How Guest Screening Can Unlock New Sources of Revenue
This is a guest post by SUPERHOG. SUPERHOG provides advanced guest screening with embedded insurance that protects against guest property damage and guest injury with a £1m Host Guarantee and virtual damage deposit.
With a global market valuation of $87 billion in 2019, and with the US (the world’s largest vacation rental market) seeing a 20% increase in bookings year over year, the vacation rental market is booming, and demand is clear.
To cater to this demand, more and more people are looking to put their homes online to earn extra income and capitalize on the popularity of vacation rentals. However, listing your home online for strangers to book comes with its risks and challenges, and owners know this.
Whether they have one or ten properties, many of these owners will turn to the expertise of a property manager when it comes to managing bookings and day-to-day operations.
Therefore, property managers need to do everything in their power to make sure that these potential clients choose their services over those of the competition, and a great way of standing out from the crowd is by providing owners with a comprehensive guest screening process as part of their management service.
In the long run, this will help property managers maximize their revenue by reducing claims for damage, which in turn will provide owners with the confidence (and peace of mind) that their homes are safe, ultimately scaling their business by improving owner acquisition.
Here are three ways guest screening can increase revenue and improve owner acquisition for property managers:
1. Reduce Costs
Effective guest screening will maximize a property manager’s profit margins by reducing incidents of damage which can be highly costly financially and in terms of reputation, both with your owners and in the local community.
Everyone has read stories about nightmare guests that have caused damage and left hosts and property managers out of pocket.
Having a guest screening process will deter those troublesome guests from booking a property in the first place. If any damage is caused, property managers will have the relevant details and measures in place to hold the guest accountable and support their owners through the claim process.
By minimizing and preventing the possibility of damage, guest screening allows property managers to redistribute the saved revenue and time towards initiatives like onboarding new properties and focusing on the guest experience.
2. Accept More Bookings
Most property managers rely on a platform’s booking restrictions and screening processes (usually not sufficient, frequent, or mandatory) to filter out risky reservations, such as one-night stays, last-minute bookings, and local guests, typically all red flags for parties.
While these types of bookings do have a higher chance of ending in damage, by putting the right processes and measures in place, property managers will be able to capitalize on growing traveler types, with last-minute stays becoming popular due to the current state of travel.
Incorporating an independent guest screening process will allow property managers to reduce their dependence on OTAs to keep them protected and provide the possibility of taking more direct bookings, safe in the knowledge that the guests have been independently screened and verified.
3. Enhanced Reputation
Trust, transparency, security, and authenticity are the cornerstones of the vacation rental industry. Trust is the most important when it comes to homeowner acquisition, providing the solid foundation for every property manager-owner relationship.
With the professionalization of the industry, property managers should be investing in new processes and enhancing their technology stack to help build trust and confidence in their business.
Convincing homeowners to choose your property management service over your competition is a lot easier if they know that you’re doing everything necessary to make sure their homes are protected.
Grow Your Revenue Through Automated Guest Screening
If property managers want to succeed in the short-term rental industry, one of the most intelligent decisions they can make is introducing guest screening to their booking journey.
To summarize, guest screening will help property managers minimize incidents, create new booking opportunities, improve reputation, build meaningful relationships with owners, and most importantly, grow the business and its revenue.