If you’re investing in short-term rentals (STRs) or managing them, technology is your best friend. It helps you make smart decisions when buying a property and ensures a seamless experience for both guests and owners. After all, your goal is to maximize income for owners while giving guests an incredible stay. The right tools make that possible.
Property Analysis
When buying a property, technology plays a huge role about 50%, to be exact. The other 50% is market knowledge, interpreting data, and building connections with owners. You can’t rely only on software, but it’s a great starting point. Here are the top three tools we use:
- AirDNA & STR Insights – These tools provide rental comparables, showing data from Airbnb and VRBO listings active for over 200 days. They give insights into average daily rates, occupancy rates, and total revenue. AirDNA allows investors to view historical and predictive data on rental markets, including demand trends and seasonality, making it easier to choose the right market to invest in. STR Insights, on the other hand, helps compare multiple markets side by side, allowing users to determine the best investment opportunities based on performance metrics.
- BNBCalc – Helps estimate revenue potential based on market conditions by providing detailed income breakdowns and return on investment projections. It also allows users to tweak occupancy rates and pricing to simulate different market scenarios, giving a more tailored analysis of potential profitability.
These tools let you see the top-performing properties in any market, helping you decide whether a purchase is worth it. They aren’t free, but investing in the right property with solid data is worth it. If you don’t buy smart, you’re in trouble before you even start. Relying on gut feelings or guesswork can lead to costly mistakes, so using these technologies to analyze market trends, pricing strategies, and potential earnings is crucial for long-term success.
Management Tools
Once you own a property, the next challenge is managing it efficiently. Whether you have one rental or a portfolio of STRs, managing bookings, guest communication, pricing, and maintenance can be overwhelming without the right tools. Here’s what we use:
Booking Platforms
- Airbnb, VRBO, and Direct Booking Websites – We list properties on multiple channels and also have individual direct booking websites for each property. Direct booking websites help owners reduce reliance on third-party platforms and avoid paying commission fees. We avoid Booking.com due to fraud risks and customer service challenges.
Channel Managers (Property Management Software)
A channel manager is a game-changer. It centralizes bookings, messages, and pricing in one place, preventing double bookings and missed messages. Without a channel manager, managing multiple properties across different booking platforms can be chaotic. Some of the most popular options include:
- Guesty – A comprehensive property management system that automates tasks such as guest communication, reviews, and pricing adjustments.
- Hospitable – Focuses on automation, allowing for easy messaging with guests, review requests, and even AI-driven guest responses.
- OwnerRez – A robust system offering deep integrations with multiple booking platforms, as well as financial tracking and accounting tools.
These tools cost around $15-$40 per month per listing, but they’re worth it compared to the cost of missing a booking or dealing with scheduling errors. A missed booking, double booking, or miscommunication with guests can lead to bad reviews and lost revenue. With a channel manager, everything is streamlined, ensuring all your platforms are synced, messages are managed efficiently, and pricing is optimized across all listings.
Safety and Security
Security is one of the most critical aspects of managing STRs. Protecting both the property and guests ensures a smooth operation and avoids liability issues. These tools help:
- Ring Cameras – Installed at every property, these cameras let us monitor driveways and check if snow plowing is needed in winter. They also act as a security measure, allowing us to see guest arrivals and departures. However, privacy laws dictate that cameras should not be placed inside the property or in sensitive outdoor areas like pools or hot tubs. Property managers must ensure compliance with legal regulations while maximizing security benefits.
- Schlage Smart Locks & Jervis Systems – Every guest gets a unique code that activates an hour before check-in and deactivates an hour after check-out. This eliminates the need for physical keys and provides a seamless self-check-in experience. If guests accidentally lock themselves out, we can remotely generate a new code without having to send someone to the property. This enhances both security and convenience.
- Minut – A noise monitoring tool that texts and calls guests if the volume gets too loud. Minut helps prevent parties and noise complaints, which can be detrimental to STR owners, especially in residential areas with strict regulations. The system alerts property managers when noise levels exceed a set threshold, allowing for immediate intervention before neighbors file complaints or authorities get involved.
- Safely Insurance – Provides $1M liability coverage and $25K contents coverage, plus background checks for direct bookings. This insurance covers damage caused by guests, accidental incidents, and theft, offering property owners peace of mind. In addition, Safely performs guest screening for direct bookings, reducing the risk of renting to high-risk individuals.
By integrating these security measures, property owners can minimize risks, ensure the safety of their guests, and maintain good standing with neighbors and local authorities. Security isn’t just about protecting your investment—it’s about providing peace of mind to everyone involved in the rental process.
Revenue and Optimization Tools
- PriceLabs – This is a dynamic pricing tool that automatically adjusts nightly rates based on demand, seasonality, and market conditions, much like how airlines and hotels set prices. PriceLabs analyzes vast amounts of market data, taking into account local events, occupancy trends, and competitor pricing to optimize your nightly rates. Property owners benefit from increased revenue, as it helps them avoid underpricing during peak times and ensures competitive pricing during slow seasons. The tool also includes market dashboards and extensive data analytics, providing valuable insights for long-term planning and pricing strategies.
- StayFi – StayFi is an essential tool for capturing guest data and building a strong marketing list. It requires guests to enter their email addresses to access WiFi, which allows property owners to collect valuable contact information. This data can then be used for remarketing efforts, offering discounts, or sending promotional emails to encourage repeat bookings through direct booking websites. By reducing reliance on platforms like Airbnb and VRBO, StayFi helps property owners build direct relationships with guests, ultimately increasing long-term profitability and reducing commission fees paid to third-party booking platforms.
- Jervis Systems (Thermostats) – Jervis Systems is an advanced smart thermostat solution that syncs with property management systems to optimize energy use. Once guests check into the property, the thermostat automatically adjusts to a comfortable temperature, ensuring a pleasant stay. After checkout, it lowers the temperature to conserve energy and reduce utility costs. This automation prevents unnecessary heating or cooling expenses, helping property owners save money while maintaining a great guest experience. Over time, these energy savings can add up, making Jervis Systems a valuable investment for STR operators who want to maximize efficiency and reduce operational costs.
Final Thoughts
Success in short-term rentals isn’t just about having a great property, it’s about running a smart, efficient, and profitable operation. Technology is the secret weapon that allows you to analyze the right investments, automate your management, and optimize your revenue. From dynamic pricing and security systems to channel managers and data-driven decision-making tools, leveraging these resources will put you ahead of the competition. The STR industry is evolving rapidly, and those who embrace technology will not only survive but thrive. If you want to scale, maximize your income, and deliver exceptional guest experiences, investing in the right tech isn’t optional, it’s essential!
source: https: STR Success – Dave & Will discuss critical tech for investing and operating STRs