How To Make Money With A Vacation Rental Property?
Vacation rental properties are fast becoming a big business. The holiday rental industry is expanding at a rapid pace leaving behind the hotel industry in terms of growth rate. Many entrepreneurs are stepping into the vacation rental market to grab a slice of the billion-dollar market. The vacation rental space is fiercely competitive, and the tolerance level of the Travelers is on the lower side. You have to achieve perfection if you want to sustain your business.
The good idea is to follow a proper guide to make money from your vacation rental property. Haphazard planning and last moment changes will not do you any good. We will today highlight a step-by-step guide which you can follow to make money from your vacation rental property.
Choosing The Right Property
You have to be careful right from the start. Not every property is suitable for the vacation rental market. When you select the one, it is essential to make the right buying decision. There are a few factors which you should keep in mind when buying a vacation rental property. These are:
Location of the property: Ideally, when you’re buying the property to convert it into a vacation rental, it should be located to the major tourist attractions in the area. You have to shortlist it based on these criteria.
Seasonal variation: you have to look at the location of the property and determine whether it will suffer from any seasonal variation. If the area suffers from seasonal variation, it is a good idea to avoid that property. Ideally, the property which can remain occupied throughout the year is a good choice.
Size of the property: the more the number of bedrooms, the higher will be the per nightly rental of the property. You have to keep this thumb rule in mind when selecting the property.
Rules and regulations in the area: Different cities and counties have different rules and regulations. You have to also find out about the ordinances of the homeowners association. Once you are clear about the legal side of things, then only you can go ahead and buy the property.
You have to consider these few points when choosing the vacation rental property. Once you have bought the right property, it is time to pull up your socks and jump into the fiercely competitive vacation rental market.
Getting The Aesthetics Right
Irrespective of the current condition of the property, when you’re putting it up for a vacation rental, you will have to improve the aesthetics nevertheless. You need to ensure that the guest experience is top notch in your property. Only then, you can get consistent bookings. There are a few ways in which you can upgrade the aesthetics of the property. These include:
Get the bed right: sleep quality is one of the most important factors to consider. You have to choose a fluffy bed like hotels. You have to ensure that there are numerous pillows to help you guess to sleep better. The photos of the master bed will also help you go viral on social media. That is why; you have to look at comfort as well as the aesthetics.
Equip the kitchen: many vacation rental owners think that a functional kitchen is good enough. It is not true. You have to equip it with measuring bowls, pans, baking sheets, and other such accessories. It should be a full blown kitchen similar to the professional kitchens. You have to also keep a guide for the guests, which highlights the equipment available.
Do not forget the windows: Curtains can add to the look of the property. They are one of the easiest ways to upgrade the look of your property.
These changes alone can easily upgrade the aesthetics of your property. If you think that there is more to it, you can even hire the professionals to enhance the entire property. However, renting out the property in its current form can be a huge mistake. It is necessary to get the aesthetics right before renting your property.
Marketing Your Property
The vacation rental market is no longer a small one. It is a billion-dollar market consisting of more than 10,000 homes globally. Without proper marketing, you cannot gain consistent bookings. There are a few steps which you have to undertake to market your property. These include:
Hire a professional photographer
Create a virtual tour for your guests
Write an accurate description of your property
Optimize your listing
Create a dedicated website for your vacation rental
Use display ads to market your property
Use SEO to get more visitors
Create social media channels for your property
When you follow this checklist to market your property, it will be easier for you to get consistent bookings. Moreover, you can build a fan following which will eventually allow you to get back to back bookings without any problem.
Upgrade Your Property
You might wonder what we exactly mean by upgrading the property. We have already covered getting the aesthetics right. By updating the property, you will add a few amenities to your property. We will share with you some examples below.
Many vacation rental owners think that adding a hot Tub is an unnecessary expense. However, it can help you increase your revenue by at least 20%.
You should have a proper Wi-Fi connection in your home. It will help you keep the guests happy.
These are just a couple of examples which you can incorporate into your vacation rental. The more amenities in the vacation rental, the easier it is for you to get good reviews and consistent bookings.
Set The Rates Right
The vacation rental market is becoming similar to the hotel market when it comes to the nightly rates. If you think that you can keep a uniform rate throughout weekends and weekdays, you are entirely wrong. You have to change it as per the demand and the seasonal variations. There are a few tips which you can follow in this regard.
You should follow the dynamic pricing model.
Initially, you should work with wafer-thin margins.
You should always study the rates of your competition before deciding yours.
You should not shy away from charging for extra occupants.
When you follow these few tips to set the rates right, it will be easier for you to price your vacation rental attractively.
Manage Your Property Smartly
Even when you follow all of the steps above, there is a lot of work remaining. It is a good idea to manage your property intelligently. These days, there is Vacation Rental Management Software available. They can help you manage your calendar and also help you communicate with your guests in advance. They provide you with all the information, including the rate, number of occupants, guest details in a single dashboard. Hence, it becomes easier for you to manage your property smartly.
If you still use the pen and paper method or spreadsheets to manage your property, it can take a long time to jot down a few details. A much better option is to use dedicated software to manage your property. It will significantly reduce the time which you need to devote to your property. As a result, you can focus on other essential things rather than just going through the spreadsheets or stacks of papers again and again.
Reviews are the life and blood of your vacation rental. Without reviews, it is challenging to get any bookings. You have to encourage your guests to leave your reviews. Some of the advantages of reviews include:
You can experience a rise in bookings with more positive reviews.
The visibility of your listing increases when you get more reviews.
The chances of getting repeated guests are also higher.
You can email your guests or send them a text after the checkout to leave you a review. It is against the policies of many platforms to incentivize your guests to leave good reviews. That is why; you have to check the terms and conditions of the platform into account before contacting your guests for reviews. A single text or email can go a long way in getting some good reviews.
The vacation rental industry is an industry which always keeps you on your toes. If you’re complacent about your kind reviews and higher rankings, you might soon have to deal with things like batteries. Batteries are part and parcel of the vacation rental industry. It is how you react to them which will determine the success of your business in the longer term. There are a few tips which you have to follow if you want to stay on top of your industry consistently.
Learn from the bad reviews: Instead of ignoring the bad reviews or bashing them, you have to learn from the bad reviews. Most likely, customers might have a valid point. That is why; you have to always learn from the bad reviews.
Making improvements to your property The vacation rental industry is always raising the standards. That is why; you have to make consistent improvements to your property. It will allow you to wow the guests and get good reviews consistently.
Build trust and credibility: The guests booking your property are doing so because of the faith and credibility which you have established. You have to continue developing trust and credibility. You have to respond to your guests right away and answer their questions and queries if you want to make them feel comfortable. You should demonstrate from your behavior that you care for your guests. Only once you do so, you can build trust and credibility among your guests.
When you’re looking to make consistent money from a vacation rental property, it is vital to adapt consistently. Only when you’re on your toes and willing to make the guests experience better with every booking, you can remain in business for a long time.
Keep A Watch On Competition
We are not asking you to create your competition. That would be counterintuitive. However, it is necessary to keep a watch on your competition to adapt consistently. You have to ensure that you are offering the best deal to the customers for the lowest possible price. You have to monitor your competition to understand better how you can raise the bar even higher.
The vacation rental industry is still in nascent stages. That is why you have to aim to learn from your competition. When you do so, you can indeed make the stay of your guests much more memorable and worthy.
Deal With The Wear And Tear Right Away
Once your property gets popular, it will suffer from wear and tear due to regular bookings. The faster turnaround might not always provide you with the opportunity to deal with that wear and tear. However, ignoring the wear and tear has its perils. It can leave the guests disappointed. The software which we highlighted above can help you keep track of the last maintenance done on the property. You can set a specific frequency at which you have to supervise and repair the property. Ideally, you should inspect it after every checkout. You should not balk at the repair expenses.
You have to keep in mind that the expenses when it comes to repairing the wear and tear will eventually come & your business will start to suffer. That is why you have to let go of the profits to keep the property in proper condition. Since you need to get the wear and tear repaired in a short period, it will probably cost you more as compared to ordinary repairs. You have to be ready to pay extra. With the management software, it is possible to keep all contacts handy and minimize the time for repairs and also keep track of the expenses.
When you follow these few tips, it is effortless for you to deal with the wear and tear right away. Maintaining the property is not that much of a difficult task. When that is the case, it is easy for you to keep the property in perfect shape and keep the guests satisfied as well.
So, if you’re looking to make money from your vacation rental property, you can follow our guide above. The guide above will help you manage your property like a professional and ensure that you get good feedback from your vacation rental guests. It will help you build a sustainable business model around your vacation rental which will help you mint money every week and create an additional revenue stream. It is not that difficult to make a significant amount of money from your vacation rental