Buying a vacation rental property involves many decisions, from choosing a location to setting rates. With a projected 3.62 percent annual growth rate, many properties investors are entering the market. If you’re wondering how to make money on a vacation rental property, read the following guide for helpful tips.
Choose the Right Location
Before you buy a vacation rental property, research the location. An area that attracts tourists year-round is ideal. Does the property have a breathtaking view? Is it within walking distance of museums or quaint local shops? Whether it’s in Cape Cod or the White Mountains, your property will be easier to market if it’s in a popular location.
Some locations, however, do not allow short-term rentals. Other areas limit the number of short-term rental guests per property, per year. You don’t want to end up paying a fine, so make sure you research regulations at the city, county, state and neighborhood levels.
Buy the Right Type of Property
This is one of the most essential tips for how to make money on a vacation rental property. As an investment property owner, you’ll want to buy a vacation rental home that will generate income. A multi-family property will accommodate more guests than a single-family home. A spacious home with multiple bathrooms and bedrooms will allow you to charge more per night.
Decorate and Update Amenities
Your property should be so appealing that guests will want to post pictures of it on social media. The home should appeal to a variety of tastes, so start with a neutral color scheme. Add some décor that is relevant to the location. For example, include some nautical accents pieces in a coastal Rhode Island rental. Keep the house stocked with necessities, such as cooking supplies, shampoo, linens and paper products.
This is not the time to skimp on expenses, so go ahead and invest in high-quality furnishings. An interior decorator who specializes in vacation rentals can give you valuable advice.
Finally, you’ll want to include a few high-demand amenities. Guests particularly appreciate the following:
- Pet-friendly accommodations
- Hot tub, especially if the property has a scenic view
- WiFi Internet access
Set Rental Rates
Setting rental rates is a surprisingly complex task. Gone are the days of fixed rates for weekdays and weekends. Today, dynamic rental rates fluctuate with the seasons as well as short-term events such as bad weather.
Start by researching comparable vacation rentals in the same area. It’s also a good idea to consult with experts in the vacation rental market. Short-term rental property management companies can help you calculate your rates by using algorithms, local expertise and other tools.
Market Your Vacation Rental Property
You’ve found the ideal property in a charming location. You’ve decorated, added amenities and set your rates. Now it’s time to spread the word about your vacation rental home.
You can choose from a variety of listing sites. Some sites specialize in certain types of properties, from city apartments to remote cabins. A short-term rental management company can use SEO, social media ads and other resources to help you market your property.
You want your vacation rental to make a fantastic first impression. At RH Blanchard, our experienced general contracting team can get your property in shape for listing. Contact us today for a free consultation.