Streamlining short-term rental operations directly affects the earning potential of STRs. The efficiency of property management services leads to maximum income potential and higher guest satisfaction.
For instance, a guest coming into a well-maintained and sanitised shortlet is more likely to leave positive feedback. This high rating would attract potential guests and increase occupancy rates. More bookends translate to higher rental revenue.
If you’re managing short-term rentals in London, the need to streamline operations is more complex. With the city being a popular destination for both business and leisure travellers, you’re faced with a high demand and challenging logistical issues. The tight turnovers, need for strategic pricing and heightened housekeeping demands make streamlined property operations more essential to succeed.
How can property managers keep up? The perfect solution lies with technology.
Property managers can rely on technology to offer automation, provide real-time tracking and seamlessly integrate various functions to manage properties efficiently.
In this article, you’ll discover how technology can solve the common short-term rental challenges faced by property managers. You’ll also learn what qualities to look for when choosing the best property technology to help manage multiple short-term rental properties and elevate the guest experience.
9 Short-term Rental Challenges Solved by Technology
Managing a short-term rental involves unique challenges that increase in proportion to the number of properties you look after. But you can overcome these challenges as long as you have experience, expertise and the right technology.
Here are the common challenges faced by STR property managers and how technology plays a role in solving them.
High turnovers and tight housekeeping schedules
Short-term letting is characterised by frequent turnovers. In London, these turnovers are most likely to be tighter because of the high demand for temporary accommodations. This will leave you with limited time to clean, prepare and restock the property for the next guest.
Getting software that can monitor and automate housekeeping schedules will make this challenge easier to overcome. Technology can be used to organise housekeeping tasks and make sure someone is assigned to prepare each property for the next guest. Any conflict or overlaps in schedule should be noted ahead of time to ensure no property is missed.
Strategic pricing and cost management
The beauty of short-term letting is you can take advantage of the fluctuating demand to increase rental fees. This maximises the earning potential of STRs to improve profitability. While property managers keep an eye on the movement of the market, managing multiple properties makes it possible to miss pricing opportunities.
This is where dynamic pricing tools come into play. Technology makes it easier to consider changes in the market so you can change your pricing strategy accordingly. These include real-time data about market trends, occupancy rates and even competitor rates.
At the same time, there are cost management tools to help you monitor operational expenses and increase the property’s profit margin. This allows you to increase profitability while making sure all areas are well funded.
Effective marketing in a saturated rental market
The high demand for shortlets in London attracted several property owners to rent out their properties for extra income. This created a highly competitive rental market. You need strategic marketing campaigns to make your shortlets stand out in the market.
Some property management systems have marketing tools to help you streamline your marketing efforts. This includes social media management, a centralised communication channel, etc. It gives you a report of how effective your campaigns are so you can improve and increase occupancy rates through them.
Optimising listings and booking process to improve occupancy rates
Maximising occupancy rates requires marketing through various letting platforms like Airbnb, Vrbo and Booking.com. The more listings across multiple platforms, the higher the exposure to potential guests. However, it creates monitoring issues and the danger of double bookings.
Fortunately, technology can be used to consolidate reservations across multiple platforms. You can integrate major booking sites into one calendar to optimise the availability of short-term rentals. You only have to look at one reference to monitor real-time booking schedules. The same technology can also be used to optimise listings and ensure every platform has an updated version of the property’s description.
24/7 guest communication and inquiries
Efficient guest communication is often expected in the short-term rental market. You have to remember that there are many STRs in London. Failing to respond quickly to inquiries could cause a potential guest to book another STR in the same location.
Providing 24/7 guest communication services is easier through technology. You can use automated systems and AI to instantly respond to guest inquiries. Create well-scripted responses to common questions so potential guests will have the answers they need to make a booking decision.
Volatile rental market and changing guest preferences
The property market is quite volatile and the short-term rental market is not exempted. Guest preferences and market trends change from one season to the next. Keeping up with these changes will help you make smarter moves to maximise the earning potential of the short-term rentals you manage.
Data analytics tools allow you to track guest behaviour and preferences - as well as predict seasonal trends through historical reports. These tools consolidate market information into reports you can easily review, allowing you to adapt quickly to take advantage of specific changes. For instance, the rise of eco-conscious travellers should prompt STRs to be more sustainable and eco-friendly. This will make the property more valuable and appealing - thus increasing booking rates.
Evolving regulatory compliance and legal obligations
Although the short-term rental market plays an important role in the tourism industry, some view it as a housing supply issue. This is why the local government has implemented laws to regulate it. This also means compliance is important to continue operating STRs.
Property management platforms like Opago include compliance monitoring to help property managers track compliance with local STR laws. It monitors legal requirements, tax obligations, license deadlines, renewal dates, etc. It sends notifications to give you enough time to process documents when necessary.
Quality control and guest satisfaction
Monitoring all properties and keeping guests satisfied is challenging. But with technology, property managers can collate feedback and monitor reviews so they can make improvements to boost property ratings.
Property management apps can also create digital checklists for the housekeeping and maintenance staff. They can also create maintenance reports to alert you of issues that need attention so you can act on them promptly. These will ensure quality standards are met in every property so guest satisfaction will remain high.
Security and risk management
Ensuring the safety and protection of guests is also a crucial part of managing STRs. Fortunately, technology has made smart locks, security cameras and even guest verification possible these tools can be integrated with property management platforms so self-check-ins can be streamlined in real time. It also allows property managers to access the cameras to view their security remotely. Smart locks, in particular, provide added security but also create a seamless check-in for guests which elevates their initial experience with the property.
Qualities of an Effective Property Technology for STRs
As much as technology helps property managers, choosing the right one is crucial to resolving common STR management challenges. Your choice would depend on your specific property management processes and the needs of your properties and guests. Make sure you understand what it takes to streamline your short-term rental operations so you can choose the right technology to support your needs.
Here are qualities that you might find useful in a property management system.
Centralised platform
Having a centralised platform makes it easier to monitor all the STRs you oversee. Choose a platform that integrates booking, scheduling, guest communication, housekeeping and maintenance, compliance data, market data analytics and financial reports. This will simplify the management process and ensure nothing is missed or ignored.
Real-time updates
The technology you choose should provide real-time data and updates. You want a centralised calendar that’s automatically updated to avoid double bookings or missed housekeeping and maintenance tasks. Even feedback should be updated in real-time so you can act on any negative reviews promptly.
Tracking and monitoring system
Operational efficiency is possible with a reliable tracking and monitoring system. It allows you to make smart decisions to improve the property management operations and elevate the guest experience. Set up notifications for maintenance requests, booking schedules, etc. This will help you stay on top of the STRs you manage. If there are issues, you can quickly step in and keep issues from escalating.
Dynamic pricing tools
The volatility of the rental property market opens an opportunity for you to increase your monthly revenue. By using dynamic pricing tools, you can keep STR rates competitive. You can maximise the earning potential of your properties and adjust prices based on the current market conditions. Choose a property management platform that automatically updates nightly rates to optimise property prices during peak and off-peak seasons.
24/7 accessibility
Property managers require 24/7 accessibility so they can monitor operations efficiently. Choose Cloud-based platforms so you can access data even through different time zones and devices. This will make it easier to resolve issues as they come. You can also stay in touch with guests to help make their experience a positive one - regardless of where you are.
Data management and reporting
Check the reporting tools of the property management platform to ensure you’ll get comprehensive data reports when needed. These reports are crucial to making informed and data-driven decisions so you can increase the profitability of STRs. Choose a platform that allows you to generate reports to show revenue growth, occupancy rates, expenses, etc. These will help you optimise operations and identify improvements to boost a property’s performance.
Use Technology to Streamline STR Operations
Maximising the earning potential of your short-term rentals is easier with streamlined short-term rental operations. Using technology allows property managers to implement effective management practices. This helps them overcome typical STR challenges like tight turnovers, changing guest expectations and complex regulations.
While technology is useful in property management, consider the specific needs of your rental properties and guest profiles. Property management platforms like the one offered by Opago combine essential qualities to solve common challenges faced by property managers. This includes having a centralised platform to view booking schedules, dynamin pricing tools, compliance monitoring, housekeeping and maintenance cost management, and many more.
With proper due diligence, you can find the right technology to provide advanced solutions and elevate the performance of your STRs.
