According to a research report, “The global vacation rental market was valued at $87.09 billion in 2019 and is expected to expand at an annual growth rate of 3.4% from 2020 to 2027.
If you have a spare property, it can fetch you tons of money in a short time. There are loads of short-term rental sites like Airbnb, Booking.com, VRBO, etc that offer excellent opportunities to property owners when they put up their properties for vacation rental on these websites. If you have never thought about this, now is the right time.
To give you further clarity on how you can earn handsome bucks with your spare property, here is a comprehensive list of some great tips for a first-timer vacation rental owner like you.
Top 5 Tips to Earn Extra Money Through Short-Term Property Rentals
To start with a vacation-rental business, you need to first figure out things like the demand for rentals in your location, the estimated price that you can seek from your property, and how you can manage your property when it gets rented. You also have to find out about the local tax structures and the ground services that you can avail of in your location.
Further, you need to chalk out a plan about how you would like to position the property on the vacation rental websites so that prospective customers can find it without much effort and you offer excellent customer service to your prospective renters to keep your property occupied during the holiday and tourist season.
Often, when you are handling the vacation rental property all by yourself, it can get difficult to multi-task. Managing all the bookings and communicating with the renters, can become a hassle that you need not necessarily take upon you. There is short-term rental software like Lodgify that can be of great help. It’s a one-stop-shop for accepting property rental bookings and managing reservations. Whether you are just starting a vacation rental business or been there for a long time, Lodgify offers everything you need to multiply your income and occupancy.
What are the things that you need to keep in mind before renting out your property?
Guests in the hospitality industry can be broadly classified into two categories – the people who prefer comfort over everything else and the other category would be okay with anything. The best ones are those that choose comfort over the price of the rooms and are willing to pay more for any additional services that you offer as a host. They usually look for quality and appreciate every little gesture from the host. If you get such guests at your property, you can be certain that they will look after your property like their own and will never leave any mess while checking out.
Regardless of the kind of guests you receive at your property, they can bring a lot of revenue for you. So keeping these factors in mind, there are certain things that you need to consider before opting for a vacation rental business.
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Chalk out a good plan before renting out
There are several things that you can do with your property before putting it up for rentals like implementing automated systems and hiring a caretaker for the property. Only when you pay attention to even the minutest details that a renter can seek, it can make a difference to your chance of getting a rental. If you portray professionalism, it can make a significant difference in the review that you receive on these vacation rental websites.
Create a beautiful portfolio for your property and place it in different vacation rental listings like Airbnb, Booking.com, etc. Creating a portfolio is easy now with the help of a Piktochart. It is an online presentation maker that is absolutely free and comes with a host of features. You can use this tool to create a great visual presentation of your property and attract renters through vacation rental listings.
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Be the manager of your own property
No one knows your property better than you do. This alone can make a huge difference when it comes to renting out your property. Instead of hiring a professional property manager, you can manage the property by yourself. That way, you will not only be able to take complete control of the rental calendar for your property but also be able to offer a positive customer experience to all your renters.
You’ll be a part of the entire renting process and make an impact on the property rented. You have to put in a bit of effort and take care of the online listing and book the rooms for your guests, help them with the check-in and check out and also deal with other guest-related issues. Further, you need to manage the occupancy taxes and schedule housekeeping services.
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Determine the property pricing with care
There are a few questions you need to consider before deciding on the pricing of your property. Ask yourself – why would the guests choose your property instead of a hotel? Is it because they want to save money?
The answer is usually no. They are looking for a good vacation experience. People who choose vacation rentals are those who value their privacy over other things. They look for quality and excellence in customer service.
When you price your property keeping the above in mind, it can make a significant impact on your total earnings from the property. Use occupancy-based pricing for your property. The pricing will depend on the number of people staying on your property. You may want to consider two people sharing a double bed. That way, even if two people are renting the property and are using two different rooms, you can charge more for each room.
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Focus on the minute details
There are numerous listings on the web which can make vacation rental a profitable business for you. But from the perspective of a traveler, they too have lots of options to choose from. Ever given a thought as to why they would choose your property for their rental? You have to create a strong Unique Selling Point (USP) for your property that will attract visitors.
Turn your focus towards a quality listing that highlights the good sides of your property and gives adequate details about the amenities that you offer. Good and reputed listings will also provide travelers with excellent quality photos of your property so that the visitors can make an informed choice.
Provide your potential renters with the expected amenities like Wi-Fi and a well-stocked kitchen, bedroom, and bathroom accessories. You can also go out of your way and offer large-screen television, gaming systems, and even Netflix subscriptions and cable channels. Put yourself into the shoes of your renters. Think about what you would have liked if you were a renter at that property.
People love having a personal touch when they opt for a short vacation rental. They’d like to feel at home while vacationing and hence they have chosen a rental instead of opting for a hotel stay. Provide them the experience that they are looking for. Add a personal touch with a fresh bouquet thanking them for choosing your property. Such small cozy touches can go a long way as this experience makes their stay a most memorable one.
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Offer discounts for a longer stay
Why would you want the guests to stay at your property for a longer period? Simply because it will reduce your housekeeping cost yet provide you with good rental value. For instance, if your property gets a single guest for three days a week, it means you have to opt for three housekeeping services. But if you have one guest staying at your property for a month, it means one cleaning service. You can save a ton of money on housekeeping costs.
Regardless of which listing you are using for renting out your property, you can offer lucrative discounts to your guests if they stay for a longer period. But do not forget to adjust your pricing seasonally. Plan your pricing in such a manner that the property rental is higher during the Summer and Christmas times. You can aim for long stay bookings during the rest of the year. You may want to charge at least 20 to 30% higher prices during the peak seasons.
Conclusion
When you implement the right strategies and make use of the correct resources, you can turn yourself into a successful vacation rental owner and earn a handsome amount every year.
In this pandemic situation, most property owners are looking for a side hustle to earn some money. Tourism will never go out of business. There is hardly anyone who doesn’t like to travel. Having a spare property can bring you a steady revenue in the form of a passive income.
In the Comments section below, let us know what tips have you implemented to establish your vacation rental business.
Author bio
Atreyee Chowdhury works full-time as a Learning Experience Designer and is passionate about writing. She has helped many small and medium-scale businesses achieve their content marketing goals with her carefully crafted content that is both informative and engaging. She lives in Bangalore, India with her husband. She loves to read, experiment with different cuisines, travel, and explore the latest content marketing and L&D trends in her free time. You can reach her on Linkedin or write to her at atreyee.c@gmail.com.
