Your property management system (PMS) is an integral part of your short-term rental business, serving simultaneously as a channel manager, task manager, and as an engine of growth. But when that engine starts to sputter, it affects not only your day-to-day operations, but also your entire livelihood. So how do you know if your PMS is working optimally?
Sometimes, the signs that you need a new PMS are clear, such as the desire for functionalities that your current PMS simply doesn’t support. But other times, the signs are more subtle. Below we’ll dive into the top five signs that it may be time to switch your business over to a new property management system.
1. You manage 10 or more listings (or plan to grow in the near future)
Most PMSs offer the same basic functionalities, including access to a channel manager, a single calendar for all reservations, and task management capabilities. If you’re only managing a few listings and are generally happy with your PMS, there may not be a need to switch. However, if you manage more than ten listings or are growing your business, your PMS should include features like advanced analytics and reporting, accounting, and should have a strong CRM to help you drive repeat business.
2. You want to expand your tech stack
Having the right tools is crucial to the success of your business, and you don’t want to be limited to just what your PMS offers. After all, no PMS can be the best at everything. If your PMS doesn’t give you the ability to integrate with third-party software solutions — or even to connect to your own custom-built solutions, it may be holding your business back.
3. You’re being outpriced by the competition
58% of short-term rental managers name market saturation as their top business concern. In an increasingly competitive landscape, being able to price your rentals in a way that maximizes both your revenue and your occupancy is key. If your PMS isn’t offering revenue management that includes dynamic pricing, you may quickly fall behind your peers.
4. You manage on behalf of owners, but aren’t getting new listings
You need a PMS that will build owner trust. This includes analytics and financial reporting, an owners dashboard that offers transparency, and high-level tools that will provide owners with confidence that you will manage their investment with care. If you manage properties on behalf of owners, yet your PMS lacks owner management tools, it may be time to upgrade to a new system.
5. You’re not reaching the right audience
Airbnb, Booking.com, Vrbo. Each booking site has its fans and its detractors. But while listing on the top three is essential, it might not be enough. Many travelers turn to niche booking sites to help them find exactly what they’re looking for, whether it’s a family-friendly vacation rental or one that offers a warm welcome to LGBTQ+ tourists. If your PMS doesn’t offer the ability to connect to a variety of booking channels, you may be missing out on valuable business.
While the signs listed above are some indicators that you may need a new PMS, they’re not the only indicators. Check out Successful PMS migration: A guide to future-proofing your business for even more signs that it might be time to upgrade your PMS, as well as the top features to look for in your new PMS.
