Most PMC founders try to grind their way to the next stage of growth.
It almost never works.
I've spent the last two decades inside this industry - building Interhome, co-founding Vacasa Europe, chairing MadeComfy, and today advising more than 50 PMCs across 20 countries.
Same pattern, every market. From the Caribbean to Australia.
There are five levels a short-term rental company moves through. And there is one very specific transition where more than 80% of operators hit a wall and stay there.
It isn't market entry.
It isn't scaling past 100 units.
It isn't the exit.
It's the move from Level 2 to Level 3.
Here's why that one is so brutal:
Below 200 units, the business runs on the founder's grind. The team hustles, and the hustle covers the structural gaps.
Above 200 units, the hustle stops working. The business has to run on structure, not effort.
That's not a tactical change. It's an identity change - for the founder, for the team, and for the way every decision gets made.
Most operators respond by pushing harder. So the gaps get exposed instead of hidden. Margin stalls. Cashflow gets tight because working capital grows faster than profit. The team is busy, but nobody owns an outcome.
And everything still runs through the founder - who is now the single point of failure for the whole company.
What actually gets you through:
A real management team with real decision rights
One master system the rest of the stack conforms to
Defined KPIs with named owners
A founder who stops doing the work and starts running the business that does the work
In the new episode, I walk through all five levels - 1 to 50 units, 50 to 200, 200 to 750, 750 to 2,500, and 2,500+ - what breaks at each one, the most common mistakes I see, and what structurally has to change to move up.
Because the level you reach is determined by one thing: what you are willing to leave behind.
The full episode is now live.
Best,
Simon
PS: If your PMC is growing, but everything still runs through you, this is exactly the work I do one-to-one with operators. We look at where your structure is breaking, what is holding you at your current level, and what needs to change to reach the next one. If that sounds relevant, book a call with me here. No pitch. Just a straight conversation about where your business is and what is keeping it stuck.
CLOSING THOUGHTS
The very nature of vacation rentals is what makes them one of the more complex options within hospitality. There are many variables and many opinions.
That is why many people bet on technology to make managing them easier. But it is not about simply piling on new technology. It is about educating your partners and understanding that humans are still essential, especially at the last mile.
This newsletter and podcast are brought to you thanks to AJL Atelier.
AJL Atelier is a globally recognized consultancy, specializing in the Short-Term Rental (STR) industry, known for our unique blend of trend forecasting, consumer insight, brand strategy, and innovation.
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