Do you have a dream to create a property management company infused with hospitality concierge service? With the growing popularity of the hospitality industry, investing in property management business in a vacation home can make you a millionaire in a short span of time.
Sounds Good but How?
Property management in a Vacation rental market is the best place to start your own business. The properties of owners (who want to rent out their unused accommodation to the tourists) are run or managed by the property management company which connect both the property owner and rentals (tourists) to each other through their Vacation rental website.
In this business model, the property manager can be an owner or manager who manages the property of others in his Vacation rental site.
Vacation Rental What’s that?
A Vacation rental is the online property rental marketplace that allows host (property owners) to rent out their unused accommodation ranging from single, multiple rooms to entire house.
It is a rewarding, fun and exciting venture which connect you around the globe with so many different tourists and property owners ( who rent out their property into your website for the guest or tourists).
A Vacation rental is the biggest marketplace let the people rent out their unused houses, furnished apartments, or professionally managed resort on a temporary basis to the guest(tourists) as an alternative to a hotel.
A Vacation rental is an alternative to staying at a hotel with limited personal space, crowded restaurants, shared facilities, lack of privacy, high cost etc.
It is the biggest marketplace where property owners enlist their property to rent out to the tourists and millions of travelers go there every day to find the perfect accommodation to stay in their vacation rather than to go out at a hotel.
Running a property management company in a Vacation rental industry will benefit both host and travelers. A Vacation rental makes it easier for the property owners to earn money with their own property.
Now when you have a good understanding of the vacation rental marketplace.
So What Is The Next Step Now?
How Can You Start Your Vacation Rental Property Management Company from Nothing to Everything? Before you start your Vacation rental business, think a moment about what you want from this business, because a commitment to success should be the primary goal of a successful businessman.
Investing in Vacation rental business is not an easy task that can make overnight.
Do you know how would you separate your property management company from the crowd? There should be a complete strategic business and market plan to make your presence remarkable in the industry of vacation rental.
Here are the steps to Vacation rental success :
1. Research and understand the market
To make your presence successfully in the vacation rental marketplace, you have to know the industry well. Do you know?
- Who are your competitors and what they do better than you?
- What sort of tool and techniques are they using to engage their clients?
- How can you expand your reach in the number of countries or cities?
- How will you keep up to date with the emerging changes in the industry?
2. Strategic planning
The second step is to look ahead and set some goals to grow your business in the industry of Vacation rental. You need to create a framework to go ahead in this business and put it in the best place of the Vacation rental marketplace.
Here are some of the strategy you have to create to successfully run your property management business in Vacation rental industry.
- Financial strategy
- Technological strategy
- Marketing strategy
- Operational strategy
3. Goals for Owner Acquisition and Retention
To go far in the Vacation rental business you have to acquire new property owners and once you have them you need to retain them.
You don’t need to accept every owner and every property just to build the volume of your website. You should have a definite standard to accept the owners and their property.
Trust me, taking on all-comers is not a good strategy. Choose your owner and property wisely, choose the area where the target audience would love to live and make their decision.
4. Creating Partnership with Owners
Relationship of the property manager with its property Owners is the backbone of the property management business, if there is a breakdown in that, it needs attention straight away.
Property manager and owner both have to work on their respective stuff so that guest will get benefit from the outcome of the partnerships.
And of course nurturing your property owner is also very important too, Just because an owner associated with you since more than 10 years and everything is going smoothly in their property, doesn’t mean they don’t need as much as attention the newest owner/partner gets.
You have to keep your relationship smooth and healthy with your existing and new property owner by providing them the best platform to enlist their property.
5. Marketing Strategies
Getting into this business without having a standard marketing strategy is like playing darts with a blindfold on. Technology has a dramatic impact on this business.
So here are some growing technological market strategies to take your Vacation rental business to the next level.
- Create a personalized user-friendly website
- Great content to read
- Social media ( social influencing, networking, listings, selling )
- Invest in search engine marketing, an online contact form and testimonial section
6. Automated Tools & system
To give your client and tourists better services, You are supposed to add automated system and tools to manage multiple units.
- Automated client interaction has a great impact to eliminate existing pain points.
- This platform automates the booking process for clients.
- Easy payment solution for guest
So, I am sure you understood the following framework of your property management business plan very well and getting highly impulsive to make your presence in the industry of vacation rental.
But Wait, Have some patience. Let ’s have a look at the Business plan of the world largest company who rule in the industry of vacation rental. Can you guess !!
But Who Is The King Of Vacation Rental Market?
Airbnb is the world largest accommodation sharing website which let Property owners to share their property or spare rooms into its website to tourists.
The company established in 2009 and in a very short span of time it has created an incredible community of engaged host.
Currently, Airbnb lists a staggering 80,000 properties in 34,000 cities across 190 different countries and it has over 60,000 tourists as customers.
How do Airbnb Works?
Airbnb is a world largest E-marketplace connecting tourists with a local host (These are People who list their available space and earn extra income ).
It let tourists to spend their vacations in that accommodation rather than to go hotels or anywhere else.
- Airbnb benefit both the host and the travelers.
- Localhost or property managers list their property on the Airbnb website which could be furnished apartments, houses, single rooms, a suite of rooms, moored yachts, professionally managed resorts or even a castle on Airbnb website.
- Creating a listing is free and host decide how much to charge for one night, one week or one month from the guest.
- Each and every listing allow the property owner (host) to promote its properties through the title, description, photographs, and a user profile where potential guest get to know about the host
- By creating an Airbnb profile travelers can search the database of property anytime and can book any reservations.
- Once a traveler pay and the host confirms the reservation, Airbnb holds the payment for 24 hours after check-in before releasing the fund to the host.
- Airbnb support several payment modes including credit cards, debit cards, Paypal, Google wallet
- Airbnb takes 3% commission on every booking from the host and between 6 to 12% of the guest.
It’s not easy to run a marketplace but Airbnb does a great work and handles many issues related to accommodation rental tremendously.
Now you need to understand why Airbnb is so popular and make a powerful impact across the globe.
Marketing Strategy of Airbnb
Airbnb has become the market leader for travel accommodation with its inspirational innovative marketing strategies that helped make it one of the world largest successful company in the hospitality industry.
Let’s have a look at Airbnb strategy framework :
- Airbnb offers best value accommodation to the tourists at the cheap economical price point often in a prime location where a normal hotel would cost infinitely more.
- Airbnb has designed a platform for localization
- Airbnb has always focused on better quality content to get more engagement
- Leverage word of mouth
- Global content marketing
- 24*7 customer support
- Airbnb provides a very secure platform for both the guest and host as well.
- Whether Airbnb creating a large campaign or small, telling his guest and host stories is his first approach
- Build a translate community by creating trust between the user
- Airbnb upping its hospitality game by offering a Cleaning service
- Airbnb pay close attention to language variants
- Airbnb App design Give a personalized experience to its user
I’m sure now you have a well enough understanding of how Airbnb works and what is the core strategy of Airbnb behind its success. So, Entrepreneurs, you are on your way to building a successful property management company in vacation rental if you well utilized the successive steps of property management strategy effectively.
In this modern era, this is an emerging industry and there are so many other big competitors in the market to push you away, So don’t be a part of the crowd.
Think Different and Work Smarter !