Managing a short term rental is no easy task. It requires a lot of confidence, planning, strategy, and steps to ensure it continues profitable and running in the business. People who chose holiday homes, look for a variety of factors, and if one of them is missing, it means you can incur losses. Therefore, in order to keep your short term rentals profitable and managed, we have brought 7 tips that you can use.
Each one of the factors mentioned below is important in its own aspect, do not ignore any of it if you want good management.
1. Great reviews and service
If you are in the hospitality sector you’d probably know this fact. At this time when there are a plethora of websites available where you can list out your short term rentals, reviews and services for a very important part of profitability and management. From a customer’s point of view, one single bad review can change their decision and reject your holiday home.
Secondly, services offered in turn affect reviews. If you lack proper service, they turn into bad reviews, which reflects in your occupancy and profits. So one of the best ways to ensure good management and occupancy is to deliver exceptional services and give the customers no chance to badly review your holiday home.
There are different regulations for rental properties and they differ in terms of the number of days the property is rented out or occupied. In many jurisdictions, if you are renting out for less than or equal to 14 days in a year, you are eligible for a tax exemption or rebate. If you rent more than that, you have to fill out income and profits from it. So, it is better to know the taxation laws associated with your holiday home so that you can take advantage of these reductions or abatements when needed.
3. Budget management
Having a budget for your holiday home is very important. Divide this budget into recurring costs, one-time costs, investments, Utilities, and regular expenditure. Your income should be set aside according to the nature of your expenditure. For example, recurring and one-time costs are to be handled no matter what, so you can’t escape them. What you can escape are heavy and luxurious fittings that don’t serve as an investment or decoration expenditure that is not needed. So to better understand and manage your short term rental, a proper budget and financial planning are very important.
One of the most important factors of managing a short term rental is maintaining it. No guest would like to walk into a property that is poorly maintained, with water dripping from the roof, or paint coming out of the walls, or maybe moss growing out in the pool. People travel a long way to come and settle into your property, making it a home for the next few days. So it’s your responsibility to maintain the property you’re giving to them. Bad maintenance can lead to bad reviews, which can lead to short occupancy rates and lower profits for you. So maintenance is a form of investment, and you need to adhere to it.
You may think that your property deserves the highest price possible. It is very normal for any landowner to think so, but before setting your rental price, always check the competitor’s prices. Competitors in such terms can be holiday home that has similar occupancy rates, similar space, services, etc. While you can always tailor it according to other factors such as location, views added amenities, etc, always make sure you remain at a competitive limit. It is always good to check the market rate so that you don’t end up charging too high or too low.
6. Energy efficiency
Energy efficiency is a very profitable and attractive factor that can increase your competitiveness in the market. It serves you in two ways. First, by using green energy, or efficient energy you will be able to cut your utility cost. Secondly, there are customers and guests that always prefer places that are more sustainable and environmentally friendly. This pool of customers is growing. While your competitor may provide the same services and amenities, a touch of eco-friendly living will give you a huge advantage over them.
8. Property management software
If you think you are not able to manage the short term rental, then you can always delegate it to property management software. It costs a bit, but you can receive timely and fixed income from it. Or, you can provide them with some commission or a flat rate as a fee. Chose this only when you are not able to handle the work efficiently, otherwise, the best way is to indulge in it yourself.
If you follow these tips, you might be able to manage your short-term rental efficiently. It is a huge investment so proper time and management are needed to keep it working in a profitable manner. You can use these tips if you are facing difficulty in managing your holiday home.