Short term rentals can be very lucrative, especially with the boom in popularity the industry is currently experiencing. According to AirDNA research, property managers earn up to 66% more revenue than in 2019, up 23% year over year. But this success largely depends on the processes, technologies, and operations that short-term rental managers have in place.
Having worked in the smart home space for a considerable amount of time, I have seen the proptech industry first innovate, then advance, and now take off in earnest. Previously, the inclusion of smart technology in properties was considered a prohibitive expense, a luxury, rather than a requirement. Today, integrating technology is a cost-effective way to proactively protect and future-proof owners’ assets, optimize staffing and operations, and best of all, enhance the guest experience – all while providing property managers with key oversights to help save on the rise. general expenses.
As I have told many property managers over the years, your short-term rentals are only as smart as you are. To reap the benefits of what can be a profitable industry, it is crucial to understand the role and importance of proprietary technology, and how it can power long-term strategic business goals by saving companies money. With inflation on the rise and markets looking uncertain, it’s a sensible time to look inward and assess where technology can automate, optimize and trim the bottom line.
It’s not just about saving: a small, smart investment gives businesses a competitive advantage
Short-term rental guests now want to use technology solutions both on vacation and at home. In fact, 42% of these guests rate smart technology as the property feature they most enjoy during their stay (according to PointCentral’s Property Management Insights Report). Statistics like this show that smarter short-term rentals are in demand; In addition, it is a point of sale.
As I have told many property managers over the years, your short-term rentals are only as smart as you are.
Similarly, environmental sustainability is becoming an increasingly important issue for both companies and their customers. The challenges of climate change are a real concern as weather patterns change and we experience a variety of extremes, which need cooling and heating technology to overcome. Property managers can better manage unpredictable weather by investing in innovative technology while also attracting the growing number of guests who want to actively stay in smart, eco-automated properties.
Findings from the 2022 Tourist Sustainable Travel Survey reveal that more than 87% of Americans consider sustainability in travel to be somewhat or very important, and this directly affects guest expectations. Fortunately, the relationship between technology and sustainability is strong, and both can help short-term rental companies keep costs down (by becoming more efficient). Here are some of the latest real estate technologies that can save managers money and improve the guest experience.
Temperature and energy control
Smart thermostats are one of the simplest and most affordable upgrades a property manager can make. But don’t underestimate its value. These devices can reduce energy bills by up to 23%, leading to significant savings from offsetting. This is an attractive quick win as we are entering a period of sustained energy price increases.
The devices can track temperature, monitor the health of heating and cooling systems, deliver monthly reports, and even alert property managers to potential HVAC issues, helping to avoid costly repair bills due to undetected failures. Having this kind of data allows property managers to better monitor the systems at their properties and take action before costly mistakes are made.
smart home technology
The world of smart home automation has come a long way in such a short time, putting guests in the driver’s seat but ensuring property managers have real control over their properties. Now managers can keep track of everything from energy usage to who accesses their properties remotely from anywhere using a mobile app.
For property managers, automation is now an accepted “must.” Keyless entry, fully monitored water systems, and HVAC management are just a few of the features that can be controlled and used to save time, costs, energy, and even staff resources. Better yet, property managers can monitor these aspects from anywhere at any time, saving money on travel to and from properties.
smart proptech solutions
By preventing problems before they happen, short-term rental companies can save energy and avoid large, unexpected costs. Take water, for example. Every day in the United States, broken pipes and leaking appliances cause 14,000 water damage emergencies. Property managers cannot expect guests to spot a leak, and similarly, guests cannot expect owners to be there immediately in the event of a pipe burst.
Subscribe to our newsletter below
Smart water management systems use sensors and response systems to monitor the flow of water in a property, detect potential leaks and, one step further, take action if a problem is detected, such as automatically shutting off the water valve. The same applies to heating systems; Smart HVAC management technology can provide early awareness of inefficiencies or risks, saving property managers up to $250 per year per property in repairs, damages and reimbursements. Anticipating problems in this way makes good business sense, as it guarantees future operations.
A sustainable and efficient future
Keeping up with changing guest expectations is both possible and necessary if short-term rental companies are to thrive among the growing number of competitors in today’s industry. Combine that with adopting some of the property technology solutions listed above and property managers can keep costs in check while running more sustainable and successful rentals that meet the demands of our technologically advanced society.
About the Author…