How to Make Money On Vacation Rental Property
As the top source of custom furniture packages for the vacation rental market in Florida, we know what it takes to start making money with vacation rentals. Below you’ll find the main items you’ll need to tackle to start your profitable vacation rental property off right.
1. Do Your Research
This should be the first step whenever a real estate investment is involved. If you’ve never invested in a vacation rental property before, or have never done so in Florida, then you probably don’t know everything that goes into acquiring the right investment. Fortunately, there is ample information available on the internet that can help you begin learning about how to find, purchase, and manage a profitable vacation rental property.
2. Buy the Right Vacation Rental Property
Once you’ve done your research, there is still work to be done before you’re ready to purchase a vacation rental property. After all, you’ll want to start off strong and continue making money with vacation rentals for years to come.
To get started, look into different locations and begin narrowing down your search. Purchasing a home near popular vacation spots such as theme parks, beaches, and other popular tourist sites will significantly increase your chances of keeping your vacation rental property booked. Once you’ve chosen your city, find out their most updated regulations for short term vacation rentals. Certain places have limits on the amount of people you can host in a year and have fined vacation rental property owners for operating an Airbnb or similar rental without a license.
3. Know the Amenities Renters Want
There are a few vacation rental home amenities that guests look for more than others, which means offering them will help increase your home’s visibility in vacation rental searches. Many vacation home renters are looking for pet-friendly options with wifi and a hot tub and/or pool.
In 2020, free internet access is a basic expectation of vacation home renters, and you’re sure to miss out on booking opportunities if you do not provide it. The same goes for welcoming pets; many families are looking to travel with their dogs, especially as more places and airlines are welcoming furry, four-legged family members. If your vacation property is near the beach, a pool and/or hot tub may not be a must-have for vacation home renters. But for homes that are more central to the state, as Orlando is, a pool and hot tub would be additional selling points that can help you charge more for each rental.
4. Furnish and Decorate Your Vacation Rental Property
Vacation home renters are looking for rentals that look nice, comfortable, and complimentary to their trip. Remember: your renters are on vacation. They want to stay somewhere somewhat luxurious, and you’ll want them to want to return in the future and tell their friends about the beautiful home they stayed in. Check out our tips for renting your vacation home for additional information.
Furnishing and decorating the entire interior and exterior of a vacation home is a process that can be both time consuming and stressful. There are numerous details that go into the overall design as well as each individual room and other spaces your guests may encounter. The best way to tackle this task while minimizing the hassle is to invest in one of the Florida vacation rental furniture packages available in your area.
5. Connect With Potential Renters
As vacation rentals, vacation rental homes are short-term rentals. This market is entirely different from that of traditional rental properties, so it requires different maintenance, management, and marketing tactics in order to be successful. Many vacation rental owners choose to market their properties online to reach the most potential renters possible. Check out our vacation rental tips for owners to get started on your path to vacation rental success.
6. Determine Your Rental Rates
Although we’ve listed it as the last step, it is not the least important. Before you’re ready to start booking renters, it’s important to know how to set your nightly rate and when you should temporarily—or permanently—increase it. There are a number of useful tools that can help you with this process online and, depending on the method you use to manage your vacation rental listing, your management company may be able to help as well.
7. Welcome Your First Vacation Home Guests
Your home is ready. Your rates are set. Your listing is complete.
When your first guest books your vacation home, you’ll want to welcome them and be sure to answer any questions they may have. Be attentive to their needs and concerns, and respond quickly when they contact you. Your interactions with your guests will impact their overall feelings about staying in your home, which in turn will impact their decision to rave about the experience to their friends and leave a positive review for your vacation rental property. As you have more and more guests, remember that their positive reviews of your home are going to help you acquire more bookings in the future.