Each owner has reasons why they own their property, it is an asset. Like any asset they have expectations that you need to understand, and while there are lots of expectations, the most important is how much they want to make with the property. That number is something that you need to know, document, and remind the owner of, every chance you can. Consider your own assets and who you have managing them. For those of you with a portfolio manager, that manager defended past losses based off the market, and that he beat the market average. It is the same for your relationship with your owner.
Vacation rental properties are generally purchased to provide a second income, pay for the mortgage while the client is away, or just provide a vacation destination. Regardless of the intention, each owner has a break even point in mind, and that is your golden number. Do you know each owners golden number? By realizing this number, you now have a scale to judge your success on. There are a number of benefits to this approach.
Proper Expectations-You know when you have hit a homerun or are close to striking out. The number is in your face and you can start to analyze what is going on and share in a proactive way.
Motivate Owners-It is a tool to motivate. You can motivate your owner into new programs as part of that expectations. Using either completion or failure of a goal can give you leverage to implement change
Track Data -Over time these options can be made into statistics, if you convert to pet friendly expect to make 35% more money, but your costs will increase by 25%, which means you have a gain of 10%, is it worth it.
With a golden number, you are doing more than just managing their property; you are actively managing their asset and adding a value that cannot be easily replicated by the owner on their own. In addition, I firmly believe that most owners want to be an active partner regarding their property. It is an extension of them and the best way to motivate an owner into a new program is giving them a real expectation, rather than a generic push.
