Choosing a property management system is one of the most important decisions a vacation rental owner or property manager will make. The right PMS becomes the foundation of your vacation rental business, powering everything from bookings and payments to guest communication, reporting, and even direct bookings. The wrong PMS can create extra work, limit flexibility, and make it difficult to scale over time. It's important to know what to look for and what questions to ask when making this decision.
In this guide, we’ll walk through some of the most important features to look for and questions to ask when choosing a vacation rental property management software (PMS).
Direct API Channel Connections
As you look for a PMS to pair with your business, one of the most important things to evaluate is how it connects to the major booking channels, such as Airbnb and Vrbo. A PMS is responsible for keeping your calendars, pricing, and property content in sync across each of your connected channels. If those connections are slow or unreliable, the risk of double bookings, missed reservations, and missed guest messages can quickly lead to lost income and frustrated guests.
An important question to ask when comparing property management systems is: "Which type of connection do they have with the major booking channels?"
Most property management systems use one of three types of channel connections:
- Direct API connections: API connections are the fastest and most reliable way to connect with a channel. This type of connection instantly pushes rates, rules, availability, content, and more across any of your connected channels.
- iCal connections: iCal was developed in the late 1990s and was not designed for a modern vacation rental business. Property management systems that rely on iCal take much longer to sync, have a higher chance of receiving double bookings, and limit the type of data that can be sent, requiring you to log in and out of several channels to make simple changes.
- Third-party connections: Some PMS platforms rely on third-party companies to build and maintain their channel connections. Adding a third party between your business and the booking channels can lead to slower updates, weaker support, less control, and sometimes additional fees.
A great PMS will have direct API connections with all the major booking channels, without relying on third-party companies, like Rentals United. OwnerRez maintains direct, in-house API connections with all major OTAs. These connections are actively maintained for reliability and performance and are not outsourced to third-party providers. OwnerRez has earned multi-year Elite and Preferred Plus partner recognitions from Airbnb and Vrbo, reflecting the speed and trust of those connections.
Automation That Saves You Time
As your business grows, whether you manage your short-term rentals part-time or full-time, tedious manual work, such as sending check-in instructions or setting the door code for each guest, quickly consumes your time. A good PMS will automate these repetitive tasks while still allowing you to remain in control and in touch with your day-to-day operations.
A couple of good questions to ask when evaluating automation features offered by property management systems are: "Which automation features will actually save me time? And are the automation features seamlessly built into the software or handled through third-party integrations?"
A great property management system will automate key areas of your vacation rental business, such as guest messaging, cleaning and maintenance, door codes, rental agreements, reviews, payments, availability syncing, and dynamic pricing rules. OwnerRez provides powerful automation tools that streamline these tasks in-house, so nothing slips through the cracks and you have time to focus on growing your business.
Multiple Payment Processors and Strong Accounting Tools
The next important features to look for in a PMS are multiple payment processing options and strong accounting tools. Handling guest payments, security deposits, tax collection, and refunds are all essential parts of a vacation rental business. The systems put in place for these processes are what set apart the good from the great vacation rental operators.
When comparing the payment processing and accounting features between property management systems, here are a few good questions to consider: "Do they charge an additional fee for payment processing? Will the system allow you to automate the security deposit process? Are there multiple payment processors to choose from, or will you be forced to use one?
These questions help identify which property management systems have the necessary features in place to support your long-term growth and success. Small differences here can add up quickly. A PMS that charges an extra percentage on direct bookings or limits you to one processor may not seem like a deal breaker at first, but those costs and constraints can significantly affect your bottom line over time. A good PMS will support multiple payment processors, flexible deposit options, easy tax collection, strong accounting tools, and a wide variety of reports. OwnerRez was built with these things in mind, which is why it includes rich accounting features with full invoicing, payments, refunds, balance tracking, and security deposit holds. The system supports over 20 payment processors, offers deposit syncing with Airbnb and Stripe, and integrates with QuickBooks for a seamless accounting process.
Direct Booking Solutions
The major listing channels, such as Airbnb, Vrbo, and Booking.com, are excellent tools for generating visibility for your listings, but they come at the cost of ever-increasing fees, strong competition, and limited control over resolving guest issues. Relying entirely on third-party platforms to generate bookings makes it harder to build a resilient business. The most efficient way to build a direct booking business into your current operations is through a PMS that offers a direct booking engine.
While most property management systems say that they offer direct booking solutions, here are a few questions that cut through the marketing and highlight what they really provide: "Do they charge a percentage fee for direct bookings? Do they offer easy-to-set-up templates that are SEO friendly? Is there an additional cost to setting up a direct booking website? Do they allow you to customize your website?"
It's important to partner your vacation rental business with a PMS that's thinking of your long-term success and offers the tools you need for consistent growth, not just a gimmicky direct booking option. A good PMS makes it easy to build a professional website that stays in sync with your availability, pricing, and property details in real time. OwnerRez accomplishes this through fast, mobile-friendly, SEO-optimized websites that are easy to set up and run on your own domain. Bookings and payments flow seamlessly through your OwnerRez account and payment processor, with no added booking commissions, and property details always stay in sync.
Knowledgeable Support and Scalable Pricing
Last, but not least, look for a PMS with a strong support team and pricing that scales with your business. Many companies advertise 24-hour support, but this often means outsourcing to overseas call centers or providing limited assistance from staff members unfamiliar with the issues vacation rental operations face. Others offer low monthly pricing upfront, then add extra fees such as "set up fees," "commissions on direct bookings," or "early termination fees."
A couple of good questions to consider for support and pricing are: "Do they charge any additional fees?" "Is it an annual or month-to-month commitment, and do they have an early-termination fee?" "Does their support team receive good feedback on the third-party review sites, such as Trustpilot and Capterra?" Do they offer an in-depth support center with support articles and videos?"
Property management systems will often try to downplay or hide the extra fees to get vacation rental owners and managers in the door. It's vital to understand the true cost and the support that will be available before taking the time to onboard your short-term rental properties. OwnerRez offers transparent pricing and a free 1-on-1 video setup call, ensuring you get personalized help right from the start. Every member of our Customer Support department is trained in our core principles, like "create happiness" and "one touch solve," so you get fast, thoughtful help from real experts. In addition, OwnerRez offers a robust support center with thousands of articles, detailed walkthroughs, and over 75 support videos.
Conclusion
Choosing the right property management system (PMS) to partner with your vacation rental business is one of the most important decisions you will make. As you consider the features that are important to you and ask thoughtful questions that cut through the flashy marketing, we hope you find a PMS that helps you save valuable time and helps you consistently achieve your goals.
A good PMS for your vacation rental business will set you up for success through fast and reliable channel connections, built-in automation features, multiple payment processing options, strong accounting tools, a "commission-free" direct booking engine, knowledgeable support, and all for an affordable price that enables you to grow. OwnerRez was built by vacation rental operators with these priorities in mind. It’s a flexible, reliable, long-term foundation designed to help vacation rental owners and property managers operate at an elite level.
If you are not yet using OwnerRez, get started today by signing up for a 14 day free trial or by signing up to join one of our weekly live demo webinars.
FAQs About What to Look for in a Property Management System (PMS)
Q: Why is choosing the right property management system so important?
A: A PMS becomes the foundation of your vacation rental business, powering bookings, payments, guest communication, reporting, and direct bookings. The right system supports long-term growth, while the wrong one can create extra work and limit flexibility.
Q: What features should I look for in a property management system?
A: Look for a PMS with fast and reliable channel connections, built-in automation, flexible payment processing, strong accounting tools, a commission-free direct booking engine, and knowledgeable support.
Q: What type of channel connections should I look for in a PMS?
A: Look for direct API connections with major booking channels like Airbnb and Vrbo. Direct API connections are the fastest and most reliable way to keep calendars, pricing, and content synced and to reduce the risk of double bookings.
Q: Why are iCal and third-party connections not ideal for a vacation rental business?
A: iCal connections sync slowly and were not designed for modern vacation rental operations. Third-party connections add another layer between your business and the channels, which can lead to slower updates, weaker support, and sometimes additional fees.
Q: How does OwnerRez handle channel connections with the major booking platforms, like Airbnb and Vrbo?
A: OwnerRez maintains direct, in-house API connections with all major OTAs. These connections are actively maintained for reliability and performance and have earned multi-year Elite and Preferred Plus partner recognitions from Airbnb and Vrbo.
Q: What automation features should a good PMS include?
A: A strong PMS should automate guest messaging, cleaning and maintenance, door codes, rental agreements, reviews, payments, availability syncing, and dynamic pricing rules. These automations save time while keeping you in control of daily vacation rental operations.
Q: Why are payment processing and accounting tools important in a PMS?
A: Handling guest payments, security deposits, tax collection, and refunds is a core part of running a vacation rental business. A strong PMS supports multiple payment processors, flexible deposit options, and clear accounting tools that help protect your bottom line as you grow.
Q: How does a PMS support direct bookings?
A: A property management system with a built-in direct booking engine makes it easy to create a professional website that stays in sync with your availability, pricing, and property details. Direct bookings reduce reliance on the OTAs and help build resilience into your vacation rental business.
Q: What support and pricing offerings should I look for when choosing a PMS?
A: Look for transparent pricing without hidden fees, setup charges, or commissions that increase as you grow. A good PMS also provides knowledgeable support from people who understand vacation rental operations, along with clear documentation and helpful resources.
Q: How do I get started with OwnerRez?
A: You can get started by signing up for a 14-day free trial or by signing up to join one of our weekly live demo webinars.