Property Management: Does it really work?

Published November 7, 2023

Does property management really work?

The vacation rental market is alive and well. And recently, headlines have been confusing… Are people still traveling to individual homes or have resorts returned as the trend? The Views & Brews Crew is gonna talk about it.

The driving force behind making money with investment real estate is occupancy. Much like a golf course makes money with rounds and more rounds of golf play, in recreational real estate, occupancy rate is a vital statistic for operating income. Operating income grows exponentially with tertiary influences derived from occupancy. With vacation rental real estate, amenities outside of “location” are important – property upgrades, views, hot tubs, pet permission, golf carts, fire pits, saunas, Smart TVs, the quality of internet access and so on… Not only do these amenities increase the occupancy based on property appeal, but these items are also add-ons for nightly rates. Average daily rates are also incredibly important. Subtle variations in occupancy rate, average daily rates and so on impact revenue. For all of these reasons, we look to gross rental income as the defining number for success. And organization of all these moving parts requires synergy between property owners and property management groups.

Property management, done right, exponentially improves occupancy, nightly rates, and the vacation experience. Who cleans? Who manages bookings? How do things get fixed when broken? What to do with just about anything property related, channels through property management. Leveraging experience in this area instills a sense of easiness with guests. Afterall, guests who are relaxed while experiencing a sense of camaraderie, are far more likely to visit again. And we all know how positive reviews on the web or via word of mouth encourage others to do the same – dedicate their time for the experience – relaxation & visitation.

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