How a Property Management Error Cost an Investor Two Months of Revenue

What the Property Managers Don’t Tell You

In February 2023, I received a call that stuck with me. It was from a property investor in the Netherlands, referred to me by my client, Job Gutteling. They were desperate. Their three rent-to-rent apartments, managed by a local property management company, had experienced zero bookings throughout December and January. While December is not traditionally a strong month, no reservations at all raised a massive red flag.

The investor thought rent-to-rent would be a profitable venture. Instead, they were stuck with empty calendars, no income, and mounting frustration. They called me seeking insight.

What I found wasn’t surprising but was deeply concerning.

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The Problem Behind Zero Reservations

When an entire two months pass without bookings, it’s rarely about market demand alone. Even in slower months like December, a well-managed property should generate some revenue. My immediate thought was that there was likely a technical issue at play—something wrong with the API connections, iCal synchronisation, or the listing settings.

One of the biggest challenges in the short-term rental industry is that many property managers lack the technical knowledge to properly oversee their listings. Inexperienced managers often mishandle software or fail to monitor critical metrics, leading to calendar disruptions that block bookings.

This seemed to be the case here. When I investigated, I found that the listings were active but effectively unbookable due to errors in the system. The properties weren’t receiving visibility on online travel agents (OTAs) because the calendars were not correctly synced. This meant that despite being “live,” they were effectively invisible to potential guests.

The Role of Oversight and Transparency

As a property manager, the first rule is to monitor performance regularly. Seeing two months of zero bookings without immediate action is a glaring oversight. Adjustments should have been made to pricing, descriptions, and photos to test the market and attract guests. Instead, the management company had done nothing.

This lack of oversight speaks to a deeper issue in the property management industry: the absence of transparency and accountability. Property managers often fail to keep their clients informed about performance, leaving investors in the dark. Worse still, there are instances where properties are intentionally deprioritised in favour of others, leading to further losses for unsuspecting owners.

Investigating the Listings

When I reviewed the listings, it became clear that the properties themselves weren’t the problem. The reviews were decent, with guests mentioning some minor issues like neighbour noise and difficulty accessing the property due to key-safe complications. While these were areas for improvement, they were not deal-breakers.

What was missing was attention to detail and proactive management. The listings hadn’t been updated to reflect market demand, and there was no evidence of efforts to improve visibility or address guest feedback. This level of neglect is not just unprofessional—it’s unethical.

The Consequences of Negligence and Property Management Error

This case is a stark reminder of the risks involved in entrusting your investment to the wrong property manager. Mismanagement doesn’t just lead to lost revenue; it can damage your reputation and jeopardise your entire business model.

Even more concerning is the possibility of deliberate misconduct. I’ve seen instances where reservations are manually moved between properties to benefit specific clients or even properties owned by the management company itself. Whether this was the case here, I cannot say for certain. But the lack of transparency and care was evident.

Lessons for Property Investors

To avoid finding yourself in a similar situation, here are a few key takeaways:

1. Understand the Market

   December may not be the strongest month, but zero bookings indicate a problem. Make sure your property manager understands seasonal demand and adjusts strategies accordingly.

   
   

2. Monitor Your Listings

   Even if you’ve hired a property manager, check your listings regularly to ensure they are visible and performing.

   
   

3. Demand Regular Updates

   Insist on performance reports and open communication from your property manager. Transparency is non-negotiable.

   
   

4. Choose Expertise

   Partner with managers who have proven experience, technical knowledge, and a commitment to ethical practices.

   
   

5. Dig Deep into the Property Manager's Background

   Conduct thorough due diligence. Check online reviews, ask for references from other investors, and enquire about their experience and track record.

   
   

   

   
   

6. Ask the Right Questions About Conflict of Interest

   Explicitly ask potential managers how they handle potential conflicts of interest and ensure your property won't be deprioritised.

   
   

7. Assess Their Commitment to Guest Experience

   A good property manager understands that positive guest experiences drive future bookings and positive reviews. Inquire about their strategies for ensuring guest satisfaction.

   
   

8. Evaluate Their Communication and Responsiveness

   During the vetting process, observe how promptly and thoroughly they answer your questions. This is a good indicator of their future communication style.

   
   

Turning Challenges into Opportunities

At Guesture, we’ve built our reputation on providing more than just property management. We see ourselves as hospitality business developers, dedicated to delivering value to both property owners and their guests.

When issues arise, we take immediate action. Whether it’s troubleshooting technical glitches, revamping listings, or rethinking pricing strategies, we work tirelessly to ensure our properties perform at their best, even in slower months.

If you’re struggling with an underperforming property or considering an accommodation business venture, we’re here to help. Let’s work together to turn challenges into opportunities and create a sustainable, profitable business.

HOST WITH GUESTURE

FAQs

Q: How do I ensure my property manager is competent?

A: Look for managers with technical expertise, a proven track record, and a commitment to transparency. Ask for references and performance reports.

Q: What are the signs of poor property management and error?

A: Indicators include zero bookings over extended periods, lack of communication, and failure to address guest feedback or technical issues.

Q: How often should I check my property’s performance?

A: Even with a manager, check your listings at least once a month to ensure everything is functioning as expected.

Q: What should I ask a prospective property manager?

A: Ask how they handle technical issues, seasonal adjustments, and potential conflicts of interest. Ensure they have a plan for maintaining transparency.