For short-term rental property management companies, acquiring owners is just one part of the equation – keeping them happy and engaged can be the real challenge. Owner churn is a common issue in the industry, but it’s often preventable. Understanding why owners leave can help you refine your approach, improve relationships, and create long-term partnerships.
Let’s explore the top reasons property owners part ways with managers – and, more importantly, how you can prevent it.
Lack of transparency and poor communication quickly costs property management companies
Owners want to know what’s happening with their properties. If they feel left in the dark about bookings, maintenance, or expenses, frustration builds. A lack of transparency about fees, revenue breakdowns, and decision-making can also erode trust.
And, let's face it, there's a lot going on in the short-term rentals industry right now. In the UK alone, there are tax changes, fire safety rules, new regulation in various parts of the country, and the threat of minimum requirements for energy efficiency. Owners want to feel they are on top of everything and compliant with any new rules – and that often begins with reassurance from the management company.
Tips:
Provide clear, real-time reporting with access to a property dashboard.
Offer regular owner updates (weekly or monthly reports).
Be upfront about pricing, commission, and extra fees.
Set expectations early and communicate any changes promptly.
Create a forum – whether it's monthly video calls or regular newsletters – to inform owners about regulation and compliance.
Underwhelming revenue performance
Property management is a business and more often than not owners expect strong returns. If they feel their property isn’t generating as much income as it could, they may start looking for other options.
Tips:
Use a dynamic pricing tool like Beyond to optimise rates.
Continuously assess market demand and adjust pricing accordingly.
Offer upsells and additional revenue streams (e.g., pet fees, late checkouts, private chefs, etc.).
Show comparative data to prove your management is competitive.
High maintenance costs and operational issues
Unexpected costs or slow response times to maintenance issues can frustrate owners. If they feel repairs are overcharged or handled inefficiently, they may question the value of your services.
Tips:
Partner with reliable, cost-effective maintenance providers (or bring it in-house).
Provide transparent billing for repairs and services.
Implement proactive property maintenance to prevent costly emergencies.
Ensure fast response times to guest and owner concerns.
Poor guest experience leading to bad reviews
Negative reviews can hurt a property’s reputation and lower bookings. If owners see a pattern of bad guest feedback about cleanliness, communication, or overall experience, they are likely to blame poor management.
Tips:
Invest in high-quality cleaning services and property upkeep.
Offer a seamless check-in/check-out process for guests – consider a digital guidebook from a provider like Hostfully.
Implement an automated guest communication system for quick responses – in-built PMS solutions are brilliant at this; try Hospitable, Hostfully, or Hosthub.
Encourage positive reviews by providing exceptional service.
Explain the importance of reviews to guests and ask them to leave five-star ratings.
Owners feeling like they could do it themselves
With so many property management tools available, some owners start to believe they can handle bookings, guest communication, and maintenance on their own. If they don’t see the value in your services, they may decide to go solo.
Tips:
Highlight your expertise and time-saving benefits.
Offer value-added services like marketing, direct bookings, and upsells.
Provide clear reports showing how your management increases profitability.
Stay proactive – don’t wait for issues to arise before acting.
A better offer from another property manager
The short-term rental industry is competitive. If another property manager offers lower fees, better service, or a more compelling package, an owner might be tempted to switch.
Tips:
Regularly evaluate and refine your offerings to stay competitive.
Focus on building strong relationships with owners to create loyalty.
Offer incentives for long-term partnerships (e.g., discounted fees for multi-year agreements).
Show measurable results – prove why your services are worth the investment.
Final thoughts: retention is easier than acquisition
Acquiring new property owners is expensive and time-consuming. Keeping your existing owners happy is a much smarter investment. By focusing on clear communication, revenue optimisation, guest experience, and proactive service, you can build lasting relationships with owners and prevent unnecessary churn.
Want to stand out in a competitive market? Prioritise transparency, demonstrate your value, and consistently deliver exceptional service.
コメント