Tips for Managing Short Term Rentals
Tips for Managing Short Term Rentals
Short-term rentals can be a way for you to boost your income. If you have a vacation house that you don’t use very often, you should consider turning it into a short-term rental. After all, more money is always better. There are a few things you should know about managing short-term rentals.
The law states that if you run a business that gives you a steady flow of income, you should pay part of that income as tax. Tax laws also depend on the state. Therefore, find out how much tax you’re supposed to pay so that you have a clear picture of your net income.
Think about the last magnificent hotel experience you had. Do you remember the excellent support you received from hotel employees? What about your room, did you see the tidiness? If you want to make money with short-term rentals, your customer service should be memorable. Make sure that the house is clean and everything is neat. Mow the lawn and get rid of any dried leaves. Of course, you can hire professionals to do it for you.
If you’re not busy all the time, you can give your guests your personal number so that they can call you when they have a query or an issue. Another idea is to print pamphlets that show guests the best entertainment and hangout spots around. They will appreciate your service and give you positive reviews.
You don’t want to undercharge because you’ll lose money. Similarly, you don’t want to overcharge because you won’t find customers. To get the pricing right, search online for similar properties in your area and see how much they charge.
The mistake that first time rental owners make is forgetting about the size and location of the property. As you research prices, consider the size and location of those properties. If your property is slightly bigger and has the best view of the beach, you can charge higher rent.
Never underestimate the power of strategic marketing. Let people know that your home has the best beach views. You can also include a virtual tour of the home so that interested clients can see what you mean.
Define your target market. Do you want to attract families or singles? What do those people search for when looking for a vacation home? Make sure that you highlight those features in your ad. Take advantage of social media marketing to expand your reach.
Your short-term rental is not going to be at a 100% occupancy rate all the time. There are seasons when the demand will be high and times when the opposite will happen. Regardless of whether there is a client, you’re responsible for all the energy bills.
You should consider investing in energy-saving technology. That way, you won’t spend too much on energy.
It can be tempting to spend all the money you receive from your guests especially during the high season. That’s why you should monitor your cash flow. Before you spend any money, pay for all the expenses associated with running the property.
You’re in business to make money, and high revenues shouldn’t blind you. Pay attention to every expense and write it down. Know where all your money is going. That way, you can strategize on the best ways to save money and make more profit.
There are two ways to go about managing a short-term rental: hire a property manager or use software. Let’s start with the first option. The main advantage of hiring a property manager is that you will be free to pursue other ventures. They deal with clients and handle their needs. The only downside is that your expenses will increase because you have to pay the property manager.
Property management software allows you to do everything yourself and save time in the process. The system makes it easy to track cash flows and bookings.