Beginner’s Guide to Choosing Short-Term Rental Property Management Software on a Budget

Aug 26th, 2024

Short-term rental property management can be a complex business with many moving parts. Handling a small handful of rental properties is manageable for most, but as you add properties to your portfolio, most managers find they need robust software to support their efforts and manage their bookings.

How should a short-term rental property management company think about the process of pinpointing software that meets their needs without breaking the budget?

There are four essential steps to consider while searching for affordable property management software. Rental property management companies of any kind require unique functions from their tech solutions, and here are some tips to think through the decision.

1. Understand Your Needs

When you select a rental or short-term rental property management software, the first thing you need to do is take inventory of the needs of the business. Start with an eagle-eye view of the business as a whole. What types of properties do you manage (corporate, vacation, short-term, etc.)? How many units do you have and what is the typical guest turnover rate?

Once you have answers to some of these basic questions, take a look at your bank account. Set a realistic budget for software and know how much you can afford to spend comfortably based on your current expenditures.

Not all software is going to be a good fit for your brand or budget. If you have only a few properties with no plans to grow beyond this point, your software needs will be very different than a large company with hundreds or thousands of properties.

Keep in mind that affordable solutions are out there, but property management software is still an expense you will have to contend with. If you only have one or two properties, upgrading may not even be worth the expense.

2. Look for Key Features

Another aspect of your rental property management software is the key features offered. What are your must-have functions and which are simply nice to have in the day-to-day?

There are tons of solutions out there for whatever criteria you need, but some of the most common key features include:

Booking management
Owner & vendor payments
Accounting tools & integrations
Channel management
Guest communication
Housekeeping and maintenance scheduling
Dynamic pricing

All these features can bolster relationships with property owners, increase occupancy, and ultimately boost bottom-line profits. You can see everything pertinent to your bookings under one umbrella, even if bookings are made across multiple platforms.

3. Check Off Other Considerations

Once you drill down into the key features you absolutely must have in your ideal short-term rental property management software, some considerations beyond the core features can impact your end decision. They might seem like small things but they make a big difference when you step back and look at the whole picture.

For example, take a close look at the user interface. Does the software have an efficient, intuitive design that is easy to learn and use? If you have an issue that requires some problem-solving, do they feature a responsive team that can help you get back on track? Ideally, you can download a trial or watch a demo to see this first-hand.

Of course, many professionals aren’t using rental property management software alone. They have plans to use it alongside other tools and want integration capabilities. If this is the case for you, look for software that works seamlessly with software like payment gateways and channel managers, marketing tools, and so on.

All of this should be weighed alongside the cost of ownership. Take a close look at the pricing model, as not all solutions will charge the same way. Some set a static monthly or annual fee, while others charge per property or even a percentage of your bookings. Only you can determine what model fits best into your business plan.

Also, always ask about additional fees, such as API or connectivity fees. You can also investigate whether the software can scale up and grow with your business. If it has upgrade options and additional features you may one day tap into, that’s even better.

4. Research and Test Your Options

Ascent has an extensive partner list that can help you take the first step toward finding a property management software provider geared toward short-term rentals. We have decades of experience in the rental industry and have forged solid connections with industry partners over that time.

In addition to responsive customer service teams, you can also get demos and trials to see how the software works firsthand. Before you set down cash for a property management software that may not be the right fit for you, always test-drive it.

Don’t forget about the importance of hearing what others in the industry have to say. Social proof can guide your decision-making and give you a support network as you adapt to new software. Read user reviews, search for advice on industry forums, and ask your fellow short-term rental property managers what they’re using to manage their own short-term rental properties. You can also attend industry conferences, such as VRMA, to network with industry professionals and learn expert strategies during educational sessions.

Find an Ascent Industry Partner

Ascent is proud to partner with affordable property management software providers that help you grow your rental business. We want to be there for you and your team every step of the way as you grow and shape a business in this demanding industry. That’s why we also help you grow by reducing payment processing costs via interchange plus pricing, compliance surcharging, and more.

Curious to see how we can help you save? Try our effective rate calculator to estimate your current cost of acceptance. If you’d like to learn more about how to reduce this cost to almost $0 by including the majority of your credit card fees in your reservation fees, contact us today!