Nicholas Lichter of Naples, FL is a seasoned professional in property management, having amassed over 20 years of industry experience. His certifications include Licensed Community Association Manager (CAM), Certified Manager of Community Associations (CMCA), Association Management Specialist (AMS), and Professional Community Association Manager (PCAM). With a three-year foundation in facilities maintenance and a background in the hospitality sector spanning over six years, Nick brings a well-rounded skill set to the property management industry.
In the following article, Nicholas Lichter of Naples, FL explores the common challenges and best practices associated with the management of vacation rentals. From handling guest communication to optimizing bookings, property managers can ensure that key strategies are implemented to transform even the simplest of vacation rentals into thriving investments.
Owning and/or managing a vacation rental property can be rewarding, but it also presents a unique set of challenges.
The management of a vacation rental is a dynamic landscape that requires meticulous planning, effective marketing, and excellent customer service. If the property meets the needs of guests and receives good reviews, one can certainly expect a better cash flow through a higher occupancy rate.
However, one negative review is enough to discourage many potential guests and significantly hinder success. This is why short-term rental management is essential; every last detail is important.
Nicholas Lichter of Naples, FL Explains the Common Challenges of Managing Vacation Rentals
Below are a few of the typical hurdles faced when managing vacation rentals:
Guest Communication
Guest communication is key.
No business has ever thrived without good communication with its guests, customers, or consumers. Guest interactions that are positive, proactive, and responsive are essential for earning good feedback and 5-star reviews. However, connecting with visitors isn’t always easy.
In this day and age, the property rental industry is fast-paced, and guests expect immediate answers to their every inquiry. Convenience and flexibility are attractive traits of a business, as customers want information to be at their fingertips and questions to be answered in real-time.
Nicholas Lichter of Naples, FL says that hosts on AirBnb are given 24 hours to respond to a reservation request, but about 50% of these inquiries are approved within the first hour. Simply put, managers who are not on top of guest reservations or inquiries are losing a lot of business.
Responding to reservations is only the beginning – vacation rental managers must effectively communicate when handling inquiries, addressing concerns, and providing assistance throughout the duration of the customer’s stay.
Pricing the Vacation Rental Fairly
Nicholas Lichter of Naples, FL says that pricing a vacation rental is an art of balance: Price the property too high and no one will book, price it too low and guests will question the quality of the business.
Several factors affect the price of a vacation rental. When determining how much to charge, owners/managers must consider:
- Seasonality
- Local Occupancy Rates
- Accommodation Type
- Amenities
- Special Events in the Area
Prices are always subject to change; it’s important for managers to adapt a reactive and reliable strategy that can reflect current conditions and keep up with the competition.
Optimizing the Rental Listings
Managers shouldn’t limit their listings to 1 or 2 platforms only; simply being listed on AirBnb and Booking.com won’t do enough to help with the business’ visibility.
Nicholas Lichter of Naples, FL notes that obtaining visibility across many platforms and channels will help increase bookings. On top of that, the listings themselves should be optimized to ensure more reservations – something that many managers find difficult to do.
Optimized listings should include at least 20 professional images, a detailed description, and localized keywords to drive traffic, among others.
Maintaining a Clean and Well-Kept Property
Coordinating the rental’s cleanliness and maintenance is one of the biggest challenges that property managers face. Hygiene and safety are at the top of customers’ lists when looking for a place to stay, so there is more pressure than ever to maintain a clean, comfortable, and safe vacation rental.
Nicholas Lichter of Naples, FL says that finding a reliable cleaning service is only half the challenge; the other half is coordinating a cleaning schedule and implementing maintenance practices.
Best Practices for Managing Vacation Rentals
• Utilize Rental Management Software
Automation can substantially help vacation rental managers with getting things done.
Keep administrative tasks under control by using a rental management software. This type of software helps manage and monitor operations promptly and efficiently, leaving managers with time to focus on other important matters.
• Use a Booking Calendar
Double bookings are a vacation rental manager’s worst nightmare.
Nicholas Lichter of Naples, FL says that to prevent double bookings, it is ideal to use a booking calendar and sync it across every listing site used. Again, automation is essential – use a Property Management System (PMS) to automate the booking calendar in order to ensure that no double bookings or data errors occur.
• Keep the Property Protected
Damage protection is essential to all vacation rental businesses. Traditionally, hosts will require a security deposit which can provide financial security beforehand, but this is an additional financial burden to guests, and may cause them to choose another property.
Nicholas Lichter of Naples, FL says that for this reason, many hosts are opting for deposit-free coverage. This may be an added cost to the hosts, but it gives guests a better experience, which may lead to better reviews.
By striking the right balance between overcoming challenges and following best practices for managing a vacation rental property, managers can expect a steady stream of bookings and customer satisfaction.
