Businessing Magazine Logo Businessing Magazine Logo

5 Tips to Turn Your Vacation Rental into A Successful Small Business

5 Tips to Turn Your Vacation Rental into A Successful Small Business

Are you looking for advice on how to turn your vacation rental property into a thriving small business? Well, you’ve come to the right place. We’re going to fill you in on some easy tips for renting a vacation home as well as the steps that need to be taken to ensure your guests feel at home and keep coming back for more.  As more traditional forms of vacation accommodation are becoming obsolete, the vacation rental industry is booming. With this increased demand comes vast supply, which means you need to work hard to remain competitive. Nobody said managing a vacation rental would be easy, but the five tips we’re about to share with you will make it much easier.

Find Out What Your Guests Want — And Give It to Them!

These days, it’s simply not enough to do the bare minimum to make customers totally satisfied. To keep up with your competitors, both in the vacation rental industry and in the traditional accommodation industry, you need to do whatever you can to stand out.

Here are little things that can have a big impact on your guests’ experience.

·        Leave a little welcome gift for your guests on arrival and perhaps a handwritten note wishing them a wonderful stay.

·        Put together a file that includes menus and contact information for the best restaurants and takeaways in your area.

·        Stock a mini fridge with bottled water, milk, juice, and whatever you feel your guests might enjoy.

·        Think of things you would appreciate as a guest and offer the same treatment to your guests. An indulgent box of chocolates, earplugs, or a fluffy robe could make all the difference.

Budget, Budget, Budget

In order for your business to stay afloat, you need to have a solid vacation rental business model in place. As tempting as it may be to charge big bucks for your property, you must keep your pricing competitive. One of the very best vacation rental tips for owners is this: check out what your competitors are charging and make sure you set prices that match — if not beat — the going rates in your area.   Once business is flowing in, do all that you can to manage your income to expense ratio to make sure your vacation rental business model is, in fact, a sustainable one. Always remain focused on increasing your income and decreasing your expenses. When it comes to your expenses, stick to the necessities such as buying and maintaining insurance and making sure that your guests have all the basic amenities they need before you spend on other improvements.

Set Your House Rules

You’re probably highly aware of the fact that managing vacation rental property isn’t always a walk in the park. To avoid any conflicts with guests, it’s best to clearly detail all rules that guests are expected to abide by.  You cannot get upset with your guests for not adhering to your rules if they were never made aware of them. If no noise is permitted after 10 pm or smoking is prohibited on the property, clearly state this. Making a “do’s and don’ts” list is highly recommended.

Don’t Slack on Your Admin

Often, the best advice for renting out a vacation property is intertwined with advice on how to maintain a high level of customer service and keep your admin in check. Think about it: you can’t run a successful business without satisfied customers, and you can’t have satisfied customers unless you run a tight ship.    We know that this is easier said than done. With all the booking requests, queries, invoices, and customer needs that must be met, it is easy to drown in the administrative tasks associated with managing a vacation rental. The solution? Be aware of your limitations and stop trying to do everything yourself. Take advantage of vacation rental software that’s at your disposal. With this technology, you can automate communication with your guests, enlist the services of a virtual accountant to pay fees and taxes, and take a step back from admin. This will enable you to focus on the core elements of your business and will help take some weight off your shoulders.

Talk to Your Guests — And Get Them to Talk to Others!

Are you wondering how to market vacation rental business? Get your guests to do it for you! Ask your guests to write reviews about their stay. Not only will these reviews help attract other potential guests, but they’ll also provide you with detailed insights as to what your guests love about your property — and what can be improved.

Reviews aside, there are a few other ways to attract new business to your vacation rental.

·        Optimize your vacation rental listing to be picked up by search engines and algorithms.

·        Use social media to market your property. Encourage your guests to share their stay on their social media platforms, too.

·        Offer repeat guests and long-term renters a discounted rate.

Final Thoughts

Now that you know how to better run a vacation rental, it’s just a matter of time until you have guests queuing up to stay at your place! If you use the tips for running a vacation rental business, you will surely reap the rewards.

short url:

by Marissa Collins //

Opinions expressed by contributors are their own.