Survey of vacation rental homeowners finds managing and marketing their property directly doesn’t necessarily yield a return on the added investment of time and effort. 71% of owners who have tried renting both ways believe professional management companies are more effective at attracting guests than they are themselves.
PARSIPPANY, N.J. – The sharing economy allows individuals to make some extra money by bucking conventional methods and going it alone. However, vacation homeowners who decide to play do-it-yourself host might want to think twice. That's because they may make more money and save a lot of time by letting someone do the work for them.
According to a new Kelton survey commissioned by Wyndham Vacation Rentals, sixty-seven percent of owners who have tried renting out their vacation homes both on their own and through a professional management company indicated they would get more bookings using a manager. The same study also found that owners who use a professional manager save on average four hours for every booking, which could equate to more than 130 hours each year*.
"It's common to hear stories from owners who switch from managing their home themselves to working with a professional manager," said Gail Mandel, CEO, Wyndham Vacation Rentals. "They initially choose to rent on their own to maximize their rental income. But they quickly realize the work involved and the expertise needed to properly market a home is greater than anticipated. The study shows that not only does working with a professional manager get you more bookings, it saves you time, which is invaluable to most in today's fast-paced world."
There's a "Middleman" for a Reason
Despite the popular belief that avoiding a "middleman" in the rental equation will yield higher returns, owners have found that relying on a professional manager for their home's rental needs can pay off. In fact, 71 percent of owners with experience renting their home on their own and through a professional management company would prefer to use a manager the next time. Reasons owners turn to management companies include:
- Effective support. Homeowners feel a professional manager is more effective at attracting renters (71 percent), marketing their home across the appropriate channels (66 percent) and filling their home during slow seasons (61 percent).
- More bookings. 54 percent of owners who have used a professional manager to rent out their home have done so in order to make as many bookings as possible.
It's Hard Being Boss
While becoming a do-it-yourself host might seem appealing, those who rent their home directly are five times more likely to feel overwhelmed. Being tasked with a guest's vacation experience adds pressures:
- Dreaded Tasks. 88 percent of owners who have rented their home themselves "dread" something about doing it on their own. From dealing with guest issues (61 percent) to cleaning and inspections (48 percent), their chief complaints include some of the most important tasks a host takes on.
- More Stress. Owners who only have experience renting on their own are 72 percent more likely to describe the process as stressful, compared to those who only have experience with a professional manager.
Mandel adds, "When you factor in things like time and wellbeing, the gut instinct to try renting your home out yourself starts to meet realities. Being available to deal with guest issues and handling maintenance in between stays can take a toll. For owners who might not have the expertise or the time to commit, a professional manager is a competitive alternative."
This study was conducted by Kelton Global from December 14, 2015 – January 5, 2016 among the following audiences: 1,000 nationally representative Americans 25+ who have ever traveled outside the home overnight, including 447 Americans who have experience being a rental guest in someone else's vacation home and 561 Americans who own two or more homes and have ever rented out one of their homes to travelers (this group includes U.S. vacation rental homeowners who have a rental agreement with Wyndham Vacation Rentals and those who do not).
*Figure based on hours saved per booking and average number of bookings annually for Wyndham Vacation Rentals North America units.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
