Investing in vacation rental property can be a lucrative source of passive income for years to come. How much money you can make from your vacation property rental depends on a multitude of factors, such as the location of your property and on how much money you have invested in it. According to Airbnb, an average property owner makes about $11,000 a year. However, HomeAway statistics are higher, and it claims that their average property owner earns about $33,000 a year in rental income.
While renting out your property requires a robust comprehensive strategy, the effort is often worth the income you can generate. Many vacation property rentals now make around $2500-5000 a month for their owners while others claim to break even on their investment on a yearly basis. Here are a few ways you can maximize profit on your vacation property.
A Strong Marketing Campaign
It is essential to give your vacation property the exposure it needs. Good exposure leads to interest, which in turn results in booking offers throughout the year from your target audience. A strong marketing strategy can help put your vacation property on the map; literally. It has become vital to list your vacation property on listing websites such as Airbnb, HomeAway, VRBO, Trivago, Expedia, and TripAdvisor and work on cross-platform promotion and review generation.
The biggest mistake you can make is not listing your vacation property on these websites. One of the first thing millions of potential renters do when they are planning their vacation is browse these websites. Your property will never get the same kind of exposure from conventional marketing strategies that it could by using today’s hottest digital marketing trends and tactics.
It is recommended that you hire a professional marketing expert who can create a strong marketing campaign which will help in maximizing your profit on your vacation properties.
Write a Compelling Listing
A compelling listing on a vacation property website is the best way to maximize profit on your vacation property. Do not rush through this process. Your listing is the face on your vacation property, just like our profiles on social media represent us. Put your best foot forward by really focusing on these listings. You will want to include all the great features of your property, highlighting things like pools, spectacular views from balconies, jacuzzis, theatre systems, and local attractions. You can even include necessities such as hot running water are things people look for when searching online.
Make sure to include attractive, professionally taken pictures. A bad picture will not only lower the chances of getting bookings, but it will also affect the amount of traffic your listing generates. First impressions matter; a potential renter will be turned off by unflattering, unprofessional imagery.
Compete with Competitive Pricing
Pricing is the make or breaks factor for most travelers as they are looking to save costs on rent and spend more on leisure activities. They will be tempted to book a property that might not be as great as yours but will have reasonable pricing. So while you may want to add a high price tag on your vacation property rental, it is best to stay somewhere in the middle when it comes to setting a rental price. Charging too high will drive away people to look for cheaper alternatives, and setting your rate too low may end up leaving you with profits that are slim-to-none
Decrease Response Time to Bookings
In today’s fast-paced, digitally-driven environment, it is crucial to stay on top of your bookings. As soon as you get an inquiry for a booking, it should be your top priority to respond to it quickly. If you are busy at that time, then leave a message for the potential customer when you can get back to them. Competition is high, and customers now have a ton of alternatives available to them, and due to an instant gratification culture, potential renters will not be inclined to wait for your reply.
Always Aim for Great Feedback
With the advancement of technology, people now share every experience with their friends, family, and even strangers online. Whether it is a good experience or a bad one, you will find people reporting their thoughts and leaving reviews. Getting consistent positive feedback ensures a steady flow of bookings as it reassured potential renters that both the management and physical space of a potential rental are widely well received. And to get these all-important reviews, you have to make sure your property is in top condition every time a new customer makes a booking. Regular maintenance and repairs will ensure your customers don’t face any inconveniences during their stay, hopefully leading to great reviews.
Keep Your Booking Calendar up to Date
Finally, it will not be worth going through all the effort mentioned above if your booking calendar is not up to date. Imagine you have invested in a property at a great location, built a strong marketing campaign, put a compelling listing on Airbnb, and got your first few reviews. Then you decide to sit back and forget about updating your booking calendar; this is the worst mistake property owners make.
Thankfully, the solution is simple and only requires few minutes of your time. By keeping your booking calendar up to date, you can get a steady stream of bookings throughout the year.
Need Help with Your Vacation Rentals?
Making sure that you’re following all of the steps outlined above can be exhausting, especially keeping up with the day to day needs of a functioning vacation rental. If you’re tired of getting late-night calls about broken toilet handles, or you’re sick of trying to figure out how to get the most bookings, we can help! At Minnestay, we’ll work to make sure that owning a second property is rewarding, not burdensome. You can leave the hassles to us. Contact us today to see how we can help you to start enjoying owning your vacation rental again.