How to Make More Money With Your Vacation Properties by Doing Less
Vacation Rental Property Investing is one of the most profitable passive investments of today. You don’t have to be actively involved; you can even pay someone else to run it for you.
Vacation rental returns can vary depending on factors like:
- Occupancy rate
- Average daily rate
Vacation rental returns can result in returns ranging from 10 percent to over 20 percent. Since you want maximum returns, follow the following steps:
Use dynamic pricing
Dynamic pricing is the process of changing your prices based on demand. This can vary month to month, week to week, and even day to day. Having higher prices on weekends, peak seasons and times is the best way to be able to capture the full potential of revenue. Lower prices during the week can help you capture bookings during lower demand times.
Now I know this may seem to be a big task to take on, that is why there are companies that will do it for you. A company like price labs takes data that you may not be aware of like there is a concert in your area. They will then automatically adjust your prices anywhere from months to over a year out. They will adjust your minimum stay requirements to be longer further out and shorter to capture last-minute bookings. This gives you complete comfort in knowing that you will not miss out on any revenue and will give you much more time.
List on multiple booking sites
The best way to maximize your bookings is going to be to increase the demand for your properties, increase demand means higher daily rates and more revenue in your pocket. The easiest and best way to do this is to list the most popular websites, Airbnb and Vrbo are the two leading booking websites. There are 100’s of others that you can list as well. You can also opt to make your own websites that can be great for returning clients and with no booking fees you will get more revenue.
One issue that begins to prevail with this strategy is the potential for double bookings. Lucky for you there is property management software that focuses on channel management that will sync together all your calendars to eliminate your chance of getting double bookings.
Automated messaging can be one of the most useful things in freeing up time in your business. This is the process of setting up automatic messaging that will be sent to your guests during different stages of their booking. This can range from right after they book to the day of arrival. This can make sure that your guest receives all of your house rules and information. Having all this information automatically sent will help protect your home from guests having confusion about rules. Guests will also have a more enjoyable experience when expectations are clearly stated and outlined for them.
Look into a property management company
Renting out your home can be very tiring and sometimes can be too much for someone. Maybe you are just looking for extra help in keeping up with bookings but still want to continue to grow your portfolio. A software like Lodgable offers everything a vacation rental company will need from calendar syncing, accounting, reservations, housekeeping, and arrivals, and departures. Can really free up time for you and make things so much easier for you. They also offer free direct booking website integration if you own a previous or new domain. With a built-in instant booking engine that automatically syncs to other booking sites like Vrbo and Airbnb.
If you are looking to have your vacation rental be completely hands-off and passive. This is where a property management company can be very appealing. Property management companies can take all the tasks of day-to-day operations like dealing directly with guests on bookings, cancellations, issues and even working with the cleaners. This does come at a hefty fee, however. Fees for a property management company can be anywhere from 15-40% of your gross revenue depending on how much you want them to do. This is a huge chunk of money so it is important to do your research on them if you think it will be worth it, for many they feel that it is.
These are just a few of the most important factors to consider when it comes to maximizing your vacation rental property investment all while freeing up your time. From using technology and automation tools to set prices, sync calendars, and automate messages to hiring a property management company. Utilizing all this information will help you get the most out of your vacation rentals and ensure you a great return on your investment.
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