The Role of Data Analytics in Property Management 

The rise of short-term rental booking platforms like AirBnB and VRBO has made tracking your properties’ performance easier than ever. However, if you are only looking at surface-level data like total days booked and rental percentage rates, you are missing out on a huge opportunity to increase revenue and better serve your guests.

By leveraging data analytics in property management, you can take a deep dive into property management data and get a glimpse into the minds of your target audience. Here’s everything you need to know. 

What Is Data Analytics?

Data analytics in property management involves gathering an abundance of information about your short-term rental property. You also use analytics to examine the data to glean actionable insights into: 

• Guest preferences 
• Asset performance
• Rental rates
• Other relevant metrics 

The analytics process starts with property management data, such as average rental rates each month and the typical age of guests.

Once you’ve gathered an abundance of high-quality data, you’ll be able to perform property management analytics. Ideally, your software will be able to break down huge sets of information and complex numbers into easy-to-digest charts, graphs, and other visuals. 

Think of these tools as a means of eliminating guesswork from your property management strategy. With that in mind, here are four areas of data analytics in property management that you should be taking advantage of:

Financial Analysis

Data analytics software enables you to track revenue, expenses, and profitability across your portfolio. You can explore granular information about a single property or look at your portfolio holistically to obtain big-picture revenue projections. 

Through this process, you’ll dig through financial data, such as retinal income, operating expenses, and occupancy rates. In doing so, you can determine which homes are performing and which are falling short. 

Guest Behavior Analysis

Understanding renter behavior will help you better accommodate the needs of your target audience. You can gain information about everything from rental patterns to satisfaction levels. Paying close attention to how your guests feel about your properties and amenities will allow you to transform them into revenue-generating machines. 

Market Research

Through analytics, you can assess property performance relative to the competition and market trends. This benchmarking process can reveal shortcomings in your marketing strategy and help you regain an edge over other short-term rentals in the area. The goal is to optimize your pricing strategy and value proposition to increase rental rates. 

Use Cases for Data Analytics in Property Management 

Now that we’ve covered the basics of property management analytics, it’s helpful to get into how you can put these concepts to use in your own portfolio. Some of the most exciting use cases for data analytics in property management include: 

Understanding Guest Preferences

At the end of the day, everything you do is about making your guests happy (and turning a profit in the process). Happy renters lead to positive reviews and a great reputation on short-term rental platforms. While all of your guests are unique, they likely have similar preferences, interests, and hobbies. 

Through analytics, you can better understand the preferences of your target audience. In turn, you’ll be able to tailor your amenities, home design, and decor to appeal to this demographic. Keeping a close eye on shifting guest preferences will help you stay relevant and maximize occupancy rates. 

Pre-Screening Renters

One of the most intriguing use cases for data analytics in property management is pre-screening renters. Traditionally, you know very little about the people renting your homes, which can be a bit unnerving. The good news is that robust analytics solutions can provide detailed and timely insights into who you are letting into your properties.

Not sure where to begin? Safely has got you covered. Our guest screening solution is much more than a simple background check. 

We provide you with detailed insights about prospective renters so you can decide whether they are a good fit for your portfolio. The entire process is automated, which means you can feel confident knowing your guests are who they say they are. 

Safely checks multiple databases, including the following: 

• County and court records 
• Europol
• Interpol
• Sex offender lists 
• National and criminal databases 

That’s not all, though. We also use analytics and our proprietary database of bad stays. Try Safely today. 

Refining Your Marketing Strategy

Whether you need to gain better traction in your market or simply want to stay ahead of the competition, analytics tools can help. With data analytics, you can better understand the impact and reach of your current marketing efforts. 

More importantly, this information will help you expand your reach and increase visibility among prospective renters. Keeping your marketing strategy nimble and optimized will have a long-term impact on overall revenue. 

Don’t leave the success of your short-term rental properties to chance. Use analytics to tailor your messaging and ad placement to align with the preferences of your target audience. 

Guiding Future Investments

Purchasing a new investment property can be both exciting and nerve-racking. Are you making the right choice? Is the market oversaturated with short-term rentals, or will you have a great opportunity to make a profit? These are just a few of the questions you can answer with property management analytics.

Adopting modern analytics tools can help you make informed decisions when purchasing or selling investment properties. You can compare occupancy rates in the area, see how average nightly rates stack up against property values, and determine whether a home will be a good addition to your current portfolio. 

Getting Started With Property Management Analytics 

The concept of data analytics in property management might feel a bit daunting at first. The good news is that the best analytics tools are user-friendly and highly automated. All you have to do is integrate them into your existing portfolio management software. From that moment, you can start gaining actionable insights into property performance. 

As you start your analytics journey, be careful not to get lost in the numbers. Instead, set clear objectives and identify what you want to learn through analytics. A focused approach will help you make the most of your new technology investment.