How Automation Technology Is Changing Property Management

Back in 2007, the sharing economy was a term that didn’t exist. Seven years later, it became a $15 billion industry with a projection for $300-plus billion by 2025. With the introduction of several online and mobile platforms, workers such as Uber drivers and Airbnb (a platform integrated into Guesty’s system) hosts have become the norm, very much built into travelers’ narratives.

The boom of the sharing economy acted as the catalyst to a new breed of entrepreneur — the new age property manager. This property manager invests in short-term rentals rather than placing their bets on one-year leases. And with so much to juggle, these property managers may need to invest in new technology.

The Problem At Hand

The role of property manager in 2019 is no joke. From constant guest communication and staff management to payment-processing, these individuals are faced with executing positive, guest-centric experiences while simultaneously trying to grow and scale their businesses.

Complex operations such as ongoing guest communications, competitive pricing and staff management are still being performed manually. Though this might work if one manages just a handful of properties, it becomes incredibly difficult if that number is exceeded. Thus, today’s professional property manager is at a crossroads, deliberating whether to entrust third-party technology that can automate several of their repetitive tasks or continue as is, manually handling every aspect of their business.

But these pain points might sound similar to those found previously in another industry.

Automating Air Travel

Prior to the 1950s, when the airline industry was starting to take off (pun intended), every aspect of the airline industry was executed manually. This resulted in steps taken, such as IBM joining forces with American Airlines, to create the Sabre System, greatly improving air travel productivity and paving the way for the boom in travel agents.

Though an innovation such as this one, coupled with the widespread adoption of computers and the internet, improved efficiency, the digital revolution of air travel didn’t happen overnight.

Fast-forward to today. The airline industry provides an almost fully-automated user experience to travelers and is widely known for its efficiency.

How Can Property Management Get There?

Whereas the automation of the airline industry followed the path of technology, the property management space must catch up.

Though the sharing economy is modern, the short-term rental piece of that pie is plagued by a lack of innovation, which should be a concern to property managers and guests alike. This is especially true as guests expectations are rising, with many accustomed to hotel-like services.

Here are five ways in which automation tech is revolutionizing the short-term rental space:

1. Property managers never want to miss an inquiry, but they need to get some sleep to best manage their businesses. These managers should invest in automated responses or 24/7 guest communication services that work on their behalf. Some online travel platforms — like HomeAway — have their own. HomeAway’s is called gladRESPONDER. In addition, many platforms in the industry have automated response capabilities across several platforms.

2. When a rental property is listed on five different online travel platforms, it can be difficult to manage those multiple calendars in real time. In cases like these, property managers should look into implementing a unified calendar tool that tracks daily reservations across all platform listings. Unified calendars are an industry standard in the property management market, and many platforms offer this tool, Guesty included.

3. Guests arriving from the airport in the middle of the night prefer not to wait for you to drop off the key in person, and you likely prefer not to leave a key under the mat for security purposes. In this case, property managers can install keyless entry systems, options for which are available from companies such as VirtualKey and Vikey.

4. Property managers need to assign and keep track of their staff’s tasks — from cleaning to repairs — in an efficient manner. These managers might invest in automated task management systems that send out notifications and tasks right after guest check-out. Properly offers a marketplace of cleaners and service providers, paired with the resources to train and develop these skills based on your various needs. The tool ensures cleaners know exactly what guests expect with photo-based checklists.

5. Property managers want to competitively price their properties to boost occupancy and, ultimately, revenue but are unsure of what variables to consider. Many resort to simply copying hotels in the area. By using dynamic pricing tools, such as Beyond Pricing and PriceLabs, those price listings change in real-time based on different variables — so that managers can stay up to date.

The aforementioned situations make it clear that the short-term rental space is ripe for innovation through the simplification of tasks via the adoption of tools that aim to make the lives of key players in this space easier.

So, What’s Next?

The short-term rental market is colorful, dynamic and incredibly fragmented. As property managers and investors capitalize on short-term rentals, they must decide if offsetting many of their daily operational tasks to third-party tech solutions will help them succeed.

Looking at the digital transformation the airline industry experienced, we’re presented with a blueprint for how the short-term rental industry could move forward. In a few short years, we could be looking at the manual processes of today’s property managers in the same way we currently look back on the old-fashioned aspects of air travel that once were the norm.

Source: forbes.com