Owning a property management business with today’s vast number of vacation rental information technology software management tools and websites available, property management companies have been skyrocketing their profit margins.
With vacation rental (VR) technology fast taking over the property management sector, companies in the industry have had adapt in order to survive.
Today’s website coders, such as Python and Java developers, having so many tools at their disposal, websites that allow users to list, rent, sub-let, and manage their own properties online have been on the rise. Vacation rental websites are ideal for people that want to cut out the middle man and go it alone.
It has seen some property management companies diminish while others have thrived.
Property Management Firms Realign Using the Same Tech
A residential department within a property management business depends on clients that need a professional company to manage their place. The property management company will find a tenant on the behalf of their residential client.
However, with the rise of new technology, many residential property owners are instead turning to online technology to do virtually the same job as a property management business for a fraction of the price. But the property management companies have found a way to strike back and take advantage of VR website tech.
If the management company can strike the right agreement with its clients, then vacation rental websites are often the best way to advertise an apartment or house available for rent.
Many property management businesses are using two, three, and four tier systems for their clients. The tiers differentiate the amount the property owner will pay to have their place managed and everything taken care of on their behalf.
Within the vacation property business, daily rental rates can be charged rather than monthly. This means the property management company can make more money per month from the residential property per day, per week, or per month because they can charge higher rates.
Should a residential owner agree to the property management company using the place as a vacation rental or short stay business property, then the management fees for the client can be reduced. The reduction in fees is not a loss to the management company because by using a vacation rental website the returns are often 200 to 300 percent higher.
Some people prefer tenants to stay for a minimum period of time. Let’s say 3 months. VR websites have option to set a minimum stay period, so the property will only appear when someone filters dates that expand across more than 90 days.
Reducing Technology Overheads for Start-Up Property Management Companies
There are a lot of companies out there that can start a property management business without the need to go all out on expenses to have a fancy website designed. Using facilities like the Lodgify property management software tool means that a start-up can have a website, all the technology needed to manage properties, and a way to sync property calendars and bookings across multiple websites.
Of course, there are many people that just use vacation rental sites to cut out the middle man (property management company), but equally there are still plenty of people out there that would rather hand over the responsibility of dealing tenants, upkeep, bill payments, and many other aspects that all property owners must manage.