BONUS MATERIAL: 8 Mindset Money Hacks Guide
You've been working hard all year and finally took the plunge to become a vacation rental owner. You're enjoying meeting new people and watching them explore your city, but you're not seeing the profits you were hoping for. You know that with a few tweaks, you could be making more money and hosting even more guests!
There are a few main things you can do to increase your vacation rental income; such as getting your rental booked more often, using dynamic pricing during off-season. Also upgrade your property so you can ask for a higher price. Put a repeat and referral system in place. And think of ways to decrease costs, which also puts more money in your pocket.
In this article we'll review a few of these ways to increase your vacation rental income. In a previous article about investing in short term rentals I mentioned , the challenge with being in the short term rental marketplace is you're not just a real estate investor you're a hospitality manager.
You're providing an experience for your guests, not just providing a place for tenants.
The secret to higher revenue, more profits and increasing rental income is keeping that top of mind. Develop a hospitality mindset.
For the actual tactics and tips, keep reading.
How to maximize your profit
As I mentioned above, the challenge with being in the short term rental marketplace is you're not just a real estate investor you're a hospitality manager. You're providing an experience for your guests, not just providing a place for tenants.
Here Are A Few Tips To Increase Your Vacation Rental Income
• Respond quickly to inquiries.
The faster you can get back to potential guests, the more likely they are to book with you.
Being quick to respond to inquiries is key in making sure you don't lose out on any potential guests. Often, people are browsing through a number of different options and if they don't hear back from you quickly, they may move on to another option. Make sure you have someone assigned to check your emails and messages regularly so that you can reply as soon as possible. A speedy response conveys that you're interested in hosting them and are available to help them with anything they need. It also makes for a great first impression!
• Make sure you have a good internet connection.
Guests will need access to the internet for things like checking in and out, booking reservations, and finding information about the area. (Unless your vibe is off-grid and getting away from it all. Could be the move in today's world.)
• Furnish the property with everything guests will need.
This includes things like linens, towels, dishes, cookware, and spices. You may also want to provide things like shampoo and soap. Coffee and a coffee maker are a big deal. Don't forget the coffee.
• Things in the house for guests to do
Having things for guests to do is a great way to keep them occupied and entertained. This could include things like books, games, movies, streaming service or even a ping pong table.
The weather isn't always going to cooperate with a guest's stay, so to make sure they still enjoy themselves, make sure there are things around the rental.
• Have a welcome package that includes information about the property, the area, and local attractions
Provide contact information for the property manager or owner, and make sure that someone is available to answer any questions or address any problems that guests may have. Guests will appreciate having everything all in one place.
• Have a good marketing strategy
Taking photos of the home with your phone is a big no-no. Hire a professional photographer for this job. Make sure you write an informative property description. List all the nearby amenities and benefits of staying at your place. The best stores, coffee shops, restaurants, and parks. Anything that could be of interest to your potential guests.
• Create a listing on websites
Use sites like Airbnb, HomeAway and VRBO. These websites allow guests to search for properties to rent by location, amenities, price range and more.
• Encourage guests to review the property
On sites like TripAdvisor or wherever they booked from, guests can leave a review of your property and their stay. Positive reviews can help attract new guests and generate repeat business.
• Set up a website with a direct booking calendar.
You can create your own vacation rental website very easily. Think about how to reward repeat guests and referrals from them with special deals. Once you have some loyal guests you can start to even out your cashflow and make your occupancy rate more predictable.
Direct booking is more popular than Airbnb and VRBO combined.
If you don't have a way for guests to direct book not only is it costing you in booking fees. You're probably leaving a lot of money on the table.
There are a lot of different software options to create your own website.
Once you have your website set up, make sure you add a direct booking calendar. This will allow guests to book without going through the third-party site.
• Use dynamic pricing.
Uber and ride-sharing apps do this. When there is higher demand, the price increases. Less demand, lower prices. You could do the same thing with your vacation rental property. During the summer, weekend, a special event going on, you maximize the price. Middle of winter, weekday, no events, the price gets very low. Maybe low enough price to attract a guest thinking, "Why not get away for a couple of nights at that price?"
• Update your property
It goes without saying, the property needs to be clean, fresh paint, new furniture, etc. But also take an honest assessment of your property and look at the features and amenities.
Can you only charge so much because the vacation rental is dated or not as modern as others?
Keep in mind, guests have a choice. They are going to spend their hard-earned money somewhere. Are they going to spend it with you? Or with your competition? Many people and families only get to have a special vacation once a year. Why would they spend it at your property?
What amenities are guests willing to pay extra for?
Take a look at your competition. Assess what they're doing, offering, and the prices.
Does one vacation rental have a hot tub, charges more and always seem to be booked?
Does one place have an outdoor kitchen or gas grill? Fire pits? A putting green?
Vacation rental properties are a great investment and can be lucrative if you know how to keep your property occupied. In this article, we’ve outlined some of the key ways that will help you increase revenue from your vacation rentals. Keep in mind that it takes time to get started with these strategies- they won't work overnight but by following our tips, you'll eventually start making more income than before!
If you are looking for more information on vacation rental properties, please check out our other blog posts or contact us for help! We're always happy to help.
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