In the ever changing world of short-term rentals, property management systems (PMS) have become indispensable tools for hosts and property managers. These systems streamline operations, enhance guest experiences, and maximize revenue. In this blog, we’ll explore why you should use a PMS, how to choose the right one for your business, and which systems are currently the best in the market.
Navigating the selection of the right Property Management System (PMS) for your business can initially feel overwhelming. With thousands of options available, the more you explore, the more complex the decision can become.
Frequently, I observe discussions in Facebook groups and Reddit where hosts and property managers seek recommendations for the best PMS, often receiving varied responses based on personal preferences.
My advice is that the best PMS for you depends on your specific business requirements, existing and desired business processes, and the level of automation you seek.
Consider also the customer journey and how easily a customer can book on your direct booking website using the PMS.
Please note that this article contains some referral links
This article contains the following content regarding Property Management Systems:
what is a property management system?
A property management system (PMS) is software designed to centralize and streamline the management of your bookings. It stores all relevant information about your properties or rooms, including descriptions and images.
A PMS allows you to set pricing, define minimum night stays, manage availability, and control check-in/check-out schedules. It also enables you to handle the number of rooms or units available.
Additionally, a PMS facilitates direct bookings through a booking widget, which can be added to your website via HTML code, allowing customers to book instantly.
Using iCal to sync calendars across multiple OTAs can lead to double bookings, as iCal updates occur at scheduled intervals, sometimes only every 4 or 5 hours, leaving room for booking conflicts.
If your PMS includes a channel manager, it provides XML/API integration with online travel agents (OTAs). This means that pricing, availability, and other details set in the PMS are automatically updated on the OTAs. Any changes made in the PMS are instantly reflected on the OTA platforms. You can also apply a “markup” on the price sent to OTAs to cover any commission or fees they charge.
This centralization significantly reduces workload and minimizes the chance of errors, such as double bookings. It ensures that all data is managed from one place, making operations more efficient.
With a channel manager, any booking made on one connected channel instantly updates availability across all other connected channels in the PMS. The booking details are seamlessly integrated into your PMS, ensuring real-time accuracy and efficiency.
PMS also contain automation for customer communication, payment options and invoicing, and reporting
What do I need to consider when choosing a PMS?
When choosing a property management system, consider the following factors:
- Channel Management:
– Which OTAs (Online Travel Agents) do you currently use, and which do you plan to use in the future
– Do you want your PMS to connect to as many channels as possible through XML/API integration? This ensures instant updates to OTAs regarding availability, pricing, minimum night stays, etc.
– Additionally, some PMS can manage descriptions and images across many platforms.
- Scalability:
– How many listings do you currently have, and how many do you plan to have in the future?
- Automated Messaging
– Do you want the capability to send and schedule automated messages based on specific triggers?
- Automated Payments
– Are you looking to set up automated payment processing for bookings? If so, which payment gateways do you want to offer / can you offer in your region?
- Additional Integrations
– Do you want to use dynamic pricing, connect to a remote locking system, or integrate with a cleaning/housekeeping or accounting application?
- Owner Access
– If you are a property manager, do you need to provide owners access to their listings? Do you need to provide monthly reports to your owners?
- Customer experience
– What does the booking system look like on your direct booking website, and how easy is it for your customers to use?
- Security Procedures
– Do you need procedures to protect your listings, such as security deposits, background and ID checks, request signature of rental agreements, and damage insurance?
- Business Processes and Requirements
– Do you need a changeover day between each booking for your cleaning crew, do you need to block off specific check in days / check out days?
Why You Should Use a Property Management System?
- Efficiency and Automation:
- Time-Saving: A PMS automates repetitive tasks like booking management, payment processing, and guest communication, freeing up valuable time.
- Centralized Control: Manage all your listings across multiple platforms (Airbnb, Booking.com, VRBO, etc.) from a single dashboard.
- Enhanced Guest Experience:
- Seamless Communication: Automated messaging ensures guests receive timely information about check-in procedures, property rules, and local attractions.
- Personalization: Use guest data to personalize their experience, leading to better reviews and repeat bookings.
- Revenue Management:
- Dynamic Pricing: Adjust rates based on demand, seasonality, and competition to maximize occupancy and revenue.
- Financial Reporting: Track income and expenses, generate financial reports, and streamline tax preparation.
- Maintenance and Housekeeping Management:
- Task Scheduling: Assign and track maintenance and housekeeping tasks to ensure properties are always guest-ready.
- Legal and Compliance:
- Regulation Adherence: Stay compliant with local laws and regulations, including tax collection and remittance.
- Error Reduction:
- Double Booking Prevention: Integrate calendars to ensure real-time updates and prevent double bookings.
How to Choose the Right Property Management System for your business
When selecting a PMS for your short-term rental business, consider the following factors:
Features and Functionality:
- Channel Management: Ensure the PMS supports integration with all major booking platforms and can manage descriptions and images across all channels.
- Automation: Look for systems that offer automated messaging, dynamic pricing, task management, and automated payments.
- Reporting Tools: Comprehensive financial and performance reporting is crucial for tracking your business’s success.
Usability:
- User-Friendly Interface: The system should be easy to navigate for both you and your team.
- Customer friendly interface for your direct booking website
- Customer Support: Reliable customer support is essential for resolving issues quickly. Is support via email / chat / phone / can you speak to someone if you need them? What is their response time?
Scalability:
- Growth Potential: Choose a system that can grow with your business, accommodating additional properties and features as needed. Consider the number of listings you currently have and your future growth plans.
Integration Capabilities:
- Third-Party Integrations: Ensure the PMS can integrate with other tools you use, such as accounting software, smart home devices, cleaning/housekeeping applications, and customer relationship management (CRM) systems.
Cost:
- Budget: Consider your budget and evaluate whether the features offered justify the cost, and if you are planning to grow, what would be the future cost vs the competition?
- Free Trials and Demos: Utilize free trials or demos to test the system before committing.
- Additional Fees: Make sure you check the contract / small print for any additional fees. Eg some PMS charge a fixed price per booking, or a % fee per booking, or an additional 1% Stripe fee
Owner Access:
- Owner Portal: If you are a property manager, determine if the PMS allows you to provide owners access to their listings and generate monthly reports.
Customer Experience:
- Direct Booking System: Evaluate the booking system for your direct booking website, ensuring it is easy for customers to use.
- Guest communication: does it offer automated scheduled messaging? How flexible are the options? Is there a unified inbox so you can manage all communication from within the PMS?
Security Procedures:
- Protective Measures: Assess whether the PMS supports procedures to protect your listings, such as security deposits, background and ID checks, rental agreement signatures, and damage insurance.
On the Go:
- Mobile app for you / your cleaners: what does the PMS offer in way of mobile app, and what features are you able to access on the app. Note that mnay PMS have a fairly basic app
By carefully considering these factors, you can select a property management system that aligns with your business needs and goals, enhancing both operational efficiency and guest satisfaction.
The Top Property Management Systems for Short-Term Rentals
Overview: Hostaway is praised for its scalability and strong integrations with various third-party tools.
Best For: Growing property management businesses.
Pros: Automated messaging with unified inbox (sms and whats app available as well), detailed analytics, great support (includes 24/7 phone support), very user friendly interface, Guest portal to provide information to customer, and collect information from customer, a decent mobile app (but mainly used for messaging)
Cons: There are not many cons to Hostaway, so I am nitpicking here! However, ical functionality could be improved, and there is an inability to amend prices and min night stays for unavailable / blocked dates, security deposits cannot be re authorised.
Hostaway charge a 1% stripe fee, and they have just introduced a 1.8% booking fee on their booking engine
Cost: $$$$
Hostaway do not offer a free trial, but they offer you a demo and have an onboarding program. I can save you $250 with their onboarding program if you use this link to sign up.
I can also help setup owner statements, financial reports, new listings, website etc
Overview: OwnerRez stands out for its robust feature set tailored to the needs of individual hosts and professional property managers.
Best For: Smaller hosts and Property managers looking for detailed customization and flexibility.
Pros: Great functionality, very flexible, easy collation of email addresses through rental agreements, automated emails, comprehensive reporting, budget friendly
Cons: Support mainly via email and can be slow, some limitations in messaging and triggers, not as user friendly or as easy to setup as some of the other PMS, although this is improving! The Property Management features are fairly limited – good for basic reports, but you cannot really do custom reports for your owners.
Cost: $$ to $$$
I am a Certified Owner Rez Advisor for account setup
OwnerRez offer a 14 day free trial. Click below to access:
Overview: Hostfully provides an easy-to-use interface with strong automation features
Best For: Small to mid-sized property managers with fairly simple business needs and who don’t get on with tech very well!
Pros: Digital guidebooks, easy to use automated messaging (includes sms and whats app), and simplicity. Their support (chat, email and office hours) is very good and their staff are highly knowledgeable
Cons: Reporting could be more flexible, Booking.com integration is fiddly if you have parent/child listings. They charge a 1% stripe fee
Cost: $$$$
Hostfully do not offer a free trial, but they offer a demo and have an onboarding program. You will save $300 on their onboarding program when you use this link
- Hospitable (formerly Smartbnb)
Overview: Hospitable is designed to automate communication and improve guest experiences.
Best For: Hosts focused on guest communication and satisfaction, hosts using their first PMS. cohosts who do not take payments for the owners.
Pros: Automated messaging with AI, task automation, and multi-calendar synchronization. Continuously listening and improving their offer. User friendly interface, easy to setup and use, direct booking options to include guest screening and cover. Their direct premium offer includes remitting taxes in some states, and they take payments for you.
Cons: Vrbo connection can be glitchy as they use the chrome extension to sync rather than the official API – they are rolling out a new integration with vrbo from March 26. Functionality lacking vs other PMS, although this is improving fast!
Cost: $$ for Host – $$$ for Mogul
5. Zeevou
Overview: Zeevou provides a robust automation system and comprehensive property management features.
Best For: Larger property managers seeking extensive automation capabilities.
Pros: Direct booking website, automated workflows, guest verification process, investing in improving the system, free onboarding with allocated customer manager.
Cons: Not many any more! Many of the features and functionalities have been improved. No phone support, but they use their raise a hand system, plus use Discord so you can ask your questions live on the platform.
Cost: $$ to $$$
You can try out the basic version of Zeevou for free where you can create a direct booking website / use their calendar widget on your site which includes ical sync, and payment processing. You can upgrade to have automated guest messaging along with other options such as channel management. When you sign up for a paid option, you also get free onboarding with your personal customer manager.
To create a free account, or to see it in action click here!
6. Hostex
Overview: I have recently come across this PMS, and it is easy to setup, easy to use, and great value!
Best For: Starter pms with 1 or 2 properties, Some great tools like connection to smart locks, ability to take security deposit easily, tasks, AI messaging
Pros: Some great tools like connection to smart locks, ability to take security deposit easily, taks, AI messaging, easy to use, amazing price starting at $4 per listing per month
Cons: Some limitations in functionality and calendar restrictions, not true API connections (vrbo is a user session connection) but benefit of this is vrbo takes payment for you if you do not want to take payments.
Cost: $ Amazing Value!
Get a 14 day free trial, plus 20% off your first subscription here. Click here to sign up!
7. Lodgify
Overview: Lodgify is a popular choice for its website-building capabilities, allowing property managers to create their own booking websites.
Best For: Smaller operators and Property managers looking to drive direct bookings.
Pros: Custom multilingual website creation, booking engine, and payment processing, simple interface, fairly easy to use
Cons: Some limitations in functionality and calendar restrictions, support at the lower subscription levels is limited
Cost: $$ starter to $$$ Ultimate
Lodgify offer a free 14 day trial. Click here to sign up!
8. Guesty Pro
Overview: Known for its comprehensive features, Guesty offers robust automation tools, a powerful channel manager, and extensive reporting capabilities.
Best For: Large property managers with multiple listings across various platforms.
Pros: 24/7 guest communication services, payment processing, and integrated accounting tools.
Cons: Cost is prohibitive for smaller operators, time to onboard is reported to be very slow
Cost: $$$$$
Click here to sign up for a demo with Guesty and save $500 off your onboarding fee, or save $20 off the first listing on Guesty Lite
9. Smoobu
Overview: Smoobu offers a user-friendly interface with essential features for short-term rental management.
Best For: Small property managers and individual hosts particularly in Europe
Pros: Channel management, budget friendly, booking engine, and basic website creation, multilingual, multicurrency
Cons: Vrbo integration limited, no auto processing of balance payments, limited messaging capabilities
Cost $ to $$$$
Smoobu offers a 14 day free trial.
10. Uplisting
Overview: Uplisting focuses on reliability and ease of use, with strong automation
Best For: Property managers looking for a straightforward, reliable system.
Pros: User friendly interface, simplicity at the heart of it, unified inbox and automated guest communication
Cons: Lacks choice in integrations (eg Payment processing), Support and reliability have recently been reported to have deteriorated.
Cost: $$$ (They do offer a small business annual fee for up to 4 listings which is $$)
Uplisting offer a 14 day free trial. You can sign up here.
11. Beds24
Overview: Beds24 is known for its powerful booking engine and extensive customization options.
Best For: Property managers, B and B / hotel owners in Europe, needing cost effective, advanced booking and customization capabilities
Pros: Customizable booking engine, extensive channel management, very flexible with a lot of functionality, extensive automation tools, multi language, multi country and currency, rate mapping, budget friendly.
Cons: Difficult to setup, not a very user friendly or modern interface
Cost: $
Beds24 offer a 14 day free trial. You can sign up here
12. Bookalet
Overview: UK based, good starter PMS for those on a budget and that have simple requirements
Best for: smaller operators or small agencies
Pros: Affordability, basic so keeps it simple, good booking widget for website
Cons: Ical sync only unless you connect to TXGB for api integration with certain channels, limited automated messaging, limited pricing options, limited app integrations
Cost: $
Click here to get a 30 day free trial!
Investing in a property management system is a strategic move for any short-term rental business looking to streamline operations, enhance guest experiences, and maximize revenue. By carefully selecting a PMS that fits your specific needs and business model, you can stay ahead of the competition and ensure sustained growth and success.
You can set yourself up on the PMS of your choice, or if you are a bit nervous, and either have never used a PMS before, or you are anxious about the move from one live PMS system to another, I can do this for you and take all that stress away from you!
Even if the PMS of your choice offers an onboarding service, you still need to do the work of all the background setup and going live, and making sure all your integrations are working – their onbaording team will just guide you through it. As a detail focussed person, with years of experience in this, let me do that for you to ensure you have a seamless transition and all fully working like clockwork!
Get in contact, and book in a free call with me to discuss which PMS is best for your business!