Thinking of setting up a vacation rental?
Although most people in America prefer hotel stays when traveling, vacation rentals are still a great way to make money. A rising number of younger travelers prefer using short-term rentals, so there's a thriving market.
But to make it work, as a host, you need to know how to balance the books. After all, your guests expect a price that's fair to them. You also expect to cover your operating expenses and make a decent side income.
Without further ado, here are the top vacation rental income tips every host should know.
1. Choose an Ideal Location
The first step to setting yourself up for success as a short-term rental owner is to find a location with great potential.
If you set up the rental in a location in a sleepy town without much travel activity, where do you expect to find guests? You need a location that's popular with visitors. Look for towns with tourist attractions or have a reputation for being vacation hotspots.
Although such locations typically have higher concentrations of vacation rentals, don't shy away from the competition. During peak seasons, there will be plenty of guests to go around, and there are things you can do to make your rental stand out from the crowd.
2. Listing Your Vacation Property
Once your property is operational, you want customers to know about it. The go-to marketing strategy is listing the property on vacation rental sites like Airbnb and VRBO. These platforms have millions of users, giving your rental a strong chance of being noticed by travelers who are looking to visit your area.
Listing your vacation rental property on multiple platforms does maximize your chances of getting more bookings, but you must be on alert to avoid double bookings. If you get multiple bookings for the same night, you must cancel the extra ones in good time; otherwise, you will be penalized by the platforms you're using.
3. Master Seasonal Pricing
The accommodation industry is defined by low and peak seasons. Warmer months see plenty of travel activity, while the colder seasons see a decline.
As a host, you have to master seasonal pricing. During the low season, adjusting your prices downwards helps attract guests, keeping your income flow steady. During peak season, increasing prices will maximize your income.
Platforms like Airbnb have built-in smart pricing tools. You just need to turn them on, and they'll adjust your rental's pricing depending on the season or demand.
If you're letting your rentals off these sites, be sure to get your price adjustments right. Observe market rates and keep your prices competitive.
Vacation Rental Income Tips for Hosts
Running a short-term rental isn't the easiest of jobs, especially if you don't live nearby or own multiple rentals.
Fortunately, you can take a hands-off approach and give yourself the best chance of earning the most income by hiring a vacation property management company. This is arguably one of the best vacation rental income tips for both beginner and seasoned hosts.
PMI Mountain Collection offers vacation rental management services, specializing in the Park City, UT market. Count on us to make you a successful host!