Episode Transcript
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Tim Cafferty (00:10):
You're listening to the Vacation Rental Key with
T&T, the podcast for vacationrental managers by vacation
rental managers.
I'm Tim Cafferty and I managetwo companies, one in Virginia
and one in North Carolina.
I'm one of the two T's.
Tiffany Edwards (00:26):
And I'm the other, T Tiffany Edwards, born
and raised in the vacationrental business.
I help manage our familybusinesses from Key West all the
way to Kauai.
Tim Cafferty (00:36):
In the next 30 minutes, we're going to give you
our keys to success in thevacation rental business.
Tiffany Edwards (00:44):
Welcome back, guys.
We're so excited to really getinto it today with a question
that has been plaguing theindustry for years, and Tim and
I have taken some time to reallydive into what it is to be a
professional in the vacationrental industry.
Tim Cafferty (01:02):
Yep, we're giving away more nuggets on the
vacation rental key, the keys toprofessionalism.
Today, you look it up in thedictionary.
It says the competence or skillexpected of a professional.
Hmm, pretty good.
What does that mean?
Well, we've got six points foryou today.
We like to give you points totake away, and I think we nailed
(01:26):
it.
Tiffany Edwards (01:26):
I just have to say Starting out with a
professional, because, tim, I'msure you've had this
conversation within yourcommunity, but then, on a larger
scale of industry, there's somuch to think about what is
professional From inside yourbusiness?
Are you professional?
Externally, within thecommunity, are you viewed as a
professional?
Externally, within thecommunity, are you viewed as a
professional?
And then, from an ownerperspective, are you
(01:49):
professional?
And then from a guestperspective, how do they view
you as professional?
So these six tips cover all ofthat.
But you know, tim, this was aconversation that we spoke about
back in VRMA in around 2019.
So this was one of the firstprojects we had for the advocacy
fund During that time.
(02:10):
I think what precipitated thatconversation was the growth of
social media and Instagram andthese influencers who came in
who said oh, let me show you howto make millions of dollars by
having a short-term rental, andit's so easy and you don't even
have to live nearby.
And there was a massiveincrease of short-term rentals
(02:34):
in areas and in neighborhoods,and so this conversation of what
is a professional really cameto the forefront.
And so at the VRMA, through theAdvocacy Fund, we commissioned
a study with a crisis specialistand strategic communication
specialist to really identifywhat a professional is, more so
(02:55):
of how an individual within theindustry could claim a
professionalism.
And what they came back withwas you had to be a taxpaying
business.
You had to pay consistentlyyour taxes sales tax, tourism
tax, whatever was required ofyou, and that licensing aspect
you had to be local.
That's something we'll touch ona little bit more of our key
(03:17):
takeaways.
And then you had to beconsistent in high standards,
and so we'll talk through alittle bit more of that, but
that really became the narrative.
(03:58):
And so we'll talk through alittle bit more of that, but
that really became the narrative, and today we're going to go
through the six that are morespecific is something you can't
say about yourself.
I am very professional, look atme.
No, it's how you comportyourself, and so that's what
many of those people who willsay that, but that's not what
you necessarily want to exude.
So great point.
Let's go ahead and get in withwhat I think is the absolute
most important sign ofprofessionalism, and that is
(04:19):
community responsibility.
So one of the things andobviously in my background of
advocacy and havingconversations with local
officials, you always want toidentify the things that you are
doing in communityresponsibility, and so what that
looks like is how are youproviding solutions and ensuring
(04:40):
lower impacts of nuisance,concerns and issues so noise,
trash, parking Are youcommunicating that with your
guests?
Are you monitoring those items?
Are you creating accountabilityso that if any of your guests
have impacts of noise, trash orparking, are you handling that?
That goes a long way and it isdefinitely noticed within the
(05:04):
community and helps you be abetter steward.
The other part is supportingsustainable tourism.
So are you packing your houses?
Are you creating massive wedon't like the term discount,
but lower pricing within thearea.
That changes what the dynamicand average daily rate is and
maybe lowering some of thosestandards just to fill in as
(05:28):
much as you can.
That creates a lot more issuefor the community as well.
Tim Cafferty (05:33):
And I would also say you have taught me the
engagement with local officials,making sure you know somebody
in the city hall that you cancall on, or even more than
locally in the city, hall thatyou can call on or even more
than locally, maybe on yourstate level or even nationally.
When there's an issue, do youspeak up and make sure those
regulations compliance,partnership things are developed
(05:56):
in any way that you can.
Tiffany Edwards (05:58):
Yeah, and again , you know, going back to your
point of saying I'm professional, it's more so about
demonstrating how you are a goodcommunity steward and how
you're willing to make somecompromises.
I've seen time and time againmore so in the last year of
community saying I'm not willingto budge on X, y, z, showing
your professionalism by showingsome compromises.
(06:19):
Because you want to keep thatcharacter of community and you
want to protect the communityand protect the tourism in your
area.
You've got to come with somecompromises and I think that
really elevates what yourprofessionalism is in the
community.
Tim Cafferty (06:33):
Another thing not on our list that comes to mind
for me on communityresponsibility is we have yet to
, on this podcast, get into oneof my pet subjects and that's
budgeting.
But on your budget do you havea line item for charitable
contributions to local communityactivities?
I do and frankly, I get callsevery week to sponsor and help
(06:56):
with something.
But that helps as well.
Being there, investing yourtime, investing your employees'
time in these local communityfunctions helps a great deal on
your awareness, quite frankly,in the community.
Tiffany Edwards (07:10):
That's so important.
I actually just had aconversation with Ben about this
yesterday because I've startednoticing in one of our companies
that we're doing a lot of thatcommunity engagement, but it
happens to be in an area that isreally heavily regulated, so we
look at it as a cost ofbusiness line item, of business
to business interaction.
We're not necessarily going tobe doing business development
(07:32):
there, we're not bringing inguests from it, but we are
helping support the chamber,we're helping support other
local businesses and we'rereally showing that we're a good
steward there.
That's such a smart, important,key takeaway, to add.
Tim.
Tim Cafferty (07:46):
Absolutely so.
Community responsibility is ournumber one takeaway on
professionalism.
Number two you have asoperational standards I might
restate that and say efficientoperations and management of
your company.
What thoughts do you have there, tiff?
Tiffany Edwards (08:02):
I think it's really understanding and
utilizing systems forconsistency.
So, checklists I know inseveral of the podcasts before
we talked about processes butunderstanding those processes
and those efficiencies Are youdoing inspections for your
properties?
Are you hiring and managingqualified vendors and service
providers?
And if they are not qualified,then are you getting rid of them
(08:25):
quickly and not allowing toomany graces, because that is a
very high standard that you needto set for your level of
professionalism?
And then maintaining adequatesafety standards, emergency
preparedness I know we've talkedabout that before, but those
are all processes you need tounderstand and have in place,
because there will always besomething that comes up and you
(08:47):
need to fall back to what yourprocess is for those operational
and you may want to touch alittle bit more on the
importance of that efficiency-Absolutely.
Tim Cafferty (08:55):
I think it goes even deeper.
Do you have dynamic pricingstrategies?
Let's face it, we're in amarket right now that we have
not seen in some time, if ever,and you need to have those
market analytics and thosedata-driven insights to optimize
pricing for your properties, tomaximize that revenue and the
occupancy, and adjusting thoserates properly, not just setting
(09:17):
it and forget it.
It's a hundred dollars a night,every day, no.
And then the marketing anddistribution.
Do you have professionallyphotographed properties?
Do you have that listingoptimization on those top
platforms like Verbo or Airbnbor Bookingcom?
And those compellingdescriptions?
Sarah and I, on a previouspodcast, would make fun of some
(09:40):
of the descriptions we would see.
Have you looked at that andmake sure it is professional and
representing you properly?
And then, one of my favorites Ican't remember the last time I
had a double booking, but makingsure your software is foolproof
on any sort of a situationwhere you would be embarrassed
to have two people showing upthe same day for the same
(10:01):
property.
That's really important.
And we can get into it furtherwith maintenance and
housekeeping protocols and justleveraging that technology, as
you were saying before, to makesure that you have a centralized
reservation system.
You have automatedcommunications, you have owner
portals for your businesspartners and, of course, the
financial reporting to enhancethe efficiency and the
(10:22):
credibility of your company.
Tiffany Edwards (10:23):
Yeah, that financial component is really,
really important to make surethat you have the right people
in place for that and then alsothat your software is providing
the accurate accounting.
That probably shouldn't have tosay that, but need to say that.
Tim Cafferty (10:39):
No judgment here.
No judgment, just suggestingthat maybe you won't.
Tiffany Edwards (10:43):
Yeah, and you know, Tim, going back to when we
look at revenue management, Iremember a time where it was set
it.
Forget it.
I mean, I grew up in theindustry where we sent out
printed booklets that had ourrates on there and those were
our brochures, and you calledand that was your rate and we
didn't change it.
And my how we have changed withour revenue management system
(11:06):
and really making sure that youhave someone manage that whole
process is so important.
Tim Cafferty (11:12):
Yeah, and maybe not just one person.
Maybe it's a team meeting on aregular basis to call attention
to particular properties thatare underperforming.
Do you know which propertiesare underperforming and why are
they doing that, and are youcommunicating to your property
owners on that, which we'll getinto in a moment?
So the number two item on ourlist of six would be efficient
(11:33):
operations and managementstandards.
Tiffany Edwards (11:36):
We have one of those calls weekly for every
single one of our businesses tolook to see where we're doing
reporting and tracking and thenalso to see what our marketing
is doing.
And have we received anythingas a response to that?
And, more specifically, whatunits are down and which ones
are up and why?
Okay, number three, reallyimportant legal and ethical
(11:57):
compliance.
We've seen a rise of permitting, registration, licensing fees,
different operations,requirements that a county or
city or state has put in place.
Who's monitoring that andmaking sure that all of your
properties registered and arecompliant?
(12:19):
There's obviously a majorconsideration of losing some of
those permits which we didn'thave before.
So there's a lot more on theline and really that needs to be
a focus to make sure that youare licensed in whatever
requirement you have, from astate to a local level, for all
of your properties.
Tim Cafferty (12:40):
Yeah, In Virginia Beach I've shared this with you
guys before that they have anordinance there called the
short-term rental ordinancewhich, quite frankly, if it were
left to my property owners tocomply with that, it would be
chaos.
We had to step in, we had totake charge.
So that short-term rentalordinance, amongst other things,
(13:00):
requires things like a parkingplan for every property, an
annual deck inspection by acertified engineer annually, of
course, payment of a fee to thecity and these stupid signs we
have to put on the property thatsays this is a short-term
(13:22):
rental property.
It is the ugliest thing to have.
It's black lettering on a whiteside.
We're working with them ontrying to make it a little
prettier, but there's a phonenumber.
If you see a violation, pleasecall this number and then we
have to be able to respond andbe on site within 30 minutes.
And then we have to be able torespond and be on site within 30
minutes.
(13:42):
That took three years ofmachinations back and forth
between the professionalproperty managers and the city
before we arrived at that.
And quick sidelight there, thatphone number.
Last year 93% of the calls wereis this house available for
August the 1st?
Tiffany Edwards (13:59):
I actually love when I go into negotiations, I
push with local officials.
I push for a local phone numberon a sign.
I think it is a great tactic.
The real estate industry hasalready made sure that the
consumer knows to call for anumber if it's available for a
listing, so why not do the samething for vacation rental?
And we've actually been able totalk through with local
(14:22):
officials.
That number is called for aproblem, we can address it way
quicker than if it was a 24-hourhotline because we know who's
in there and most of us arelocal to be able to go in there
and take care of that issue.
You know that printing process.
You really have to read throughall the ordinances to
understand exactly.
When you talk about signs, wehad in Walton County where it
(14:45):
wasn't expressly written out buthad to have exit signs up above
the doors, similar to hotels.
Then they went back and saidwell, no, no, no, that's not
necessarily what you had to do,so the cost associated to go
back and forth.
We're in the middle of ourpermitting in Hawaii and you had
to do so the cost associated togo back and forth.
We're in the middle of ourpermitting in Hawaii and you
have to take pictures of all ofthe property to send in.
(15:06):
I mean, so you have to stay ontop.
But I do think you're right onthat.
It can't just be assigned tosome property manager.
It is extremely intense andthere is a lot that you have to
fill out and you still have tohave some owner engagement for a
lot of it too.
I do.
Tim Cafferty (15:21):
Actually, the ordinance says it is the
property owner's responsibilityto do all of this, but we know
how that's going to go.
It's a great opportunity foryou to step up and say I'm the
professional, I will handle thisfor you.
The other thing I would mention.
You certainly know a lot aboutFlorida and we hear a lot about
(15:43):
maybe, financial managementunder legal issues like money
disappearing from the operatingaccount, depending on your state
, this also could be a legalcompliance issue of how you
handle rental income, theexpenses and providing those
accurate financial reports tothe owners on a regular basis.
Tiffany Edwards (16:02):
And I think we've touched on this before,
but it's really important toknow that that money is not your
money.
That is the owner's money.
So while it looks shiny andavailable in a downtime, it's
not your money, and we've knownpeople who have gone to jail for
that.
So if you're located in a statethat there's not a barrier to
(16:22):
entry or doesn't have to requiresome type of escrow or under a
real estate brokerage, really beaware of that.
That's very serious and, Ithink, very basic
professionalism practices.
Tim Cafferty (16:36):
Okay, we're doing well on our time.
We're halfway through our listof six as we move on to item
number four, on our six itemsfor you to look at to make sure
you're as professional as youpossibly can be, and we would
pivot to say, guest experienceexcellence.
How you handle that really saysa lot about the industry views
(16:58):
of professionalism and the guestexperience.
What do you think about that?
Tiffany Edwards (17:03):
Yeah, I think that's so important.
That goes back to how a guestreally views you as a
professional, and we know thatin terms of a guest life cycle,
it's so important from everyaspect to deliver and there are
so many softwares and access toinformation or to processes that
(17:26):
can help and automate some ofthose.
We use Breezeway a lot to helpwith clear lines of
communication once a guest ischecked in and in the home.
But you also need to providevery clear communication on the
front end at booking time Reallyunderstand what the home looks
like.
Really understand if thepictures that they're seeing is
(17:48):
exactly what they're going toget when they arrive.
When they get in and check in,what is the process going to
look like so they're aware ofthe check-in time?
These are all proactivecommunications that you need to
set up for your guestexpectation and then, once they
check in, how are youcommunicating with them so that
(18:08):
it's not a bother but it is apersonalized relationship,
building up that timelycommunication and trust from
property manager to a guest.
Tim Cafferty (18:20):
So that prompt, clear and consistent
communication with the guests,from inquiry to post-stay
follow-up.
So that includes a check-in andcheck-out instructions, the
house rules.
And then, for God's sakes, whenyou get a response about an
issue, make sure you are readilyavailable to address those
issues and not just say we'reglad you had a nice day.
(18:43):
Go along.
The second one under theexceptional guest experience we
can't ignore this.
It is an issue in our industryand that is immaculate
properties is how I would phrasethat.
Raise that Ensuring everyproperty is spotlessly clean,
(19:04):
well-maintained and fullystocked with those essential
amenities like lindens,toiletries, kitchenware, the
toaster works, the refrigeratorworks and, of course, the
regular deep cleaning andmaintenance checks are critical
in this process.
Tiffany Edwards (19:15):
Tim, I think that's really important too,
that even if you have inventorythat's a little dated or you
have owners that are not willingto upgrade, those properties
need to be highlighted andstarred because they have to be
some of your cleanest ofcleanest, because if they don't
look like the picture or if aguest comes in and they weren't
exactly what they were expecting, just from that dated
(19:36):
perspective, you really need tomake sure you wow them with how
clean it is.
Quick story COVID provided us alot of opportunity here.
So in my mom's business shemoved almost all of her linens
to white linens so when theywalk in it is as clean and crisp
.
But it also created a betterefficiency and processes for her
(19:57):
laundry, so she didn't have allkinds of different linens
tracking them down.
So overall that really helped.
But I think that that'sextremely important.
There's nothing worse, and allof us probably listening have
maybe gone into a property thatwasn't the cleanest, but it's a
terrible way to set off.
And that is number one a way toshow your professionalism right
(20:19):
out of the gate.
Tim Cafferty (20:26):
We went to what we are calling blue standard
bedding a couple of years ago.
What a difference that's made.
Every bed looks the same.
It's got the little skirt atthe end, we have lumbar pillows,
we have the white duvet.
It is remarkable how peoplelook at that and positively
respond.
It's as though they're walkinginto a hotel room, which is,
quite frankly what they're usedto, instead of the Laura Ashley
printed comforter from whereverand every room is different, and
(20:50):
I just think that's somethingwe can all take responsibility
for and improve our positionvery quickly.
Tiffany Edwards (20:57):
Yeah, and Tim, one more thing I was thinking
about for that too.
So in terms of any maintenancebecause maintenance, I think,
goes a little hand in hand interms of that guest expectation,
making sure that your staff iswell aware that they need to
have proactive communication.
So, however you may notify inthe system so that anyone on
your team can call a guest tosay, hey, the refrigerator door
(21:20):
handle is a little loose, butwe're going to have someone be
there in 24 hours to help fixthat.
Guests are fine if youproactively communicate, but if
they find it on their own, thatimmediately dings you from that
sense of professionalism.
Tim Cafferty (21:37):
Yes, I would also state as well the condition that
that person shows up when theydo a maintenance check.
Do you have a standardappearance for your people?
Do you have a company issuedshirt?
Do you have name tags?
Do you have business cards?
Do you have logoed vehicles?
Or does the guy show up in apair of cutoff shorts and a
t-shirt holding a cup of coffee,going, hey, I'm here to fix
(21:59):
your dishwasher.
They're the face of yourcompany.
You can get into that morelater, but that's the impression
that's left with your guests.
Tiffany Edwards (22:11):
That's a really important note, especially when
you're hiring some of thesemaintenance technicians, because
they'll spend more time withyour guests than sometimes you
will, and so knowing what thatpersonality is like and can they
just go in somewhere and be agreat representative of
hospitality.
We've also started doing cards,too, maintenance technician
(22:32):
cards, where it'll say sorry, Imissed you, I was here between
this time on this date and hasour phone number.
So even though we've told themthat we're coming in, they've
seen as well that the card isthere and something has been
fixed.
Here's.
You know my name and number ifyou need anything.
Tim Cafferty (22:50):
And we shouldn't leave this category without
touching on something youmentioned earlier but is
critically important to theguest, and that is the safety of
your properties.
We talk about maintenancechecks and making sure the house
is well maintained.
Is that railing loose?
Are those stairs properlyinstalled?
Do your smoke detectors work?
(23:10):
When's the last time youchecked the smoke detectors?
It's important folks Don'toverlook that.
Tiffany Edwards (23:17):
Yeah, one of the other things too that I
think a lot of times we forgetis do all of your doors locked?
Sliding glass door?
Does it close all the way?
Some of those things are thosein your inspection reports and
notes so that people can check.
There's a lot associated withsafety, so if you are not
well-versed in it, there aregreat programs Breezeway has one
(23:37):
but definitely be aware of whatthose safety checks are.
Tim Cafferty (23:42):
That's number four , the guest experience.
Part of it.
As we move to our fifth, maybethe most important one, they're
all important, but how aboutowner and stakeholder
accountability, the relationshipyou develop and maintain with
your property owners?
How about that, tiff?
Tiffany Edwards (24:00):
Yeah, I think that's so important and, in fact
, this might be the most.
Now that I'm thinking about,this might be one of the number
one, even though I keep going toeach one I say, oh, that one's
so good, but I think you'vetouched on this on almost every
category.
And the transparent reportingmaking sure that you're paying
owners timely, making sure thatthey know what is on their owner
(24:22):
.
Monthly reports are accurate.
You have someone lookingthrough those, making sure that
that property is cared for.
Anytime an owner comes in, youneed to make sure that any
individual from your team or aspecific individual has gone and
walked that property to thatowner's specificity.
The other thing is if the ownerhas specific things that they
(24:45):
want and how they want it.
Do you have that noted?
Can you take care of that eachtime and really having continued
ongoing information provided tothe owner, so educating them
what does the market look like?
You are the best in the area tolet them know what's going on
and you're constantly lettingthem know about ongoing
education and practices andtrends for the industry.
Tim Cafferty (25:08):
I've got my notes on this owner relations and I
would also call it transparencyI can hear your husband Ben's
sessions in the back of my head.
Clear agreements having awell-defined written agreement
outlining all theresponsibilities, fees and
expectations for both parties.
Regular communication,reporting, as you mentioned.
(25:28):
Making sure you provide thoseowners with regular updates on
their property's performance,the occupancy rate, the income,
where they may miss missingopportunities.
But I think one of the mostimportant thing is being honest
and upfront about all aspects ofthe management, including the
financial dealings, propertycondition, any changes that they
may need to make.
I had a rental manager years ago, patrick Parker, god rest his
(25:49):
soul.
He passed away last year.
We would have a new ownerrecruiter for lack of a better
word who would bring theproperties on board and the
owner would be in the office andhe'd barge in and he'd go.
Let me tell you how it reallyworks.
Forget all this fluffy stuffabout the sales aspect.
I'm the one you're going todeal with on a daily basis, sort
(26:09):
of like the sales agent at thecar dealership.
You never hear from that guywhen you need maintenance, right
, and so that rental manager orwhatever you call that owner
relations person having thatopportunity to get in front of
your owner and say this is howwe conduct business, and then,
of course, making sure youunderstand what the aspirations
are of that property owner.
(26:29):
What are their specific needsand goals for their properties.
You've mentioned that inprevious episodes.
It's really important if youcan tailor your management to
respond to the needs of yourproperty owner, that goes a long
way to that owner relation.
Tiffany Edwards (26:42):
And you know, adding into that too, tim, from
the beginning of therelationship, letting them know,
too, if they've come on withyou on your program, letting
them know that it may take sometime to build up some
reservations, and what you'redoing marketing-wise, but really
giving them a full landscape ofwhat their own life cycle is.
(27:04):
And you know, when we have ourgoing back to our weekly
meetings for the marketing, wehave those meetings and we see
that some of our homes are downcompared to last year.
How are we transparent andcommunicating with those owners
and then providing them asolution?
So a lot of times, it's reallymaking sure that your staff,
that you know how to communicate, so that it's solution-based.
(27:28):
Yes, here's a problem, but I'mshowing you all these solutions
and this is how we're going towork together.
And I would say don't strayaway from a conversation, and
economic times are different.
We're expecting some of thesethings.
This is why we're reinvestingin marketing.
This is why we're reinvestingin showcasing your property.
We're creating efficiencies inmaintenance and property care.
(27:50):
Having those conversations areextremely important.
Tim Cafferty (27:54):
Yeah, I think you would agree with me on two
things here.
Number one there is a lifecycle to a property owner and
I've told the story before I'lltell it again.
I remember I was on site whenthis couple had purchased the
house and their children were inthe car and they arrived at the
house for the first time.
The kids were so excited oh myGod, there's a basketball goal.
(28:16):
Oh there's a pool, oh my gosh,this is so cool.
And we went along in ourrelationship.
I managed that house for manyyears.
I've been around a bit if youcan't tell by the faded and
missing hair but I remember thelast visit I had with that
property owner and for theprevious three years the kids
had not come down because theyhad been in high school and they
(28:37):
were all lacrosse and footballand cheerleading and whatever
else and it wasn't on theirpriority list anymore.
And he was coming by himselfbecause his wife no longer
enjoyed the ride.
And he turned to me and saidGod, tim, I hate this house.
That is like the epitome of alife cycle excitement on the
front and at the end it's just aburden.
And that's the point where I'vesaid you know, we have a real
(28:59):
estate sales division.
We'd be happy to help you endthis relationship, but it is
important to understand thoseowner goals and making sure you
can respond to themappropriately throughout the
relationship.
The second thing on ownerrelations is when did the
property owner purchase theproperty?
I think it's really criticalright now, as we're in a bit of
(29:21):
a downturn in the industry.
The owners that I haveencountered who have purchased
in the last year eyes wide open,they understand it.
Maybe the ones that purchasedduring the pandemic, at the
height of pricing, at the heightof income, maybe they don't
understand that.
So, education opportunity Arewe ready for number six?
I think we are Okay.
(29:42):
The final and improvement, Iwould say you could also add
industry knowledge andadaptability, for lack of a
better word Making sure you,whoever you are, are indeed the
expert.
What do you got there?
Tiffany Edwards (30:03):
I love this one and I think it expands so much
bigger than just the vacationrental industry and I think that
for so long, so many of ourcolleagues have gotten
sidetracked to just see what areour competitors doing in terms
of trends.
What is the vacation rentalindustry doing?
We are far surpassed that.
So there's a lot of things.
(30:24):
I feel like you need to befocused on One what does credit
card debt look like?
What does the economic downturnor economy look like in general
?
What does the overall tourism?
Are people spending money oncruises, on flights?
How is tourism adapting?
How are they marketing?
There's so much more that youneed to be thinking of and I
(30:45):
know we'll tap into more of thevacation rental industry
specific, but I would imploreyou to go and really think about
the industry of tourism as awhole and how that trickles down
and affects the vacation rentalindustry.
Tim Cafferty (31:00):
You have to have a deep understanding of the local
vacation rental market.
What are the competitors doing?
We don't want to talk aboutcompetitors, but we talk about
competitors, right?
What are the guest preferences?
What are those new thingsthey're looking for out there
and what are you responding to?
What are the trends and are youengaged?
Are you a member of your localassociation of realtors?
(31:23):
Is there an opportunity for youto be involved in the CVB in
some way?
How about the Chamber ofCommerce?
All of those things make adifference in your industry
knowledge and your ability torespond appropriately to your
property owners and theirmanagement professionalism.
Tiffany Edwards (31:38):
Yeah, that's really interesting.
I wanted to go even moregranular on some of those
industry trends for your area aswell.
We've seen a lot of likecancellation policies changing,
so our booking window changing.
Are you using software?
I mean we use key data all thetime for all of our locations.
We are in it prettyconsistently to see how we
compare to our local market.
(32:00):
That helps in ownercommunication, it helps our team
make decisions.
But how are you utilizing someof those trends for your local
market?
I also have signed up for mostof our coopetition newsletters
and discounts.
So if I know if they're sendingout savings I know because I
get that email it's veryinteresting, but it helps us
(32:23):
understand a little bit more ofwhat's going on specifically in
our area.
And then I would also say toinvesting in staff training more
, so really understanding whatyou need for staff training.
So I know that a lot of timeswe'll allow many of our team
members to go somewhere becauseit's incentive or we want to,
you know, provide them almostlike a trip, but they're not
(32:45):
necessarily getting as much back.
So really, what does your staffneed?
Do they need to go to asoftware conference?
Do they need to be involved insome type of webinar on an
industry trend, but reallyunderstanding education-wise
member.
It's part of doing business andthose opportunities that VRMA
(33:19):
provides, whether throughwebinars, seminars or
conferences.
Tim Cafferty (33:24):
you need to be there If for nothing else.
You certainly look at theagenda and see what topics are
going to be covered, but all ofthe supplier members there you
find out what the latesttechnology is and then probably
the biggest benefit that I knowyou and I have, joyd, is getting
together with like-mindedpeople to understand really
what's happening and what'sgoing really well for this
(33:45):
company and that company thatyou ought to be able to adapt
elsewhere.
So, yeah, those affiliationsand that reinvestment in the
training of your staff critical,critical importance.
Tiffany Edwards (33:55):
You know, this is very different than I think.
A lot of other industries wherethe networking component is so
beneficial to your business andto a growth for each team member
have the ability to callsomeone in a different market to
say, I'm dealing with XYZ, howhave you dealt with it?
And being able to take thatback to your team to create
(34:18):
those efficiencies Again.
It's also an opportunity foryou to make sure that you share
with your owners.
We just got back from thisconference.
We've learned this.
We're going to be implementingthese things.
We're continuing education.
That's again showing yourprofessionalism without having
to say that you're aprofessional.
Tim Cafferty (34:37):
Absolutely, and we're in the season where VRMA
is accepting proposals foreducation sessions.
Maybe you're an expert onsomething and you can present to
VRMA conference.
What a great promotion that isfor your owners.
Not only did I go to theconference, I presented on a
(34:58):
topic as a national expert, sodon't miss those opportunities.
Tiffany Edwards (35:01):
Yeah, those are great, so I hope that I really
don't think we left anythingelse on the table.
We'll just state that we'reking and queen of
professionalism here, and theseare the factors.
We king and queen ofprofessionalism here, and these
are the factors.
Tim Cafferty (35:12):
Some of these are aspirational, but we covered six
.
To briefly recap number onecommunity responsibility
Important.
Get out there, be a force.
Number two would be operationalstandards efficiency in that
management of the asset for yourproperty owners.
The third one we covered waslegal and financial compliance
(35:35):
Really important.
The fourth one was exceptionalguest experiences you better be
delivering them or you're notgoing to be around very long.
Owner relations andtransparency is number five.
And finally, industry knowledgeand adaptability.
Those are the six we got foryou.
I think these key aspectsvacation rental company owner
managers can build a strongreputation, foster that trust
(35:58):
with both guests and owners andachieve long-term success in the
competitive vacation rentalmarket that we have all embraced
as our career.
So I hope this helped.
Tiffany Edwards (36:09):
Yeah, and if you have any other suggestions
for some reason we had missedsome don't hesitate to reach out
to us and maybe we can bring upsome other great keys of
professionalism out.
Tim Cafferty (36:20):
All right, so that's it for this edition of
the Vacation Rental Key with TNT.
We hope you enjoyed what we putdown and you picked up some
spots of improvement that maybeyou can focus on Until next time
.
We got something really goodbrewing for you.
We won't mention it right now,but come back and we'll give it
to you.
We always do.
Tiffany Edwards (36:40):
Can't wait Tim so long everybody.
Tim Cafferty (36:43):
Bye, we'll see you next time.
You're listening to the Vacation Rental Key with
T&T, the podcast for vacationrental managers by vacation
rental managers.
I'm Tim Cafferty and I managetwo companies, one in Virginia
and one in North Carolina.
I'm one of the two T's.
Tiffany Edwards (00:26):
And I'm the other, T Tiffany Edwards, born
and raised in the vacationrental business.
I help manage our familybusinesses from Key West all the
way to Kauai.
Tim Cafferty (00:36):
In the next 30 minutes, we're going to give you
our keys to success in thevacation rental business.
Tiffany Edwards (00:44):
Welcome back, guys.
We're so excited to really getinto it today with a question
that has been plaguing theindustry for years, and Tim and
I have taken some time to reallydive into what it is to be a
professional in the vacationrental industry.
Tim Cafferty (01:02):
Yep, we're giving away more nuggets on the
vacation rental key, the keys toprofessionalism.
Today, you look it up in thedictionary.
It says the competence or skillexpected of a professional.
Hmm, pretty good.
What does that mean?
Well, we've got six points foryou today.
We like to give you points totake away, and I think we nailed
(01:26):
it.
Tiffany Edwards (01:26):
I just have to say Starting out with a
professional, because, tim, I'msure you've had this
conversation within yourcommunity, but then, on a larger
scale of industry, there's somuch to think about what is
professional From inside yourbusiness?
Are you professional?
Externally, within thecommunity, are you viewed as a
professional?
Externally, within thecommunity, are you viewed as a
professional?
And then, from an ownerperspective, are you
(01:49):
professional?
And then from a guestperspective, how do they view
you as professional?
So these six tips cover all ofthat.
But you know, tim, this was aconversation that we spoke about
back in VRMA in around 2019.
So this was one of the firstprojects we had for the advocacy
fund During that time.
(02:10):
I think what precipitated thatconversation was the growth of
social media and Instagram andthese influencers who came in
who said oh, let me show you howto make millions of dollars by
having a short-term rental, andit's so easy and you don't even
have to live nearby.
And there was a massiveincrease of short-term rentals
(02:34):
in areas and in neighborhoods,and so this conversation of what
is a professional really cameto the forefront.
And so at the VRMA, through theAdvocacy Fund, we commissioned
a study with a crisis specialistand strategic communication
specialist to really identifywhat a professional is, more so
(02:55):
of how an individual within theindustry could claim a
professionalism.
And what they came back withwas you had to be a taxpaying
business.
You had to pay consistentlyyour taxes sales tax, tourism
tax, whatever was required ofyou, and that licensing aspect
you had to be local.
That's something we'll touch ona little bit more of our key
(03:17):
takeaways.
And then you had to beconsistent in high standards,
and so we'll talk through alittle bit more of that, but
that really became the narrative.
(03:58):
And so we'll talk through alittle bit more of that, but
that really became the narrative, and today we're going to go
through the six that are morespecific is something you can't
say about yourself.
I am very professional, look atme.
No, it's how you comportyourself, and so that's what
many of those people who willsay that, but that's not what
you necessarily want to exude.
So great point.
Let's go ahead and get in withwhat I think is the absolute
most important sign ofprofessionalism, and that is
(04:19):
community responsibility.
So one of the things andobviously in my background of
advocacy and havingconversations with local
officials, you always want toidentify the things that you are
doing in communityresponsibility, and so what that
looks like is how are youproviding solutions and ensuring
(04:40):
lower impacts of nuisance,concerns and issues so noise,
trash, parking Are youcommunicating that with your
guests?
Are you monitoring those items?
Are you creating accountabilityso that if any of your guests
have impacts of noise, trash orparking, are you handling that?
That goes a long way and it isdefinitely noticed within the
(05:04):
community and helps you be abetter steward.
The other part is supportingsustainable tourism.
So are you packing your houses?
Are you creating massive wedon't like the term discount,
but lower pricing within thearea.
That changes what the dynamicand average daily rate is and
maybe lowering some of thosestandards just to fill in as
(05:28):
much as you can.
That creates a lot more issuefor the community as well.
Tim Cafferty (05:33):
And I would also say you have taught me the
engagement with local officials,making sure you know somebody
in the city hall that you cancall on, or even more than
locally in the city, hall thatyou can call on or even more
than locally, maybe on yourstate level or even nationally.
When there's an issue, do youspeak up and make sure those
regulations compliance,partnership things are developed
(05:56):
in any way that you can.
Tiffany Edwards (05:58):
Yeah, and again , you know, going back to your
point of saying I'm professional, it's more so about
demonstrating how you are a goodcommunity steward and how
you're willing to make somecompromises.
I've seen time and time againmore so in the last year of
community saying I'm not willingto budge on X, y, z, showing
your professionalism by showingsome compromises.
(06:19):
Because you want to keep thatcharacter of community and you
want to protect the communityand protect the tourism in your
area.
You've got to come with somecompromises and I think that
really elevates what yourprofessionalism is in the
community.
Tim Cafferty (06:33):
Another thing not on our list that comes to mind
for me on communityresponsibility is we have yet to
, on this podcast, get into oneof my pet subjects and that's
budgeting.
But on your budget do you havea line item for charitable
contributions to local communityactivities?
I do and frankly, I get callsevery week to sponsor and help
(06:56):
with something.
But that helps as well.
Being there, investing yourtime, investing your employees'
time in these local communityfunctions helps a great deal on
your awareness, quite frankly,in the community.
Tiffany Edwards (07:10):
That's so important.
I actually just had aconversation with Ben about this
yesterday because I've startednoticing in one of our companies
that we're doing a lot of thatcommunity engagement, but it
happens to be in an area that isreally heavily regulated, so we
look at it as a cost ofbusiness line item, of business
to business interaction.
We're not necessarily going tobe doing business development
(07:32):
there, we're not bringing inguests from it, but we are
helping support the chamber,we're helping support other
local businesses and we'rereally showing that we're a good
steward there.
That's such a smart, important,key takeaway, to add.
Tim.
Tim Cafferty (07:46):
Absolutely so.
Community responsibility is ournumber one takeaway on
professionalism.
Number two you have asoperational standards I might
restate that and say efficientoperations and management of
your company.
What thoughts do you have there, tiff?
Tiffany Edwards (08:02):
I think it's really understanding and
utilizing systems forconsistency.
So, checklists I know inseveral of the podcasts before
we talked about processes butunderstanding those processes
and those efficiencies Are youdoing inspections for your
properties?
Are you hiring and managingqualified vendors and service
providers?
And if they are not qualified,then are you getting rid of them
(08:25):
quickly and not allowing toomany graces, because that is a
very high standard that you needto set for your level of
professionalism?
And then maintaining adequatesafety standards, emergency
preparedness I know we've talkedabout that before, but those
are all processes you need tounderstand and have in place,
because there will always besomething that comes up and you
(08:47):
need to fall back to what yourprocess is for those operational
and you may want to touch alittle bit more on the
importance of that efficiency-Absolutely.
Tim Cafferty (08:55):
I think it goes even deeper.
Do you have dynamic pricingstrategies?
Let's face it, we're in amarket right now that we have
not seen in some time, if ever,and you need to have those
market analytics and thosedata-driven insights to optimize
pricing for your properties, tomaximize that revenue and the
occupancy, and adjusting thoserates properly, not just setting
(09:17):
it and forget it.
It's a hundred dollars a night,every day, no.
And then the marketing anddistribution.
Do you have professionallyphotographed properties?
Do you have that listingoptimization on those top
platforms like Verbo or Airbnbor Bookingcom?
And those compellingdescriptions?
Sarah and I, on a previouspodcast, would make fun of some
(09:40):
of the descriptions we would see.
Have you looked at that andmake sure it is professional and
representing you properly?
And then, one of my favorites Ican't remember the last time I
had a double booking, but makingsure your software is foolproof
on any sort of a situationwhere you would be embarrassed
to have two people showing upthe same day for the same
(10:01):
property.
That's really important.
And we can get into it furtherwith maintenance and
housekeeping protocols and justleveraging that technology, as
you were saying before, to makesure that you have a centralized
reservation system.
You have automatedcommunications, you have owner
portals for your businesspartners and, of course, the
financial reporting to enhancethe efficiency and the
(10:22):
credibility of your company.
Tiffany Edwards (10:23):
Yeah, that financial component is really,
really important to make surethat you have the right people
in place for that and then alsothat your software is providing
the accurate accounting.
That probably shouldn't have tosay that, but need to say that.
Tim Cafferty (10:39):
No judgment here.
No judgment, just suggestingthat maybe you won't.
Tiffany Edwards (10:43):
Yeah, and you know, Tim, going back to when we
look at revenue management, Iremember a time where it was set
it.
Forget it.
I mean, I grew up in theindustry where we sent out
printed booklets that had ourrates on there and those were
our brochures, and you calledand that was your rate and we
didn't change it.
And my how we have changed withour revenue management system
(11:06):
and really making sure that youhave someone manage that whole
process is so important.
Tim Cafferty (11:12):
Yeah, and maybe not just one person.
Maybe it's a team meeting on aregular basis to call attention
to particular properties thatare underperforming.
Do you know which propertiesare underperforming and why are
they doing that, and are youcommunicating to your property
owners on that, which we'll getinto in a moment?
So the number two item on ourlist of six would be efficient
(11:33):
operations and managementstandards.
Tiffany Edwards (11:36):
We have one of those calls weekly for every
single one of our businesses tolook to see where we're doing
reporting and tracking and thenalso to see what our marketing
is doing.
And have we received anythingas a response to that?
And, more specifically, whatunits are down and which ones
are up and why?
Okay, number three, reallyimportant legal and ethical
(11:57):
compliance.
We've seen a rise of permitting, registration, licensing fees,
different operations,requirements that a county or
city or state has put in place.
Who's monitoring that andmaking sure that all of your
properties registered and arecompliant?
(12:19):
There's obviously a majorconsideration of losing some of
those permits which we didn'thave before.
So there's a lot more on theline and really that needs to be
a focus to make sure that youare licensed in whatever
requirement you have, from astate to a local level, for all
of your properties.
Tim Cafferty (12:40):
Yeah, In Virginia Beach I've shared this with you
guys before that they have anordinance there called the
short-term rental ordinancewhich, quite frankly, if it were
left to my property owners tocomply with that, it would be
chaos.
We had to step in, we had totake charge.
So that short-term rentalordinance, amongst other things,
(13:00):
requires things like a parkingplan for every property, an
annual deck inspection by acertified engineer annually, of
course, payment of a fee to thecity and these stupid signs we
have to put on the property thatsays this is a short-term
(13:22):
rental property.
It is the ugliest thing to have.
It's black lettering on a whiteside.
We're working with them ontrying to make it a little
prettier, but there's a phonenumber.
If you see a violation, pleasecall this number and then we
have to be able to respond andbe on site within 30 minutes.
And then we have to be able torespond and be on site within 30
minutes.
(13:42):
That took three years ofmachinations back and forth
between the professionalproperty managers and the city
before we arrived at that.
And quick sidelight there, thatphone number.
Last year 93% of the calls wereis this house available for
August the 1st?
Tiffany Edwards (13:59):
I actually love when I go into negotiations, I
push with local officials.
I push for a local phone numberon a sign.
I think it is a great tactic.
The real estate industry hasalready made sure that the
consumer knows to call for anumber if it's available for a
listing, so why not do the samething for vacation rental?
And we've actually been able totalk through with local
(14:22):
officials.
That number is called for aproblem, we can address it way
quicker than if it was a 24-hourhotline because we know who's
in there and most of us arelocal to be able to go in there
and take care of that issue.
You know that printing process.
You really have to read throughall the ordinances to
understand exactly.
When you talk about signs, wehad in Walton County where it
(14:45):
wasn't expressly written out buthad to have exit signs up above
the doors, similar to hotels.
Then they went back and saidwell, no, no, no, that's not
necessarily what you had to do,so the cost associated to go
back and forth.
We're in the middle of ourpermitting in Hawaii and you had
to do so the cost associated togo back and forth.
We're in the middle of ourpermitting in Hawaii and you
have to take pictures of all ofthe property to send in.
(15:06):
I mean, so you have to stay ontop.
But I do think you're right onthat.
It can't just be assigned tosome property manager.
It is extremely intense andthere is a lot that you have to
fill out and you still have tohave some owner engagement for a
lot of it too.
I do.
Tim Cafferty (15:21):
Actually, the ordinance says it is the
property owner's responsibilityto do all of this, but we know
how that's going to go.
It's a great opportunity foryou to step up and say I'm the
professional, I will handle thisfor you.
The other thing I would mention.
You certainly know a lot aboutFlorida and we hear a lot about
(15:43):
maybe, financial managementunder legal issues like money
disappearing from the operatingaccount, depending on your state
, this also could be a legalcompliance issue of how you
handle rental income, theexpenses and providing those
accurate financial reports tothe owners on a regular basis.
Tiffany Edwards (16:02):
And I think we've touched on this before,
but it's really important toknow that that money is not your
money.
That is the owner's money.
So while it looks shiny andavailable in a downtime, it's
not your money, and we've knownpeople who have gone to jail for
that.
So if you're located in a statethat there's not a barrier to
(16:22):
entry or doesn't have to requiresome type of escrow or under a
real estate brokerage, really beaware of that.
That's very serious and, Ithink, very basic
professionalism practices.
Tim Cafferty (16:36):
Okay, we're doing well on our time.
We're halfway through our listof six as we move on to item
number four, on our six itemsfor you to look at to make sure
you're as professional as youpossibly can be, and we would
pivot to say, guest experienceexcellence.
How you handle that really saysa lot about the industry views
(16:58):
of professionalism and the guestexperience.
What do you think about that?
Tiffany Edwards (17:03):
Yeah, I think that's so important.
That goes back to how a guestreally views you as a
professional, and we know thatin terms of a guest life cycle,
it's so important from everyaspect to deliver and there are
so many softwares and access toinformation or to processes that
(17:26):
can help and automate some ofthose.
We use Breezeway a lot to helpwith clear lines of
communication once a guest ischecked in and in the home.
But you also need to providevery clear communication on the
front end at booking time Reallyunderstand what the home looks
like.
Really understand if thepictures that they're seeing is
(17:48):
exactly what they're going toget when they arrive.
When they get in and check in,what is the process going to
look like so they're aware ofthe check-in time?
These are all proactivecommunications that you need to
set up for your guestexpectation and then, once they
check in, how are youcommunicating with them so that
(18:08):
it's not a bother but it is apersonalized relationship,
building up that timelycommunication and trust from
property manager to a guest.
Tim Cafferty (18:20):
So that prompt, clear and consistent
communication with the guests,from inquiry to post-stay
follow-up.
So that includes a check-in andcheck-out instructions, the
house rules.
And then, for God's sakes, whenyou get a response about an
issue, make sure you are readilyavailable to address those
issues and not just say we'reglad you had a nice day.
(18:43):
Go along.
The second one under theexceptional guest experience we
can't ignore this.
It is an issue in our industryand that is immaculate
properties is how I would phrasethat.
Raise that Ensuring everyproperty is spotlessly clean,
(19:04):
well-maintained and fullystocked with those essential
amenities like lindens,toiletries, kitchenware, the
toaster works, the refrigeratorworks and, of course, the
regular deep cleaning andmaintenance checks are critical
in this process.
Tiffany Edwards (19:15):
Tim, I think that's really important too,
that even if you have inventorythat's a little dated or you
have owners that are not willingto upgrade, those properties
need to be highlighted andstarred because they have to be
some of your cleanest ofcleanest, because if they don't
look like the picture or if aguest comes in and they weren't
exactly what they were expecting, just from that dated
(19:36):
perspective, you really need tomake sure you wow them with how
clean it is.
Quick story COVID provided us alot of opportunity here.
So in my mom's business shemoved almost all of her linens
to white linens so when theywalk in it is as clean and crisp
.
But it also created a betterefficiency and processes for her
(19:57):
laundry, so she didn't have allkinds of different linens
tracking them down.
So overall that really helped.
But I think that that'sextremely important.
There's nothing worse, and allof us probably listening have
maybe gone into a property thatwasn't the cleanest, but it's a
terrible way to set off.
And that is number one a way toshow your professionalism right
(20:19):
out of the gate.
Tim Cafferty (20:26):
We went to what we are calling blue standard
bedding a couple of years ago.
What a difference that's made.
Every bed looks the same.
It's got the little skirt atthe end, we have lumbar pillows,
we have the white duvet.
It is remarkable how peoplelook at that and positively
respond.
It's as though they're walkinginto a hotel room, which is,
quite frankly what they're usedto, instead of the Laura Ashley
printed comforter from whereverand every room is different, and
(20:50):
I just think that's somethingwe can all take responsibility
for and improve our positionvery quickly.
Tiffany Edwards (20:57):
Yeah, and Tim, one more thing I was thinking
about for that too.
So in terms of any maintenancebecause maintenance, I think,
goes a little hand in hand interms of that guest expectation,
making sure that your staff iswell aware that they need to
have proactive communication.
So, however you may notify inthe system so that anyone on
your team can call a guest tosay, hey, the refrigerator door
(21:20):
handle is a little loose, butwe're going to have someone be
there in 24 hours to help fixthat.
Guests are fine if youproactively communicate, but if
they find it on their own, thatimmediately dings you from that
sense of professionalism.
Tim Cafferty (21:37):
Yes, I would also state as well the condition that
that person shows up when theydo a maintenance check.
Do you have a standardappearance for your people?
Do you have a company issuedshirt?
Do you have name tags?
Do you have business cards?
Do you have logoed vehicles?
Or does the guy show up in apair of cutoff shorts and a
t-shirt holding a cup of coffee,going, hey, I'm here to fix
(21:59):
your dishwasher.
They're the face of yourcompany.
You can get into that morelater, but that's the impression
that's left with your guests.
Tiffany Edwards (22:11):
That's a really important note, especially when
you're hiring some of thesemaintenance technicians, because
they'll spend more time withyour guests than sometimes you
will, and so knowing what thatpersonality is like and can they
just go in somewhere and be agreat representative of
hospitality.
We've also started doing cards,too, maintenance technician
(22:32):
cards, where it'll say sorry, Imissed you, I was here between
this time on this date and hasour phone number.
So even though we've told themthat we're coming in, they've
seen as well that the card isthere and something has been
fixed.
Here's.
You know my name and number ifyou need anything.
Tim Cafferty (22:50):
And we shouldn't leave this category without
touching on something youmentioned earlier but is
critically important to theguest, and that is the safety of
your properties.
We talk about maintenancechecks and making sure the house
is well maintained.
Is that railing loose?
Are those stairs properlyinstalled?
Do your smoke detectors work?
(23:10):
When's the last time youchecked the smoke detectors?
It's important folks Don'toverlook that.
Tiffany Edwards (23:17):
Yeah, one of the other things too that I
think a lot of times we forgetis do all of your doors locked?
Sliding glass door?
Does it close all the way?
Some of those things are thosein your inspection reports and
notes so that people can check.
There's a lot associated withsafety, so if you are not
well-versed in it, there aregreat programs Breezeway has one
(23:37):
but definitely be aware of whatthose safety checks are.
Tim Cafferty (23:42):
That's number four , the guest experience.
Part of it.
As we move to our fifth, maybethe most important one, they're
all important, but how aboutowner and stakeholder
accountability, the relationshipyou develop and maintain with
your property owners?
How about that, tiff?
Tiffany Edwards (24:00):
Yeah, I think that's so important and, in fact
, this might be the most.
Now that I'm thinking about,this might be one of the number
one, even though I keep going toeach one I say, oh, that one's
so good, but I think you'vetouched on this on almost every
category.
And the transparent reportingmaking sure that you're paying
owners timely, making sure thatthey know what is on their owner
(24:22):
.
Monthly reports are accurate.
You have someone lookingthrough those, making sure that
that property is cared for.
Anytime an owner comes in, youneed to make sure that any
individual from your team or aspecific individual has gone and
walked that property to thatowner's specificity.
The other thing is if the ownerhas specific things that they
(24:45):
want and how they want it.
Do you have that noted?
Can you take care of that eachtime and really having continued
ongoing information provided tothe owner, so educating them
what does the market look like?
You are the best in the area tolet them know what's going on
and you're constantly lettingthem know about ongoing
education and practices andtrends for the industry.
Tim Cafferty (25:08):
I've got my notes on this owner relations and I
would also call it transparencyI can hear your husband Ben's
sessions in the back of my head.
Clear agreements having awell-defined written agreement
outlining all theresponsibilities, fees and
expectations for both parties.
Regular communication,reporting, as you mentioned.
(25:28):
Making sure you provide thoseowners with regular updates on
their property's performance,the occupancy rate, the income,
where they may miss missingopportunities.
But I think one of the mostimportant thing is being honest
and upfront about all aspects ofthe management, including the
financial dealings, propertycondition, any changes that they
may need to make.
I had a rental manager years ago, patrick Parker, god rest his
(25:49):
soul.
He passed away last year.
We would have a new ownerrecruiter for lack of a better
word who would bring theproperties on board and the
owner would be in the office andhe'd barge in and he'd go.
Let me tell you how it reallyworks.
Forget all this fluffy stuffabout the sales aspect.
I'm the one you're going todeal with on a daily basis, sort
(26:09):
of like the sales agent at thecar dealership.
You never hear from that guywhen you need maintenance, right
, and so that rental manager orwhatever you call that owner
relations person having thatopportunity to get in front of
your owner and say this is howwe conduct business, and then,
of course, making sure youunderstand what the aspirations
are of that property owner.
(26:29):
What are their specific needsand goals for their properties.
You've mentioned that inprevious episodes.
It's really important if youcan tailor your management to
respond to the needs of yourproperty owner, that goes a long
way to that owner relation.
Tiffany Edwards (26:42):
And you know, adding into that too, tim, from
the beginning of therelationship, letting them know,
too, if they've come on withyou on your program, letting
them know that it may take sometime to build up some
reservations, and what you'redoing marketing-wise, but really
giving them a full landscape ofwhat their own life cycle is.
(27:04):
And you know, when we have ourgoing back to our weekly
meetings for the marketing, wehave those meetings and we see
that some of our homes are downcompared to last year.
How are we transparent andcommunicating with those owners
and then providing them asolution?
So a lot of times, it's reallymaking sure that your staff,
that you know how to communicate, so that it's solution-based.
(27:28):
Yes, here's a problem, but I'mshowing you all these solutions
and this is how we're going towork together.
And I would say don't strayaway from a conversation, and
economic times are different.
We're expecting some of thesethings.
This is why we're reinvestingin marketing.
This is why we're reinvestingin showcasing your property.
We're creating efficiencies inmaintenance and property care.
(27:50):
Having those conversations areextremely important.
Tim Cafferty (27:54):
Yeah, I think you would agree with me on two
things here.
Number one there is a lifecycle to a property owner and
I've told the story before I'lltell it again.
I remember I was on site whenthis couple had purchased the
house and their children were inthe car and they arrived at the
house for the first time.
The kids were so excited oh myGod, there's a basketball goal.
(28:16):
Oh there's a pool, oh my gosh,this is so cool.
And we went along in ourrelationship.
I managed that house for manyyears.
I've been around a bit if youcan't tell by the faded and
missing hair but I remember thelast visit I had with that
property owner and for theprevious three years the kids
had not come down because theyhad been in high school and they
(28:37):
were all lacrosse and footballand cheerleading and whatever
else and it wasn't on theirpriority list anymore.
And he was coming by himselfbecause his wife no longer
enjoyed the ride.
And he turned to me and saidGod, tim, I hate this house.
That is like the epitome of alife cycle excitement on the
front and at the end it's just aburden.
And that's the point where I'vesaid you know, we have a real
(28:59):
estate sales division.
We'd be happy to help you endthis relationship, but it is
important to understand thoseowner goals and making sure you
can respond to themappropriately throughout the
relationship.
The second thing on ownerrelations is when did the
property owner purchase theproperty?
I think it's really criticalright now, as we're in a bit of
(29:21):
a downturn in the industry.
The owners that I haveencountered who have purchased
in the last year eyes wide open,they understand it.
Maybe the ones that purchasedduring the pandemic, at the
height of pricing, at the heightof income, maybe they don't
understand that.
So, education opportunity Arewe ready for number six?
I think we are Okay.
(29:42):
The final and improvement, Iwould say you could also add
industry knowledge andadaptability, for lack of a
better word Making sure you,whoever you are, are indeed the
expert.
What do you got there?
Tiffany Edwards (30:03):
I love this one and I think it expands so much
bigger than just the vacationrental industry and I think that
for so long, so many of ourcolleagues have gotten
sidetracked to just see what areour competitors doing in terms
of trends.
What is the vacation rentalindustry doing?
We are far surpassed that.
So there's a lot of things.
(30:24):
I feel like you need to befocused on One what does credit
card debt look like?
What does the economic downturnor economy look like in general
?
What does the overall tourism?
Are people spending money oncruises, on flights?
How is tourism adapting?
How are they marketing?
There's so much more that youneed to be thinking of and I
(30:45):
know we'll tap into more of thevacation rental industry
specific, but I would imploreyou to go and really think about
the industry of tourism as awhole and how that trickles down
and affects the vacation rentalindustry.
Tim Cafferty (31:00):
You have to have a deep understanding of the local
vacation rental market.
What are the competitors doing?
We don't want to talk aboutcompetitors, but we talk about
competitors, right?
What are the guest preferences?
What are those new thingsthey're looking for out there
and what are you responding to?
What are the trends and are youengaged?
Are you a member of your localassociation of realtors?
(31:23):
Is there an opportunity for youto be involved in the CVB in
some way?
How about the Chamber ofCommerce?
All of those things make adifference in your industry
knowledge and your ability torespond appropriately to your
property owners and theirmanagement professionalism.
Tiffany Edwards (31:38):
Yeah, that's really interesting.
I wanted to go even moregranular on some of those
industry trends for your area aswell.
We've seen a lot of likecancellation policies changing,
so our booking window changing.
Are you using software?
I mean we use key data all thetime for all of our locations.
We are in it prettyconsistently to see how we
compare to our local market.
(32:00):
That helps in ownercommunication, it helps our team
make decisions.
But how are you utilizing someof those trends for your local
market?
I also have signed up for mostof our coopetition newsletters
and discounts.
So if I know if they're sendingout savings I know because I
get that email it's veryinteresting, but it helps us
(32:23):
understand a little bit more ofwhat's going on specifically in
our area.
And then I would also say toinvesting in staff training more
, so really understanding whatyou need for staff training.
So I know that a lot of timeswe'll allow many of our team
members to go somewhere becauseit's incentive or we want to,
you know, provide them almostlike a trip, but they're not
(32:45):
necessarily getting as much back.
So really, what does your staffneed?
Do they need to go to asoftware conference?
Do they need to be involved insome type of webinar on an
industry trend, but reallyunderstanding education-wise
member.
It's part of doing business andthose opportunities that VRMA
(33:19):
provides, whether throughwebinars, seminars or
conferences.
Tim Cafferty (33:24):
you need to be there If for nothing else.
You certainly look at theagenda and see what topics are
going to be covered, but all ofthe supplier members there you
find out what the latesttechnology is and then probably
the biggest benefit that I knowyou and I have, joyd, is getting
together with like-mindedpeople to understand really
what's happening and what'sgoing really well for this
(33:45):
company and that company thatyou ought to be able to adapt
elsewhere.
So, yeah, those affiliationsand that reinvestment in the
training of your staff critical,critical importance.
Tiffany Edwards (33:55):
You know, this is very different than I think.
A lot of other industries wherethe networking component is so
beneficial to your business andto a growth for each team member
have the ability to callsomeone in a different market to
say, I'm dealing with XYZ, howhave you dealt with it?
And being able to take thatback to your team to create
(34:18):
those efficiencies Again.
It's also an opportunity foryou to make sure that you share
with your owners.
We just got back from thisconference.
We've learned this.
We're going to be implementingthese things.
We're continuing education.
That's again showing yourprofessionalism without having
to say that you're aprofessional.
Tim Cafferty (34:37):
Absolutely, and we're in the season where VRMA
is accepting proposals foreducation sessions.
Maybe you're an expert onsomething and you can present to
VRMA conference.
What a great promotion that isfor your owners.
Not only did I go to theconference, I presented on a
(34:58):
topic as a national expert, sodon't miss those opportunities.
Tiffany Edwards (35:01):
Yeah, those are great, so I hope that I really
don't think we left anythingelse on the table.
We'll just state that we'reking and queen of
professionalism here, and theseare the factors.
We king and queen ofprofessionalism here, and these
are the factors.
Tim Cafferty (35:12):
Some of these are aspirational, but we covered six
.
To briefly recap number onecommunity responsibility
Important.
Get out there, be a force.
Number two would be operationalstandards efficiency in that
management of the asset for yourproperty owners.
The third one we covered waslegal and financial compliance
(35:35):
Really important.
The fourth one was exceptionalguest experiences you better be
delivering them or you're notgoing to be around very long.
Owner relations andtransparency is number five.
And finally, industry knowledgeand adaptability.
Those are the six we got foryou.
I think these key aspectsvacation rental company owner
managers can build a strongreputation, foster that trust
(35:58):
with both guests and owners andachieve long-term success in the
competitive vacation rentalmarket that we have all embraced
as our career.
So I hope this helped.
Tiffany Edwards (36:09):
Yeah, and if you have any other suggestions
for some reason we had missedsome don't hesitate to reach out
to us and maybe we can bring upsome other great keys of
professionalism out.
Tim Cafferty (36:20):
All right, so that's it for this edition of
the Vacation Rental Key with TNT.
We hope you enjoyed what we putdown and you picked up some
spots of improvement that maybeyou can focus on Until next time
.
We got something really goodbrewing for you.
We won't mention it right now,but come back and we'll give it
to you.
We always do.
Tiffany Edwards (36:40):
Can't wait Tim so long everybody.
Tim Cafferty (36:43):
Bye, we'll see you next time.
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