What you must know when you start your own vacation rental business
Starting a new venture is always exciting, especially when you are passionate about it. Making holiday dreams come true for a living is one of those endeavors.
A vacation rental business is a great way to meet new people and learn new things while making money. If you already operate in real estate consider it a good brand stretching. And for those just entering the realtor field, it provides excellent business opportunities.
Before investing in vacation rental properties, you should know what the pros and cons of a vacation rental venture are.
Pros for running a vacation rental business
The advantages of a vacation rental business arise from being a short-term engagement.
- You will be able to rent to multiple tenants within a year.
- During peak seasons you can have consecutive bookings which will pay the operating costs.
- Short term rentals benefit from tax breaks and have more flexibility than long term.
- Another high point is that your rental property will need less maintenance and repairs due to less wear from its tenants.
Disadvantages of running a vacation rental business
Of course, there are also disadvantages to operate as a vacation rental business.
- You will not meet only ideal guests. Some of them will cancel the reservation when your not expecting and others are a nightmare to deal with.
- You will have to manage maintenance and upgrades to beat the competition.
- And you should strive to make serious marketing efforts to keep up with the market trends.
If you decide that the pros weigh more than the cons and you can handle unexpected situations it’s time to start planning. Avoid jumping in without a clear strategy in your head and write down your goals and actions.
Plan the business ahead
The business plan is the first step to any solid action so take the time to note down ideas and expectations. If you are new to the business world, you might want the help of a professional, but first, check our article on How make a strong business plan for your rental business.
Your business plan should include:
- marketing, and
- financial strategies.
Set your rental rates based on the market analysis. A competitive price will get you bookings fast, pay up for the operational costs and make you a profit.
When the plan is ready, you can start preparing your home to be ready for rent.
Make your home ready for rent
Before publishing your offer on your site or other platforms make sure that the home is ready for rent. This includes all the repairs, decorations and home staging for a professional photo session.
Furnish your rental to ensure a comfortable stay and to make your guests feel at home.
Ensure the functionality and decorating of the kitchen and bathroom first, as they are amenities expected by each guest.
Advertise your rental property online
Start advertising your offer on every channel available. Social media is an excellent medium to get your rental know without paying. You will reach a broad audience by listing on other sites that will cost the publishing fee.
Another way of advertising your offer and have the full control over your listing and money earned is building your own rental website. In WordPress, this is easily done with dedicated pre-build themes, such as Wp Rentals theme.
If you are going with a website, make sure to include ways of closing deals online and to be able to sync calendar availability between all the platforms where you advertise the property you rent.
The reservations and payment should go smoothly so ensure yours have all the contact, booking and payment forms and systems on your site. This will make your visitors confident about the business your run. All this is possible with WP Rentals WordPress theme.
The vacation home listing should be impressive and invite for your future guests. Ensure they will know all the necessary details and provide excellent photography to highlight the best features. The photos should be able to create a virtual tour for your audience. Enable two-way communication and make your listing have a review or comment section. This will showcase the social side of you and encourage people to get in touch.
Other issues to manage before launching your rental venture is the people you will work with. You will need a team of professionals from desk manager to accountant and cleaning team. Customer service can make or break your business so this is another important part of your plan.
Managing your own firm comes with big responsibilities but it’s also fun and profitable. And the rewards are higher when you are your own boss. Starting a vacation rental business may be challenging but will also open new doors. Because it is customer-oriented and highly flexible, it will use your creativity and give you a confidence boost, all while making money.