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Southwest Florida Man Accused of Vacation Rental Fraud Using VRBO.com

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BONITA SPRINGS, Fla. – The Collier County Sheriff’s Office arrested a man over the weekend who they say victimized three people in a rental fraud scheme.

57-year-old John Joseph Hayes of Bonita Springs faces fraud charges after the victims reported that they paid him thousands of dollars in advance for the same rental unit during the same time period, between January and April.

The three women, each from a different state, found a seasonal vacation condo at Glen Manor on Fourth Street in Bonita Springs on the web site VRBO.com. VRBO stands for Vacation Rentals By Owner.

 

 

In one case, the victim told investigators that Hayes didn’t tell her the unit would be unavailable until three days before her arrival date, after she emailed him about how to get the key.

The other women were told that the unit would be unavailable due to a dispute between Hayes and the HOA for Glen Manor. According to Hayes’ arrest report, the three women paid him a total of $26,649.

Realtor Todd Gridley of Naples said that sites like VRBO.com screen the rental owners who advertise with them, so he recommends calling their customer service and checking that the owners are who they say they are.

“Once you hand over the money, the fees could be gone,” Gridley said. “So it’s always better to do your due diligence, and deal with someone that knows that market.”

According to the arrest report, all three women want to press charges against Hayes. Attorney Mike Chionopoulos said victims in a case such as this have a better chance at recouping their money in a criminal case rather than filing civil suits.

“The victims have to ensure that by going to the state’s attorney…and saying ‘we want any (plea) deal to include restitution, and we want him to stay on probation until his restitution is complete,'” Chionopoulos said.

Hayes has been released from jail on a $10,000 bond.

VRM Intel Live! and VRHP Housekeeping Seminar Coming to Outer Banks, February 22 & 23

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VRM Intel Magazine is coming live to North Carolina’s Outer Banks with advanced level education and information for vacation rental managers.

register-now-for-vrm-intel-liveVRM Intel Live! will be held on February 22 at the Hilton Garden Inn Outer Banks/Kitty Hawk with a powerful, high-level lineup of speakers that includes industry leaders, experts and many of your favorite VRM Intel Magazine writers. The early registration cost is $100 per person and increases to $130 per person after February 10. For registration information, go to vrmintellive.com. Join us for great education, intel, food, networking and fun!

Ascent Processing and VRM Intel are also sponsoring a reception for VRMs on February 21 at Kelly’s Restaurant and Tavern from 6-8, and VRHP is conducting their OBX Housekeeping Seminar on Feb 23 from 8-4:30.

Tickets are selling fast, and space is limited, so don’t delay. Hope to see you there!

 

Here is the agenda for VRM Intel Live!:

GENERAL SESSIONS

  • 2017 OTA Update – An unfiltered look at change in third party distribution with Steve Milo, founder, Vacation Rental Pros
  • Revenge of the Property Manager with Amy Hinote, Founder and Editor-in-Chief, VRM Intel
  • Forget Booking Channels. What are the Real Challenges and Opportunities for 2017? A Discussion with Steve Trover, CEO, All Star Vacation Homes

 

MANAGEMENT SESSIONS

  • 2017 Guide to Mergers and Acquisition in Vacation Rentals with Ben Edwards, President, Weatherby Consulting, Past President, Vacation Rental Managers Association (VRMA)
  • Compliance Issues Facing Seasonal Employers presented by Sabrina Hanson, regional sales director, TASC
  • New Software: An Answer To Prayers Or Your Worst Nightmare? with Doug Macnaught, Founding Member, The VRM Consultants, Former President and Co-founder, Instant Software
  • Upper Level Housekeeping Management in 2017 with Joe Refosco, co-owner, Taylor-Made Deep Creek Vacations and president VRHP, and Durk Johnson, Meredith Hospitality and executive director, VRHP
  • Operational Updates: Smart Locks, Travel Insurance, Credit Card Processing, Technology, Panel

 

MARKETING SESSIONS

  • Get More Bookings – Website Design & Usability Tactics That Drive Conversions with Brandon Sauls, Founder and Owner, ICND
  • Using Online Marketing to Compete with the Big Dogs with Susan Blizzard, CEO, Blizzard Internet Marketing
  • Successful Niche Marketing – make your email campaigns profitable! with Lynell Eady and Scott Leggatt, LSI Tools
  • Taking Control Of Local And National SEO with Conrad O’Connell, founder, 91 Digital
  • 5 Ways to Grow Revenue with Existing Demand and What You Think Is A Full Calendar with Heather Weiermann, NAVIS

 

Bluetent Hires HomeAway’s Tom Clark as Support Manager

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Bluetent has bolstered its support team with the addition of industry veteran Tom Clark as Support Manager. Before joining Bluetent, Clark spent over 5 years managing HomeAway Software’s V12 and over 10 years leading the FRS and ISI Support Teams. This addition to the support team solidifies Bluetent’s dedication to providing the highest level of customer service.

Clark will pioneer a team of three support engineers and two senior developers. He is passionate about increasing transparency and communication with clients, improving forecasting and lead time for development updates, maintenance, and customer requests, and strengthening Bluetent’s relationships with third party vendors.

Clark has been a respected partner of Bluetent for more than ten years, and his unsurpassed depth of knowledge and extensive experience has energized Bluetent’s support and product team . As Support Manager, Clark is responsible for improving the quality of customer service at Bluetent, as well as managing infrastructure updates that will increase transparency and client communication. Additionally, Clark will help guide the development of new processes and systems to maximize Bluetent’s efficiencies and decrease response time.

“For years, Tom and I have worked together as partners, but I am thrilled to officially bring him on to our team as the Support Manager,” said Peter Scott, President of Bluetent.  “Tom brings a wealth of knowledge and a thoughtful understanding of customer service that will no doubt prove highly effective in helping our clients achieve further growth in years to come.”

A native of Ames, Iowa and a graduate of the University of Iowa, Clark holds a bachelor’s degree in Marketing. Clark spent ten years in manufacturing, including a stint as the master scheduler of a gummy bear plant. In 1997, Clark moved to Colorado when his wife accepted a position as a developer at Colorado Mountain College. This move spearheaded his career in the vacation rental industry as a software support technician for First Resort Software. In 2004, Clark took over as manager of the First Resort Software Support team. And in 2007, Clark was appointed to manager of the ISILink API. It was during this period that Clark and Bluetent first partnered together on API integration from HomeAway Software to Bluetent’s front-facing client eCommerce websites. In 2010, Clark took over as manager of V12.NET’s support team. Bluetent is honored and thrilled that Tom Clark has joined the agency and welcomes the opportunities that his expertise brings to the entire team.

Properly launches housekeeping technology for vacation rental providers

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In the professionally managed vacation rental industry, operational tools for property managers designed to facilitate cleaning and turnover management have not kept pace with the growth and professionalization of the industry. The development of technology in the industry has been largely focused on channel management, guest communications and integration between providers, but housekeeping and maintenance management has been an area that has seen very little development.

Alex Nigg hopes to change that with today’s market launch of Properly.

Properly is a mobile-first application founded by Nigg and built specifically for the vacation rental industry and provides tools that allow VRMs to schedule and monitor cleaning and turnover operations at every listing in real time, to deliver the personalized service that today’s travelers expect, and to demonstrate the value of their stewardship to asset owners.

“As a vacation rental provider, I experienced first-hand the challenges of cleaning and turnover management with my listing,” said Nigg. “Talking to vacation rental property managers confirmed that they shared my challenge but at even greater scale, with the added complexity of hundreds of listings and the responsibility of satisfying both guests and property owners.  Properly solves this problem, enabling property managers to scale their businesses and raise their service levels.”

Properly’s text and visual checklists (iOS and Android) give cleaners simple, step-by-step instructions, regardless of their language skills or proficiency. And Properly translates instructions into any language, so cleaners can follow along in their native tongue. Because checklists are based on listing photography, VRMs are able to ensure staging is exactly what the guest expects.

Thanks to real time photo capture and cleaner tracking, VRMs can monitor cleans and turnovers in real time, are alerted if a cleaner is late to arrive at a job, and can remotely follow along with their cleaner’s progress. Photo capture provides a record of the listing prior to each guest’s arrival and integrated damage reports document issues and make it easy to retain a deposit or file a claim.

Official API interfaces with Airbnb, HomeAway, and numerous PMS ensure scheduling stays aligned with bookings, and reporting tools provide a record of each cleaner’s activity to make invoicing and billing easier for VRMs.

According to Emily Benkert, founder and CEO at Guesthop in San Francisco, “Properly helps Guesthop convey the very special requirements of a hospitality turnover job to our cleaners. It also eliminates any language barriers, and saves us time in scheduling and communication”

Following a year of development with beta customers, Properly is launching into the mass market with offices in San Francisco and Wellington, New Zealand, and with over 7,000 property managers and hosts representing approximately 21,000 listings in over 50 countries.

Conversion Goals and Tracking

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If you want to go the extra mile and prove to yourself that your email marketing strategies are working, configuring Google Analytics to track goals may be exactly what the doctor ordered. With Google’s extensive suite of conversion and goal tracking capabilities, you can see exactly how much money your email marketing strategies are making. You just need to ensure that analytics is set up correctly.

Here is a quick guide to setting up conversion tracking with Google Analytics:

 

1. Log in to Google Analytics

2. Click Admin at the Top

3. Configure a Conversion Path

Are you already tracking bookings using Google Analytics? If not, it is easier than you think. Use your content management system (CMS) to create an automatic “Thank You” page redirect post-checkout. Make sure only users who have booked a reservation can access this page. Also, if you are creating other types of conversions, it is a good idea to create these “Thank You” pages as well (for example, if you have an “Inquire” function on your site, you can create a custom “Thank You” page that users are redirected to upon completion of the email form).

4. Create the Conversion in Analytics

  • Click on Goals

  • Click on +New Goal

  • Name Your Goal.
  • Choose “Destination” as your Goal Type, then hit Continue

  • Enter the “Thank You” page URL in the Destination field (Make sure it is “Equals To”)
  • Hit Save

  • Repeat for all goals you may be tracking (inquiries, bookings, forms filled out, etc.)

5. Test to Make Sure Conversions are Working

You can also utilize these goals to track events (such as clicking a button on your site) by following these directions here. Both of these forms of goal tracking will let you track all your conversions done through your site. However, if you wish to track only conversions received via email marketing, it can take a bit more work. Fortunately, most email marketing platforms offer Google Analytics integration; just talk with your provider and see what they can do to help you get this configured.

 

Discount Code Tracking

Remember, if you use a discount code in your email blasts and wish to track conversions made from that specific discount code, you need to make sure to only use that code for email marketing. Do not let your sales reps use it on the phone; this way, you can truly track conversions of the email blast using that specific code.

Email marketing can become one of the most powerful marketing and public relations tools at your disposal. Just one blast can be the difference between a good month and a month for the record books. Just take the time to follow the steps above, configure your campaigns correctly, and put some TLC into your marketing message.

Marketer’s Resource Guide: Online Tools to Manage Marketing With Ease and Success

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In order to keep up with increasing competition, marketing expectations for 2017 and beyond are astonishingly high in the vacation rental management (VRM) industry. Today’s marketing managers are charged with being web developers, SEO/SEM experts, copywriters, marketing technology and automation specialists, graphic designers, media buyers, social media professionals, public relations experts, email strategists, and marketing analysts. In addition, marketing budgets are shrinking making it very difficult to accomplish all that you need to do as an in-house vacation rental marketer.

The truth is that you can’t do it all. Here are a few tools that can help you accomplish your objective, wow your team, and focus on the areas of your strengths.

Canva.com

It is expensive and time-consuming to have to hire a graphic designer every time you need an image with text overlay for an email, an infographic for an email to owners, or a postcard campaign. Canva is a free online design tool that lets you create professional, branded social media graphics, email designs, flyers, brochures, posters, infographics and more. Using drag and drop functionality and professionally designed templates, it is easy to create designs with professional results even if you don’t have any graphic design experience. Canva also has an extensive library of fonts, photos, illustrations, charts, and graphics.

Freelancer.com

From logo creation to data scrapping, connect with freelancers to help with your projects for a fraction of the cost of using an agency. Simply post your project and watch the bids come in. You will be surprised at the pricing. If you can think of it, there is a freelancer on this site who can make it happen. You can also run contests for design work. And you never know who you will meet. VRM Intel Magazine’s own director of design and production, Donato Berbelja, and I met on Freelancer.com working on a postcard campaign.

ProofreadingPal.com

My fellow VRM marketers will nod in agreement that finding people to proofread your content is a constant challenge. It is difficult to edit and proofread your own writing and even harder to find other people you can trust with the task. VRM marketers manage a lot of content, including ad copy, property descriptions, blogs, press releases, newsletters, marketing materials, and more. ProofreadingPal is a lifesaver. Upload your file, pay online, and check a box for when you need it back. They can even turn it around in thirty minutes if you are under the gun. Every document is proofread by two editors to correct grammatical errors including punctuation, capitalization, verb tense, spelling, and sentence structure. Your document is also checked for clarity.

Buffer

Buffer is a free tool that saves a ton of time on social media marketing by scheduling posts ahead of time for your social profiles. You can batch the social media marketing process: do all your curating and composing at one time and then spread those updates throughout the next day or week. The free plan at Buffer lets you connect a profile from each network (Facebook, Twitter, etc.) and schedule ahead ten posts for each network.

 

Wistia

Once you’ve created an amazing video to share on your website or social media, where will you post it? YouTube is easy, but you want to avoid ads and suggested videos. Wistia keeps people on your page—or sends them precisely where you want them to go next. Once you’ve uploaded your video, you can go to the dashboard and add things like call-to-action buttons or email capture at the end of the video. Wistia also shows how long people view your video and when they pause or click out of it.

 

SEO Book’s Free Spider Test Tool

See what Google sees when they crawl your webpages. This search engine indexing simulator tool shows the source code of a page, all outbound links on the page, and common words and phrases found in the page copy. You can also compare pages and check keyword density.

 

Google Search Console

Formerly known as Webmaster Tools, Google Search Console gives you advanced website tracking with detailed reports on your search traffic, click-through rates, and mobile vs. desktop traffic. Through the Search Analytics Report, you can group, filter, and compare your data to tweak your overall digital strategy and maximize website performance. The alerts feature will notify you of any website errors that might affect your rank in search results. Google Search Console can provide your business with the tools to get an extra edge against your competition in search results.

 

These are a few of my favorite tools, but there are many more out there to help you accomplish your goals. New tools are being created every day, so if you can dream up a new marketing idea, chances are there is now an online tool that can help you make it happen.

Streamline Your Vacation Rental Business with RealTimeRental’s Suite of Technology Products

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RealTimeRental paved the way as the first web-based vacation rental software on the market in the year 2000. Since then our clients have used RTR to book and manage over 2.3 million vacation rentals. Always striving to stay ahead of the curve with technology, RealTimeRental continues to develop and enhance the software while creating partnerships with leading tech companies.

“Our clients are always looking for new ways to use technology to enhance their guests’ experience. We are very excited to introduce RealTimeRental clients to Parakeet’s suite of home automation products,” said Sherry Tomasso, co-founder at RealTimeRental.

Parakeet’s smart home automation technology allows vacation rental property managers to have remote access control to door locks, garage doors, thermostats, and more.

“One of our favorite Parakeet features is the keyless entry system that integrates with our software,” said Tomasso. “When you create a booking in RealTimeRental, Parakeet will generate a disposable electronic key code for a keyless entry.”

Keyless entry saves time for the rental property management company, as there is no need for rental guests to stop at an office to pick up keys. The Parakeet key codes are automatically sent to the rental guests’ cell phone or email and are only active for the duration of the booking. The keycodes expire at the end. 

 

SIMPLIFY COMMUNICATION WITH PROPERTY OWNERS AND RENTAL GUESTS

Save time with RealTimeRental’s newest feature, Automated Emails. Schedule tasks such as notifying property owners when you create a booking on their home, send pre-check-in welcome messages, send post-check-out follow-up, send late payment reminders, and more. The automated emails are customized for each client and logos.

“We created the automated emails as a way to help our property management and real estate companies save time,” said Tomasso. “Since everything is automated, offices don’t need to worry about forgetting to notify a property owner of a booking, or sending a late payment reminder to a tenant.”

The automated emails are generated and sent out based on specific triggering types of emails have if there is a problem with the recipient’s email address.

“Today’s traveler is accustomed to accessing their vacation rental information online. RealTimeRental makes it easy for rental offices to provide online access to their rental guests with the Tenant Portal,” said Tomasso.

Portal to which they can view their booking information, property details including photos and amenities, send reservation requests on properties rented in the past, and more. Rental guests can even make credit card and E-Check payments online via the Tenant Portal.

Property owners can sign in to their individual Owner Portal accounts and view availability calendars and bookings made on theOwners can create their owner reservations and guest of owner reservations right on the portal.

 

ENHANCE MARKETING AND AUTOMATE TASKS WITH NFC CHIP TECHNOLOGY

RealTimeRental’s partner T.A.P. Tag Technologies is utilizing NFC chip technology in exciting new ways in the vacation rental and real estate industry. T.A.P. Tags are a small NFC chip-enabled item (think key chains, stickers, business cards, and much more) that can display a custom message on customers’ phones with just a simple tap of an NFC-capable smartphone.

“Our partnership with RealTimeRental allows property management companies to use NFC chip technology to automate tasks and market directly to rental guests on their smartphones,” said David Berroa, T.A.P. Tag Technologies.

T.A.P. Tags and RealTimeRental have a fully integrated platform, meaning that T.A.P. Tags can display rental property information directly from the software, and automate simple tasks such as notifying the cleaning crew when guests have checked out of a rental property.

“T.A.P. Tags can display virtually any URL, making them a simple and easy way to get future customers looking at your company’s message on their NFC-capable smartphones,” said Berroa, “so T.A.P. Tags can be used for multiple marketing campaigns.”

To learn more about RealTimeRental vacation rental software and its suite of technology products, please visit www.RealTimeRental.com.

HomeAway sues Portland

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The vacation rental website HomeAway filed a pair of lawsuits against the city of Portland this week, opening a new round in its battle with the city over hotel taxes.

HomeAway, which helps match travelers with homeowners with rooms for rent, has been at loggerheads with the city for years over whether it should have to collect lodging taxes on behalf of its users.

The latest suits attempt to block the city from enforcing various parts of its ordinances against HomeAway, including the lodging tax collection.

The lawsuits argue Portland doesn’t have the authority to impose lodging taxes on the company and various regulations on the vacation rental industry.

“HomeAway has sought to open lines of communication with city officials,” the company said in a statement. “Unfortunately, those requests have gone largely unanswered. We welcome the opportunity to explore a policy solution that addresses the concerns of all stakeholders and is evenly applied to all platforms.”

The city sued the company for $2.5 million in 2015 over alleged violations of its vacation rental laws.  Portland legalized short-term rentals in private homes in 2014, requiring homeowners to undergo an inspection and secure a permit. A permanent resident must also live in the home at least nine months of the year.

The city also required sites that facilitate the rentals, like HomeAway, to start collecting the transient lodging taxes typically paid by traditional hotels. The city expected to collect $1.2 million a year, which the City Council agreed to put toward affordable housing.

The city in 2015 slapped HomeAway with a $326,500 fine for failing to collect the taxes. The city’s revenue bureau said it would continue to assess fines until the company complies by the city’s rules.

HomeAway argued at the time that it wasn’t like competitor Airbnb, which handles all payments for its users and is therefore in a better position to collect the lodging taxes. HomeAway said many of its users don’t accept online payments, and those that do use HomeAway Payments, which HomeAway described as a separate company.

The city then sued HomeAway for $2.5 million, but its case highlighted some shortcomings in its code, including various references that didn’t appear to address intermediary websites. The lawsuit was initially dismissed, but an amended complaint is still pending.

The Portland City Council passed various revisions to its code in December to address those shortcomings. Those revisions went into effect Friday, prompting HomeAway’s latest lawsuits.

The lawsuit filed Thursday in Multnomah County Circuit Court argues that Portland doesn’t have the authority under its charter or state law to levy lodging taxes against HomeAway.

Another lawsuit filed Friday in U.S. Circuit Court in Portland argues the city’s requirements to register the names and addresses of individuals posting their homes for rental prohibits free speech and commerce online. It also said the city’s ordinance violated its customers’ rights because it doesn’t give “affected customer the opportunity to obtain review by a neutral decision maker.”

Portland attorneys declined to comment.

HomeAway is a subsidiary of the travel company Expedia, which is based in Bellevue, Washington. It also owns the vacation rental website VRBO, which has also faced fines from the city.

— Elliot Njus

enjus@oregonian.com
503-294-5034
@enjus

Communicating Success to Owners Using Revenue Per Available Night: The Most Important Metric

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It is up to you to demonstrate your value to homeowners. By choosing the right metrics, educating your owners and providing consistent reporting, you can quickly earn their trust and loyalty.

There are two common—yet problematic—choices for metrics which you communicate to your homeowners: Occupancy Rate and Average Daily Rate.

Occupancy Rate is the percentage of nights you have rented. For example, if you rent out a unit for 20 nights in August, its occupancy rate is 65 percent for the month.

Average Daily Rate (ADR) is the average nightly price for which you rent out a unit. If you have two reservations for August, one for five nights at $123 per night, and the second for three nights at $179 per night, your average daily rate is $144 per night.

Your owners might have a sense for historical occupancy rates and average daily rates for each season. A common pitfall is to try to increase these values year over year, often at the encouragement of the owner.

But neither metric determines revenue, which is the measure of your business.

Increasing occupancy rates could lower revenue if you’re discounting too much to get those higher occupancy rates. And increasing average daily rates could lower revenue if you lose too many bookings because of your higher prices.

Why not just measure revenue? Because revenue does not account for owners stays. If last August you had 31 nights available to rent out, but this year the owner has reserved 14 of them, revenue will have decreased for the month, even if you have improved. Do measure total revenue, but do not make it your top metric when speaking with your owners.

The solution is Revenue Per Available Night (RevPAN). RevPAN is the amount of money you have collected each night that a property is available to rent out.

The hotel industry uses a similar term, Revenue Per Available Room (RevPAR). But as a vacation property often has multiple rooms, the hotel term is confusing.

In the vacation rental industry, it is optimal to stick with the RevPAN metric. You can measure the performance of a single property or your whole inventory, and you can easily compare this metric for the current year against the previous year(s) or this month against last month.

RevPAN Formula

What is an Available Night?

Available nights are all the nights you are allowed to rent out in a specified time period. Take the total number of nights for a given period and subtract the off-market nights. The most common off-market nights are owner stays.

Available Nights=Total Nights—Off-Market Nights.

Protip: Should you count “out of order” days? Typically, you should count changeover days as available. That’s the standard set by the hotel industry. But if a property is undergoing maintenance, marking those nights as off-market will help you communicate to the homeowner that you are not responsible for renting them out.

Example: Let’s calculate the number of available nights in May for a single property. “Total nights” is 31. The owner has reserved seven nights in May, and there will be roof repairs for two nights after that. The total number of off-market nights is nine. This leaves 22 available nights.

(31 Total Nights—9 Off-Market nights=22 Available Nights.)

What number should I use for Revenue?

You are demonstrating your value to your owners, so only include rental revenue (the rental revenue that you use to calculate your commission). Exclude additional guest fees that you keep (i.e. cleaning, pool heating and pets).

Example: Let’s go back to the May example above, with 22 available nights. We’ve gotten three reservations for the month:

Protip: When calculating your RevPAN for your owners, you should not include additional guest fees. But when you’re calculating it for your business, you should. These fees are an important part of your company’s revenue.

How do you calculate RevPAN?

Here’s the formula again:

RevPAN equals Rental Revenue divided by Available Nights.

Continuing with our example, we have $3,150 in rental revenue and 22 available nights, so RevPAN is $143 per night.

Let’s compare that against average daily rate, which is $210. RevPAN is significantly more useful because it combines both average daily rate and occupancy rate. It is a more comprehensive and indicative metric of your company’s performance, and unlike the total revenue for the month, you’re not penalized for the nine off-market nights.

Reporting RevPAN to a Homeowner

When we bring on a new customer at Smart Host, the first thing we do is send them a revenue report. It includes RevPAN, Occupancy Rate, Average Daily Rate and Total Revenue. Break out those metrics both monthly and annually to establish a baseline.

Each month, compare your performance to the previous year’s numbers, typically as a year-over-year percentage change.

Using our example, let’s say the previous year’s May RevPAN was $122 per night. We would report that May 2016 RevPAN is $143 per night and has a 17% year-over-year increase.

Now, let’s fill out a few more details of our example to see why RevPAN is the best performance metric.

Example:

Was 2016 an improvement over 2015? Yes! The manager was more effective.

Even though they had four fewer available nights available to rent, they earned the same revenue. This win is reflected in the RevPAN growth of 17 percent.

It is much more difficult to see this positive change by looking at Occupancy Rate and Average Daily Rate alone. Did ADR go up by enough to make up for the decrease in occupancy rate? You’d have to compare percentages to find out. Instead, just look at RevPAN.

 

As a vacation rental manager, there are many variables you don’t control: owner stays, weather, repairs and travel trends. As you respond to these variations, many metrics—occupancy rates, average daily rates, total revenue—will only hide the success of your work.

Make RevPAN the first metric your team uses to demonstrate performance. You’ll make more money and your homeowners will know it.

VaycayHero Suspends Operations

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VaycayHero, previously known as Zaranga, is suspending operations as of February 28, 2017, and has notified its vacation rental suppliers that it will not take any bookings past January 31.

To date, VaycayHero has raised approximately $4.8 million from angel investors and VCs, including a $836k investment from FundersClub just seven months ago.

In 2011, Zaranga was founded by Amitav Chakravartty and Anirban Bardalaye with the goal of providing a B2C marketplace that would connect guests with professionally managed, verified vacation rentals.

In 2012,  Zaranga joined the Y-combinator class and began to develop the concept of dynamic pricing for professionally managed short term rentals. On Zaranga, like Priceline, guests could enter the price they were willing to pay for a vacation rental by clicking on the “Make an Offer” option. At the time, Bardlaye said, “There is no dynamic pricing in the vacation rental market, even though it is extremely common in the rest of the travel industry.”

However, the vacation rental marketplace was not yet ready for this type of functionality as the overall connectivity and communication between the listing sites and property managers was slow to develop and competition among listing sites was fierce. In addition, travelers were just beginning to discover vacation rentals for the first time, and marketplace usability was not yet normalized or trusted enough to introduce a “Make an Offer” process to consumers.

In 2013, Zaranga rebranded to VaycayHero as a more pure form of an OTA focused on online booking for professionally managed vacation rentals. They raised a $2.8 million seed round from Alexis Ohanian, Garry Tan, Scott Banister, Microventures, Tamarisc, Stucture Capital, and others. VaycayHero said it planned to use the capital to bring on more workers, expand into more markets, and continue growing the overall business.

In 2015, VacayHero raised an additional $550k and operated under a closed business model in which all listings were instantly online bookable only, and fees were collected from the traveler instead of the supplier.

VacayHero follows LeisureLink in shutting its doors, with a half dozen venture funded companies in the vacation rental industry expected to also suspend operations by the end of the year.

In the comments on Tnooz’s article about LeisureLink ceasing operations, VaycayHero says it is helping customers. A few months later, VaycayHero also suspends operations.

Smart Home Technology Proven Invaluable for Vantage Resort Realty Growth Strategy

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Vantage Resort Realty has developed a strong appreciation for Smart Home technology. This advanced technology not only helps our operations, homeowners, and guests but also aligns with our strategic growth plans for the Vantage Resort Realty brand.

Established in 2007, Vantage Resort Realty is best known for high-end luxury vacation rental properties in Ocean City, Maryland. Thanks to our investment in Smart Home, we have extended “the Vantage experience” to New Jersey and Myrtle Beach.

Smart Home Value to Owners and Guests

Everyone is finding value in our Smart Home investment. Both of our customer groups, homeowners and guests, are benefiting from this home-automation technology.

PointCentral gives us the ability to continue to drive toward the goal of providing revenue for our owners while protecting their properties. We are up front with our owner benefits, displaying a forward-thinking approach and saying, “Here are all the things we’re doing for you—we’re keeping your utility bills low and your systems in check, and you’re going to be able to monitor your property in the off season.”

This approach translates to the guests, who always, at a minimum, expect the property to have what they have at home. With Smart Home, we are able to take that guest experience to the next level. For example, if a guest has an issue with a door lock, we can unlock it remotely. Instant gratification and speedy solutions make for positive guest experiences.

Operational Control

PointCentral has made a tremendous difference in our 24/7 Client Services department. For example, when we get a plumbing call and need to send a contractor to the property, we use our PointCentral online system to generate a unique user code for the contractor (which is only valid for a specified period of time). The minute that code is used, we receive an alert informing us that the contractor is at the property. This has helped strengthen our partnerships with our vendors. It’s a win–win situation because contractors don’t have to go to the office to pick up or drop off keys, and we don’t have to worry about access issues. Operationally, the visibility that we’ve gotten from our PointCentral Smart Home system has been outstanding.

Using the PointCentral dashboard, we can see when a property was most recently cleaned and inspected. We can even use one of the codes to find out when we changed the air filters; which, again, pushes value back to the owner.

Thermostats are most valuable when we transition between seasons. When it started getting warmer in Ocean City, we found that the air conditioning systems were set either on “auto” or on “heat.” Thus, we were inundated with calls to the effect that the air conditioning wasn’t coming on. With our PointCentral Smart Home system, our team was able to get into the system for the property in question, click on the thermostat, and change its setting to “cool”—easily and efficiently solving the problem. The guest feedback we receive when we handle something on the first call has been positive, which is our ultimate goal from a customer-service standpoint.

Why Did I Choose PointCentral?

It started with the people. Adam and I jumped off to a fantastic start. Stan and Laura have been awesome. When I have questions, Adam is there. We text at random times and bounce ideas off each other all the time. It’s a great relationship.

With the way we’re pushing forward, we are on a path to success that continues to increase our excitement and positive client feedback each and every day.

Vacation Rental Pros expands in US and finalizes $27 million in bank capital

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Vacation Rental Pros Steve Milo Raises 27 million

Vacation Rental Pros Property Management, LLC, one of the vacation rental industry’s fastest growing management companies, reached an agreement to acquire three additional vacation rental companies in New Mexico and Tennessee.

The move adds an additional 500 vacation rental properties to the management portfolio of Vacation Rental Pros, giving the company over 2,100 total properties under exclusive management contract.

Vacation Rental Pros enters the New Mexico market with the acquisition of Condotel in Ruidoso New Mexico, and Kokopelli with locations in Angel Fire, Taos and Sante Fe New Mexico. The company also announced the purchase of the post-wildfire owner contracts of SmokyMountains.com in Gatlinburg.

To support its future growth, Vacation Rental Pros announced the completion of $27 million in bank debt. On December 28, 2016, Fifth Third Bank approved $20 million in commercial bank debt to Vacation Rental Pros Property Management, LLC (“VRP”).

On December 28, 2016, Gladstone Capital invested $7.0 million in VRP through secured second lien debt to support the company’s continued growth and expansion into new markets.

According to Steve Milo, the owner, founder and managing member of Vacation Rental Pros, the ability of the company to raise a large debt round shows the strength of Vacation Rental Pros business model. “While several of our high profile competitors continue to raise equity, Vacation Rental Pros is able to raise market rate commercial debt based on the strength of our financial statements. The strength of our business model is what separates us in the industry. We are able to achieve both growth and profitability at the same time. As a result, we have been able to avoid equity partners and warrants and have all the options open to us for future growth.”

Vacation Rental Pros AcquisitionsVacation Rental Pros is a growing and innovative property management and rental reservation system which leverages a proprietary technology platform to maximize occupancy and revenue. As a result of the Company’s integration platform and marketing expertise, the company is successfully expanding through both acquisition and organic growth into its new markets. The acquisition of Kokopelli, Condotel, and Smoky Mountains are the sixth major acquisition in 12 months for Milo’s company which forecast’s growth of 70% in 2017.

According to Steve Milo, there will be additional acquisitions in 2017 with several more to be announced in the early 1st quarter which is the off season for some property management companies in North America.

“Vacation Rental Pros is getting approached by more and more sellers as the vacation rental market gets more and more complex due to technology and the significant changing business models with online travel sites,” said Milo. “Vacation Rental Pros has built the best technology platform model in the industry to expand in both a scaleable and sustainable manner. We have built this platform through a focus on technical and operational efficiency which translates nicely to expanding incremental profitability. We have a powerful mix of robust growth, profit and no dilution of equity.”

Hiring in the Vacation Rental Industry? New Resource Can Help.

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As human resource managers know, finding experienced candidates in the vacation rental industry is challenging. Currently, hospitality degrees focused on vacation rental accommodations do not exist, and there are no accreditation or training programs being offered to prepare individuals seeking a career in private accommodations.

As a result, VRM Intel has created ProVRM.com, a job board and career planning resource for job seekers and hiring managers in the fast growing vacation rental industry.

“At VRM Intel, you will hear us say often in 2017, ‘We can’t get there tomorrow if we don’t start today,'” said founder Amy Hinote. “As the industry continues to grow, we anticipate an even greater need to have a hub for vacation rental career opportunities and training. We built ProVRM as a first step in establishing a place for candidates and hiring managers to meet and for job seekers to find training resources.”

ProVRM.com provides a job search tool through which hiring managers and companies in the vacation rental industry can post jobs and job seekers can search for opportunities. Candidates can also post resumes and reach out to recruiters.

“Our hope is to connect experienced, trained candidates with growing companies in the vacation rental industry so that our space is able to leverage its existing knowledge base to help build future products, services and opportunities,” said Hinote.

 

 

The Economics of Really Knowing Your Vacation Rental Guests

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We put many price tags on guests. How much is a guest worth? How much did that guest cost? When guests become names with a dollar sign attached, we lose sight of hospitality—and of human nature—but, ironically, it is by understanding human nature that we’re able to increase the value of the dollar sign.

The human brain is bigger than other animals with similar body sizes because we are social creatures. We exist to have relationships of all different kinds—from a nod and a smile to a very best friend. Scientists know that humans with more social connections are happier. In fact, economists have put a price tag on relationships to demonstrate this, and the act of volunteering weekly is equivalent to increasing your annual income from $20,000 to $75,000. Having a friend you see most days is like earning $100,000 per year.[1]

This is how important connection is. And it’s important to guests, too. Of course, most guests don’t want to hang out and chat all afternoon, but they do want to feel welcome. Like they belong. They will do business with people they like—because, again, we are fundamentally social creatures.

When asked about their guest database, many vacation rental managers (VRMs) will reply with a number (e.g., our database has 45,000 names). This means very little because it doesn’t matter how many guest names are in a database. What matters is the depth of the relationship with those guests. How much information is there about those 45,000 guests? The more information about the guest that’s included signifies that a connection was made. An agent or a front desk manager was listening and engaging, and walked away with knowledge of a person, a guest.

So how does understanding the guest increase guest value? Creating relationships increases conversions for all the reasons above, but it also offers the opportunity to truly personalize guest outreach. To better understand your guests, find out their interests—whether they have children or are traveling with friends, whether they prefer a big kitchen for gatherings or intimate cabins, when and how they like to travel—this is where personalization happens.

For instance, if the agent documents the inquiry fully and knows that a guest who didn’t book on the first call is traveling with two daughters, wants to attend the sandcastle-building event the weekend before school starts, and is coming from a town 125 miles away, this information can be used to personalize an outbound call. During such a call, an agent could offer the family’s ideal-sized property on the appropriate weekend with access to the beach so the family can walk to the event rather than hassle with parking. A call of this kind creates trust that your staff understands what the guest is looking for, and this trust is where a lifetime guest can begin.

Let’s look at the economics. If a property has 6,750 unbooked leads and begins a personalized outbound sales program with a 2 percent conversion rate, this equates to 135 new outbound bookings. With an average stay value of $2,800, an outbound sales program would yield $378,000.

6,750 unbooked leads

x          2% conversion rate   

=          135 new bookings

x          $2,800 average stay value

=          $378,000 in untapped revenues

Further, the level of guest information that was collected above allows for true segmentation, which opens the door to automated, personalized marketing. With NAVIS Reach LifeCycle, VRMs can segment based on a depth of information to create email marketing programs that actually speak to what the guest cares about. Knowing that a return guest tends to start shopping in November but books a summer vacation for their family of twelve in January—after the holidays—and they always want a big outdoor space with room and enough seating for large family dinners, an email can be crafted that will speak to that guest’s interests and needs, going much further than name personalization and instead becoming truly effective marketing.

While the point is that we have to go beyond dollar signs when we think about and engage with guests in order to grow real relationships, the benefit is that, when we do this, we substantially increase the opportunity for revenue. The trick is to not only be aware of the economics but also care about more than just the bottom line, to genuinely care about serving the guest, and to connect and create an experience that is just right for their needs. To explore the value of going deeper with guest personalization and find out how much money is waiting in your pipeline, try out NAVIS’s Competitive Edge Calculator. https://www.thenavisway.com/calculator

 

[1] Emily Esfahani Smith, “Social Connection Makes a Better Brain,” Atlantic. October 2013.

Vacation Rental Marketing Success: You Can’t Measure What You Can’t See

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A decade ago, vacation rental owners and managers paid “listing sites” such as VRBO and Homeaway to accept their property information and use this information in the form of advertising to attract travelers (both new and returning customers).

It began as a helpful and inexpensive advertising service. However, once a listing site achieved a critical mass of inventory, the game changed to the detriment of everyone but the big sites.

As vacation rental managers (VRMs) and homeowners, we were in a rush to save money but had no sense of the long-term, bigger picture. We did not ask the tough questions, like “Where do we think this will leave the traveler and the vacation rental industry five years from now?”

As a result, the traveler is ultimately paying more, and the owner/manager is beginning to see margins shrink. As with any disruption in our industry, we must evolve in order to prosper.

Understand Your Distribution

Now more than ever, it is critical to have a solid understanding of how and where your property data are distributed. Having a diverse split of booking channel revenue ensures that, if one channel goes down, you still have other channels you can rely on.

Complacency tends to blind us when everything is going well, and in the first quarter of this year, many owners and managers paid the price for their dependency on one channel. The keys to long-term success are diversity and focus. Those who planned ahead are benefiting from the other options available to them. In today’s market it is important to understand how your data are performing at local and regional levels. By rationalizing the data, you can get a clear view of how your Brand (intentionally capitalized) is performing in the marketplace versus the noise coming from outside. Using hard data also uncovers opportunities to “get local” that will keep your Brand strong and relevant to the traveler. This is something big sites can never achieve.

Pillars of Success

We can all agree that there are many levers to pull in operating a successful professional vacation rental management company. The most critical pillars to success in this business are marketing, operations, and finance.

Marketing is the foundation of our business, as it allows us the opportunity to build up the other pillars. It is important to have a monetization strategy in place for every traveler who comes in contact with your Brand. Having this strategy in place will allow you to navigate industry changes, leverage opportunities that benefit your business, and be better able to predict future success in your business. Building a stronger marketing foundation will do wonders for your asset value.

Learning from Hotels

Admittedly, hotels and vacation rental accommodations are not the same. That said, there is much to learn from the hotel industry in how they approach marketing and managing their Brands.

Part of brand management involves managing your inventory (rooms or properties). Hotels are very proactive in managing their Brands’ positioning in the marketplace. They can exert control of their Brand by controlling inventory (assets) with online travel agencies (OTAs). Hotels also keep their data separate from the OTAs and proactively market to every traveler who comes in contact with their Brand. One of the most difficult lessons we have learned in the past few years is what happens when you put all your eggs in one basket.

An all-in-one property management system (PMS) can manage your OTA channels for you, but is that always the best decision? We recently worked with a VRM who had been using the same PMS for ten years. When the VRM decided to make a technology change to his business that improved his outlook for the future, the PMS pulled out . . . along with their data for the past decade! This serves as a cautionary tale of what happens when all your eggs are in one basket. Partner with a PMS provider that offers an API, giving you the flexibility to make the best decisions to add value to your business. Partner for your success . . . not theirs. Having this mindset insures that all parties involved are invested in a positive outcome.

Engage Travelers Intelligently

Who would have ever thought that the change from the “Inquire” and “Contact Us” buttons to the “Book Now” button would have such a critical impact on our business?

Communicating directly with the traveler provides an opportunity for unique engagement with the traveler and gives the traveler an opportunity to build a relationship with your Brand. It also insures a higher degree of success in delivering the perfect vacation rental experience.

In the “Book Now” world, if you have not set up a marketing strategy for conversion and retention, now is the time. It makes no difference if you are new to the business or well-established, if you have one property or hundreds, how you present your Brand to the traveler will make a measurable difference going forward. Implementing an engagement and retention strategy will allow you to intelligently monetize every traveler contact, make better channel and technology selections, and understand the true impact of your Brand’s performance.

Know What Success Looks Like

  • Lead with your Brand first in every interaction you have with the traveler, and carry your Brand’s message through the entire lifecycle of the guest experience. Travelers have expressed a direct intent to stay with you. Make sure they keep your Brand at the forefront of their minds.
  • Establish a strategy for conversion and retention based on previous guest experiences, event-driven motivations, and traveler intent. Social media is an excellent tool for communicating positive messages and driving traffic back to your site.
  • Monetize every traveler lead. Regardless of where the lead originates, capture the data and have a plan in case the lead does not book.
  • For those who do book, keep them coming back and sharing their experiences. Repeat guests are a direct reflection of your ability to deliver on your Brand’s promise. At every opportunity, highlight your guests’ experiences and ask them to share these with your audience.
  • Look for ways to work with your professional community. The power of combining powerful local Brands increases traffic; increased traffic builds positive traveler awareness, and positive traveler awareness strengthens Brands.

Having a solid understanding of how your Brand is performing will net higher conversion rates, increase repeat guests, and build a funnel of intent that will secure your Brand’s foundation for years to come.

Grow Inventory and Attract Ideal Owners

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As we settle into 2017, now is an excellent opportunity to reflect on your inventory and determine whether to grow in the upcoming year. Why now? Property owners just wrapped up a busy summer season and may be ready to look for a new property manager. In addition, real estate sales across the United States were favorable, bringing new vacation home owners to the marketplace. As a result, if you have the resources and infrastructure to facilitate increasing your inventory, then this is an ideal time to create a robust acquisition strategy designed to build lasting relationships and sustainable long-term growth.

 

The Strategy: Attract New Owners

The partnership between owners and professional vacation rental managers is incredibly unique. Owners are asked to trust their most valuable assets with your team, and in return, owners request that your team make a healthy return on their investment. Sean Kelly, a senior strategic account manager at Bluetent, often says, “We choose beaches and mountains over Wall Street, but we are all still asset managers.”

Your messaging and communication should reflect your deep understanding and respect of this partnership. The first step in appealing to new owners is to consider your brand and unique sales proposition during the following four key moments in the owner experience:

  1. Upset Moments: When an owner has a negative experience with his or her current vacation rental manager
  2. Buy or Sell Moments: When owners purchase vacation properties and begin to explore working with a professional vacation rental manager
  3. Need to Know Moments: When an owner is interested in learning more about the benefits of short-term rentals, how to rent his or her home, or how to choose a property manager
  4. Overwhelmed Moments: When owners are trying to manage and rent their properties on their own, but are entirely inundated

Your unique sales proposition must focus on what makes your company unmatched in the rental market as well as the benefits of professional management over rental by owner platforms. Once you identify your unique sales proposition for each moment, you’ll be able to establish consistent messaging for a saturation of media channels so you may attract owners at the right time, in the right place, and with the right message.

6 Marketing Strategies to Implement

1. Create Compelling Sales Collateral

In only a few moments, you must explain how you will generate revenue for owners. Be clear, consistent, and powerful in your sales collateral. You’ll want to have a captivating brochure that speaks to all the aspects that make your company unique. You’ll also want to provide a revenue prospectus to reveal proven performance.

2. Develop Engaging On-Site Assets

Focus resources on developing areas of your digital presence that are designed to convert owners. This should include a unique landing page, educational blog posts that appeal to owners, and compelling owner testimonials. Your current owners are likely your fiercest advocates, so solicit testimonials and let them tell your story.

3. Design a Direct Mail that Inspires and Connects

Create a compelling campaign that speaks to your brand and unique sales proposition. Your county assessor typically has a list you can buy to obtain addresses. However, it’s critical within this step to understand the laws and regulations of your market. For instance, in some locations it’s illegal to send postcards to only oceanfront properties, so you must send them to the whole neighborhood. Know your area and tailor your messaging and timing accordingly.

4. Stay Front of Mind with Digital Advertising and Retargeting

Paid search, retargeting, and social retargeting are all exceptional opportunities to stay ahead of the competition and to be there when owners are searching. Even though paid advertising for owner acquisition campaigns typically has a low volume of traffic and difficult-to-track conversion rates, it’s great for brand recognition, owner loyalty, and competitive edge.

5. Capture and Nurture with Email Marketing and Automation

Throughout each step of your acquisition strategy, you must gather the contact information of potential owners. As you do, enter these contacts into a nurturing campaign that will connect at each level of the engagement funnel. By providing the right message at the right time in the right place, you’ll be able to stay in front of owners and connect through simple, streamlined, and educational messaging.

6. Get Creative and Network

Building personal relationships is one of the most important steps in acquiring new properties, so have fun and get out in the community. Participate in local chamber events, sponsor community fundraisers, use the local MLS to get in front of realtors, and create a referral program for current owners.

 

Engaged Employees Lead to More Profitable Business Outcomes

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What is it that keeps your employees coming back to work each day? Is it their paycheck or an opportunity for advancement? Is it having challenging assignments or a personal connection to your organization’s mission? Research shows that engaged employees result in a more profitable business.

When employees are engaged in the business and believe your mission, they work harder, are more productive and, most importantly, they feel successful. The Corporate Leadership Council[i] conducted a worldwide engagement study and found that the most important driver of employee engagement is a connection between an employee’s job and organizational strategy.

Almost anything that happens at work has a direct impact on your employees’ engagement. How your employees are coached and evaluated; the work environment, tools, and resources they use; their relationships with management and peers; and their opportunities for growth and professional development are all important to how connected and engaged your employees are.

So how do you know if you have an engaged workforce?  You can see it on your employees’ faces. Engaged employees are more focused. They are driven to work more creatively and efficiently. They openly communicate about their work, results and challenges, both verbally and nonverbally. Engaged employees are emotionally connected and committed to their organization. They care about the work they do, and they care about their company. They don’t simply work for a paycheck; they focus their efforts on your organization’s goals and priorities. Engaged employees put forth their discretionary effort willingly.

In contrast, disengaged employees show it in their attitudes. It might be making caustic or toxic comments, rolling their eyes, or silently glaring in your direction. They complain and make excuses. They lack enthusiasm and initiative. Disengaged workers not only have a negative impact on employee morale, they don’t care about your company, and they have no intention of helping it grow. Research by McLean & Company[ii] found that disengaged employees cost an organization approximately $3,400 for every $10,000 in annual salary. That is a significant amount of money to spend on employees who aren’t connected to your business.

You know that employee engagement is important, but are you aware of the significance it can have on your bottom line and productivity?  Several studies correlate increased engagement to more profitable business outcomes, which provides strong evidence that higher levels of employee engagement will drive better results for your organization. Employee engagement is all about having a more enthusiastic and more committed workforce caring about the work they do.

According to Gallup,[iii] employee engagement consistently affects key performance outcomes, regardless of the industry or company. Gallup’s results showed that companies with highly engaged employees experience:

  • An increase of 10 percent in customer loyalty/engagement
  • An increase of 21 percent in profitability
  • An increase of 20 percent in productivity
  • A 40 percent reduction in turnover

Studies from the Society of Human Resources Management[iv] indicate that it can cost between six and nine months’ salary (on average) to replace a position. If you lose a position paying $40,000 a year, you can expect to incur $20,000 to $30,000 in replacement costs, not including the loss of productivity and team morale. Imagine what a 40 percent reduction in turnover would add to your bottom line.

Employee engagement is about to become even more interesting as millennials grow into the largest share of the workforce. At a recent SHRM conference, Gallup Chairman and CEO Jim Clifton described how workers’ perspectives are shifting from “my paycheck” to “my purpose” and from “my boss” to “my coach.” With four generations in the workplace, employees are showing up each day with at least four different sets of expectations of work. Motivating employees is no longer a one-size-fits-all task. Creativity and flexibility are essential to keep employees motivated and engaged.

Listed below are seven key strategies you can utilize to increase your employees’ efficiency and productivity, your business profitability, and your employee retention:

  1. Share your organization’s vision and goals. Employees are more engaged when they believe their efforts contribute toward a vision they can believe in and can contribute to. Business objectives and strategies need to be clearly communicated using multiple channels, and they must be continuously reinforced by line managers.
  2. Empower employees. Employees want a stake in the success of the team and company; let them take responsibility for their work and their decisions. Allow them to exercise independent judgment in doing their jobs. Be clear about their performance expectations and levels of decision-making.
  3. Measure employee engagement. What gets measured gets done. Find out how engaged your employees truly are by using simple tools such as Gallup’s[v] twelve questions or an employee net promoter score to quickly determine where your workforce stands. Follow up on your measurement by openly communicating with your employees about the findings and actions you plan to take.
  4. Manage performance one day at a time. Managers are directly responsible for this critical element of employee engagement. Employees like to know where they stand and how they are performing on a real time basis. Find ways to provide meaningful feedback in a timely manner.
  5. Use “stay” interviews. Forget about conducting exit interviews. Start implementing “stay” interviews with your employees to find out why they are staying, what they like and don’t like about their current position, and what is important to them. Wouldn’t you rather know what keeps your employees vs. waiting until they leave to find out why they are leaving?
  6. Evaluate your managers. Most employees leave managers, not companies. Providing more manager training on soft skills such as how to give effective feedback, setting SMART goals, and dealing with conflict will go a long way toward improving your employee engagement and retention.
  7. Design and implement programs that target disengaged workers. This goes back to getting the basics right: getting the right people into the right seats, setting clear expectations, and providing the tools your employees need to do their jobs. Focus on dealing with disengaged workers on a one-on-one basis vs. with a one-size-fits-all approach to drive higher levels of engagement.

 

Employee engagement can be difficult to quantify. A great place to start is to create a baseline using a net promoter score along with tracking key human resource metrics. A combination of the following metrics will provide you with a well-rounded assessment of your employees’ engagement:

  • Employee Net Promoter Score (NPS)

This measures how willing your employees are to recommend their workplace to friends and acquaintances. You ask one simple question such as, “How likely is it that you would recommend your employer to a friend or acquaintance?”  The key to calculating an employee’s NPS is to use a scale of 0–10 with the responses divided into three categories:

  • 0–6 = Detractors
  • 7–8 = Passives
  • 9–10 = Promoters

Calculating your employee NPS is done by finding the percentage of promoters (9–10 ratings) minus the percentage of detractors (0–6 ratings).

  • Revenue Per Employee

This is a simple calculation that divides annual company revenue by the average number of employees or FTE’s (full-time equivalents).

  • Profit Per FTE

This metric calculates the amount of profit generated per FTE. You can calculate this by dividing the difference between your annual revenue and your operating costs by your total number of FTEs.

  • Turnover Rate

This metric tracks employees who leave your organization, either voluntarily or involuntarily, as a percentage of your headcount. You can calculate your turnover by taking the total number of terminations (involuntary and voluntary) and dividing it by your total number of employees (headcount).

Making employee engagement a priority will improve your employee morale, create a more positive culture, and significantly improve your bottom line.

As former Campbell’s Soup CEO Doug Conant said, “To win in the marketplace, you must first win in the workplace.”

[i] https://www.usc.edu/programs/cwfl/assets/pdf/Employee%20engagement.pdf

[ii] http://www.kenan-flagler.unc.edu/~/media/Files/documents/executive-development/powering-your-bottom-line.pdf

[iii] http://www.gallup.com/services/191489/q12-meta-analysis-report-2016.aspx

[iv] https://www.shrm.org/about/foundation/research/documents/retaining%20talent-%20final.pdf

[v] http://www.goalbusters.net/uploads/2/2/0/4/22040464/gallup_q12.pdf

Working With Policymakers To Help Create Effective, Commonsense Regulations

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My wife and I had a recent dilemma: What do we do in a hotel room when our six-month-old daughter has fallen asleep? The solution: Next time, stay in a vacation rental.

Like many parents, we got to the point when we needed to have our daughter on a sleep schedule. This hit us especially hard when we found ourselves in a small hotel room at 7:30 p.m. after we had finally gotten the baby to fall asleep. That’s when we realized we had no idea what to do! With extremely limited options, we sat on the floor on the opposite side of the room from the baby and watched TV shows on our iPads. In truth, we were staying for only one night, but when Christie turned to me and said, “If we were here for more than three nights we would have to rent a house or I would probably kill you,” I knew exactly what she meant.

As parents of one six-month-old I can’t begin to fathom this same scenario for families with more than one child.

As city policymakers discuss regulations, they might want to consider trading places with parents like us first to understand the demand for private home accommodations, otherwise they may also be hiding in the dark as they create onerous vacation rental regulations that drive family travelers away.

Property managers and owners can help policymakers cast the right vote; they can join the conversation, serve on decision-making boards, and give their time to organize the industry.

People have used vacation rentals for years when traveling, for all kinds of reasons. Typically, it’s a family staying for a longer than normal length of time. In fact, recent surveys show the average stay in a vacation rental is just over seven nights, which is a huge shift from the average stay in a hotel of just over one night. And the average size of the group is significantly different—four people in a vacation rental versus just over one person in a hotel.

The research group Longwood International recently outlined some of the reasons families travel. These travelers bring heaps of economic impact to communities, and the research found that this type of travel is often part of a decision to make a new life in the place being visited. The Longwood International study found that some families research towns based on whether they are a good place to live or a good place to start a business or career.

The research also showed that some families decide to visit communities when seeking to determine whether they are good places to attend college, retire, or purchase a vacation home.

Of course, when families are making travel choices, we know they may need the option to rent a home for their visit, and as cities decide on regulations around home rentals, they may want to remember the needs of family travelers.

And why not? The need is clear, especially for families, and the economics are clear, too.

In the United States the travel industry has created 972,000 jobs and expanded employment 18 percent faster than the rest of the economy. Travel industry salaries have risen 10 percent faster than overall private sector salaries, and since 2010 the industry has created more jobs than the entire manufacturing sector.

In Nashville the community benefited from $5.4 billion in visitor spending, and the visitors helped to support over 58,000 jobs. Now, that wasn’t all due to the traditional short-term rentals of visiting families, but an economic impact study of Nashville’s peer city, Austin, Texas, shows that the vacation rental industry helped bring $234.1 million in economic impact to that city and helped support 2,500 jobs.

In little St. Joseph, Michigan, the vacation rental industry brings $24.4 million dollars per year to the community and supports more than 300 jobs. In larger Galveston, Texas, the vacation rental industry helps bring $283 million to the community and support over 3,100 jobs.

At the recent U.S. Travel Association annual conference, ESTO, the attendees spoke at length about some incredible statistics on vacations, including the following: 55 percent of Americans don’t use all their vacation time, 222 million vacation days went unused in 2015, and only 36 percent of Americans go into a new year with confidence they’ll take a vacation.

In addition, the attendees discussed some other fascinating statistics. Traveling families are spending more on their vacations. In fact, families are spending on average 11 percent more, and families staying in vacation rentals in some destinations have been found to be spending two times the amount daily spent by the average traveler.

These conversations led to a common theme from tourism leaders: They want vacation rental managers and owners to get involved.

Time and again at recent tourism conferences we have heard heads of convention centers and visitors bureaus, tourism boards, and destination marketing organizations say that the demand for vacation rentals by family travelers is too great and the economic impact is too massive for property managers and owners to be left out of the discussion. One solution has been all too commonly discussed: Join your Convention and Visitors Bureau. Be a part of the conversation.

Property managers and owners who want to help frame discussions occurring at the local or state level should join their tourism industry stakeholders. Strong consideration should also be given to joining local and state real estate and home-builders associations. These organizations should be part of discussions on how vacation rentals bring many jobs and have a massive impact on the economy and also meet the huge demand of family travelers.

Managers and owners seeking to help advocate for effective, commonsense regulations should sign up to serve on local planning commissions, zoning boards, or building committees. These local advisory groups give policy direction to city councils and can benefit from sound voices of individuals who understand the industry.

To prepare for the growing discussions of how vacation rentals are becoming a more important aspect of the visitor industry and to prepare for the increasing conversations about regulations for vacation home rentals, managers and owners should also give their time and resources to form local and state alliances. Only when you are part of an organized group will policymakers fully hear your suggestions on how regulations should be created that are realistic to the needs of family travelers and property owners.

Join, serve, and give. It’s that easy.

The economic impact of the visitor industry is gargantuan. City policymakers prepare to capture visitor dollars by investing in public spaces, parking, wayfinding, and cultural events. They analyze and decide how best to fund public art and bike and pedestrian infrastructure, and they encourage and invest in concerts and art festivals. Policymakers do all this while working to preserve heritage structures and the environment and provide walkable, transit-friendly town centers. And they know that visitors help fund all these efforts.

These city policymakers need to understand why some people travel, why some families choose longer stays, and why for visiting families a vacation rental or traditional short-term rental is the best option.

One great mayor once said, “The visitors industry is the ultimate green industry. Visitors leave their money in our local economy, and take up very little footprint.” That is true, and policymakers need to hear from industry stakeholders on how to best understand the demand, the family traveler, and your business.

Although my wife and I found a way to get through the night in our tiny hotel room, cowering on the other side of the bed and watching iPads while our baby slept, I know that we will need the option to rent a home when we are staying for longer periods of time—there is no way we can go through life hiding in a dark room. I’d rather take a few extra minutes next time to research and find a great vacation rental.

The demands of traveling families are great, and the economic impact they have is even greater. Cities will continue to benefit from visitors who choose to rent homes when they travel with their families or friends. And to help policymakers create effective, commonsense regulations, property managers and owners should join their local tourism bureaus, serve on planning commissions, and give their time and resources to organize local and state vacation rental alliances.

Working with Communities and HOAs: Galveston Island Homeowner addresses HOA

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On Galveston Island’s west end, there are approximately 41 different resort subdivisions, each with its own set of deed restrictions. Only two neighborhoods ban short term-rentals via their deed restrictions.

In 2004, six property management companies organized the Galveston Association of Rental Managers (GARM), to proactively prevent additional deed restriction changes.

We worked closely with all the West End neighborhoods to create our strategy: good neighbor policies, universal registration, guest “code of conduct” forms, and most important, patrolling off-duty police who are available 24/7.

In 2010, a homeowner sought to amend the deed restrictions in her subdivision and ban vacation rentals. There were numerous meetings, and neighbors debated the idea among themselves. GARM also participated in the discussions.

Recently, I stumbled across this letter which was written anonymously by a homeowner in the subdivision in response to the proposed ban. Even though it was written several years ago, the positions presented in the letter are valid and relevant today. I have adapted and updated the letter in hopes that it serves as a template and provides positioning assistance to other companies, neighborhoods, and homeowners facing the same challenges in their communities. 

A Letter to Our Friends And Neighbors Regarding Changing The Deed Restrictions In Our Subdivision:

 A survey has been sent to everyone in our neighborhood proposing to change our subdivision deed restrictions to exclude short-term rentals. As you contemplate this proposal, there are various factors that should be considered.

Life can change, so maintain all your options.

It is risky to unnecessarily restrict property ownership rights. Storms come, finances change, or family dynamics shift. When these life events occur, property owners should not be restricted from adjusting their investments—including real estate investments—to meet their needs.

In our resort subdivision, for example, many large beach homes were built by the rich and famous of Houston. Those vacation houses were well used and enjoyed for many decades; however, the owners aged, as did the homes, and circumstances changed. Some of the homes became vacation rentals, which enabled the homeowners or their heirs to defray expenses while continuing to utilize the homes on occasion. The fact that these homes became rentals did not diminish the value of the subdivision.

Vacation rentals and renters drive the real estate sales market.

Vacation rentals are the driving force behind the real estate market on the West End of the island. Countless buyers start out as renters of vacation homes, learn to love the island and then purchase a home. Local Realtors® report that most clients won’t even look at beach properties in areas where vacation rentals are restricted. Even buyers who have no intention of renting do not want their options limited. It is frightening to think of trying to sell a home in Pirates Beach West if rentals were restricted. The number of buyers will be limited, and real estate values will go down.

Vacation rentals are not a problem in our subdivision.

If rentals were to become a problem, negotiations with the property management companies for more stringent policies would be a better solution than a drastic change in deed restrictions.

The Galveston Association of Rental Managers (GARM) is an established organization made up of seven property management companies which are dedicated to good-neighbor policies. GARM carefully monitors renter activities via carefully crafted, universal registrations, on-site check-in procedures, and year-round, off-duty police officers who patrol our area and monitor renters’ activities 24 hours per day. GARM companies manage several vacation homes in our subdivision. When there is a problem, we have one number to call for assistance, 24/7.

In addition, several homes are managed individually by their owners—Rent-By-Owners. Report directly to these homeowners, your neighbors, if you feel their renters are breaking subdivision rules or are out of bounds. Most people are reasonable and we are all dedicated to maintaining a peaceful neighborhood.

The Reality

There are ten summer weeks and a couple of festival weekends a year when rentals are at a peak. During the other 42 weeks there are approximately ten families in residence in our area. To change the deed restrictions for those ten weeks and those ten families seems extreme. In reality, we are a community of absentee owners.

Are you certain of the legality of the proposed deed changes?

These changes propose grandfathering current owners.  Will you be ready to defend yourself in a lawsuit if you fail to disclose to a new owner that their deed restrictions are different than those of their neighbors and different than what you enjoyed?

A change in restrictions that does not restrict everyone equally will be confusing and risky. If the new deed restrictions do not comply with fair housing rules, would individual homeowners be liable? What if one section decided to change and another section didn’t?  Does that help the marketability of the neighborhood to have a plethora of different deed restrictions?

Most important, who is going to police this restriction and how? Will our property owners association be responsible? Will we have to increase our dues to make it work?

Let the market determine the rules. Why put your fate in the hands of someone else? 

Our current deed restrictions are moderate, just enough to ensure the beauty of our community. The initial platting with the wide concrete streets, the curving roads, the separation from the highway and the set back requirements are the real reasons for the success of the subdivision, not the deed restrictions.

Many neighbors go far above and beyond deed restrictions with beautiful landscaping, clean wetland areas, stunning architecture, and year-round property maintenance. Our beautiful entrances and cul de sac landscaping are mainly the result of homeowner donations. Cooperation among neighbors has been key to the success of our neighborhood. 

We will always be friends.

Thank you for your consideration of these points. Many of us in the neighborhood are against the change in the deed restrictions. We want to remain anonymous as we care more than anything about the sanctity of the subdivision as a collegial environment. No other neighborhood in the area has what we have—our monthly parties, our Christmas celebration, and the July fourth festival. Let’s all decide this issue privately, vote anonymously, and stay friends.

 

UPDATE:

GARM celebrated its twelfth anniversary this year and now has eight members companies. Over the years, we have become a known entity at City Hall and the go-to organization when any questions come up about vacation rentals. Over the past two years, we participated in the formulation of a city-wide short-term rental ordinance along with representatives of the Rent-By-Owner community.

Our ordinance requires that:

  1. All vacation rentals register with the city.
  2. All vacation rentals pay lodging tax.
  3. All registrations list a 24/7 contact who will respond to problems at the property.

We remain proponents of the “good neighbor policy” and strongly believe that our work—started over 12 years ago—has contributed to our community having (mostly!) positive attitudes toward vacation rentals.

What was the outcome of the neighborhood debate discussed in the letter? The homeowners voted overwhelmingly to maintain the original deed restrictions and allow short-term rentals.

 

Demand-itis: 3 Ways to Cure the Problem of Missed Leads

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The hospitality industry is suffering from a serious condition. Few recognize it, and therefore even fewer know how to treat it. The condition is one in which vacation rental managers (VRMs) devote more and more of their marketing budget to generating leads while paying exorbitant amounts for every inquiry, but at the end of the day, a huge percentage of these are going unbooked.

Demand-itis: when demand is plentiful, but not enough of it is being captured.

It seems natural to diversify—going after variety and volume—however, learning to turn existing demand into business is far more efficient and profitable. In hospitality, marketing budgets devour a huge percentage of overall revenue.

Consider a VRM with a $100,000 marketing budget. This company receives 9,000 inquiries as a result of its marketing efforts. This means that every inquiry costs $11.11. (We have seen this number climb as high as $30 or $40 per inquiry.) If reservations agents are converting only 30 percent, this means that there are 6,300 leads that have gone unbooked—that’s almost $70,000 in leads.

The cure for this condition is to increase conversions for existing leads by improving performance on the ground level. The three factors to consider are:

 

Training

Traditionally, reservations agents have been treated as order takers: self-focused, following a script, filling out a form, and booking a home. To capitalize on existing demand, reservations agents should be thought of as sales professionals who are guest-focused and devoted to earning trust and loyalty, as well as listeners instead of talkers and creators of an experience. Reservations agents should be hired as salespeople and trained with the aim of creating an exceptional guest experience from the get-go. Successful training and coaching can increase conversions incrementally over time, so a 5 percent initial increase may become much higher in the long run.

 

Lead Management Improvements

Proper lead management is essential for VRMs. A typical scenario for VRMs: Three different home inquiries from one guest all become different leads. Multiple agents may end up reaching out to the same guest, in which case the guest experience is muddled and the guest story can get lost. Alternatively, agents may spend valuable time merging leads when they could be generating revenue through outbound calls or recording vital guest details. With true lead management software, the guest is the lead, and the lead is integrated with a CRM so that the whole story is captured.

 

Outbound Sales Programs

What’s happening with the calls that go unbooked? What about that other 70 percent? If you’re not following up, they are booking with your competition. Of course, in some cases, your properties just aren’t the right fit. In many cases, the guest is just in the middle of the decision-making process, and a thoughtful follow-up call that says “Hey, we know you’re considering a Valentine’s Day visit to ski with your fiancé, and we have the perfect romantic home with a hot tub available during that time” goes a long way toward showing guests that you are invested in their experience.

A portion of outbound sales can also be automated. For instance, an East Coast VRM with 200 units created an email program that triggered an email to be sent to “hot leads” four days after the last touch point with an agent. The email reminder—“Let’s finalize your vacation”—created 727 bookings with revenue of over $877,000 in just five months.

 

Conclusion

The rising cost of guest acquisition is a hot-button topic. Yes, the cost is rising. The solution is not to spin your wheels faster to drive more demand—it is to fine-tune essential operations in order to capitalize on the leads that already exist. Have a serious look at how many leads are coming in versus conversion rates, and then consider what happens when you increase conversions by 5 percent through agents or add on an outbound program that captures an additional 2 percent.

Then there’s the possibility we haven’t even discussed yet: implementing a marketing tracking program that shifts money from programs that don’t work to programs that do—this can add on another 2 percent. This can look like hundreds of thousands of dollars that can go into enhancing the guest experience in myriad ways. The alternative is to keep sending that money out the door to other marketing programs to drive more leads, many of which will go unbooked without focusing on the foundation: curing the Demand-itis.

Increasing Revenue Through Reservations

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Many independent properties are focused on increasing online bookings—an essential part of running your business for many reasons. Benefits of online bookings include less human resources required for processing, easily measurable attribution tracking, and lower associated costs. However, many people are not booking online until they speak with someone first, especially when reserving a vacation rental.

Why? Vacation rentals are not standardized like hotel rooms. Because the average booking is often two to three times the cost of a typical hotel booking, people want to speak with someone prior to booking to verify that they are getting exactly what they are looking for.

 

3 Ways to Increase Bookings:

  1. Track all incoming calls to understand how many inbound leads your reservations team is receiving.

 How does this help? Without knowing how many calls for availability your team is receiving, you have no way of determining your closing rate. Here is an example of how to determine a closing rate for a 150-unit vacation rental company:

  • A 150-unit vacation rental company could take as many as 10,000 calls in a year.
  • A 20 percent closing rate would equal 2,000 bookings.
  • With a three-night average length of stay and a $200 average nightly rate, the company would have $1,200,000 in direct bookings.
  • If the company increases its closing rate by 5 percent (five bookings for every 100 calls), then 500 additional bookings times three nights times $200 per night equals $300,000 in incremental bookings.

This would be a big increase in top- and bottom-line revenues if you had the necessary tools to track and generate this revenue. Benchmark studies show that up to 79 percent of all inbound leads are lost in the first ten minutes. Who has your 79 percent?

 

  1. Provide incentive opportunities that track agent performance to allow top agents to increase performance.

In many years of managing and directing sales professionals, one thing has always been true: showing agents (salespeople) how they are performing allows the cream to rise to the top. Simply put, top performers want to perform at a high level. Without measuring and showing them this data, there is no way for top performers to gauge themselves against the rest of the team.

Top sales performers will often be responsible for the majority share of revenues. Incentivizing employees to perform by showing them how they rank against their counterparts creates a positive, competitive atmosphere within your reservations team.

There are many positive side effects of this type of sales culture, and this data can be easily measured by call/reservation software offering “dashboards.” Dashboards are great tools that can show individual or team sales data and how the team’s hard work is affecting your property’s business.

 

  1. Increase reservations and recover lost opportunities by using outbound call blitzes to follow up with inbound calls.

If a property receives 10,000 calls and books 2,000 reservations, then there are 8,000 calls from travelers interested in booking who did not confirm on the first inbound call. If your team follows up on these 8,000 calls and 3 percent of them turn into reservations, then you are looking at 240 incremental reservations and, potentially, a revenue increase of upwards of $240,000 (at an average of $1,000 per booking).

Even incentivizing your staff with 10 percent commission would still deliver a net gain of $216,000 in new bookings. If you haven’t considered an outbound call blitz campaign to increase bookings on inbound calls, it’s time to do so.

So why follow up with these leads? Because the Internet is the dominant way people plan, research, discover, and book their lodgings, it is vital to follow up with leads that do not convert on the first call or user session. If you don’t, then there is a good chance that the traveler will simply find another property management company with a similar rental at a similar price and book with it instead of you.

 

Consistently Closing the Sale

A solid outbound calling and lead follow-up strategy allows your independent property to consistently close more business than your competition. We are dedicated to leveling the playing field for the independent property, and our customers are having great success using an outbound strategy that works for them.

Happy booking!

Shopping for Smart Locks? 5 Considerations When Selecting a Smart Lock Provider

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The professionally managed vacation rental industry has seen rapid adoption of smart lock technology over the last two years. The increased security that keyless entry offers to managers, owners, and guests is reason enough to invest in smart locks for rental properties.

However, smart locks provide much more than the ability to lock and unlock a door without a key. Today’s smart locks also track who is entering and leaving the property, provide real-time alerts and notifications, email digital codes to guests, ensure an increased level of security for both owners and guests, and offer networked home automation products that control and monitor thermostats, refrigeration, pool heat, and more.

“Smart Home benefits all of the key stakeholders in vacation rental management,” said Greg Burge, president at PointCentral. “It provides a secure and convenient guest experience, cuts owner energy expense and maintenance, and delivers revolutionary operational benefits to Vacation Rental Managers (VRMs). Our customers have told us that no other investment has delivered as broad a set of benefits as their Smart Home investment.”

 

Key Advantages to Using Smart Locks

  • Improves security for owners and guests
  • Tracks activity in the property
  • Provides protection for VRMs
  • Eliminates the need for on-site check-in
  • Decreases or eliminates staff time addressing late-night key delivery to guests who are locked out of the property
  • Provides connectivity for Smart Home automation systems that control thermostats, refrigeration, and pool temperature

Because new smart home products and technologies are being introduced at warp speed, it can be challenging for VRMs to know the right questions to ask when selecting a smart lock provider.

We reached out to PointCentral, LockState, and dorma+kaba (Dorma and Kaba recently merged) to find out more about differentiating between smart lock options and the key factors in selecting a smart lock provider.

From installation to networking, software integration and guest communications, there are multiple factors to consider. Consequently, at VRM Intel, we compiled a cheat sheet of questions to ask when shopping for smart locks for your vacation rental management company.

 

 5 Considerations When Selecting a Smart Lock Provider

  1. Hardware Architecture

A primary consideration when choosing a smart lock provider is whether the lock system connects with the internet via broadband, Wi-Fi, or cellular-based technology. In some cases, providers offer a variety of options, but VRMs will want to dive deeper by asking additional questions about networking and gateways.

  • What is the average life cycle for the lock? Three years? Five years? Ten years?
  • Does the lock system operate via broadband, cellular, Wi-Fi connectivity, or a combination?
  • Does the lock require a “gateway” or additional hardware?
  • If a gateway is required, what communication protocol does it use to communicate with the lock?
  • Do I need to set up a new radio frequency (RF) network on-site?
  • If a Wi-Fi connection is required, how friendly is the “environment” to the new network? For example, are there concrete walls that would limit the range of acceptable locations for the gateway?
  • Does an RF technician need to be available for installation and support? If so, what will that installation and support entail?
  • How often will the lock batteries need to be changed?
  • Does the lock have a manual override option?
  • What happens if connectivity is dropped? If power is lost to my gateway, will I receive a notification or alert? Will the lock still operate normally? Will I still be able to generate codes for my lock?
  • Will the lock location be exposed to extreme weather conditions? If so, does the provider have locks that perform well when exposed to the elements?
  • If I am located in a high windstorm area, is the smart lock approved or certified for these conditions? According to Rich Lang, vice president of sales at Oracode, “When deciding on hardware, one consideration is whether the smart lock is certified for installation in a high windstorm area. This feature could be essential for those properties located in hurricane-prone areas such as Florida.”
  • Will the lock be purchased directly from the manufacturer or from a third party distributor?

 

  1. Enterprise Software Functionality and Integration

The functionality offered by smart lock providers differs from company to company. In addition, most vacation rental managers require integration with their preexisting software systems. As a result, managers will want to understand the parameters of that integration, the additional functionality provided by the smart lock company, and the performance of the dashboard monitoring system.

  • Will the system integrate into my current property management software?
  • Is the software accessible from any mobile device without downloading apps?
  • Can the software be embedded into my current property management software, providing seamless status management workflow?
  • Can the lock company’s platform expand into other services that I need (e.g., booking calendar synching, cleaning crew management, maintenance management, HomeAway/Airbnb, etc.)?
  • Is there an enterprise-wide operations dashboard? If so, does it allow me to make one change and update the entire enterprise? What information is provided on the dashboard? Am I able to see the real-time status of all of the properties that I manage?
  • How are automated alerts and notifications created and sent to guests and the manager? How easy is it to customize the notification business rules and messaging?
  • Does the provider offer occupancy-based (reservation) control of other devices such as thermostats, plugs, cameras, etc.?
  • Are there multiple user levels and related data privacy and security restrictions?
  • For large homes and Home Owner Associations, can the lock company’s platform control all locks and access points in the platform rather than just individual unit doors—that is, sliding glass doors, elevator floor access, parking garage gates, and garage doors?

 

  1. Installation

Installation can be a major factor for VRMs to consider when deciding between smart lock companies. Additionally, there may be internal resources needed for installation. You will want to have a comprehensive understanding of the installation process.

  • How easy is it to install the lock and the connecting system?
  • Is any network setup required (i.e., gateways)?
  • Who will do the installation?
  • How long will it take to install smart locks at the property?
  • Do I need to allot any additional resources for installation?

 

  1. Company Performance and Track Record

According to Nolan Mondrow, CEO of LockState, “For property managers, connected locks are more than just hardware. They are new tools to help you better manage your business. The lock company you buy from should understand your business, not just the lock they sell you.”

It is critical to select a smart lock provider that has a comprehensive, specialized knowledge of the professionally managed vacation rental industry. Taking the time to research companies and check references from other VRMs who utilize these products and services will give invaluable insight into how these companies operate within the industry.

  • What is the provider’s depth of knowledge about the vacation rental industry?
  • Will I have dedicated project management of my account and installation?
  • Will the company provide relevant references whom I can contact?
  • Does the company invest in the ongoing development of smart home technology in the vacation rental industry?

 

  1. Support

As with any technology used by VRMs, requests for assistance and support will need to be handled with speed and efficiency. For this reason, a company’s customer support infrastructure should be a significant consideration when you are selecting a provider.

  • Is training provided to my staff?
  • Does the company offer direct support for end users?
  • How quickly are requests for support answered?
  • Do I need to have a local resource for ongoing support and maintenance?
  • How robust is the lock company’s platform on which the lock is controlled? Can it handle thousands of locks in one user account?
  • Is there a warranty?
  • Is there an additional cost for ongoing support?

Free Pizza? Using Creative Thinking to Convert Leads and Improve Guest Retention

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Our industry is rapidly changing. With changes to Google’s algorithm, which gives established brands more credit, competition via online searches is becoming a losing battle. As a result, OTAs are becoming more prominent than ever before. They simply have the budget and the presence to dominate certain markets. How often have you searched “New York vacation rentals” only to find that the large vacation rental portals dominate paid and organic searches?

In the past, this may have been a good thing. As a property manager, I can remember the days when we could not keep up with incoming leads from VRBO and HomeAway. Every year the number of leads seemed to grow exponentially.

Yet, in recent years, I have come to the realization that leads from these large rental sites have been drying up. Property managers everywhere are justifiably concerned about the current shift and feel as if they are scrambling for solutions, creating a situation that is forcing property managers to get extremely creative with their marketing. Fortunately, creative marketing isn’t as impossible as it may seem at times.

Sometimes, all it takes is a guest/visitor mobile app with a visitor’s guide and some free pizza.

 

A Different Approach

Why pizza? Like it or love it, pizza is truly one of those quintessential “vacation meals” and one that guests almost certainly will seek out at least once during their stay. Now, what if you were to make that pizza absolutely free, no strings attached, for any guest who stayed at one of your rentals? As you might expect, this small kindness, though imposing no huge cost on your behalf, gives renters just one more reason to love the vacation they booked with your rental. Not only does this make your product more memorable, it puts your services in an even better light than ever before and can leave a lasting impression, something that is absolutely necessary for guest retention.

Obviously, there are many questions that need to be answered before putting this plan into action. After all, that free pizza is only free to your guests, not to you. Fortunately, it’s quite easy to perform a cost-benefit analysis to make absolutely sure it is worth the time, effort, and money.

Just ask yourself the following questions:

  • How much does each lead/inquiry cost you today?
  • How well does each lead convert?
  • How likely would it be for someone to get a free pizza during a vacation?
  • How likely would it be to work out a great deal on free pizza with a local vendor?
  • How much money are you putting into other marketing efforts and organic search engine optimization?

Let’s take these answers and keep them in our back pocket.

 

The Guest/Visitor App

Of course, simply offering pizza won’t be enough to improve profit and rental rates; you need a creative and interesting way to offer the deal in a manner that promotes the entire area, as well as your free pizza coupon. This is where the guest/visitor app comes into play.

Oftentimes used to improve guest experience in a chosen area, guest and visitor apps give renters the ability to learn more about their vacation destination, find out what’s nearby, and even get some choice coupons for their stay. But, before we utilize this app in conjunction with free pizza, it’s important to ensure that your app is actually worth using. In many cases, there can be hundreds of travel apps for any given destination, so how could you make yours unique and profitable for your company?

Let’s take a look at a few things that can make you stand out from the competition:

  • Personalize the App

Did you just throw in every local restaurant or take the time to provide your honest feedback? Who is your favorite server in town? In other words, are you putting in the effort to educate your guests?

  • Make Sure Your Logo Implies Vacation Guide

Your app’s logo is much more important than you might think. You need people to see the logo in the app store and understand immediately what its use is. This will help draw clicks and ensure high download rates. It also helps avoid confusion.

  • Make Your App Easy to Find

The surest way to get low download rates on your app is by making it difficult to find on the app stores where it’s available. Refer to your app by its proper name in all your promotional materials and make sure it’s available on all major app stores, not just the Apple store.

  • Keep Your App Small and Useful

Some people want to save space on their phones, so you want to make your app as small as possible. Still, make sure you are providing all the information you need. Just make sure it’s optimized nicely and is not bogging down anyone’s limited memory.

Once you have all this in place, it’s time to market your app on your website, in your local visitor guide magazine, and everywhere else you can, all with the promise of (you guessed it) a free pizza with download!

At this point, if we are extremely successful, we have negotiated 100 free pizzas per month from our local pizza parlor, our guest/visitor mobile app is in app stores, and we have created a creative and compelling reason in the local visitor guide magazine to download the app for a free pizza. (This is the most critical component to being successful.)

Hopefully, by this point, hundreds of people are downloading the app with the hope of a delicious free pizza and more information about their vacation destination of choice. Finally, this is where the marketing spin comes in.

 

Marketing With Push Notifications

When people download your guest/visitor app offered by Streamline, they will be asked if they would like to receive mobile notifications on their phones. Once this is approved, the property manager has the ability to send push notifications to each phone. If you don’t abuse this and use this marketing avenue to send specials for future vacations, then you are now exposing your property management company to guests who visited that destination in the past.

This, obviously, has a myriad of marketing uses. Let’s say you promote a last-minute 40 percent discount to fill up rooms via the app’s push notification system. The people who see this discount are almost always going to be past renters in the area who would probably come back for a visit if the price was right. Best of all, because most of us have our phones attached at the hip and rarely ignore notifications that we receive, push notifications have a much higher chance of being noticed, especially when compared to something as innocuous (and annoying) as a spam email. Because of that, the number of people in this marketing list who will see your special will be astronomically higher than any email campaign that you send out. Add that visitors to the area who downloaded your guest app are the most likely to take the offer and it’s easy to see why this could become your most valuable marketing strategy.

 

Using Your Creative Side to Increase Conversion Rates

As mentioned at the beginning, we have to get creative with our marketing strategies to survive in the cut-throat world of vacation rental management. But, that doesn’t always mean marketing to outside parties. Targeting past renters that have already had a great time at your rentals with the strategies outlined above is the ticket to increasing conversion rates, filling your rentals, and improving your reputation in the vacation rental community. This is precisely why guest retention should always be your number one priority.

Just remember, if the pizza is good, your vacation specials are the best in town and you utilize your guest/visitor app to the best of its potential, you may find a loyal guest—or ten—for years to come. This is an asset that will always be more valuable than attracting a new guest via conventional means. Be creative and see where that takes you; you’ll certainly be happy you did!

Managing Financial Performance: 4 Critical Financial Figures or Reports Every Vacation Rental Manager Should Know

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As a vacation rental manager (VRM), your day is filled with responsibilities, most of which, if not all, are operational in nature. Most VRMs do not spend the day reviewing income statements, performing financial analyses, or calculating metrics; rather, we build the relational components and marketing aspects of the business. Frankly, if we all functioned like accountants, we would not have any properties to manage! Although we may all agree that managing the financial results of your vacation rental operation is not the most glamorous part of the business, it is imperative to understand critical numbers to ensure your business remains successful and profitable.

Without tracking and managing certain critical financial components, you cannot make informed decisions about revenue, expenses, or profit. There are always opportunities to increase profit in vacation rental operations, which we’ve confirmed in every business we review.

To help ensure your business is operating progressively and generating a meaningful profit, take time to review and manage these results:

 

Cash

So many VRMs do not have a handle on their trust accounts or overall cash. It’s like flying blind; you’re probably not going to hit anything, but it is generally not a good way to do business. More often than not, VRMs struggle to maintain accurate and reconciled trust accounts. Certain states do not regulate short-term trust accounts, which makes maintaining them properly less of a priority for VRMs. Having a handle on cash allows VRMs to have the confidence and comfort in knowing that they can meet the company’s obligations at any point in time. Cash flow forecasts and monthly reconciliations of the company’s trust account are a cornerstone of vacation rental operation best practices. Performing these functions consistently and accurately is a sign that your business is in the black, grounded in solid financial management, and ready for the unexpected. In short, the business is poised for success.

 

Net Operating Income (NOI)

NOI is also a good indicator that your business is healthy. Closely tied to cash, a vacation rental business can be profitable on an NOI basis and still go out of business due to a lack of cash. NOI and cash work in tandem, and you should review them regularly to ensure the business has a sound financial footing.

 

Income Statement

This is also referred to as the profit and loss statement (P&L). Most vacation rental companies operate with a P&L that could use some work. Often, it does not clearly present actionable data or provide accurate results. Understanding your company’s revenue and expenses is paramount to operating a sustainable and successful business. Two of the largest issues with P&Ls in the vacation rental industry are timeliness and consistency. The data is often inconsistent and cluttered among a number of unnecessary or unorganized financial accounts. Again, the key component is actionable financial data. If your P&L does not provide you with the information necessary to make critical business decisions, then it is time for a review.

 

Gross Rental Revenue (GRR)

Most VRMs track commission income as opposed to GRR. The genesis of that format originates in the real estate industry; commission income is paramount in that field’s revenue process. However, with this model, the lack of visibility into GRR and the relationship between GRR and certain direct operating expenses create inconsistencies throughout the financial management process. This can prevent you from discerning certain drivers of key expense accounts or generating opportunities for further efficiency in operations. Reviewing management commissions as a percentage of gross is an excellent way to maintain the integrity of your commissions. Management commissions as a percentage of gross tend to diminish over time if not properly managed.

 Each of these reports individually will present opportunities to create efficiencies. However, managing each of these items in conjunction with each other will greatly propel the business.

If your business is lacking in one or more of these areas, it is important to act quickly to minimize exposure to adverse financial results. In the event your business lacks the resources to properly manage this process, please know that Weatherby Accounting Services handles accounting and financial management for more than twenty-five companies. By outsourcing certain components, or all financial accounting processes, VRMs can get back to more desirable areas of the business and focus on generating needed revenue for the company.