Hundreds of investors and second homeowners enter the vacation rental industry every day. For those who have never before taken on the responsibility, managing a short-term rental or investment property like a business is a tall task. That’s why we asked a handful of now-seasoned owners to reveal what they wish they knew when they were just getting their rental properties off the ground.
We’ve taken their feedback and paired it with our own expertise — from managing thousands of vacation rentals across the country — to create a comprehensive list of strategic tips for first-time vacation rental owners.
In This Article:
Do Your Vacation Rental Homework
Don’t Pinch Pennies Upfront
Welcome Guests with Simple Luxury to Suit a Variety of Tastes
Let Professionals Handle the Brass Tacks
Price Your Home for Year-Round Success
Speaking of support: All of our homes are backed by our Rest Easy Promise that your one-of-a-kind vacation rental will be safe, clean, and ready for you and your loved ones’ arrival.
From setting rates and figuring out which listing sites are best to staying in the know on vacation rental tax guidelines, there’s a wealth of knowledge first-time vacation rental owners must absorb to be successful. Pave the way to profitability by doing your homework. When you leverage hospitality advice from experienced sources, you help avoid first-time mistakes and may expedite your journey to recurring passive income like these owners.
For an easy head start, this free, 18- page guide explains what it truly takes to successfully manage a vacation rental, and it could be the tool that accelerates your success.
When you’re just getting started with vacation rental, it’s tempting to cut corners in an effort to maximize your returns. This often takes two common forms:
Frugality might seem like a responsible driving principle, but it forces owners to work tirelessly to generate rental income results. Ultimately, investing in your vacation rental upfront and releasing the reins of absolute control mean a simpler path to success — and more money in your pocket in the long run.
You might be thinking, “Okay. I’m on board. But what exactly will that entail?” Here’s the short of it: upgrade your vacation rental with simple luxuries, and onboard services that can take your business venture to the next level. Our next two tips will help you navigate these recommendations in more detail.
When decorating your vacation rental, it’s important to create a comfortable and convenient space for any guest to enjoy. To achieve this goal, start with a base canvas of classic, crisp lines and color palettes. Exercise design discretion and prioritize neutrality to appeal to a wide array of tastes. Incorporate subtle accents that evoke the feel of the area to position your vacation rental as an idyllic extension of the destination.
Similarly, make an investment in new, high-quality furniture when you first open your rental’s doors. The scuffed living room set you’ve had for years might be perfectly comfortable for you and your family, but it looks like wear and tear to guests.
The final step in capturing understated luxury? Keep each room well-stocked with necessities. You may be surprised by how much of a difference the right amenities and local decor can make to your rental’s success. Our free, easy-to-use vacation rental inventory checklist helps you take stock of important household items in every room.
Through big and small amenities like spices in the pantry, toiletries in every bathroom and throw blankets in the living spaces, your guests will enjoy the comforts of home in YOUR home — which is exactly what provides that kick-back-and-relax feel guests are looking for.
Managing a profitable vacation rental on your own can be incredibly daunting. Despite the time and energy investment required, first-time owners often think, “I need to do everything myself to preserve as much of the revenue as possible.”
But the reality is that by outsourcing some business elements to a trusted management partner, you’ll achieve a polished professionalism right out of the gate — and avoid setbacks that often accompany inexperience.
After hiring a vacation rental management service to help, owners often realize that their revenue results can significantly outweigh the rental income they’d give up in the process. And the best part: they see a return on investment faster, while doing a lot less work.
All too often, vacation rental owners make mistakes when establishing daily rates for guests.
Some apply a flat rate to an entire calendar year, only to find their listings struggling when peak season ends and competition dwindles. Others price too high year-round, and consistently lose out to cheaper rentals nearby.
For owners who come out of the gate with the lowest prices on the market, occupancy soars—but when returns are tallied, they’ve ultimately undercut themselves, and miss out on revenue they should’ve had in hand.
There are a number of pricing strategies worth consideration when you’re first starting out in vacation rental. The key across every option is to pay attention to market data, seasonal fluctuation, and your direct competition. Be sure to measure your home against others with equivalent amenities and conveniences. And stay away from applying personal value to certain luxuries. Just because you’d pay $100 extra per night for a 3-car garage doesn’t mean your guests will see it that way.
Bottom line: a dynamic pricing strategy is crucial for achieving solid net occupancy and making top dollar on every booking. At Evolve, we’ve developed an exclusive algorithm to analyze billions of ever-changing data points and help you continuously beat out your competition. As a result, our owners see record-breaking success, earning 24% more compared to those using traditional pricing methods.
Whether you’re a first-timer or a highly-seasoned property owner, with the right resources and strategies under your belt, you’re sure to leave mistakes at the door — and join the ranks of the most successful vacation rental owners.
That’s why we created our free downloadable guide that’s full of all the secrets you need to truly make your home a success.
Inside you’ll find:
We’re here to help you earn more while stressing less, and are confident our professional insights and guidance can help your home shine.
Check out some of our other helpful resources:
Pour over these articles, be a sponge, and use this knowledge to empower your next steps in vacation rental success.