Vacation Rental Property Ownership: 7 Ideas for Increasing Profits

In the United States, it is estimated that the vacation rental industry will be worth close to $20 billion by 2025. This is a very popular market, with one in eight people having stayed in a vacation rental.

While vacation rental property ownership is a lucrative business opportunity, there are still opportunities for you to increase your profits with your properties!

Do you want to learn more about managing vacation rental properties? Keep reading this guide for the top seven tips to follow to increase your profits from a vacation home. 

  1. Make Small Repairs and Renovations

One of the easiest ways you can increase your profits with a vacation rental is to make strategic repairs and renovations. This will make your property more marketable and attractive to potential tenants. 

For example, you can make strategic finishes to your property to help protect them from tenants. This may include adding scratch-resistant flooring, door stoppers, and other things to prevent damage. 

You can also make some changes to the decor in your property to improve the aesthetics and to make it look more comfortable in the listing. 

  1. Automate the Process

The more you automate your guest’s experience, the more you will maximize your profits as a vacation rental property owner. There are many ways that you can lower your guest’s reliance on you during their stay. 

First, you can automate their check-in and checkout processes. This includes having smart door locks that allow for a keyless self-entry. Guests love this because it allows them to arrive at any time of the day or night. 

You can also automate the messages that you send to your guests when they book, the day they arrive, and when they check out. 

  1. Optimize Your Listing and Marketing

Next, you must learn how to optimize your listing and improve your marketing. This is especially important if you own a listing in a popular tourist destination or vacation spot. 

There may be hundreds of other listings in the same area that are competing for the same guests. When people log onto vacation rental platforms, they may only look at the top listings. 

Luckily, there are ways that you can optimize your listing to rank higher on the platform! For example, many listing platforms will reward hosts that respond quickly. It is also important that you keep your listing up to date to stay current with your current availabilities. 

You may even update the listing to include seasonal attractions near your property!

  1. Add Extra Amenities

Adding extra amenities is another simple way that you can attract more bookings and charge more for your rental. 

One thing that is becoming increasingly important for vacationers is finding pet-friendly vacation rentals to accommodate their pets. Because so few hotels and rentals offer pet-friendly rooms, you can charge more for guests that bring their pets.

You can also include amenities like a hot tub, a fully stocked kitchen, and more. 

  1. Carefully Set the Price

One of the most common things that affect the profit of a vacation rental is the pricing set by the host. If you set your price too low for your vacation rental, you will likely have more guests but you may not make as much money. 

If you set your price too high, you will not get as many bookings for your vacation rental property. When you set the price for your vacation rental, it is important that you consider other similar properties available on vacation rental platforms. 

How much are similarly sized units going for in your area? 

It is also important to realize that your pricing will change over time. As you establish yourself as a high-quality vacation rental, your prices will likely rise over time. You also need to consider additional fees, like cleaning fees, when you set your pricing. 

  1. Offer Incentives for Longer Tenants

When you have tenants that stay on your property for longer, you greatly reduce your turnover cost. You will not have to pay to clean your rental and to maintain your property. 

As a property manager, it costs you much less money to have a guest stay for two weeks than it does to have guests stay for a weekend. If you find ways to incentivize longer stays, you will be able to increase your profits!

Many hosts will charge a higher rate for stays that are less than a week and will offer discounts for guests that stay longer. 

  1. Hire a Property Manager

Finally, you may want to consider hiring a property manager for your vacation rental! While this is an additional expense, it can be seen as an investment and can help you boost your profits for your rental property over time. 

There are many benefits of hiring a property manager for your vacation rental. First, they increase your property exposure. This means that more people will know about your vacation rental and will be more likely to rent from you in the future!

A vacation property manager will also help with every step of the process. This includes the booking process, cleaning, maintenance, and more. If you want to maximize your profits with a property manager, Emperor Management can help!

Learn More About Vacation Rental Property Ownership Today

Vacation rental property ownership is a great investment and can be a very lucrative industry. Still, it can be difficult to do on your own. By following each of these tips, you can find ways to maximize your profits from your vacation rental business!

Do you want to learn more about vacation rental property ownership? We can help! Our website features expert articles on real estate, travel, and more. 

Check out our blogs for more advice about the real estate market and how you can improve your investments. 

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