VRHP Member News - October 2023
Now that the summer is over, it’s “conference season” yet again. The VRMA's International Conference in Orlando will be coming up soon (October 22-25, 2023), so if you have not yet registered, now is the time! We are looking forward to another record attendance this year and
the opportunity to once again network and share ideas with those in our industry. Many fantastic speakers have been lined up to cover a wide range of subjects, including housekeeping and inspection management and best practices, calculating cleaning fees, hot tub maintenance, seasonal employment topics, and more. And, as always, you’ll get to hear from your peers at our popular “All Things Operations” and VRHP Roundtable sessions.
I will leave you with a quote from famed Chicago journalist and author Sydney J. Harris: “The whole purpose of education is to turn mirrors into windows.”
I can’t wait to see you in Orlando!
Yours in cleanliness,
VRHP Council Chair
Atlantic Vacation Homes
Safety Topic of the Month: Fire Safety
October is fire prevention month, so it's time to review fire safety and prevention. This month, we are reviewing best practices for identifying and using different types of fire extinguishers. Learn more about fire safety through the materials linked here.
Re-Evaluating Your Company Portfolio
By: Teri Quance-Ahdan, VRP
How does your portfolio align with your company's branding? Do your properties fit into the current strategy? Are Luxury, High-End properties your goal, or is your company interested in properties across all price ranges and for all types of guests? What are your property criteria, and how do you analyze performance? Having a clearly defined target can refine and polish your portfolio for greater financial gain.
Property Managers often struggle with saying 'No' when meeting a potential new client. Telling a homeowner that their property doesn't fit into your Branded Portfolio is undoubtedly challenging. However, with clearly defined company goals and specific requirements for potential clients, these uncomfortable conversations can be minimized. Diligence in your strategy can save countless hours of frustration and potential lost income. As contracts come up for renewal, it's important to re-evaluate each property's performance and determine if they still 'fit' within your branding. As a property manager, you want to expand your portfolio with properties that add value, generate income, and align with your company's current strategy. But how do you assess the potential of a new property before investing time and money, and how do you re-evaluate existing properties?
Here are key steps to assess whether a property is worth adding to your portfolio or retaining in your existing collection:
First, Evaluate and Review:
Regularly evaluating and reviewing each property is crucial. Continuously monitor market conditions, property performance, condition, and gather feedback from guests and owners. Use predefined data metrics for each property, along with current analytics and feedback, to assess progress and identify areas for improvement or opportunity. Compare the property's performance with that of others in your portfolio to ensure it meets or exceeds your company standards.
Consider the property's location and market. Is it still in a desirable area with high demand? What are the current and projected trends for rent, occupancy, and appreciation? Use online tools such as KeyData or AirDNA, along with your experience, to research the market and identify current opportunities and future risks.
Third, Property Condition
Assess the property's condition. Has it been a maintenance nightmare, requiring extensive repair coordination? Has the owner been cooperative with repairs and updates, or reluctant to invest in necessary improvements? Consider the property's age, structural and cosmetic state, energy efficiency, sustainability, and unique features that make it attractive to guests. Evaluate the effectiveness of these features.
Fourth, Financial Performance
Analyze the property's financial performance. Does the generated revenue outweigh expenses? Calculate the annual net operating income (NOI), which is the difference between gross rental income and operating expenses. Evaluate metrics such as occupancy rate, cash flow, return on investment, and net operating income. Do they align with your long-term objectives? Utilize financial formulas, spreadsheets, and software to calculate key metrics and indicators that measure profitability and viability. Ensure that the time invested in the property is balanced with a viable financial gain.
Evaluate whether the property integrates well into your portfolio brand and has been effectively managed. Assess performance optimization and opportunities seized. Ensure streamlined workflow for enhanced efficiency and quality. Educate owners on their investments and establish a strategy for capital improvements when needed. Evaluate owner communication and willingness to follow professional suggestions.
Consistent and periodic strategy sessions with your team will help maintain a clear and defined portfolio aligned with your branding. Thorough analytics will ensure your properties are profitable, aligned with your brand, and add value to your portfolio.
The Art of Stocking Vehicles for Efficient Maintenance Tasks
By: Brian Butler, Chief Marketing Officer at EZcare.io
In vacation rental management, success hinges on a delicate balance of exceptional guest experiences, seamless operations, and efficient maintenance. An often overlooked yet crucial aspect of this balance is ensuring that your vehicles are thoughtfully stocked to tackle maintenance tasks.
According to recent data from AirDNA, the vacation rental market's revenue is expected to reach $170 billion by 2025. As travelers increasingly opt for homey experiences over traditional hotels, property managers must seize the opportunity to excel in service and maintenance.
Proper Stocking Is Critical for Competitive Advantage
The importance of efficient maintenance cannot be overstated in the quest to provide unforgettable guest experiences—consider a broken AC unit on a hot summer getaway. According to a study conducted by TripAdvisor, nearly 80% of travelers consider cleanliness and maintenance to be the most important factors when selecting accommodations. Positive feedback and repeat bookings are directly linked to well-maintained properties, making proper maintenance vehicle stocking a strategic imperative.
A well-stocked maintenance vehicle ensures that your maintenance techs have easy access to a wide range of supplies and consumables. This speeds up maintenance tasks, reduces repeat visits and downtime, and allows for faster turnaround times between guests. The result is enhanced guest satisfaction, positive reviews, and improved profitability.
The Potential of Technology in Maintenance Stocking
Enter cutting-edge technological solutions with the potential to transform the way you manage and track supplies for maintenance tasks. Embracing cutting-edge innovations such as QR code scanning can yield significant results:
- Effective Inventory Management: QR code scanning enables real-time supply tracking, providing immediate insight into stock levels. Maintenance techs can easily scan items as they load their vehicles, ensuring that nothing is missed.
- Automated Reordering: Set predefined thresholds for each item, and QR code scanning can trigger automatic reorder requests. This proactive approach reduces the risk of running out of stock and simplifies the replenishment process.
- Data-Driven Insights: Collect data on consumption patterns, usage trends, and restocking frequency. This information enables managers to make more informed procurement decisions, optimize budgets, and improve overall operational efficiency.
- Time and Cost Savings: Because the inventory management process is streamlined, labor hours spent on manual tracking and restocking are reduced, resulting in tangible time and cost savings.
- Increased Guest Satisfaction: By accelerating maintenance tasks through effective supply management, you can consistently provide timely, well-executed maintenance services. This directly contributes to increased guest satisfaction and positive feedback.
Stocking maintenance vehicles for maximum efficiency is a significant part of a successful vacation rental management company. Additionally, property managers must recognize the power of technological solutions in elevating their operations, as evidenced by industry statistics emphasizing the importance of maintenance in guest satisfaction.