Why Your PMS is the Heartbeat of Your STR Business—A Conversation with Hostfully’s CEO (Episode 437)

When it comes to running a successful short-term rental (STR) business, your Property Management Software (PMS) isn’t just another tool—it’s the foundation that keeps your operations running smoothly. But with so many options out there, how do you know if you’re using the right PMS? And more importantly, are you getting the most out of it to optimize your business?

In this week’s episode of the Thanks for Visiting Podcast, we sat down with Margot Schmorak, CEO & Co-Founder of Hostfully, our preferred PMS partner, to talk about how to choose, optimize, and scale with a PMS that truly supports your business.

What is a PMS and Why Does It Matter?

A Property Management Software (PMS) is the backbone of any STR business, helping hosts manage:

  • Bookings across multiple platforms (Airbnb, Vrbo, Booking.com, and direct bookings)
  • Guest communication through automated messages and AI-driven inboxes
  • Pricing and availability with channel management and dynamic pricing integrations
  • Housekeeping and maintenance with task management tools
  • Direct booking websites to reduce dependency on OTAs (Online Travel Agencies)

But not all PMS platforms are created equal, and choosing the right one can save you time, money, and headaches as you grow your rental business.

Are You Making This Common PMS Mistake?

One of the biggest mistakes hosts make? PMS hopping—constantly switching from one system to another because they’re chasing “the perfect solution.”

The truth is, there’s no one-size-fits-all PMS. As Margot shared on the podcast, hosts who succeed long-term commit to learning their PMS inside and out instead of jumping to a new platform every time a competitor offers a new feature.

Instead of switching PMS platforms, Margot suggests:
✔ Learning to maximize your current PMS before considering a move
✔ Working with customer support to find creative solutions for your challenges
✔ Prioritizing long-term efficiency over constantly chasing the latest features

This mindset shift can save you hours of frustration and help you build a business that scales with ease.

Should You Use a PMS If You Only Have One or Two Properties?

Many hosts believe that PMS software is only for large property managers, but that’s simply not true. Even if you have just one or two properties, a PMS can streamline your business by:

  • Automating guest messaging so you don’t have to manually respond to every inquiry
  • Syncing availability across multiple platforms to prevent double bookings
  • Enabling direct bookings so you can reduce reliance on Airbnb and Vrbo
  • Helping you collect guest data for repeat bookings and increased revenue

One hesitation small hosts have is the potential increase in Airbnb service fees when connecting a PMS. Airbnb typically increases host fees from 3% to 15% when using a PMS, but Margot reminds us that this can be offset by direct bookings, which come with zero platform fees.

The key takeaway? Think like a business owner. Investing in the right tech stack now will save you time and increase your revenue later.

How to Increase Revenue with Direct Bookings

One of the most powerful benefits of using a PMS is the ability to increase direct bookings—meaning more revenue in your pocket.

Margot explains that repeat guests are the gold standard of direct bookings. Instead of paying platforms like Airbnb for every new lead, successful hosts nurture past guests and encourage them to book directly.

Some easy ways to do this include:

  • Email marketing – Send guests an email with a special offer for returning
  • Personalized follow-ups – Ask happy guests if they’d like to rebook for the same time next year
  • Exclusive perks – Offer repeat guests a small upgrade, such as a free bottle of wine or a late checkout
  • Automated booking links – Use a PMS to send guests a direct booking link with an easy checkout flow

The best part? Direct bookings cut out the middleman, save you on fees, and build guest loyalty.

Midterm Rentals: Is This the Next Big Trend?

Midterm rentals—bookings that last 30+ days—are becoming an increasingly popular strategy for hosts looking to diversify their income.

While midterm rentals offer stability, they also come with unique challenges, such as:

  • Managing leases and payment schedules
  • Handling guest extensions and last-minute changes
  • Navigating local regulations for long-term stays

Hostfully is actively developing new midterm rental tools, including automated lease agreements, extended billing cycles, and more, making it easier for hosts to tap into this market while maintaining their short-term rental business.

If you’re thinking about adding midterm rentals to your strategy, Hostfully’s features can help streamline the process and maximize your occupancy.

Final Takeaway: Treat Your STR Like a Business

At the end of the day, your PMS isn’t just software—it’s a business partner that helps you:
✅ Save time with automation and efficiency
✅ Increase revenue through direct bookings and repeat guests
✅ Scale your business without the stress of manual management

Hostfully has been our go-to PMS since 2018, and in this episode, Margot gives a behind-the-scenes look at what makes Hostfully different, how they support hosts at every stage of growth, and why their customer service is truly best-in-class.

If you’re serious about growing your STR business, investing in the right tech stack is non-negotiable.

Download a transcript of this episode.

Resources:

#STRShareSunday

@mnlakestay

This week’s feature, @mnlakestay, is packed with thoughtful touches inside and out. The covered hot tub makes for an easy, year-round way to enjoy the property, and the outdoor space is designed to be just as inviting as the interior. But the real standout? The speakeasy-style game room. Fully themed and stocked with a pool table, foosball, and a bar setup, it’s the kind of space that makes a stay extra memorable. We love when properties go the extra mile to create a guest experience that stands out.

We would love to feature YOU! Submit your property for our next #STRShareSunday at strshare.com.

Together, Annette & Sarah are the dynamic duo behind the wildly popular podcast Thanks For Visiting, co-creators of the Hosting Business Mastery Method, & seasoned short-term-rental hosts.

Meet Your Hosts

Reply...

keep listening...