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Renting out a home is one challenge, and buying a vacation house is another. However, if you’re embarking on the process of doing both of those things — especially if it’s your first time — there are bound to be a few bumps along the way. That’s where some beginner’s vacation rental tips can come in handy.
While owning and renting out a vacation home might seem like a lot to handle, it’s a great opportunity to create a passive stream of income, own an investment property and, of course, have somewhere lovely to go should you ever need to step away yourself. Here are a few amazing tips for vacation rental owners to keep you in-the-know on the vacation rental game.
- Conduct Rental Market Research
- Check Local Laws
- Formulate a Great Welcome Packet
- List on Airbnb and Other Vacation Rental Sites
- Welcome Guest Feedback
1. Conduct Rental Market Research
The key to profit over the long-term is securing a steady flow of reservations. How do you know your vacation rental is going to attract vacationers?
One of the first things you should do — ideally before you even buy your vacation rental property — is research neighborhoods you like, property values, and where you can get the best ROI on the money you’re spending.
Figure out exactly what the market is like in the city you’re looking in, and then plan accordingly. Sometimes, this can be more of a long game than a sprint.
2. Check Local Laws
Each city and state will have their own vacation rental policies, and it’s up to you to make sure you stay in line with them. While this isn’t always the case, different state and local governments may have restrictions on vacation rentals that you will need to be in compliance with.
Keeping everything above board is a must, so make sure you check with local guidelines before you do anything else. If you have questions, reach out to local officials to make sure your new business venture is meeting requirements.
3. Formulate a Great Welcome Packet
We’ve handled the paperwork and you’re ready to start accepting bookings. It’s time to start on your welcome packet and guest instructions as early as you can.
Anthony Vaarwerk of Find Rentals, a vacation rental property booking channel, tells us the welcome book and detailed manual is a key vacation rental tip for new owners. Guests should be aware of the rules and how-tos of their temporary home — a move that helps them feel at home and lowers the amount of communication you need throughout their stay.
Make sure to add local restaurants, destinations and directions in your book, too. Not everybody comes into a vacation with a concrete plan in mind. Ask around for recommendations and include all your favorite spots so your guests trust that their host is a local expert.
4. List on Airbnb and Other Vacation Rental Sites
If you’re specifically looking to get short-term renters, using hosting sites such as Airbnb, Glamping Hub, and other digital spaces can bring in major business. On these sites, guests tend to search by location, so your address can literally do the work for you.
Plus, these sites offer standardized processes and regulations so nothing can get lost in the shuffle easily. As a new vacation rental owner, you might not want to start out by crafting your own booking system. You’ll just need to manage communications and requests across the platforms you prefer.
5. Welcome Guest Feedback
This one can sometimes be tough to swallow, but you’re new at this, and you’re still learning. Keeping an open ear to guests’ needs and suggestions can not only help them have a better experience, but it can also help you offer better services and bring in more guests.
Monitoring reviews on social media and listing sites is especially key. Survey data indicates 91% of young customers trust online reviews. Taking time to thank guests for their feedback and respond positively to even critical reviews can help you develop a good impression for potential guests.
Vacation Rental Tips for New Investors
If you’re a first-time vacation rental owner, you may still be adjusting to the learning curve. But as time goes on and you get used to the flow of things, you’ll learn everything you need to know and more.
No matter where your vacation rental is, you can sit back and relax knowing your guests are having the best experience possible, thanks to you.