The idea of turning a second home or investment property into a vacation rental is always an exciting one. Whether you’re looking for a route to extra earnings in addition to your day job, or you’re considering the vacation rental industry as your next full time career opportunity, the potential for significant earnings in this dynamic industry is vast. Property management in Hawaii and California has become particularly lucrative, given the high demand for well-managed vacation rentals in these sought-after destinations. Vacation rentals have long been on the rise in terms of popularity as an inviting alternative to travelers who are looking for something different and more customized than a traditional hotel stay. Vacation rentals greatly appeal to families who require added space when traveling, but are equally suitable for solo travelers, couples on romantic retreats, and digital nomads who are taking work on the road. The number of vacation rentals booked across the globe found an even more impressive upward trend post-pandemic and it’s estimated that the U.S. alone is home to around 1.75 million vacation properties by the team over at AirDNA.
If you take time to do research ahead of time and understand what’s expected, there are a lot of exciting milestones in your business life ahead. That’s because the benefits of renting out a successful vacation property can include lucrative income generation, even in the off-travel seasons if you do things right. It’s also a chance to reap some great tax benefits depending on where your vacation rental resides. If you’re looking to connect more with the community you live in, owning a vacation rental and working to make it successful can be rewarding in terms of the connections you’ll make with local vendors, other rental property owners and of course, those who book a stay and come to your city to enjoy a great vacation in comfort and style.
A successful vacation rental can diversify your real estate portfolio significantly and can also be an amazing place to enjoy your own getaway stay once in a while. When you know without a doubt that you want your vacation rental to be successful, the following are 5 things you must do sooner rather than later to make that happen.
1. Understand the Numbers and Regulations in Your Specific Rental Market
One of the biggest mistakes many first-time vacation rental property owners make it not taking the time to really dig into the local regulations, trends, and numbers specific to the area their property is located within. While the vacation rental industry trends upward overall, every single neighborhood has its own unique outlook and profit potential that surrounds vacation trends in the area too. Above all, you must make adhering to local rental regulations a priority in order to make your vacation rental a success.
Once you know your home is in compliance with local regulations, it’s time to look into travel trends in the area to see what your financial prospects are starting on day one. Some markets simply have higher demand than others due to the location and proximity to major attractions, events, or experiences that travelers are looking to enjoy. A high demand marketplace might initially seem intimidating when it comes to keeping up with all the surrounding competition, but it’s also a great chance to set your property apart from the crowd.
Evaluating how your home might perform compared to other successful rentals in the area is a good starting point for success. Don’t be afraid to speak to other property owners in the area to see how they deal with travel fluctuations throughout the year or when they are seeing the highest occupancy rates on average. Precisely understanding local pricing is a sure and smart way to keep your property marked competitively at all times. This makes it more appealing to guests year-round while keeping you on track to reach your financial goals too.
2. Upgrade the Amenities That Make All the Difference
Equipping your vacation rental with the basics isn’t enough to be successful in the marketplace these days. Instead, vacation rental property owners need to take an above-and-beyond approach to outfit their property with upgraded and appealing amenities that will make all the difference in the overall guest experience. Amenities on-site should always be thoughtfully incorporated for guests and put in place with continued business growth in mind.
The amenities you fill your home with should add to guests comfort and convenience exceptionally at all times, while giving them reasons to return time and again. Investing in upgraded amenities extends to things as simple as including quality linens in the bedrooms and bathrooms to larger ticket items like on-site private pools and hot tubs for guests to enjoy during their stay. Making sure your home is set up with free Wi-Fi for guests to use is a must while properties with game rooms in place have a greater chance of appealing to families year-round. The more your amenities are customized to the area your home sits in, the more your property is bound to catch the eye of a wider audience of prospective guests.
Upgrading televisions to flat-screen and smart varieties is a must while paying attention to stocking up on eco-friendly products is a sure way to expand your list of visitors looking to travel more sustainably. Including technology like keyless entry and smart home security options gives your guests the peace of mind they deserve and can boost your occupancy rates as well. Your home should also host a quality kitchen where guests can enjoy serving up home-style meals on those days when they aren’t out exploring the local culinary scene. Be sure to include dishes, utensils, and all cooking essentials for guests to enjoy while the addition of added counter space in the way of a chef’s block, or high-end appliances can help your home truly stand out from the rest.
You definitely don’t want to overlook the value of investing in outdoor amenities either as many travelers are looking for places to stay on vacation that include spacious patios, outdoor grills, and yards that are beautifully landscaped and illuminated to enjoy well into the evening hours. Taking time to invest in these above-and-beyond amenities can help you increase your occupancy rates in all travel seasons while also giving your room to list your property at higher nightly rates. The result is likely to be repeat business, great reviews, and even more premier listings on rental sites year over year.
3. Invest in Professional Marketing Photography
There’s a lot of profitable potential in quality vacation rental photography. That’s something that simply should never be overlooked when you want your rental to be as successful as possible in a competitive marketplace. The very first thing that travelers are looking for when searching for a vacation home is a photo that’s going to catch their eye. Even the most amazing vacation rental packed with upscale amenities won’t see the traffic is deserves if the photos you have listed online aren’t doing your rental justice.
Your marketing photos should authentically showcase your home’s unique features and one-of-a-kind amenities while also being snapped in a way that makes your property endlessly appealing to the eye. Those searching for a rental online don’t always take time to closely scour each and every listing, instead stopping on those photos that are the most attractive at a glance. Grabbing the attention of more prospective guests begins with having photos in place that are bold and equally filled with quality information about what your home has to offer that’s different than the rest.
Ultimately, quality vacation rental photography drives revenue significantly, meaning it should most definitely be a priority for your home. A great vacation rental photographer will make sure to capture your home in varying seasons, highlight amazing amenities and features, and be readily available to help you update the listing whenever something in the property is upgraded or added onto. Your photos should be warm and inviting a swell as a testament to your exceptional level of cleanliness and safety. When your marketing photos are meticulous, your guests will understand that you value their experience and are willing to put in the work to stand out in a crowd.
4. Make Superior Customer Service Standards a Priority
How you approach the concept of customer service in the world of vacation rentals is vital to your success. Even if you own one of the most beautiful properties on the block, the chances of your guests returning or passing along the good word to their friends are slim to none if they don’t enjoy superior standards of service and support along the way. This begins with open and honest communication from the start.
Before your potential guests even make a reservation, they should have a way to easily contact you with questions about the property without having to jump through hoops to get answers. The reservation process should also be a breeze with plenty of investment in automation in place so you guests can feel secure in their booking and know where to go if they have inquiries along the way. You also want to make sure your check-in process is as simple as possible with options like keyless entry, self-check in systems, and a full welcome booklet and packet in place upon arrival. It’s essential for guests to know that you have maintenance options available 24/7 in case of an unexpected situation and you can provide in-home cleaning upon request as well.
When guests have questions about local activities, events, and attractions, it’s essential that you’re available to answer the call day or night. A personal touch like a welcome gift or a thank you upon check out is something that seems small but makes all the difference for your visitors. If it’s five-star reviews you’re after, investing as much time in customer care standards as you do home upkeep is something that should always be at the top of your list.
5. Hire a Professional Property Management in California and Hawaii to Streamline Your Approach to Business
It’s fair to say that there is a lot that goes into making sure your vacation rental is successful. For homeowners who are looking to take the stress out of the experience and streamline the process instead, working with a professional property management in California and Hawaii like the one at iTravel Vacation Homes is the way to go. When you partner with industry experts in this way, you’ll entrust your property to a team that can take care of every vital detail on your behalf.
From home evaluations and upgrade recommendations on amenities to customer care, real time market research, competitive pricing, and maintenance and cleaning, a property management team fits your property into an approach with proven success. They’ll get to know you and your goals so they can customize their approach to managing your property every step of the way. Working with a property management team is good for you, good for your guests, and great for your bottom line. When you’re ready to learn more about what the property management in Hawaii and California at iTravel Vacation Homes can do for you, reach out today!