Last week, I sent out a survey asking VR managers about the best and worst parts of their jobs.
Across the board, one of the worst parts of the job was dealing with angry owners and guests. I even had one manager say, “I don’t like it, but it’s part of the job.”
Well, what if it wasn’t?
I don’t mean that we’ll ever completely eradicate complaints (never gonna happen), but do you think we could cut way down on them?
I do. By using #RadicalHonesty.
I hinted at the concept last week, but I’d really like to explain it in some depth now.
Radical honesty is simply telling the truth, however difficult that truth may be. .
For guests, it’s telling them that a property needs updates that haven’t been done and some of these deficiencies may detract from their stay.
For owners, it’s telling them all the costs associated with renting.
It’s saying that, while we’ll try our hardest, we simply don’t know how many weeks their home will rent.
It’s also telling them that they don’t have to update their properties, but if they don’t, they will be priced accordingly.
Please, let me explain.
So, what causes complaints amongst both guests and owners?
I think it’s misaligned expectations.
Guests see beautiful, professionally produced photos of their vacation rental, all taken at the perfect angle to present the property in the best possible light. It’s not going to show the faded sofa, the chipped countertop and it’s certainly not going to show the mismatched dishes and only 3 coffee mugs in the cabinet.
No one’s going to tell the guests that the beds are uncomfortable or the fabulous park grill has never been cleaned.
So, what happens when they arrive? They feel duped and taken advantage of. They’ve lost their trust in your company. And they’re pissed.
They have a right to be.
Most folks don’t have the means to take more than one vacation a year. They save up, they pore over all the website finding just the right property. They shell out big bucks for what they think is the perfect rental for their family.
And then they arrive to a faded sofa, chipped countertops and an uncomfortable bed.
Why don’t we just tell the truth?
Because, as we point out over and over again, we work for the owners. We have a fiduciary responsibility to our owners.
Does that responsibility really go so far as to exaggerate a home’s amenities? Does it really go so far as to be deceptive to potential guests?
Do we not have a moral responsibility to our guests, too? And before you think I’m being too idealistic (which I freely admit I may be) I urge you to think about this from a pragmatic point of view.
If we disappoint a guest, three things will happen.
Number one, they won’t stay with us again
Two, they’ll tell people. They may well write a review on our website or our Facebook page. This will cost both goodwill and potential guests. The price for a bad review is high.
Three, we will have to recruit a new guest to take that guest’s place. The cost of acquiring a new customer is significantly higher than retaining an existing one.
So, even if we don’t have a moral responsibility to our guests, we have a fiscal responsibility to the company to retain our current guests.
The flip side of the coin is our relationships with our owners.
In some way, there’s a lot of deception there, too.
Let’s take the case of a new owner who has a lovely family home that he wants to put in our rental program. It is homey and inviting, but dated. We’re talking paneled walls and harvest gold appliances. Furniture is comfortable, but worn. Kitchenware is a mixture of Walmart and maybe a few garage sales.
Even still, it is a nice addition to the rental program.
The owner has had this home in his family for several generations and until now, just used it as a family vacation home. He doesn't have a good understanding of how a rental program works.
So, we gave him the basics. We explain what the commission rate will be. We promise to take professional photos and put them up on the website and some of the OTAs. We tell him how many weeks he can expect based on what similar homes in his neighborhood are getting, We take his keys, shake his hand and walk him to the door.
That owner needed more of our time to understand all the additional costs associated with renting out his property.
Will there be pool and hot tub costs? Linens? What do we charge for a maintenance call? Housekeeping and inspection?
How likely is he to be in for a huge shock when he opens his first owners statement?
And here’s the one that always gets me. He's quoted a number of bookings to expect based on comps. BUT - do those comps take into account the condition of the home in comparison to its neighbors? Has the neighbor’s house been completely remodeled, while our new owner’s home has always just been good enough for the family?
So, one of two things happens.
One, you lower the rate to compensate for the lack of updates. Or two, you price the property the same as the neighbors and it sits empty.
Either way, the new owner is unhappy.
Why not just tell the truth?
Well, why not?
How do you think your potential guest would feel if you told them that the sofa is faded, the countertop is chipped and the beds are hard?
How would you feel? I would be grateful.
I think they would be, too. I think it would cover enormous ground in aligning their expectations.
I also think it would create a huge trust factor. And who knows what kind of dividends that will pay down the road?
And you might just make a friend. Perhaps not as important, but it is a nice bonus.
How do you think a potential owner would feel if you told them that your policy is to have a 1-hour sit-down meeting (preferably face-to-face, but via video if they’re not local) to fully explain the rental program to them, including ALL fees?
I think that owner would feel the same way as the guest. Happily surprised.
Now, having a conversation about the condition of their home and how it might affect their income could be a bit more problematic (particularly if their appliances are harvest gold), but it’s far more preferable to having to answer his questions later, when he's angry and disappointed.
Please understand, I don’t think we purposely misrepresent our properties and/or our policies. I think we get busy. I think we get a little impatient. Maybe tired of answering questions. I think we’re human.
But I also think a policy of #RadicalHonesty would be a huge boon to our businesses, our guests and our owners.
And it may just blow our competition out of the water.
What do you think? Am I a #Visionary or just a #MisguidedIdealist?
I’m anxious to hear your thoughts.