How to Rent Out Your Vacation Property Successfully - A 10 Step Plan
Renting out your vacation home or cottage can be immensely satisfying and profitable, and hundreds of thousands of owners are already doing this worldwide.
Success can be measured in terms of income or the number of positive testimonials, or the occupancy levels, but if you don't have a solid plan, how do you know which marketing and operational activities are the most effective?These 10-steps are all actions you can take to create a successful vacation rental business.
1Treat it like a business Successful owners treat their rentals like a business.
They have an annual marketing and operational plan, a budget, and a means of measuring what works and what doesn't.
They have targets for occupancy and income and will track expenditure using cash flow forecasting and budget analysis.
2Be professional If you went into a grocery store and saw an array of shiny apples, it's unlikely you would pick the dull and pitted one.
In the same way, an unprofessional home-made web site will not attract traffic - in fact it can be a huge turn-off.
Being a professional owner also means taking responsibility for ensuring rental guests get value for their money and have their expectations met.
3Market and promote wisely With hundreds of listing sites and agencies, choosing the right one can be a challenge.
Start with a budget which should be 3 - 5% of your target revenue.
Then research thoroughly.
Check forums and blogs for reports on what works for other owners then track your ROI (return on investment).
Note how many enquiries and conversions are received from each marketing channel - it will soon become clear which is most effective.
Plan on using one or two major listing sites as a marketing base, then try out some lesser sites based on your peer research.
4 Build a booking system A robust booking system for your rental will lessen the potential for double booking, and will also demonstrate to your guests that you are a professional owner.
They system should flow through the booking process and include a rental agreement with a set of Terms and Conditions, statements of account, and post-rental follow-up.
Start out by designing a flow chart that shows the documents you will send to your guests, then prepare a work-sheet to track the progress of each booking you take.
5Create an attractive package People choose a vacation rental based on the photographs and list of features and facilities.
Making these attractive can impact on the number of enquiries and subsequent conversions.
Take a look at your photos and make sure they are appealing and enticing.
Do the beds look inviting?Is the dining table laid up for a meal?Can your guests imagine themselves enjoying their vacation at your property by looking at the images you've provided? 6Under-promise and over-deliver Disney does this best in its ride line-ups.
When they tell you there is a 30 minute wait and you end up only waiting 20 minutes, how good does that feel?Even though you had to wait you feel you got a better deal than was promised.
Tell your guests you accept pets and then provide a dog welcome package; advertise you have a range of games and books, and surprise your guests with the extent of your library;expand on being child friendly by supplying a dressing up box and packs of colouring books and pens.
All of these are simple ideas but can create a great impression.
7Add value Value can be added by upgrading facilities and features.
Replace the old TV with a new flatscreen model; add some gaming options; put iPod docking stations in all the rooms; create a gourmet kitchen; offer a concierge service.
There are many ways of meeting and exceeding the rising expectations of the new generation of rental guests.
For example, installing a hot tub may not allow you to increase rental rates significantly, but could help to increase occupancy levels.
8Do what your competitors are not doing Check your competitors listings and sites regularly.
Are they meeting the needs of guests?Do they accept pets?Do they offer hi-speed internet?Think of ways you could capture the interest of potential renters and attract them to your listing over those of other similarly located and priced properties.
This becomes very important in areas where there are a high concentration of rental homes.
9Connect with your guests It's not enough to just list your property and hope for the best.
Your listing or web site should be the focus of a range of marketing activities that drive traffic to it.
Connecting to your guests via social networking is a great way of creating trust and credibility and posting regularly to a blog, Facebook or Twitter can gain you a strong following that adds to your overall network.
10Follow-up diligently The end of a rental creates another opportunity to connect to your guests and invite them to review their experience.
Offer them an incentive to book again, or a voucher for a discount on a low season weekend.
Another great idea is to offer them a bonus discount for each referral they give you.
Getting your past guests to market on your behalf gives you social proof and is the cheapest mode of advertising there is.
These are all simple and effective steps that will help you achieve higher occupancy levels and perhaps even help you to increase your rates.
Success can be measured in terms of income or the number of positive testimonials, or the occupancy levels, but if you don't have a solid plan, how do you know which marketing and operational activities are the most effective?These 10-steps are all actions you can take to create a successful vacation rental business.
1Treat it like a business Successful owners treat their rentals like a business.
They have an annual marketing and operational plan, a budget, and a means of measuring what works and what doesn't.
They have targets for occupancy and income and will track expenditure using cash flow forecasting and budget analysis.
2Be professional If you went into a grocery store and saw an array of shiny apples, it's unlikely you would pick the dull and pitted one.
In the same way, an unprofessional home-made web site will not attract traffic - in fact it can be a huge turn-off.
Being a professional owner also means taking responsibility for ensuring rental guests get value for their money and have their expectations met.
3Market and promote wisely With hundreds of listing sites and agencies, choosing the right one can be a challenge.
Start with a budget which should be 3 - 5% of your target revenue.
Then research thoroughly.
Check forums and blogs for reports on what works for other owners then track your ROI (return on investment).
Note how many enquiries and conversions are received from each marketing channel - it will soon become clear which is most effective.
Plan on using one or two major listing sites as a marketing base, then try out some lesser sites based on your peer research.
4 Build a booking system A robust booking system for your rental will lessen the potential for double booking, and will also demonstrate to your guests that you are a professional owner.
They system should flow through the booking process and include a rental agreement with a set of Terms and Conditions, statements of account, and post-rental follow-up.
Start out by designing a flow chart that shows the documents you will send to your guests, then prepare a work-sheet to track the progress of each booking you take.
5Create an attractive package People choose a vacation rental based on the photographs and list of features and facilities.
Making these attractive can impact on the number of enquiries and subsequent conversions.
Take a look at your photos and make sure they are appealing and enticing.
Do the beds look inviting?Is the dining table laid up for a meal?Can your guests imagine themselves enjoying their vacation at your property by looking at the images you've provided? 6Under-promise and over-deliver Disney does this best in its ride line-ups.
When they tell you there is a 30 minute wait and you end up only waiting 20 minutes, how good does that feel?Even though you had to wait you feel you got a better deal than was promised.
Tell your guests you accept pets and then provide a dog welcome package; advertise you have a range of games and books, and surprise your guests with the extent of your library;expand on being child friendly by supplying a dressing up box and packs of colouring books and pens.
All of these are simple ideas but can create a great impression.
7Add value Value can be added by upgrading facilities and features.
Replace the old TV with a new flatscreen model; add some gaming options; put iPod docking stations in all the rooms; create a gourmet kitchen; offer a concierge service.
There are many ways of meeting and exceeding the rising expectations of the new generation of rental guests.
For example, installing a hot tub may not allow you to increase rental rates significantly, but could help to increase occupancy levels.
8Do what your competitors are not doing Check your competitors listings and sites regularly.
Are they meeting the needs of guests?Do they accept pets?Do they offer hi-speed internet?Think of ways you could capture the interest of potential renters and attract them to your listing over those of other similarly located and priced properties.
This becomes very important in areas where there are a high concentration of rental homes.
9Connect with your guests It's not enough to just list your property and hope for the best.
Your listing or web site should be the focus of a range of marketing activities that drive traffic to it.
Connecting to your guests via social networking is a great way of creating trust and credibility and posting regularly to a blog, Facebook or Twitter can gain you a strong following that adds to your overall network.
10Follow-up diligently The end of a rental creates another opportunity to connect to your guests and invite them to review their experience.
Offer them an incentive to book again, or a voucher for a discount on a low season weekend.
Another great idea is to offer them a bonus discount for each referral they give you.
Getting your past guests to market on your behalf gives you social proof and is the cheapest mode of advertising there is.
These are all simple and effective steps that will help you achieve higher occupancy levels and perhaps even help you to increase your rates.
