Are you considering adding short-term rental properties to your real estate portfolio? Here’s 8 tips to help you successfully manage short-term rentals.
Know Your Local Tax Laws
If you own short-term rental properties in different states, then you should be fully aware of the differing tax laws that would be applicable to your property. Long term rentals differ from short-term rentals when comparing the taxes associated with both. Depending on your location, certain areas may be required to pay more in taxes. Research what taxes apply to your property or consider hiring someone to manage your yearly tax payments.
Incentivize Renters to Leave Good Reviews Online
The first thing a potential customer notices is your rental property’s reviews online. If your rental has stellar reviews, then customers are more inclined to stay there. Customers want to know exactly what they are getting before agreeing to rent a short-term property. You should incentivize customers to leave good reviews online to help grow your business and generate more profits.
Keep Your Property Well Maintained
The secret to successfully managing a short-term rental property is to always have it well maintained. You should prioritize cleanliness at your rental property. Guests will notice that your rental property is well maintained and appreciate that you prioritize their well-being during their stay. Nobody wants to stay at a property that has an untrimmed yard, peeling paint, or leaky faucets. Treat your guests with the utmost respect by keeping your property well maintained and clean.
Charge Competitive Rates
It’s not an easy task to set your rental price. You must consider your rental’s location, square footage, and surrounding rental competition when creating a rental price. Properly pricing your rental is the first step in competing in the short-term rental market. Consider adjusting your rental price as seasons change to meet new market standards. You will have to conduct thorough market research before setting your rental price.
Be Energy Efficient
Building an energy efficient property means you are able to save money on various utilities while allowing guests to use as much energy as they need. Replace old light bulbs with long lasting LEDs to save energy. You could also regularly change the AC filter to lessen the stress on your HVAC system. Make sure all windows are properly sealed to keep the cool air in. Not only does becoming energy efficient meet the new standards of the market, it also saves you money in the long run.
Use Property Management Software
Property management software is a great option for those managing multiple short-term rental properties. You can manage all your properties in one place when using property management software. As you grow your real estate portfolio, property management software allows you to easily compile new data and list properties simultaneously on multiple websites. If your portfolio is expanding, then investing into software could deem more productive than managing the properties by yourself.
Create a Stand-Out Listing
Your listing is what sells your property. If you want to be the top choice for renters, you need to have an attractive listing that convinces the renter to stay at your property. Remember to include high quality photos of your listing, after all, the Wall Street Journal found that renters spend about 60% of their time looking at images of listings when searching for a property. Your first impression matters if you want to attract renters. Your listing should be up to date and highlight the beauty of your property. Consider adding local attractions onto your listing if you see that fit for your location.
Offer Attractive Amenities
A crucial tip to manage a short-term rental is to include appropriate amenities. Consider your location and offer unique amenities that would make your short-term rental appealing to renters. Some basic amenities to include are free parking, complimentary wine, or a stocked kitchen. If your short-term rental is by the shore, considering including amenities that cater to that location like free sunscreen and beach chairs. Amenities can make or break a decision to purchase a short-term rental for a lot of renters. These amenities give make your property more attractive and competitive on the market.
RCN Capital offers short-term and long-term financing options for real estate investors. Whether you are looking to fix & flip properties or hold properties for rental income, RCN has flexible options that are suited to your needs. Connect with us today to discuss your next real estate investment.