It seems like all of us are struggling to some degree. Here are some guide posts to survive and thrive in hard times. What more can you think of?
--
Run a Light & Tight Ship
“Perfection is not attainable. But if we chase perfection, we can catch excellence.” ― Vince Lombardi
The core of the short-term rental business is management. At the heart of management is resourcefulness. Be "Light" and systematize your Operations. Be "Tight" and only play alongside A-players.
A STR Legend notes, "You are only as good as your emergency service." Meaning, How fast can you consistently respond and remedy a guest/client emergency? You and your team must embody creativity with get-****-done attitude.
The beauty of short-term rentals is that a majority of the processes are repeated, and, therefore, can be systemized with software. Add A-players to these systems and you can operate multipleproperties with the same level of 5-star hospitality as you would with one home. It can actually get better with (certain) scale!
What are the 80% of your operations that can be automated and optimized? Answer this, and focus on the most important 20%: customer service.
2. Be Ready For A Market Swing At Any Time
“Anything that has more upside than downside from random events (or certain shocks) is antifragile; the reverse is fragile.”― Nassim Nicholas Taleb, Antifragile
No matter how well-run your business is, we are in a globally connected world. And the world gets more connected each day. Small causes have exponential effects, which means market changes will occur more often.
Always be prepared for a Black Swan. They are inevitable and their timing cannot be predicted. Right now, it is COVID-19. In 3 years, it will be something else. Have your finances and team ready for it at all times.
Your job as an investor is to always protect your downside. The upside will take care of itself. Anyone can run a short-term rental business during good times, but the hard times quickly differentiate the real players versus the amateurs.
Do you have the resourcefulness and emotional resilience to successfully operate during the hard times?
3. Have the Right Partners
"Talent wins games, but teamwork and intelligence win championships." --Michael Jordan
Your Team & Partners are the most important part of your work. Short-term rentals are a high-touch, HUMAN business.
The STR business is simple, but it is not easy so you have to play the game with the right Partners. The right Partners are Long-term Partners. Short-term minded people do not last in a fast-paced business like short-term rentals.
Cycles ebb and flow. Great people embody 5-Star service and give client's a product they want/need. While you navigate a market storm, like COVID-19, it is the perfect time to resolve your Short-term Partners vs. your Long-term Partners. Figure this out so you are stronger when the waters calm.
If you think you have a long-term Partner, you will see their actions, passion, and resourcefulness shine when things go awry.
How does each person in your business bring value to the table, and how can you achieve long-term success together?
--
We have 4 more points, but what other recommendations do you have? Thanks!
