The vacation rental industry rakes in billions of dollars every year. Platforms like Airbnb make it easier than ever for owners to open up their properties to short-term renters.
While the potential is there to make extra income, there are some things you can do to maximize your short-term rental’s profitability.
- Choose the right property
It begins with choosing the right property. This is where doing a little research can come in handy.
Profitability isn’t just tied to a specific city. It can also depend on
- The neighborhood
- Nearby amenities
For example, a property just steps from the beach can prove more profitable than one that’s within driving distance of the beach.
- Price it right
You also want to make sure your short-term rental is priced right. You’ll want to make your rental competitive with others in the same area.
During the busy season, you may be able to raise the price of your rental, too. Being strategic can help ensure your property is consistently booked.
- Be transparent with added costs
It helps to be as transparent as possible to your guests in terms of added costs.
Compare how much you’re charging for extra items and cleaning fees with others to make sure you’re in line with the rest of the market.
- Keep the property attractive
To stay competitive and maximize your profitability, you definitely need to keep the property as attractive as possible.
While you can tie in the property’s overall design theme to its surroundings, don’t go overboard. Think about neutral décor that will appeal to a wide range of renters.
Think about adding everything you might want or expect in a rental. Things like:
- Flat-screen televisions
- High-speed internet service
When you’re coming up with a property description, make sure you also add in any special amenities your property offers to help further grab the attention of potential renters.
- Use high-quality photographs
It helps to invest in some great photographs. You don’t want to rely on blurry photographs or low-quality pictures to show off your rental.
Properties like this tend not to perform as well in listings. Most renters want to be able to see some great photographs of what the property actually looks like.
Of course, the photographs DO need to be authentic. When renters arrive, your property needs to look just like it does in the photos.
- Generate positive reviews
A well-kept rental property can only help when it comes time for renters to leave a review.
As the owner of a short-term rental, you need positive reviews to keep your property booked.
Positive reviews not only mean your property is more likely to be booked in the future, but they can also translate to higher rental rates.