How do Property Management Firms Use Channel Managers?
The property market seems to always be booming. Yes, there are times when property prices crash and rental rates need to drop, but on the whole, it seems that property prices that do fall always seem to recover at some point. For most people that already purchased a property and the price then drops, it’s usually not a big concern because the investment is a long term one.
This is where Spain and its property management companies come into the picture. In areas where tourists and business travellers frequent, property management firms have been able to attract these travellers to properties that have lost value and help the owners still make a return on their investment. It sounds extraordinary, but we are going to explain exactly how they have been managing to make a profit by using a simple strategy that requires the use of a Lodgify channel manager Airbnb have approved.
We are going, to begin with Spain’s decline in property values, then talk about how property management companies have adapted to this decline, and finally cover the channel manager and how it is connected to vacation and business travel.
Spain’s Decline in Property Prices
Spain was recently hit with a decline in property values, but as of late properties in tourist areas that were hit have been selling for twice the price they were 5 years ago. You have to wonder just how much of an influence vacation rental websites have had on the recent recovery in Spain. There seems to be a boom in construction and a large number of property management firms surprising still in business.
The Survival of Property Management Firms
How have these firms managed to stay afloat amidst Spain’s decline in property values? Many property management firms have been left to manage people’s homes that were hit by the decline in property values in the country. For those people, it made no sense in selling, so they hired property management firms to look after their property while they waited for the property market to recover.
An Ultimatum That Has Made Property Management Companies Wealthy
Many of the property management companies were given a bargaining chip at this point. It went something along the lines of this.
“If you want to make some of your money back, then you should consider allowing us to rent out your property on short term leases to vacationers”
Property management companies have been able to survive using people’s apartments and holiday homes as part of their vacation packages. During the off-peak tourist season, the rental rates for a 2-week holiday rental can earn the same amount as yearly contract agreement, and the rate for a 1-week holiday rental during peak season can also cover the same amount as a yearly contract.
With decent exposure, a property management company can potentially double or triple the amount they would get had the rented a property on a yearly lease in which the tenant pays monthly.
How Do Property Management Find Vacationers?
The scenario we are covering here is property management companies in tourist areas. However, other property management firms work the same miracles in cities and towns in Spain by targeting business travellers. The question is how do the property management companies manage to gain exposure in order to increase their occupancy rates?
It is simple. They are listing their client’s properties on numerous vacation rental websites. The same property can usually be found on all the vacation rental websites that allow free listings.
This makes sense because imagine if Airbnb has 50,000 people looking for a property in Marbella and HomeAway has 35,000 people also looking for a vacation rental in the same area. With the same property listed on both websites, it has the potential to be seen by 85,000 people. This as opposed to only listing the property on HomeAway where the exposure is just 35,000.
Now add the same property to all the other holiday home rental websites and combined the exposure could be over 1 million with enough listings on enough sites.
The Introduction of the Channel Manager
Now you may be asking yourself this. If the property is listed on multiple websites, what happens if it gets booked on one website, won’t it still be marked as available on the other website’s calendars?
Well, the channel manager prevents this from happening. A company called Lodgify have created a channel manager on their website, which was originally tested with Airbnb. Airbnb was quick to approve the use of channel managers with their calendars as the website already calendar sync capabilities built in because the company knew people would want to list their properties on multiple websites.
How Does the Channel Manager Work?
The channel manager software tool can be plugged into Weebly, Squarespace, WordPress, and many other websites. Lodgify also has its own website builder, which is amazingly easy to use.
This channel manager has a central calendar that will communicate with the calendars on all the holiday home websites the property management company has signed up to. Therefore, when a booking comes in on one of the websites, it will synchronize with every another calendar in its network. This then prevents double bookings by marking the property as unavailable for the dates that were booked.
It is a simple and ingenious way for property management companies to manage multiple listings across multiple websites on their own website platform. The property management companies have been implementing this Lodgify channel manager on their own websites and out of the blue, they have been getting bookings all year round.
Thanks to the channel manager and the Spanish property management firms’ ability to adapt to changing external influences that affect the way they operate, they have turned what was seemingly a bad situation into an advantageous one. Property owners have been making money, the property management companies have been making money, and everyone has managed to weather the storm up to the point where property values in Spain are now back on the rise.