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The Definitive Study of Vacation Rentals

Leaves no stone unturned....

Property Management System Distribution Algorithm FLAWED

The condo-hotel business model is almost identical to the vacation model.  The only difference is the amount the condo-hotel program owner has to pay to purchase space in the condo-hotel.

Property Management Systems for both usually have a distribution module that assists staff who are blocking reservations in a fair order.  The problem is THEY DON'T WORK! 

After being called upon to examine and testify in 3 condo-hotel lawsuits involving revenue distribution, I’ve decided to offer the algorithm I designed so that others don’t fall into the same situation or trap! 

Automated distribution modules attached to PMS’s are flawed and simply don't work. They don't distribute revenue evenly between like-kind units.  Human interaction is always needed. 

I just completed a study in relation to a condo-hotel lawsuit, where my study showed a $20,000 swing between many "like-kind" units; often sitting side by side! The results are the same for 2 other situations in which the developer/hotel operator was sued. 

After the last, I finally decided to provide the tracking program to my contemporaries.  It's easy to use and with a 30-minute setup allows you to evaluate distributions through the year to make sure at year end they are reasonable and close to parity. See a picture of the study below.

The program takes uses the purchase date, zone unit is in, # of out of order nights, # of owner occupancy nights and # of complimentary nights into considerations and it even breaks the year into seasonal time periods. 

If the person blocking rooms looks at this output every week or two he/she can steer reservations where to even out the flaws created by the PMS. By year end there are very small differences between like-kind units.  Don't wait to be challenged.  Many who I do the study swear that distributions are spread evenly and when they see the results are floored. 

This is not my main business, but since I see this so often I thought I’d finally offer the excel worksheet for an affordable price - $39.95. It took me about a month to perfect. And it's far better than being surprised in a lawsuit! 

I’ve blacked out all identifying info on the following real-life study so you see what the report produced.  You’ll be amazed, maybe startled! 

 

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