The Pareto principle: how to apply it to rentals
Looking for a method that helps you focus your efforts in the right place? With the Pareto principle, you'll know everything!
Have you heard of the Pareto principle? It applies to a great many sectors, but it is particularly well suited to rentals and will be a real help to you. Here's why.
What is the Pareto principle?
This law, first set out by Vilfredo Pareto, is a type of power law. Its theoretical basis? The 80-20 rule, known as the Pareto principle.
On this basis, acting on 20% of the causes solves 80% of the problem. It allows you to identify which lever to pull in order to improve the situation significantly.
How do you use it in the rental business?
It's simple!
1/ Identify the 20% of sites that bring you 80% of your bookings. It takes time, and it may well be a few months before you can identify them properly, but it really matters.
2/ Concentrate on those sites and write a full, appealing listing. Here again, take the time to describe your property properly and to highlight its unusual features, what makes it unique, what there is to do nearby, and so on.
3/ Update your listing often. Change the photos according to the seasons, the facilities you add, any new health and safety measures, and so on.
To help you write your listing, you can take inspiration from the listings of Airbnb superhosts. What do you make of this approach? Do you find it useful? We think that pooling your efforts on a few listings and fine-tuning them is a very good thing indeed!
Frequently asked questions
How long does it take to identify your top 20 % of listing sites? Expect it to take a few months. You need enough booking history to see clearly which platforms actually bring in the most, one good season alone won’t give you a reliable answer.
Should you drop the other platforms once you've found your top 20 %? The article doesn't say to stop everywhere else, but to focus your writing and updating efforts where it pays off the most. It's a matter of priority, not exclusivity.
How often should you update your listing on priority sites? The article recommends doing it often, changing photos to match the seasons, new amenities or current health measures. The idea is to keep the listing feeling alive rather than a text posted once and left untouched.
Why look at Airbnb superhost listings for inspiration? Because these are listings that already work and offer concrete benchmarks for describing a property well. The article suggests using them as inspiration to learn how to highlight what's unique and unusual about your place, not to copy them.
Does the Pareto principle only apply to bookings? In the article, it's applied specifically to identifying which sites generate the most bookings. It's a general principle, but here it serves one purpose only: knowing where to focus the work of writing and updating listings.
Applying the Pareto principle to rental management rests on three concrete actions, each built on identifying the 20% of platforms that generate 80% of your bookings.
| Step | Action to take | Timeline / Frequency |
|---|---|---|
| 1. Diagnosis | Identify the 20% of sites generating 80% of your bookings | Several months of data required |
| 2. Optimization | Write a complete and attractive listing on these priority sites | Do this based on new equipment added |
| 3. Maintenance | Update photos and description with seasons and current measures | Frequent |
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