In my last post, I introduced the idea of #RadicalHonesty.
One of the thoughtful responses I received summed it up perfectly. My trendy #RadicalHonesty is simply honesty. Not more, not less.
So, how can we employ this not-so-trendy-after-all principle to a vacation rental business?
Here’s an eye-opener.
#RadicalHonesty and Prospective Owners
It all begins with you, the Vacation Rental Manager. It’s about practicing #RadicalHonesty with both yourself and your owners, both during and after the onboarding process.
When I first started writing this article, I began it with the idea that it all began with the owners.
After I got a few paragraphs in and I truly started reflecting on my words and where they were obviously leading me, it became apparent that I was giving the owners more power than they actually have. Or perhaps, more than they should have.
It actually all begins in the vacation rental managers office.
How do you offer new and prospective owners #RadicalHonesty?
By telling him that his property will not rent for top dollar because it is dated, with mismatched furniture and old appliances.
By telling him that, while his condo is lovely, he has upgraded it beyond the means of his complexes demographic and you probably won’t get the rent he wants.
By telling him all the fees associated with renting a property - housekeeping, maintenance, pool/hot tub, linens, credit cards, etc.
Transparency builds trust. Most importantly, transparency allows your prospective owners to make an informed decision about with whom to entrust their property.
Remember, for a vacation rental manager, a new property is a feather in the cap. For some owners, it is the source of their retirement income.
If you can keep in mind those vastly different perspectives, it will help to maintain a healthy empathy for your owners’ questions and behavior. But this has to be a two-way street.
Different perspectives are just that. They do not imply right or wrong. You are not wrong for seeing the property as simply another in your portfolio.
An owner is not wrong for wanting to make the most money possible.
But it is wrong to expect you to promote his property more than another just because he needs the money.
You may be thinking, “If I tell prospective owners everything suggested here, it will totally overwhelm them and cause analysis paralysis. They’ll take far longer to sign a contract or change their minds altogether because we scared them off.”
I get it. But let’s examine that possibility.
If you don’t sign that one house, will your rental department go out of business?
If you don’t sign that one house, will it cause a financial crisis in your rental revenue?
If you don’t sign that one house, will you lose guests?
No, no and no. If you don’t sign that one house, it likely won’t even cause a blip on your radar.
#RadicalHonesty and Existing Owners
And quite honestly, if you exert your influence to sign that owner when they’re unsure of the whole process, aren’t they incredibly likely to become one of the 10%?
I understand 90% of owners are absolutely wonderful, true joys and many of them become friends. Besides the occasional question about an owner statement or maintenance issue, they leave you alone to do your job and trust that you are doing it to the best of your ability and in their best interests.
But that other 10%...
The ones who call every month questioning every charge on their statements.
The ones who claim your housekeeping and maintenance fees are too much.
The ones who want to know why their house isn’t booked (let me consult the crystal ball….).
The ones who think the rules don’t apply to them. You know who I’m talking about.
With the 10%, #RadicalHonesty may simply be giving them the boot.
#RadicalHonesty and the Vacation Rental Manager
Look, you know who you want to work with. You know who will be a good fit for your company and which owners you feel a connection with.
Vacation rental managers have a highly intuitive gut. Why not trust it?
Remember, it’s not just their decision to sign with you. It’s your decision if you want their property.
I have no hard stats on this, but I would be willing to hazard a guess that this 10% of owners take up 80% of your on-the-phone-with-owners time.
So, here’s my question:
Are they really worth it?
What would happen if you either didn’t sign them or terminated their contract?
Think about that.
Would you have more time to find owners you actually want to work with?
Would you have more time to focus on marketing to bring in new guests?
Would your staff be happier?
I had a VR manager recently tell me that she “fired” her top 20 troublemaker owners. Since then, she has made more money with fewer properties and has had a happier and more productive staff.
Now, doesn’t that sound like an ideal situation?
So, #RadicalHonesty is first being honest with prospective and current owners. More importantly, t’s about being honest with yourself and doing what is best for your business.
You don’t have to sign every property. Hold out for the ones that are a good fit for your rental program and for you and you’ll have not only a rental portfolio to be proud of, you’ll have a happy staff and happy owners.
What happens to a happy staff and happy owners?
They stay.