Real estate investors are increasingly realizing the advantages of vacation rentals as an investment property. A recent study by Goldman Sachs showed that more and more people are now opting to stay at vacation rentals rather than hotels. Currently, there are almost 700,000 U.S. homes listed on Airbnb alone. According to a recent Global Vacation Rental Market Report, the vacation rental investment market is expected to be worth $170 billion by the end of 2019.
However, with more people investing in vacation rental properties, competition becomes more intense. Property owners must, therefore, keep improving their marketing, offerings, guest experiences, and amenities in order to make profits from their short-term rentals. Here are 15 vacation rental tips for owners to help you do just that.
15 Best Tips for Vacation Rental Owners
1. Update Your Description
Property owners usually list their properties on a few different vacation rental websites like Airbnb or VRBO. The copy of your home listing should be updated regularly in order to keep it relevant and appealing. Be sure to update the description:
- When you renovate the home and add new amenities
- When a new museum, train station or restaurant opens nearby
- When seasons change e.g. form winter to spring
2. Use Photos Properly
When it comes to vacation rental property listings, photos are everything. You need to learn the art of creating brilliant and eye-catching photos. Here are some ways to do this:
- Use composite lighting techniques to display a home’s interior and exterior
- Arrange your photos in order to help visitors understand how the rooms connect
- Add a detailed floor plan as an image
- Use as many photos as possible to showcase your home extensively
3. Make Visits Memorable
This is one of the most important vacation rental tips for owners. Giving your guests a unique experience at your vacation rental will result in great guest reviews, repeat bookings, and a good return on investment. You can make visits memorable by offering:
- Professional and friendly customer service
- Clean and sufficient amenities
- Clear printed rental instructions
- Personalized suggestions for events
4. Work on Your Rental Property’s Interior Design
Most people look at the interior design of the vacation home before making a booking. A unique chandelier, a bookcase in the corner, traditional décor and local art are simple additions that could improve the appeal of your rental property significantly. If you don’t have an artistic eye, consider hiring a professional interior designer.
5. Maintain Your Outdoors
When sprucing up the indoor living spaces of your condos or single family homes, don’t neglect the exterior spaces. Make sure your decks along with their chairs and tables are in good condition. You should also pay attention to your fire pits, patios, hot tubs, outdoor grill, and swimming pool. Investing in your outdoor living space will pay off in the form of more bookings.
6. Update Your Kitchen
Many potential guests are looking for vacation homes where they can cook their own food. Therefore, a kitchen renovation could improve the appeal of your vacation rental property significantly. You could add more storage cabinets, buy better cutlery, improve the lighting or change the faucets.
7. Leave a Detailed Manual
Heating systems, kitchen appliances, sound systems, and smart TVs could be very confusing to guests who have never used them before. You should, therefore, create a manual for every function or item in your vacation rental property. Topics covered could be ‘How to use gates, electronic locks and systems’ or ‘How to program the thermostat’.
8. Add Luxurious Items
Adding a luxurious touch to your vacation rental investment could give you an edge over the competition in the long run. Some of the items you could add include electronic entry, coffee machines, climate control and connectivity systems, stainless dishwashers and range stoves, and marble or granite counters in the bathroom and kitchen.
Related: Best Ways to Make a Big Difference with Small Changes to Your Vacation Rental
9. Respond to Guest Reviews
When it comes to vacation rentals, reviews can make or break your business. As a landlord, be sure to regularly check and respond to reviews about your rental property- whether good or bad. Responding to reviews promptly shows your engagement with and commitment to the guest experience. It could be something as simple as thanking your visitors for coming. This is one of the most crucial tips for vacation rental owners.
10. Establish Your Goals
From the onset, you need to figure out your ultimate objective for renting out your vacation home. This real estate investment goal will have an impact on all your decisions concerning the investment property. Is the vacation home solely an investment vehicle? Or is it meant to be a second home for your family?
11. Use Dynamic Pricing
When it comes to how much to charge for rent, your rental rates should never be fixed. Some of the factors that influence the demand for your investment property include seasonal demand, length of guest stay, the average price in the neighborhood, and Airbnb occupancy rate. Keep track of these factors and adjust your rates accordingly. You could also use vacation rental software such as Mashvisor’s rental property calculator to price your property correctly. This site comes with numerous Airbnb comps and even helpful Airbnb tips.
12. Share Local Knowledge
Travelers want to know more about their destination before arriving. You could use social media, blogs, and create Vacation Insider Guides to share such information freely. When people see you as the go-to authority in the area, they are likely to stay at your rental property.
13. Network with Other Owners
The successful vacation rental owner does not work in isolation. They love learning and sharing their knowledge with others. Therefore, you need to make time to regularly network with other owners. This could be in online forums, social media groups or face-to-face meetings.
Related: How to Build a Real Estate Network You Can Really Rely On
14. Treat Your Staff Well
This is one of the most neglected vacation rental tips for real estate investors. Your handyman, gardener, caretaker, and other staff are very crucial to the success of your rental business. Treating them well will enhance loyalty, thus resulting in the smooth running of the business and happy guests.
15. Respect Your Guests
Valuing your guests highly will result in consistent positive reviews, repeat business, and positive cash flow. Even when guests are too demanding and unreasonable, learn to appreciate their needs and communicate appropriately. Treating difficult people with respect could end up turning disgruntled guests into regular customers.
Related: How to Stay in Touch with Your Vacation Rental Guests
Conclusion
Simply owning a vacation rental property is not enough to earn a profit. Every real estate investor should learn how to make money on vacation rental property. If you follow the vacation rental tips for owners mentioned above, you can succeed.