Blog #1: Series Introduction/Revenue & Owner Management
If 2020 made anything clear in the vacation rental industry, it’s that having an efficient and advanced revenue management strategy is an absolute must for all property managers. While it can seem difficult to assign responsibilities, find the right tools, and organize an entire strategy around the practice, becoming your own revenue manager does not have to be overwhelming.
That’s why Beyond Pricing is thrilled to roll out our new blog series, “You are Your Best Revenue Manager,” where we will be sharing insights and advice on how to best optimize your revenue management strategy!
Know How to Manage the Owner
Property managers have quite a few responsibilities, but managing owner expectations is a big part of the job. This is a good place to start when implementing a revenue management strategy.
Owners can have a wide range of expectations regarding the management of their property, and each property owner has their own definition of success regarding their investment or home. Managing these expectations and keeping owners happy is a huge undertaking that is often passed to those who are responsible for revenue management and pricing strategies, due to the fact that owners are frequently concerned about the financial performance of their unit.
The ability to communicate current strategies, market insights, and unit performance is best done by someone within the property management organization, since owner communication is so critical to the core of a property management business.
Have an Owner Onboarding Plan
Starting with the owner acquisition process, it is important for the revenue manager or revenue management team to be involved from the beginning. Most owner onboarding processes typically cover property forecasting and performance expectations, something that is important for revenue managers to be aware of when implementing certain strategies.
Some aspects of new owner onboarding, such as minimum rate and revenue requirements, directly impact revenue management and need to be communicated properly. The easiest way to ensure that revenue management stays involved throughout the owner onboarding process is to have someone on your team responsible for revenue management tasks.
While having a third-party revenue manager may seem more efficient and cost-effective, those inefficiencies can become invalidated with miscommunication and lag-time between both parties.
Key Takeaway: Ensure your Revenue Manager can also be the Owner Manager and be involved from the beginning.
In our next update, we’ll be discussing how property managers already have expert knowledge of their own market that can be used in revenue management.
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