The average American takes about four vacations every year.
If you have a nose for investing, you're already smelling an opportunity here. When people take a vacation, they need accommodations. Hotels and motels have been serving this need for ages, but there's a new kid on the block: short-term rental properties.
Setting up a property rental for vacations is an ideal way to tap into the vast hospitality industry and bank good money while at it. As with any investment, knowing how to maximize your returns is key to being successful.
In this article, we're sharing practical tips you can use to increase your income potential.
1. Optimize Your Property Listings
Vacation rental properties have always existed, but it wasn't until the emergence of online marketplaces for short-term stays like Airbnb and Vrbo came around that they blew up. Today, there are over 1.3 million short-term rentals across the U.S.
As such, it's a no-brainer that you'll list your property on at least one of these platforms. Their websites and mobile applications have millions of active users, so there's a good chance your property will get bookings.
However, more properties are being listed on these platforms every day, making it more difficult for your property to get notices. This is why it's crucial to optimize your listings.
Post high-quality photos and videos that showcase the property's offerings. Ensure the description is detailed, well-written, and optimized around the relevant keywords.
2. Don't Solely Rely on Online Marketplaces
Listing your vacation rental on Airbnb, Vrbo, Booking.com, and other online marketplaces will certainly get you a stream of bookings, but don't solely rely on them.
Focus on finding ways to get more direct bookings.
Building an independent website with booking capabilities is an ideal way to reduce your reliance on online marketplaces. You can also incentivize the guests you receive from these marketplaces to book with you privately should they wish to become repeat customers.
Marketing the vacation home on social media platforms like Instagram will also go a long way in increasing bookings and keeping the property's vacancy rate low.
3. Invest in Short-Term Rental Insurance
Once your vacation property in Steamboat Springs is up and running, the only thing on your mind is getting more bookings.
There's nothing wrong with that, but if you don't manage your risks properly, an unfortunate event can eat into your profits or even kick you out of business. There are risks that come with vacation properties, such as fires and burglaries.
Investing in short-term rental insurance is an effective risk management strategy. Depending on the policy's coverage, you can get compensation for virtually every risk event.
Make Big Money With Your Property Rental for Vacations
There couldn't be a better time to set up a property rental for vacations. Post-lockdown, more and more people are revenge traveling, causing the demand for short-term rentals to surge.
What stands between you and success is proper short-term rental management. At PMI Steamboat, we specialize in vacation property management. We're part of a national property management franchise that's been in the game for over two decades.
Contact us to learn more about our offerings.