cautioned that managers must strike a balance between growth and maintaining operational standards to avoid stretching resources too thin.
Final Thoughts: Balancing Growth and Efficiency
Richard Vaughton’s presentation at VRWS 2024 offered short-term rental managers a straightforward but powerful formula: focus on margins, scale wisely, and constantly seek incremental improvements. His insights remind us that profitability doesn’t come from explosive growth alone—it comes from running a lean, well-managed operation that makes strategic decisions based on the right metrics.