Did you know the vacation rental market was worth almost $75 billion in 2021? It’s also set to expand by over five percent each year until 2030.
The pandemic shut down a lot of travel opportunities and hit the market hard, but things are beginning to look up. With such positive prospects, you might be interested in owning a vacation rental, but where should you start? Luckily, we’re here to help.
Read on to learn everything you need to know.
Have a Plan in Place
One of the biggest reasons investing in a vacation property fails is a lack of planning. If you don’t view it as a business from the beginning, it’s likely going to be difficult to start later on. That’s where sitting down and creating a solid business plan can come in handy.
This should include everything from your goals to your ideal location to where you plan on buying. If you’re running an Airbnb rental, it’s also important to consider how to price and structure your Airbnb check out cleaning.
Fix Things Up
Once you have a plan and a property, you’ll need to prepare the home for guests. Keep their comfort in mind above all else, and if you need to make upgrades, it’s best to target the bathrooms and kitchen first.
Your guests, of course, expect cleanliness above all else, and these spaces are essential for functionality in any home. It’s important to give your guests the best possible experience, otherwise, your reviews aren’t going to be great.
Set Your Prices
One of the hardest parts of owning a rental property is finding the right pricing. A big mistake some property owners make is setting rates based on their economic situation rather than the market. Remember, if your rate is too you’re going to scare people away, but if it’s too low you run the risk of attracting the wrong crowd.
It’s important to check the market around your rental so you can find and set competitive pricing of your own.
Implement a Marketing Plan
Finally, you’re ready to begin marketing your rental. There are a lot of ways to get the word out about your vacation rental business, so it’s important to plan diligently. Social media is a great place to start because it’s free or relatively cheap.
Listing sites like AirBnB are another great option for filling up your rental calendar. AirBnB will charge you a small fee, usually 3% of the booking fee, but they can provide you with a huge number of renters.
Likewise, VRBO is another well known vacation rental site you can leverage. VRBO typically charges owners 8% per booking, which includes a 5% Vrbo manager fee and a 3% Vrbo payment processing fee.
Is Owning a Vacation Rental Right for You?
Owning a vacation rental can be a great experience, and it’s an effective way to bring in extra money on the side. For some, it becomes a full-time business, and you might even find that — after gaining some experience — you want to own multiple properties.
What questions do you have about starting or running a vacation rental business? Ask them in comments below.