Traditional rental properties may very well be a thing of the past. With vacation rental property on the rise, the age of regular long-term rentals is over. After all, a vacation rental allows much more nuance and ability to interact with change than a regular rental.
Here’s how to make money on a vacation rental property, how to make money and why your property might not, and more.
Can a vacation rental property make money?
The first question on many minds is if vacation rental properties can even make money? After all, this is a newer phenomenon than the regular old rental, and it leaves a lot of people wondering if it’s just a fad.
The short answer is it can make money (a lot of it) and that it’s not a fad. The long answer, admittedly, is slightly more complex.
Essentially, owning a vacation rental and making a profit will rely mainly on your skills at marketing, picking the right location and property, and building your brand. Unlike regular old renting, this requires an eye for marketing and choosing the right property.
You can easily turn a massive profit on your project if you can do this or use a vacation rental property management platform. There’s a constantly increasing demand for short-term rentals for vacations, corporate stays, and more in the ever-expanding centralized global network.
This is obviously an incredible chance, and investors can easily look toward platforms like Airbnb to see that these rentals aren’t just a way to get by – they’re a way to succeed.
How to make money on a vacation rental
Now that you know it’s possible, how specifically should you make money on a vacation rental property? There are many different nuanced methods to go about this, different ways to build your brand, and different strategies and techniques for success.
The more nuanced ideas behind exactly how successful your rental will be may require a bit of calculation, but there are some general guidelines for success that you should follow.
#1 Buy a property in the right location
The first aspect you should consider is the location of your vacation rental. Keep in mind that you’re not just trying to appeal to somebody “living” in your house; you’re trying to appeal to people living in that house temporarily – and people living places temporarily usually want those places to be excellent.
Just like hotels and motels succeed more based on their location in proximity to food, drinks, and the airport, your rental will succeed more or less depending on where it’s located.
It’s important to realize that your rental – if ideal – should be a pristine location all year long. Ideally, it should be located somewhere that there’s something to do…all year long.
Beyond this, consider your rental location in proximity to different amenities, restaurants, activities, and more. This, along with the view, is most likely going to be how people decide if they want to go to your vacation rental over somebody else’s.
#2 Set the optimum price for your property
The pricing is also essential when considering how to make money on a vacation rental property. Ideally, you need to find the perfect pricing scheme that will allow you to profit without turning away too many customers while also making more than some of the lower amounts you could price it for.
Although this may sound complex, it isn’t – keep in mind that you can change the prices at any point in time depending on the reactions you get from customers.
Ultimately, though, it’s mainly essential to price your rental somewhere above the required maintenance & fees, plus the ideal amount of profit for the rental.
#3 Maintain the rental property to a high standard
Maintaining the property (and upgrading it if you have the investment money) can be the keys to making your vacation rental a success. Keep in mind that providing proper maintenance will keep your customers wanting to return and give you resoundingly good reviews.
Because of this, it’s vital to set aside a budget to maintain your property and, if you’re able, set up a budget to upgrade your property.
Doing this will allow you to keep the property up to date and maintained to provide your renters with a great experience during their stay.
#4 Market your vacation rental locally and online
Beyond this, marketing the property – correctly – is a critical factor in making money on your vacation rental. Keep in mind that your vacation rental is ultimately something that will have competition – and staying at the top of the search is hard.
Because of this, there’s a constant battle to be the “top dog” – and much of this can be won through your rental’s proper marketing and presentation.
#5 Use a vacation rental management platform
Finally, if all of this seems too complex for you, why not use a vacation rental property management platform? These platforms have sprung up after the success of vacation rentals and should consider when setting up your vacation rental.
Remember that professionals run these platforms, so they’ll be able to take your rental and turn it into a success that you might not have been able to create.
How to make money on a vacation property will ensure that you make more money on your property than you could imagine. Ultimately, as long as you carry out the proper execution and run your rental in the right way, you’ll have a great new source of income.