Breaking up is hard to do. While experienced property managers appreciate the significance of using the right property management system (PMS), many still find themselves stuck with outdated systems, hesitating to make the switch despite knowing they need a better solution.
We can understand the reluctance – changing your PMS is a significant decision that impacts every aspect of your operation. A new year is a good motivator to take the plunge and upgrade to a solution that optimizes your business’s efficiency and promotes revenue growth. Let’s explore why making the switch could be crucial for your business’s future and what you should look for in your future PMS.
Understanding the barriers to switching
Let’s address the elephant in the room – switching your PMS can feel overwhelming. The immediate challenges are clear: onboarding fees that impact your bottom line, staff members who need comprehensive retraining, and the potential disruption to your carefully built systems and integrations. These are legitimate concerns that deserve careful consideration.
However, the real story lies in what it costs to stay with an underperforming system. Think about the daily inefficiencies that add up over time: the extra hours your team spends updating listings individually because bulk updates aren’t available, the revenue lost to mispriced properties, and the growing gap between your capabilities and those of your competitors. These “small” inefficiencies aren’t so small when calculating their impact over months and years.
In addition to these aforementioned costs, there’s also the cost of lost opportunities. Some PMSs are better geared towards revenue growth and scale. Recent Guesty data shows measurable revenue and portfolio growth after one year of using the platform in users switching from other PMS such as Hostaway, Lodgify, and Hostfully.
Why the time to switch is now
The short-term rental market isn’t standing still – it’s evolving rapidly, with guest expectations shifting and technology playing an increasingly crucial role. If you’ve noticed your peers moving to different platforms, it’s likely not a coincidence. They’re adapting to stay competitive in a market that demands more sophisticated tools and capabilities.
Consider this: the larger your business grows, the more complicated (and expensive) it becomes to switch systems. Every property you add, every new staff member you hire, and every custom integration you build makes the eventual transition more challenging.
While the immediate switching costs might seem high, they’re often dwarfed by the long-term benefits of having the right system in place.
What to look for: Essential features of a future-looking PMS
When evaluating a new PMS, certain features stand out as non-negotiable for contemporary property management operations:
Scalability and growth support: Your PMS should be able to handle your business whether you have 1 property or 1,000. Look for systems that offer flexible solutions that can grow with your business.
OTA connectivity: A PMS with preferred partner status at major OTAs isn’t just about prestige – it means better connectivity, more reliable data syncing, and early access to new features that can give you a competitive edge.
Integration capabilities: While no single system can do everything, a good PMS should offer robust marketplace integrations and an open API. This flexibility allows you to build the exact tech stack your business needs to succeed.
Strong customer support: When issues arise (and they will), you need to know there’s a responsive, knowledgeable team ready to help. Look for providers with a proven track record of customer support excellence.
Owner management tools: From trust accounting to financial forecasting, your PMS should provide comprehensive tools that help you maintain transparency with property owners and protect their investments.
Future-proof development: The company behind your PMS matters as much as the features they offer today. Look for providers with clear development roadmaps who consistently deliver on their promises and show strong market stability.
Making your decision
While the prospect of switching your PMS might seem daunting, the cost of staying with an outdated system often proves far greater in the long run. Take time to evaluate your current needs and future goals, and don’t be afraid to ask tough questions of potential providers.
Remember, the right PMS isn’t just about solving today’s problems – it’s about positioning your business for future success. The temporary disruption of switching systems can lead to long-term gains in efficiency, revenue, and competitive advantage. In today’s fast-paced short-term rental market, having the right tools isn’t just helpful – it’s essential for survival and growth.
Consider this your opportunity to strengthen your property management company with the right technology and tools to help you stay ahead of the curve. The best time to make that change? It might just be now.
To learn more about switching your PMS, check out Successful PMS migration: A guide to future-proofing your business.
