Full-Service Vacation Rental Management - What Makes You Different?

Question

I have sold vacation rental management services for the last two years. I’ve self-managed my own STR as well.

Here is the million dollar question: In an industry this is as similar as it is, across the board, what is something that can truly separate your service from the rest?

I’ve studied countless competitors (currently working thru 30+ competitors within the west coast market that I sell in). We all provide the same services with slight variations. We all make the same claims. ie: “premium service”, “hand-picked homes”, homeowner-friendly onboarding”, “leading industry technology”, “24/7 communication or local support”, “maintenance programs”, “hotel quality linen program”, “preferred vendors” … blah blah blah

I sell within what I would consider a “traditional” vacation rental market. ie - your vacation rental is likely not in danger of being put out of business by the local government… an example close to home for me - The City of Dallas’s recent STR Ban. In the courts right now, and influencing persons like myself to switch rental strategies.

What are we missing here? Are there any truly ground-breaking selling points? How do you separate yourself from others when considering what was mention above?

I review vacation rental management websites, Airbnb Host Profiles, I secret shop via phone calls and emails. We’re all the same.

What’s your advice?

How are you different?

Whats missing within the industry that we should / could implement?

.

Andrew Steffens · Answer

So, I am co-owner of an STR management company in Tampa, FL.  We were one of the first local companies in what I would call the new age.  There were some legacy companies down by the beach that had been in business for years and were not even using Airbnb when we started in 2016.  Vacasa was not even in our market.  I do not have some magic zinger line that makes people choose us, but what resonates most with new clients is:

1. Me being a broker and specializing in acquisitions, if they are not self managing they trust me and use us for management after the sale.

2. I am also an active investor with 9 STR's myself so I connect best with the business minded.  We are very revenue driven and have a revenue manager and pricing software, so those who are worried about the numbers and return are attracted to someone similar minded.

3. We are on 15 channels + so market exposure with not only Airbnb/VRBO/our booking site but also on Marriott Homes & Villas, JetBlue Airlines, Allegiant Airlines and soon Amex Travel and Hyatt.  These are not things that most other managers can offer.

4. Being local and "mid sized".  Just under 80 doors we are small enough to give individual attention to all of our clients and have a full staff to properly service units.  Too large and you lose touch with your clients and too small and you cannot have reach to offer some of the amenities we offer such as the booking channels, department managers for each department, 24/7 communication etc.

5. Limited Service and Full Service Options.

I am always looking for more of an edge over competition but that is what tends to work for me during the sales process.  Sometimes we lose to another company, but hey we are not for everybody!

Michael Baum · Answer

I am not sure what you can do. It's not like property management is something new and disruptive. It is a very stable and mature type of business IMHO.

Frankly just providing the best service with a lot of options is the best way to succeed I think.

Like @Andrew Steffens does.

Yiwei Cheng · Answer

What makes you different is your why.  Why are you doing this?  I think it's easy for owners to tell if you're in it to just make some money or you're in it to provide the best experiences for guests.  There are different owners who care about different things.  Some just want the lowest cost without doing the work and as long as money is coming in, they don't care if their revenue is maximized.  There are others who care about the homes being take care of, the brand, the portfolio, and building relationships with guests.  I've had owners switch from low cost property managers to me because they see the value that I can provide in maintaining their homes & bringing in high quality guests.

Brooke Dyer · Answer

I love this question! I started in real estate as a cohost for short term rentals in Blue Ridge, GA. My background in marketing really helped me get clients over other options in the area. I worked in digital, brand and product marketing for over decade before getting into real estate full time and my marketing experience was something that differentiated me and created a ton of value for my clients. Alongside cohosting, I offered market and competitive analysis, listing revamp, listing and pricing optimization, and social posting for my clients. This creates value for them to ensure their properties are being rented (especially in highly saturated markets), which in turn creates more revenue for me. Many times the above is what we are already doing, but lean into it and promote this!

We saw so much value in this that we created a boutique STR marketing agency: Host's Haven Marketing

Happy to connect if  you have more questions on this!

Garrett Kroll · Answer

I think this industry is ripe for disruption. For decades the primary services (operations, marketing, customer service, etc) have been primarily focused on, or positioned towards, owners. Which makes sense because it's their asset and they're signing the contract.

However, as the industry becomes more competitive and more tech-savvy and experience-focused travelers begin to make up the bulk of guest reservations, I'm betting we see some transition from "property managers" to "hospitality brands". The services might be the same, but the positioning and primary audience would be entirely different. Owners might pay to work with these boutique companies not just for their basic PM services, but for the audience and revenue they can consistently bring in a competitive environment due to the brand they've created.

This is the road my company is headed down. Some of it's still unknown and aspirational, but I do think there will be opportunity ahead.

Sarah Kensinger · Answer

It's actually not that hard to be different than other companies, but you HAVE to be passionate about what you're doing! If it's just a job that brings great cash flow, then yes you blend in with all the others. Of course, this thought is not just in the STR industry, but throughout every industry that has plenty of companies to choose from.

So, with that said I feel like a company can stand out by how well they know a potential client's pain points, help said client find solutions to those pain points, can be personal yet still professional, and how much passion can they bring to the table that gets everyone excited.

This can make people stop and wonder what makes that company different, instead of blending in with thousands of others.

Neal Z. · Answer

Agree with Michael here. To add, I don't actively advertise management services and all my management deals have come via partners and referrals. I'm not offering anything "new". It's a relationship game. I've just developed specific knowledge in this arena. Personally set up and ran over 100 properties. I needed to solve the same problems individual STR operators face when operating. Build out systems and support staff that then make it easy for me to just plug another unit in. To be honest, I don't love management because you then manage the different owner personalities involved, so I'm very slow to take on just anyone's property to manage. When I have "competed" against another manager for a deal, I'm usually very passive about it. I give the owner everything he needs to know if he wants to operate on his own. I hide nothing and tell him exactly how to set it up if he wants to be relatively hands off. I'm also very conservative in my estimates on revenue projections which are near impossible to be accurate on. Other managers I've found sell the dream as if they have some super power to higher revenue. It's not magic. It's a marketplace. You put out the best product possible within your means, provide the best, most consistent service you can, and constantly iterate along the way.

Full-Service Vacation Rental Management - What Makes You Different?

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