Perhaps you’ve considered listing a room or property on Airbnb or Vrbo. Of course, these sites feature more than 7 million listings worldwide. Hosts earn a nightly rate for their listings, and substantial earning potential exists on these platforms. The average host derives side income from this opportunity. Then again, plenty of people earn a significant amount of their income through short term rentals.
If you want to succeed at this endeavor, consider the following tips for managing your short term rental, whether you’re currently a host or want to become one.
Manage The Property Yourself To Save Money…
Many short term rental hosts manage their own listings and properties. Doing so comes with the primary benefit of saving money. By skipping third-party help, you take as much profit as possible from each transaction. A DIY approach makes sense for newcomers to short term rentals, or those with single rooms or small properties. Low-effort rentals allow you to maximize profits without spending every waking moment on management.
…Or Hire A Property Management Company To Save Time and Effort
For some hosts, a property management company makes sense instead. Professional management costs various rates but saves you time and effort. You can pay someone else to deal with listing and property management tasks. Likewise, management services deal directly with guests when issues arise. If you have a large property or multiple listings, you should consider hiring outside help to make things easier.
Utilize Technology and Automation Where They Make Sense
Technology should be considered your friend with short term rentals. Certain gadgets make your life easier as a host. For instance, outdoor security cameras protect your property and ensure occupancy rules aren’t being broken. A smart thermostat helps you schedule the interior temperature to save money. You should always give short term tenants control of the thermostat otherwise. A smart lock makes entry and exit a breeze for everyone.
Focus On Excellent Customer Service and Overall Experience
Listings tend to thrive on positive reviews and word of mouth. For that reason, you need to focus on customer service and overall experience. Every inquiry and every short term tenant should be treated with respect and kindness. It’s important to respond to inquiries and calls for help as quickly as possible. Likewise, your property should be well-furnished and exude a pleasurable atmosphere. People remember excellent service.
Provide guests with recommendations for local attractions and restaurants. Don’t hesitate to give your home a high-end feel with furniture and gadgets. When someone asks a question, you should provide them with a detailed and personalized answer. Every potential or actual guest should be treated like an opportunity to grow your short term rental reputation by leaps and bounds.
Always Maintain An Accurate Budget For Individual Properties
On the financial side, you need to create a budget for each property. Everything from utilities to host platform fees and cleaning costs need to be accounted for. Even the mortgage and toiletries should be thrown into the budget. A given host needs to know what it costs to pay their mortgage and run the short term rental. From there, you can account for your minimum operating costs and know when your listing is turning a profit.
Market The Property and Show Its Best Light
Your short term rental listing should shine a light on your property listing. It doesn’t matter whether you’re hosting a single room or an entire home. Without a doubt, you should take the time to build a thorough and detailed listing. Hosts should accurately describe their listing and provide plenty of photos for potential guests. Listings should feature accurate but colorful language, quality photos, and show some personality.
In the end, you’re responsible for the overall management of your short term rental. This holds true whether you manage everything alone or hire a property management service. Treating your listing as a business allows you to grow your business and total income. A well-managed short term rental works like a machine. By following these tips and others, you’ll discover more profits and pleasurable experiences than headaches.