Worldwide: Short-term rental data provider Transparent has compiled a report, entitled “The Scaling Formula”, which outlines the average number of employees that property managers have in relation to the amount of properties they own.
In collaboration with ShortTermRentalz, Transparent reveals the data it has discovered, based on the findings of the company’s 2018 European Vacation Rental Survey:
A property management hiring strategy is essential to ensure a positive future growth of your business.
Based on the findings from the 2018 European Vacation Rental Survey, Transparent discovered the average number of employees that property managers have with regards to the current state of their portfolio of properties.
The survey was answered by 552 property managers, representing close to 30,000 properties across Europe, and provides key insights into Europe’s current and future short-term rental market.
The Scaling Formula demonstrates the ratio between the number of properties a property manager has and the number of employees. Cleaning staff have been excluded from this formula for more accurate results.
The graph above represents that for every 9.5 properties that a property manager has, they will be expected to have one employee (not including a founding base of 1.9 employees). Therefore, on average, European property managers have approximately one employee for every 10 properties (not including the initial two employees).
Some outliers on the chart may be because property management companies are running vacation rentals as a secondary business line.
If this is not the case, too many staff members can be the symptom of a slower than expected growth rate or poorly run operations.
It is important for property managers to focus on scaling so that they continue to grow without being held back by increasing costs. The right hiring strategy will allow you to increase your revenue without incurring significant costs, for instance, by building centralised marketing / pricing / reservation / customer service teams.
Most of the time, technology can help you balance the cost of scaling. For example, by using the right PMS, your team will be able to save precious hours in guest communications, reporting to your owners, accounting, etc.
A tool, such as Transparent’s Rate & Demand Dashboards, will help the person(s) in charge of your pricing strategy save countless hours by gathering all the necessary insights on your markets and competitors in one place.
Tools like Properly can help you save time and money managing your cleaning staff and ensuring the utmost level of customer service.
Finally, using a CRM can also help your team stay organized by sharing a common database for contacts as you scale. We recommend Pipedrive.
You can check out how many employees your company should have if you want to be in line with the market with Transparent’s Scaling Formula calculator at the bottom of this link.
For more information about Transparent or to schedule a demo for increasing your vacation rental revenue, visit the company’s website here.