The short-term rental guide to property management systems

The demands on your time and resources can feel overwhelming, making it challenging to maintain efficient operations. What if there was a way to automate repetitive tasks, streamline your workflows, and unlock greater efficiency?

Enter the property management system (PMS). This indispensable software solution is designed to centralize and automate many aspects of your short-term rental operations, freeing you to focus on strategic growth and delivering exceptional guest experiences.

What is a property management system?

A PMS is a comprehensive software platform that enables short-term rental owners and managers to manage all aspects of their properties from a single interface. 

Far more than just a booking calendar, a PMS integrates various functionalities, from guest communication and payment processing to channel management and dynamic pricing, providing a holistic view and control over your portfolio. 

For property management companies overseeing multiple rental homes, a PMS often evolves into an all-in-one solution, providing a singular hub for all operational needs.

The cost of implementing a PMS can vary significantly based on the number of properties you manage, the features you require, and the pricing model of the provider. Some platforms offer tiered plans, with costs per listing decreasing as your portfolio grows, while others use a commission-based model. 

It's crucial to consider the total cost of ownership, including any setup fees or additional charges for premium features, to ensure the solution aligns with your budget and business goals.

Why vacation rentals need a PMS

The short-term rental market is evolving at what seems like lightspeed and relying on manual processes or disparate tools is no longer sustainable for efficient and profitable operations. A dedicated PMS provides the foundational technology to streamline operations, enhance guest satisfaction, and ultimately drive revenue. 

Below, we explore the key advantages a PMS offers for vacation rental businesses.

Streamline rental property management

A PMS significantly reduces the time spent on administrative tasks through extensive automation capabilities. 

From automated guest messaging and review generation to scheduling cleaning crews and maintenance checks, a PMS can orchestrate complex workflows with minimal manual intervention. This not only saves valuable hours but also minimizes the risk of human error, ensuring consistency and professionalism across all your listings. 

By centralizing data and automating routine processes, you can operate more efficiently, handle a larger portfolio, and dedicate more time to honing your strategy.

Increase direct bookings to drive profit

One of the most impactful features of a PMS is its integrated booking engine. This allows you to create your own branded direct booking website, bypassing costly third-party commissions. By directing guests to your own site, you retain a larger share of the revenue and build direct relationships with your clientele. 

A well-designed booking engine, powered by your PMS, provides a seamless and secure reservation experience, offering guests real-time availability, dynamic pricing, and the convenience of booking directly from your platform. This shift to direct bookings significantly boosts your profit margins.

Improve performance on OTAs like Airbnb and Vrbo

While direct bookings are crucial for profitability, online travel agencies (OTAs) like Airbnb, Booking.com, and Vrbo remain vital for visibility and reaching a broad audience. 

A PMS with robust channel manager capabilities simplifies the distribution process by automatically synchronizing your listings, rates, and availability across all connected OTAs. This is especially critical for property management companies needing a seamless experience across all their properties and strong connectivity with platforms like Vrbo. 

A key advantage of a modern PMS is the ability to easily set up and manage all OTA profiles directly from the software, eliminating the need to log into individual OTA extranets for updates and ensuring your listings are always optimized and up-to-date. By centralizing management, you can easily implement pricing strategies across all channels, respond to inquiries promptly, and ultimately improve your ranking and performance on these high-traffic platforms.

5 best PMS for short-term rental properties

Choosing the right property management system is a critical decision that can significantly impact your operational efficiency and profitability. 

To help you navigate the options, here's a look at some of the leading PMS providers in the short-term rental space, highlighting their core offerings, pricing insights, and best-use cases.

1. Guesty

Guesty is a comprehensive, end-to-end rental management software designed to cater to both individual hosts and large property management companies. It aims to streamline operations, enhance the guest experience, and maximize revenue across properties and portfolios.

Key features:

• Unified inbox: Centralizes communications from all booking channels.

• Automation tools: Automates tasks like check-in instructions, cleaning assignments, and pre-stay messages.

• Channel manager: Syncs listings and calendars across major OTAs (Airbnb, Booking.com, Vrbo, etc.).

• Owner portal: Provides transparent financial reporting for property owners.

• Add-ons: Offers a suite of additional services including dynamic pricing (PriceOptimizer), direct booking website builder (Guesty Websites), and damage protection.

Pricing: Guesty operates on a tiered pricing model. The Lite plan starts at $24 per listing per month when billed annually, suitable for 1-3 properties. Pro and Enterprise plans, designed for larger portfolios, require direct consultation for customized pricing, often based on a percentage of booking revenue or a per-unit fee. Be aware that some advanced features are available as paid add-ons.

Key takeaway: Guesty is ideal for rapidly scaling businesses and professional property managers looking for a highly customizable and feature-rich solution. Its extensive add-ons allow for tailored functionality, but users should factor in potential additional costs beyond the base subscription.

2. Hostaway

Hostaway is a powerful vacation rental software that provides an all-in-one solution for property managers seeking to automate, simplify, and grow their businesses. It is known for its robust channel management and extensive integration marketplace.

Key features:

• Advanced channel manager: Offers deep integrations with a wide array of OTAs and vacation rental sites, ensuring real-time synchronization.

• Automated messaging and guest communication: Streamlines guest interactions with customizable templates and automated triggers.

• Centralized calendar & booking management: Provides a unified view and control over all reservations.

• Task & team management: Facilitates efficient assignment and tracking of cleaning, maintenance, and other operational tasks.

• Direct booking website builder: Enables creation of branded websites to capture commission-free bookings.

Pricing: Hostaway's pricing is not publicly transparent and is customized based on the number of properties and required features. It's recommended to schedule a demo for a personalized quote.

Key takeaway: Hostaway is an excellent choice for property managers with growing portfolios who prioritize strong channel management, extensive integrations, and automation. Its flexible, custom pricing can be advantageous for larger operations, though it requires direct consultation.

3. Lodgify

Lodgify is a user-friendly vacation rental software solution that empowers owners and managers to create professional booking websites and efficiently manage their properties. It emphasizes direct bookings and ease of use.

Key features:

• Customizable booking website builder: Allows users to easily create a professional, mobile-responsive website with an integrated booking engine.

• Channel manager: Connects and synchronizes listings with major OTAs like Airbnb, Booking.com, Vrbo, and Expedia.

• Centralized reservation system: Manages all bookings, guest details, and payments in one place.

• Automated guest communication: Offers templates and automation for pre-stay, in-stay, and post-stay messages.

• Payment processing: Integrates with popular payment gateways for secure and seamless transactions.

Pricing: Lodgify offers three main plans: Starter, Professional, and Ultimate, with discounts for yearly or two-year billing. The Starter plan begins at $16 per month (billed annually). Professional and Ultimate plans start from $40 and $60 per month respectively (billed annually) and have no booking fees. Pricing scales with the number of properties. They offer a 7-day free trial.

Key takeaway: Lodgify is particularly well-suited for owners and small-to-medium property managers who want to establish a strong direct booking presence through a professional website. Its transparent pricing and focus on ease of use make it accessible for those looking to get started quickly.

4. Avirato

Avirato, primarily known for its hotel management platform, also offers solutions relevant to short-term rentals and diversified accommodation types. It aims to provide intuitive management tools, including a free basic PMS, with advanced features in its premium version.

Key features:

• PMS (property management system): Provides core functionalities for managing reservations, guest data, and property details.

• Channel manager: Synchronizes inventory across various online distribution channels (OTAs, GDSs).

• Booking engine: Allows for direct bookings through a customizable widget integrated into your website.

• Automated marketing tools: Includes capabilities for email campaigns and managing guest feedback.

• Mobile management: Enables management of rooms and maintenance tasks via mobile devices.

Pricing: Avirato offers a unique approach with a free basic PMS. For access to advanced features like the full channel manager and booking engine, users need to inquire about their premium version pricing, which is customized upon request.

Key takeaway: Avirato could be a viable option for property owners or small businesses seeking a basic, free PMS to start, especially if they are looking to diversify their accommodation types beyond traditional short-term rentals, or prefer a solution with strong roots in hotel management. Users should be prepared to contact them for detailed pricing on advanced features.

5. Hospitable

Hospitable.com (previously known as Smartbnb) is a strong automation-focused platform that aims to simplify short-term rental management, particularly excelling in guest communication and dynamic pricing. It's designed for hosts seeking to save time and optimize revenue through smart automation.

Key features:

• Unified inbox: Consolidates all guest messages from connected platforms into one place.

• AI and automation: Offers robust automation for guest messaging, check-in instructions, review generation, and even AI-driven reply drafts.

• Dynamic pricing (included): Features an in-built dynamic pricing engine that automatically adjusts rates based on market data and demand, included in all plans.

• Direct booking engine: Provides tools to create a direct booking site and manage commission-free reservations.

• Smart device integration: Connects with smart locks and thermostats for automated self-check-in and energy optimization.

Pricing: Hospitable.com offers tiered plans: 

Host ($29/month for 1 property + $10/additional active property)

Professional ($59/month for 2 properties + $15/additional active property)

Mogul ($99/month for 3 properties + $30/additional active property). 

They offer a 14-day free trial with no setup fees or annual contracts, and pricing scales based on active properties (those with check-ins in the past 30 days or dynamic pricing enabled).

Key takeaway: Hospitable.com is an excellent choice for hosts and property managers who prioritize advanced automation, AI-driven communication, and an integrated dynamic pricing solution. Its flexible, active-property-based pricing model can be appealing for those with fluctuating occupancy or growing portfolios.

What to look for in property management software

Selecting the ideal PMS for your short-term rental business requires careful consideration of several factors beyond just features. The right solution should seamlessly integrate into your existing operations, simplify your workload, and support your growth objectives.

User-friendly interface

Ease of use is paramount in a PMS, as a complex system can quickly negate any of the expected time-saving benefits gained from automation. 

A user-friendly interface ensures that you and your team can quickly onboard, navigate the platform, and execute tasks without extensive training or frustration. Look for systems with:

• Intuitive dashboards: A clean, organized dashboard that provides a clear overview of your operations (bookings, tasks, revenue).

• Logical navigation: Menus and features should be logically organized and easy to find, minimizing clicks.

• Visual cues: Clear icons, color-coding, and visual representations of data (e.g., calendar views) can significantly improve usability.

• Customizable views: Ability to personalize the dashboard or views to prioritize information most relevant to your role.

Essential features

A comprehensive PMS should offer a core set of features to effectively manage your short-term rentals. Prioritize solutions that include:

• Guest communication: Automated messaging, unified inbox, and customizable message templates to handle inquiries, booking confirmations, check-in instructions, and post-stay follow-ups efficiently. This saves time and ensures consistent, professional communication.

• Payment processing: Securely collect payments, manage deposits, and handle refunds directly within the platform. Integration with reputable payment gateways is crucial for smooth financial operations.

• Booking engine: An integrated tool to build your own direct booking website, allowing you to capture commission-free reservations and build your brand.

• Channel manager capabilities: Real-time synchronization of listings, rates, and availability across all your connected OTAs (Airbnb, Booking.com, Vrbo, etc.) to prevent double bookings and optimize visibility.

• Booking management: A centralized calendar and reservation system to view, modify, and track all bookings from various channels in one place.

• Task and team management: Features to assign, track, and automate cleaning, maintenance, and other operational tasks for your team, ensuring properties are always guest-ready.

• Reporting and analytics: Dashboards and reports that provide insights into occupancy rates, revenue, expenses, and overall performance, enabling data-driven decision-making.

Integrations

The ability of your PMS to seamlessly integrate with other crucial tools and platforms is a non-negotiable for modern short-term rental management.

• Third-party booking sites: Top priority integrations are with major OTAs like Booking.com, Airbnb, and Vrbo, as these are primary channels for attracting guests. Ensure the PMS offers robust, real-time two-way synchronization to prevent errors and maximize reach.

• Dynamic pricing tools: Integrations with leading dynamic pricing platforms (e.g., PriceLabs, Beyond Pricing) allow for automated rate optimization based on market demand, seasonality, and competitor pricing, maximizing your revenue.

• Smart home devices: Connectivity with smart locks, thermostats, and other IoT devices enables automated check-ins/outs, energy management, and enhanced guest experiences.

• Accounting solutions: Integrations with accounting software (e.g., QuickBooks, Xero) streamline financial reporting, expense tracking, and owner payouts, simplifying bookkeeping and ensuring compliance.

Customer support

Even the most intuitive software can present challenges, making reliable customer support essential. Top-tier support can significantly impact your ability to resolve issues quickly and maximize your PMS's potential. Look for providers that offer:

• 24/7 real-time support: Access to support staff via live chat, phone, or email, especially for urgent issues.

• Knowledge base/help desk: A comprehensive library of articles, tutorials, and FAQs that allows for self-service problem-solving.

• Onboarding and training: Dedicated support during the initial setup phase and ongoing resources to help you master the platform.

• Community forums: A platform where users can share tips, ask questions, and get peer support.

• Proactive communication: Updates on system changes, new features, and potential issues.

Enhance short-term rental property management with data-driven insights

While a robust PMS is the backbone of efficient operations, truly excelling in short-term rental space requires accurate and real-time market insights. This is where Lighthouse comes in.

Lighthouse provides the hospitality industry's most comprehensive and reliable short-term rental data-sets. Our platform offers historical, real-time, and forward-looking data on supply, demand, pricing, performance and booking trends across the globe. 

By integrating Lighthouse Data Solutions, you can move beyond simply managing properties to strategically optimizing their performance with precise, data driven decision making. 

Understand demand patterns, benchmark your property against its true competitive set, identify emerging hotspots, and fine-tune your pricing strategies with confidence, to master your market.

With Lighthouse data complementing your PMS, you gain the clarity needed to make proactive, informed decisions that strengthen your performance and drive significantly more revenue.

Want to discover how real-time market data can transform your vacation rental management business?