Property management as an industry branch in Bosnia and Herzegovina is not yet at the same level as in some other Balkan countries, such as Croatia. Still, some people and companies have been investing much effort and educating the market for years to change this.
Although its great tourist potential has not yet been fully utilized, tourism as an industry in Bosnia and Herzegovina is slowly gaining momentum, and thus, its importance is growing.
We spoke with Goran Novak, the owner of the Mostar Property Management company. This full-service agency provides a complete service, from managing sales on OTA channels (Booking, Airbnb, etc.) to communicating with guests and managing check-in and check-out, as well as maintaining and cleaning units.
About Mostar Property Management Company
In 2016, Goran, in a conversation with friends, came up with the idea of starting a property management business in Bosnia and Herzegovina.
Considering that Goran lives and works in Dubrovnik, also one of the most famous Croatian tourist destinations, he recognized the potential in managing properties. As he owned an apartment in Mostar, starting a property management business was a logical step towards what followed.
To test the potential of renting in BiH, Goran posted his apartment on Booking and Airbnb. He soon added another apartment, which confirmed his assumption – property management in BiH has excellent potential.
The beginning and acquisition of the first clients were far from ideal because property management as a branch of the tourism industry and the use of online sales channels in BiH were relatively unknown and insufficiently used among the population.
In the first year, Goran and his colleague managed six apartments. To facilitate the acquisition of new clients, they shifted their focus to creating an online presence through social networks and a website, making it much easier for them to communicate and present their services. Market research, monitoring what others are doing, investing in content creation and advertising through Facebook, and writing content for the website, through which they educated the market and presented the benefits of property management services, proved to be the right and profitable direction.
Property management challenges
One of the biggest challenges that Mostar Property Management faces is the absence of a year-round season in Bosnia and Herzegovina. Despite the numerous natural beauties and rich history, the most significant influx of tourists is present in the summer months, when the company generates the highest revenues. The remaining part of the year, when the demand for accommodation reservations is significantly lower, is a challenge that Goran has faced for years. Still, thanks to good organization and intelligent management of costs and income, Mostar Property Management Company has grown into a leading property management company in BiH, employing eight employees today.
Goran also shared other challenges they face:
- Insufficient awareness and understanding of property management services, as well as insufficient awareness of the possibilities and advantages of using online sales channels
- Mistrust of card payments and insufficient understanding of technologies such as channel manager and PMS systems, dynamic price management, etc.
- Unrealistic client expectations and ignoring the advice of agents
Goran and his team regularly invest efforts in educating the population to rise to the mentioned challenges.
What has the growth been like over the years?
Considering the problems mentioned in the BiH market, we were interested in how the company’s growth looked from the beginning until today. From the initial six apartments in the first year, Goran told us that the client portfolio grew 100% yearly. They ended 2023 with 197 units, and Goran assumes that this number will increase to 250-300 units in 2024.
Of the listed 197 units, Mostar Property Management manages about 40 villas, while the rest are apartments. The company primarily focuses on managing units in Mostar and several apartments in Dubrovnik.
Thanks to the extremely high level of services it provides and the income it generates for its clients, the Mostar Property Management company has built a recognizable brand in the BiH market, which acquires new clients much more accessible. The clients’ satisfaction ultimately resulted in them being happy to recommend them, making word of mouth one of the key ways of acquiring new clients.
How do they measure business success?
One critical indicator of business success is the number of units they manage. Like any property management agency, they strive to create as large a portfolio as possible, but Goran emphasizes that they pay a lot of attention to controlling growth, i.e., to be in line with their capacities.
Of course, a larger portfolio implies higher revenues for the company, which is also one of the important indicators of success, as well as a higher number of employees, which grows in line with the growth of other business segments.
They attach great importance to their client’s satisfaction, so they take great care to provide each client with the maximum level of service, focusing on quality.
How does Rentlio fit into the whole story?
Mostar Property Management has been Rentlio’s client for over six years. Although not everything was perfect initially, given that Rentlio had only been on the market for two years, Goran decided that Rentlio would be the technological solution on their way to building a leading property management company in BiH. The trust shown has paid off as Rentlio has grown into a leading regional hospitality-tech company whose technological solutions are used in over 40 countries worldwide.
As one of Rentlio’s main advantages, Goran singles out exceptional customer support that answers every query within a few minutes and solves problems that arise just as quickly. Rentlio Channel Manager and channel synchronization are critical to avoid overlapping bookings, reduce employee manual work, and avoid mistakes when managing sales channels. The ease of use, the intuitive calendar, and the automation of daily business processes result in significant time savings, allowing the company’s employees to devote more time to clients and guests and increasing the company’s portfolio.
Goran clearly noted that the use of Rentlio played a significant role in the growth of the company’s portfolio from the initial 6 apartments to the figure of almost 200 accommodation units, with an annual growth of 100% from year to year.
“Rentlio played an important role in the growth of the company’s portfolio. Thanks to saving time on administration and optimization of business processes, from the initial six apartments, we have reached almost 200 units.”, Goran Novak, company owner
Mostar Property Management is a company that raises standards in all aspects, with particular emphasis on technological solutions. Along with Rentlio as a vital tool for property management, the company also uses the Pricelabs technology solution that is integrated with the Rentlio PMS system, which significantly increases sales results. Goran also revealed that they are working on creating a welcome application for guests, which will also be integrated with the Rentlio system via API. It is an application through which all accommodation information will be available to guests, and it will also contain a guide with recommendations for restaurants, coffee bars, attractions, excursions, and much more. This is another step for the company to complete its service and offer guests much more than just accommodation. It will also make it easier for property owners to communicate with guests and completely free them from administrative duties and recurring inquiries from guests.
Why choose a Property Management company?
The importance and role of property management companies are growing year by year, which is reflected in the growing number of units managed by such companies. Apartment and villa owners who are not ready to professionally rent and independently manage properties increasingly decide to leave things in the safe hands of seasoned professionals.
If you are a property owner in BiH and are looking for a property management company that delivers results, places great emphasis on quality, and approaches business in a modern and technologically aware way, Mostar Property Management is a safe choice.
Contact them today and learn more about the ways and conditions of cooperation.
