Having a vacation rental property is an excellent alternate option to earn some extra income. Thousands of people are entering the vacation rental industry, as it is one of the fastest-growing and most lucrative industries in real estate.
It may seem a very simple investment from the outside, but a lot more goes into a vacation rental than just buying and offering it to vacationers for rent. Whether you are a first-time investor or a seasoned real estate investor, this article will help you how to make money with vacation rentals and guide you on your real estate journey.
Research
The first and foremost thing when it comes to investing in a vacation rental is doing thorough research about the listing sites (figuring out which listing sites are the best), learning about vacation rental tax guidelines (local regulation and taxes may reduce the profit drastically), and potential occupancy rate (to get a clear idea on potential occupancy rate it always good to reach out to local real estate agent), and absorbing industry knowledge that will pave the path to a successful investment.
Location
Location is by far the most important aspect of buying a vacation rental property and one of the deciding factors impacting profitability. For example, if you purchase a vacation rental property that is near popular attractions like a beach or amusement park. The weather is another important aspect that can impact the outcome of your investment, so you need to select a location that is desirable throughout the year so that it will fetch more income.
Buying Right Property
Choosing the right property will be having a great say in making or breaking your profit margins. The size of the property is a very important aspect when selecting the property. More bedrooms and bathrooms mean you can charge more per night, but, should be manageable successfully and generate sufficient revenue to cover the expenses.
Furnish and Decoration
Creating a beautiful space (with neutral colors) in a vacation rental property is one of the easiest ways to increase curb appeal. It will not just help in bettering the guest’s experience but also will be a great way of marking your vacation rental property. For example, dress up the windows with light and airy curtains for the living room, good quality and recommended numbers of pillows, and fluffed-up cozy beds for bedrooms, etc. In order to avoid any mistakes, you can hire a professional designer to decorate your rental vacation home.
Amenities
To make the vacation stay more comfortable and enjoyable for your guests, it is necessary to stock your rental vacation home with the right amenities. The best option would be to add basic amenities like T.V, fully functional kitchen appliances, etc. first, and adding some extra luxury amenities like hot tubs, a game room, a mini-theater, high-speed internet, etc. will take your rental vacation home to the next level. It is always good to keep a reliable checklist to ensure that you haven’t missed anything important. And according to data, providing pet-friendly options generate more revenue than those who didn’t.
Marketing
In order to attract potential guests to your vacation rental home, you need to optimize your listing. Photography of property can dictate the success and failure of your investment, so investing in professional photography can improve your listing. Enabling and investing in a virtual 360° 3D walkthrough of your rental vacation property can help guest to determine how good the property is and in return increase the number of bookings. Listing your property on the best rental sites, updating catching titles for your property, and a short and accurate description of the property that can supplement the photographs are some of the strategies to increase outreach.
Calendar
Keeping an outdated calendar can create lots of confusion while booking, so it is imperative to keep your calendar up-to-date. If you have listed your property on multiple listing platforms, then it would become more challenging and might lead to a potential negative travel experience for a traveler, and that in turn would impact future booking.
Pricing
Pricing your vacation rental home can be tricky and has to have a balancing act. The rental vacation home rate needs to be high enough to cover both fixed and variable costs and at the same time still attractive enough to compete against market demands. As with any other business, vacation rental too requires the right pricing strategy and the right approach that will ensure and help you maximize the profit during the market fluctuation.
Room for Review
The vacation rental business very much relies on reviews and any business having a great reputation among the users receives major chucks of business because customer reviews determine how good or bad the experience was. Positive reviews from guests add value to your rental vacation business and receiving a negative review offers an opportunity for the host to improve the facilities that are lagging behind. Learning from a negative review will help you gradually improve the overall guest experience and create a link between the host and the guest that is built upon trust.
Bottom Line
These are our tips for you to become a successful host and make a profit margin from your vacation rental home. If you are looking for a partner who can help you make the most out of your vacation rental home, then you are in the right place. HolidayKeepers ensure you earn more and grow your business. With our powerful strategic tools to streamline your business and an easy-to-book platform, we ensure the host has a stress-free experience and the guests have a fabulous vacation experience.
