If you’re looking for ways to earn additional income, hosting is a great way to ensure extra profits. In 2019 alone, the vacation rental industry marked more than 17.5 billion dollars in revenue. When compared with the previous year, the industry saw an increase of nearly 3%, and these numbers can only grow. Although there’s a current slowdown in tourism, predictions are that by 2023, vacation rental market revenues could grow up to 19.5 billion, making this lucrative industry a smart investment.
How much you can earn on your vacation rental property depends on several factors such as the location, season, number of bedrooms, and amenities you offer. Here are some handy tips that can help you optimize your Airbnb profile, increase the visibility of your listing, and reach your target audience, which will result in an increase in your vacation rental bookings, and thus in your profits.
Set realistic income expectations
The key to running a successful business is in a well-thought-out business plan, detailed strategy, and realistic expectations. Be sure to check laws and regulations, calculate the expenses and expected income for your property to know exactly what to await and to set the right prices for your short-term rental business. Vacation rental business expenses include:
- property taxes and mortgage;
- cleaning service;
- repairs and maintenance;
Prepare your rental property for guests
Be sure to provide all the necessary amenities to cater to your target audience. Then, go the extra mile to offer a little more to stand out among your competition and encourage potential guests to book your vacation home.
If you’re wondering how can you increase your vacation rental income with amenities, you can, for example, offer additional entertainment for your guests, such as Netflix, Hulu, or other streaming services.
Promote your holiday rental property
The best way to ensure your property is booked year-round is to list it on several popular vacation rental platforms such as Airbnb, Booking.com, Vrbo, and HomeAway. This way you will expand your reach and help guests easily find your rental. Advertise across various social media platforms to draw attention to your property listing.
Before promoting your vacation rental listing on several travel platforms, be sure to optimize it—this will help you stand out among the competition, increase your occupancy rate, and secure your place within the vacation rental market. Here’s what it includes:
- optimizing the listing title and description—use relevant keywords to help guests find your property and write a detailed description so that they know exactly what to expect;
- use professional photos—bright, high-quality photos are the selling point for many travelers;
- create a video of your property for guests—a virtual tour of your rental. This will encourage them to book with you as they will be able to see exactly what you offer.
Automate check-in and checkout processes
This will not only help you in a time-efficient way but also help your guests go through the check-in and out processes quickly and easily. Automation is a great answer to the question of how can you increase your vacation rental income, as it can expedite some processes and make them more efficient. Here are a few ideas to consider:
- get a lockbox;
- use key exchange services (such as Keycafe) or smart locks;
- write a digital welcome book—having everything written down in digital format can make editing and adding new info quick and easy. You can also easily share it with guests, so they have access to your digital welcome book on their smartphones and tablets;
- use vacation rental automation software—expedite the process of sending messages, digital welcome letters and house rules, keep track of all guest communication, as well as other employees such as the cleaning company.
Hire the holiday rental management company
You are now probably wondering how can you increase your vacation rental income when you’re making additional investments.
Well, hiring a management company or a vacation rental manager is considered a well-worth investment for the future whether you’re renting out a property for additional income or when you have a lot on your plate and need someone to help you out. Such an investment will help turn your holiday rental business into the passive income source and ensure great customer service for your guests, while you can focus on other aspects of your life.
As guests are continuing to move away from hotel accommodations and are looking for the unique experience provided by short-term rentals, there’s a window of opportunity to become a part of this evergrowing industry. According to the experts, 2020 could be the year in which vacation rentals will overtake hotels, thus, this is a great time to become a part of this lucrative industry.
However, this also means that there will be more competition within the short-term rental market. When it comes to the question of increasing your vacation rental income, the answer is simple yet complex and demanding. For starters, you will need to have a robust business strategy and put in extra effort to secure your position within the market and ensure more profits from your rental.