Short-term and vacation rental properties are a great investment avenue that have only been growing in popularity in recent years. These homes make good investments because of their unmatched income potential, as well as the potential tax deductions and other benefits that come with them. As these properties grow in popularity, that also means anyone who wants to break into the short-term rental scene will face some competition. Still, there are a few things you can do to keep your investment in top shape and producing income for you. Here’s what you can do to help stay ahead of the pack with your rental property.
Focus on the experience
Most vacation rental homes will fall into a certain category, and you can enhance the experience for your guests with amenities specific to that category. For example, homes in colder climates can be seen as a ski retreat, and leaning into this theme can help you attract more guests. You can provide extra blankets and board games for your guests, and also have some sleds or tubes handy. A property that includes a fireplace is a particularly great home for this experience. There are also lake houses (or beach houses) which should include similarly appropriate amenities like pool floats, kayaks, and outdoor sports gear. Having a home that has amenities which complement the experience can help increase demand for your property and in turn increase your revenue.
Charge a competitive rate
There are a number of things that can affect the rate you should be charging for a stay at your property. Spend some time researching similar rentals to find the sweet spot that will attract guests but still generate a solid revenue. Keep in mind that your property’s location and proximity to attractions will be a huge factor. As we mentioned including more amenities, especially appropriate ones, can also help boost the property’s income potential. If you’re still struggling to keep your rental booked, you may just be overcharging, so don’t be afraid to try lowering your rate. You might even end up with a higher monthly revenue from an increased number of bookings.
Choose key renovations to increase your revenue
Renovating your existing property can be a great idea since it can boost your rental revenue and it will increase the value of your property too. However, there are several reasons you should take care not to overspend when renovating. You run the risk of creating a rental that doesn’t fit most people’s budgets, which means you would have to lower your nightly rate to stay booked. That also means it would take a long time to recoup the costs of your renovations, making them a bad investment. If you do choose to make major renovations, like an addition to the home, make sure your property still falls in a reasonable range for rental properties in the area, so you don’t lose out on potential bookings.
Hire professionals to assist you
There is a lot that goes into the day-to-day upkeep of a vacation rental, and it can be helpful to rely on professional home services instead. There may be companies in your area that specialize in servicing rental or vacation homes. Ideally, you will want to hire a professional cleaning service to keep the home tidy, as well as a regular landscaping service for the home’s exterior.
Not only does hiring professionals help take a load off of your back, but it also means you can count on the property being in rental-ready shape for each stay. It’s also possible to have an investment that can bring you consistent returns every month with very little attention on your end. Another service that can be incredibly beneficial to you is a professional photographer. Photos are the first thing renters are drawn to when looking for a place to stay, and a high-quality listing with great photos will be sure to bring you more guests.
Obtain financing from a proven home lender
The easiest way to save on your rental property is by finding a loan from a reputable lender that can provide you with competitive rates. RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors. RCN Capital also has flexible and competitive loan options available. Connect with us today to discuss financing options for your next vacation rental investment.