If you own a vacation home, it’s a great way to make some money on the side. However, there are many ways you can actually increase the earning potential of your vacation home. It might take a little extra work on your part, but it will be worth it when your own vacations and more pay for themselves!
Get Better Marketing
In order to earn money from your vacation rental, you first need to get people to rent it. Getting the word out about your vacation rental should be one of your top priorities. When marketing your vacation rental, you should list it on multiple sites to increase the exposure it receives. Using social media is another great way to increase exposure. You can reach large numbers of people, which will make it easier for people to find you. It might also be in your best interest to start your own property website. This website can include details about the house, beautiful photos of it, and the surrounding area as well to improve your vacation rental’s appeal.
Adjust Your Rates
To make more money, sometimes you need to adjust the rates of your vacation rental. Increasing the rates has the potential to earn you more, but make sure it is appropriate to raise first. There are several factors you should consider. First, look at your property as a whole. The rate you set should be reasonably higher than it costs you to run the vacation home, especially once you consider what amenities you have and if they merit an increase. Next, you need to look at the surrounding area. Look at what your competitors are charging and use this as a guide. Sometimes setting a price just below competition is a smart tactic. Last, look at the trends in rates based on the season and adjust your rates accordingly.
Vet Guests
The guests who stay at your vacation home are sometimes a real problem. In some cases, they can actually lose you money. For example, if someone throws a big party at your rental and causes damage, it can get expensive for you to repair. To avoid problems such as this, you should consider vetting your guests. Good guests can be hard to find, especially ones who will respect your home and not cause problems. One thing you can do is structure your vacation rental listing in a way that deters “bad guests” with things like in-house rules and policies. You can also use a vetting service to help find you quality guests. It’s a good idea to have a firm rental agreement and ask for a security deposit.
Renovate
Another great way to increase how much you earn from your vacation rental is to increase its value. Renovating your vacation home is a great way to raise the value and its overall appeal. Your renovations can be large or small and you can even take it room by room. While renovating, make sure you take measures to protect your property. Things like trash hoppers keep your property safe while it’s undergoing work, as do floor and furniture coverings. As for what to renovate, updated kitchens are very popular and are often looked for by renters. You can also renovate your bathrooms to appeal to guests. Another idea is installing hardwood floors throughout the home, which can make it seem more modern and new.
Add More Amenities
If you want to make more money, then give people a reason to pay more money. Certain amenities will raise appeal to potential renters if they’re included at your vacation home. As far as entertainment goes, you can offer things such as cable TV, gaming consoles, a hot tub, pool/ping pong table, and even some games. You can also provide amenities that make it more like home. Examples include pots and pans, a blender, washer and dryer, cleaning supplies, and special appliances.
Offer Special Upgrades
Creating other opportunities to make money from your vacation rental will be very beneficial. Offer special upgrades to your guests in order to earn more, like early or late check out. If people are looking for a pet friendly vacation rental, you can offer an upgrade for people to bring their pet. This way, you are receiving more money to compensate for any wear and tear an animal may cause. Lastly, you can offer upgrades to improve their overall experience such as a mid-stay cleaning. These upgrades are a great way to improve your guests’ experience, too, which can lead to better reviews.
Increase Your Property’s Efficiency
In addition to finding more ways to make money, you can also find ways to save money during your guest’s stay and in between. For example, you don’t want to have your utility bill increase because of your guests using them. Instead, you should make your home more efficient. Replace appliances with more energy efficient models that will last longer and use less energy. Similarly, replace light bulbs with energy efficient bulbs. To conserve water, install low flow toilets, faucets, and shower heads. You can also increase efficiency by insulating your vacation home well, like replacing your doors and windows to avoid any energy loss.
Cultivate Reviews
People look at reviews for nearly everything and they often trust them almost as much as a recommendation from a close friend or family member. In order to get more people to stay at your vacation rental, you need to increase your number of reviews. Rentals with more reviews will in turn receive more guests. Find ways to cultivate reviews for your rental, like by simply asking your guests to leave reviews or even offering them incentives to do so (like 10% off their next stay). Once you have reviews, find ways to display them. Your social media accounts or a website are a great place to display good reviews.
Your vacation home rental can be a great additional income besides being a fun place for your own enjoyment. Of course, there are always methods to increase profit, and vacation rentals are no exception. With a little bit of planning and extra investments, you’ll have a great side gig that earns much more than it costs!
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