Building rents is as easy as answering the phone
By William May
Published: 09/08/03
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Comments: 0
Would you like your revenue to go up 10 to 50% overnight? And do that with no increase in costs? No - this is not an ad for some get rich quick scheme. But let me tell you about an informal survey we just completed and how the results reveal exactly how you can bank rental increases like the one I'm promising.
THE SETUP:
Two weeks ago, as a test, I submitted inquiries to 60 vacation rental home owners and about 10 property management firms. Some of these I found on vacation rental "Listing" websites. Others I located their individual websites through Search Engines. To justify my intrusion these inquiries were to certain destination area that my family and I hope to visit next summer. I was not very familiar with the area and didn't bring any knowledge or prejudices to the area, neighborhoods or properties so this was a legitimate inquiry. I used an alias so as not to draw attention but gave accurate address, phone and email data. I gave them specific dates I needed next summer, asked them to mail me a brochure or other printed information and asked they send me the Owner's contact information. Oh, and by the way, none of the owners were VRA members.
The owners with individual websites were the easiest to select because I could see the property, terms and details of the exact unit I wanted to rent. Some of the sites were very well done and others were amateurish. Strangely, the property management firms' websites were, in general, not as polished as the individual homeowner sites and provided less specifics. For example, most didn't provide maps showing where the destination area was in the state or where their properties were. They usually included a few grainy photos, seldom a long detailed list of amenities, almost never a copy of their "Terms and Conditions", sometimes prices but only very generally in a range. In short, it would be impossible to make a buying decision based solely on the property manager websites.
The Owner websites were, as a group, better. I didn't find any that would win a VRA "Bob" award (Best of the Best - see (Vrai.org)Vrai.org for details) but I was enthused by those that had quality photos, shots that gave many perspectives of the home, provided specific rental information. Even if the design was boring, good information could still allow me to determine if the home met my criteria.
As should be expected, the Vacation Rental Listing Websites (I visited 10 of them randomly) were much more intuitive to use than the property manager sites. But some of those were even lacking. In displaying a list of homes in the indicated area I was disappointed in those sites that still do not provide a "front" shot of the house. Every real estate agent knows that "Curb Appeal" is just about the most important factor in drawing a prospective buyer into a home. No one buys a home without going inside it so getting them in is crucial. Without front shots it took extra time to open each listing that fit my criteria (2 Bedrooms) only to find that 3 out of 4 were clearly not of interest. I was also surprised to see that there are still home owners who submit their homes to Listing Sites but don't use all the features of those sites often failing to post enough photos or providing only 1 or 2 sentence descriptions when long and vivid descriptions are what buyers need to make informed decisions.
WEB DESIGN:
Today's newsletter is not going to focus on website design. We'll leave that for a future issue. But let me remind you that your website (or your listing on a Vacation Rental Website) should contain as much information as you can think to provide. Use high-resolution photos shot on sunny days in various seasons. Always post a floor plan. Describe everything in the house - everything. How big are the rooms, what is the view (don't exaggerate), is it really fully furnished? (How many place settings does it have?). And make sure it has multiple ways to contact you.
I like the "get info" forms many Vacation Rental Websites provide but am annoyed that they usually then "Hide" your other contact methods from the Guests. If you want your inquiries to go up ask your website to make your FULL NAME, address, phone, fax and email prominent on your page. If they won't do it then put that information in the description section. Some sites will ask you to stop doing it and you can't blame them. They want to force inquiries through the "inquiry form" so that they can prove the great response they are getting you. But let me use a proven sales and marketing adage to prove them wrong - anything that gets between you and your customer DECREASES your chance of getting the order.
THE RESPONSES:
Now that I've railed about some of the things that were frustrating in locating and evaluating the homes online let me tell you the startling results so far. In about two weeks. And as a reminder I asked for specific dates, a brochure by mail and provided them all my contact data. Here are the dismal results.
- I received auto-responder emails from most of the inquiries sent through Vacation Rental websites
- NONE of those responses gave me any new information not already on the website.
- Only a few provided more contact information and only ONE gave me all the contact information I requested.
- I received eight emails personalized in some ways. NONE were from property management firms.
- Of the responses four said they had my dates available.
- None offered any other details about their home or the destination area.
- ONLY one person telephoned and left a voice mail.
- NO ONE called twice.
- NO ONE mailed me the info I requested.
THE RESULTS:
Do you find these results appalling? I do. Often, I hear homeowners complain that they've listed on several Listing Sites but they don't get enough response or enough bookings. The (VROA.org)VROA.org website has a list of all known industry Suppliers including Listing websites. We ask owners to logon and write reviews of those sites so other owners will know how effective each one is. But in the long run, my recent survey of homes for rent implies that the problems are not with the websites. "We have seen the enemy and he is us." Owners and managers need to rethink how they respond to inquiries and how committed they are in maximizing occupancy.
In my other life I have spent years helping businesses with, among other things, their advertising and marketing. While these are bigger enterprises, I see some otherwise good sales people make the same mistakes repeatedly. If it makes the offending vacation rental owners feel any better let me tell you that even some sophisticated firms do no better. So - to help homeowners and managers rent more days I'd like to give you a short list of things you can do to make your revenue go up immediately. They are free and they are easy.
CONTACT DATA: Include all your contact data on your website. Personal name (full name), company name (if any), address, telephone, fax, toll free number, email and (yes) the website address again. Include the address of the home as well. Hey maybe they'll drive by or find it on Mapquest. Preferably this information should be on your home page and probably on every page of your website. This same information should be conspicuously posted on all your sales materials too.
CREATE MATERIALS: Create written documents that completely describe your property and your terms and conditions. Include photos, floor plans, list of amenities and so forth. While a professional brochure is great it is not essential. The information can be a simple typed document. But include everything - the good and the bad. If you don't allow pets, smoking or parties say so up front. It avoids problems later AND is a selling point for guests who don't want those things. You can never include too much information. It's impossible.
ANSWER INQUIRES: Is this brain surgery? Answer every phone call and email, duh. Especially if the inquiry is specific. Probably a canned response is OK for visitors who say, "I may want to go to Hawaii someday." But if they ask about dates, number of bedrooms, type of dinnerware or any other picky questions it means they are trying to buy a vacation from someone. How about you?
TELEPHONE: No matter how the inquiry comes in ALWAYS try to phone the person. If they ask only to be contacted by email you should honor that. But if they email, or fill out an online form and include their phone number it means they are willing to be called. So call them. Make friends. Invite them to be your guests. You don't have to be a "closer" or arm twister. Simply call them back and use the most persuasive words in the sales lexicon, "May I help you?" You'll be surprised as how easy it is.
KEEP RECORDS: The great majority of Guests do not rent after a single email or phone call. They have a general interest, they look around over time, they talk with people, they get side tracked considering other locations and then, maybe they decide to go to your area. It might be a day or a week, a month or years. Wise sales people keep a long list of everyone who has ever inquired. These are your leads and they are money in the bank.
COMMUNICATE: To convert those lists of inquiries into money all you have to do is communicate with them. From our unscientific observation we think the average booking is preceded by an average of 5 contacts. And of course, there are a great many contacts who never book. Until about six years ago the only ways to communicate regularly with prospective guests was to mail or phone them. But that is too expensive. Today, you simply must keep all your contacts in some kind of "contact Management' system and then you must send them a reminder every now and then. Surprisingly our "remove" rate is less than 1/10th of one percent. It's because if they inquired it means they are interested in your area. Not only do they not mind receiving reminders, but I believe they actually enjoy getting a note from their friend in Vail or Hawaii or Cancun or Italy.
FOLLOW UP: I've saved the most important recommendation for last. Call them back. Simple. CALL THEM BACK. Don't give up. My father used to say, "All things being equal, people buy from people they know." And then he added, "All things being not equal, they still buy from people they know." The only way they can get to know you is for you to call them.
If they don't know you they can't possibly buy from you. If they can't find you they can't buy from you. If you make it hard to buy they won't buy from you. So - if you want your rentals to go up 10 to 50% all you have to do is answer all inquiries, give them multiple ways to respond, call them on the phone and follow up. Do this again and again until your unit is full.
Please see the website sections:
- Suppliers List
- Group Discounts and Offers
P.S. We just added great new section called "Industry News" to the (Vrai.org)Vrai.org members only website that we update daily with stories from all over concerning vacation rentals, legal regulations and so forth. Be sure to take a look.
FEEDBACK:
As always I seek your feedback. Please share you thoughts, stories, compliments and complaints on this or any other subject by writing me at Director@Vrai.orgDirector@Vrai.org.
HOME OF THE WEEK:
Now this is a real getaway. The "Yukon Mountain Retreat" just outside Whitehorse, Yukon Territory Canada. Jesse Duke & Karen Pelletier are your hosts and they'd love to show you some Canadian hospitality. (YukonRetreat.com)YukonRetreat.com.
If you want your place added to the list of weekly contenders just drop me an email.
Author: William May – Volunteer, Vacation Rental Association
Blog #: 0028 – 09/08/03
Comments: 0
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