Having spoken with over 400 vacation rental management companies in 2015, I’ve noticed that these are three of the most common conversations I’ve had with professional managers day in and day out about how to improve business in 2016.
Join me on the Rented.com blog over the next three weeks as we take a deep look into these three ways property managers can grow business in 2016.
1. Stay Close with Regulations.
If you aren’t already paying close attention to how legislation is trying to curb vacation rentals in your local markets, then you should be. We recently started a group of vacation rental professionals here in Atlanta, and regulations dominated the topic of conversation for our first gathering. Join groups like the Short Term Rental Advocacy Center, Vacation Rental Managers Association, or your local Associations like the FVRMA or CAVRMA. Only when we are united in numbers (and of course with the help of Airbnb’s legal team) can we combat (to quote Matt Curtis) “onerous regulations.”
2. Look for Expansion Markets.
Andrew McConnell, CEO of Rented.com, has put out several articles relating the consolidation of the hotels in the 1950’s to the consolidation that is happening in the vacation rental space today. In the article Andrew brings up a valid point, “A vacationer who loved his rental experience via a manager in Cape Cod must find a new manager to rent for his upcoming trip to La Jolla.” With the evolution of multi-regional data and web-driven companies like Pillow, Turnkey, Guesty, Evolve, Vacasa, iTrip, Skyrun, etc., the industry is almost certainly headed to a mass consolidation.
So what’s next for your business? Have you thought about expanding to a new market or buying out a competitor?
3. Utilize Dynamic Pricing.
Want to make the most out of your rentals and keep your owners happy? Maximize their profits the same way hotels do. There are several companies that have quickly become experts at dynamically pricing properties based on demand: Everbooked, Smart Host, and Beyond Pricing. Some algorithms these companies develop not only use historical data, but can even be as in-depth as to tie in with the FAA to recognize a city’s demand for beds. Why not utilize others’ data to ensure the highest occupancy and the best rates possible?
What are you doing in 2016 to grow your business? Let us know in the comments below!