5 Tips to Turn Your Home Into a Profitable Vacation Rental

The short-term accommodation industry is booming. According to a recent Phocuswright study, one in three travelers opted for a vacation rental last year versus just one in ten in 2010. That means it’s a great time to put your second home to work.

 

Any good property manager ( we are happy to introduce you to our go to managers) will tell you that there’s more to turning your home into a profitable vacation rental than simply adding a few photos to an online listing. In addition to obtaining the necessary permits and upgrading the furniture, you’ll need to think about removing or securing your personal belongings, creating a compelling description, and getting the optimal number of reviews before peak season begins.

Investing a little time, effort, and money in your vacation rental early on can make a huge difference in your profits and create a more pleasant experience for you and your guests. If you follow this checklist, you’ll be well on your way to owning a successful and profitable vacation rental.

1. Check with the your Association, Town or County.

Many neighborhoods and buildings have a Homeowners Association (HOA) with bylaws that every property or unit needs to follow. Before renting make sure you’ve read through and identified any red flags that could stand in the way of your future vacation rental. Areas like Singletree do not allow rentals for less than 30 days. Call us to find out the restrictions in your community. 

 

2. Acquire the necessary permits.

Before you start renting out your vacation home, you may have to obtain the correct licenses and permits for your state, county, and city. Depending on location you may need to collect sales tax and or lodging tax. 

 

 

 

 

 

3. Prepare the home for guests.

Although most of your guests will be courteous, careful, and conscientious, accidents are unavoidable. Remove anything from the home that is one-of-a-kind or has sentimental value and can’t be replaced. If you plan to use your vacation home frequently and want to leave some items behind, consider storing them in a locked closet or another secure area so you can access them when needed.

 

4. Gather photos and write a compelling description.

If you’re planning to self-manage your vacation rental or if you’re working with a property management company that isn’t full-service, consider hiring a professional photographer to take photos. Photos are the first thing someone looks at when browsing vacation homes, and if the photos aren’t high-quality, potential guests won’t bother sticking around to see the rates or read the description. Your house might be beautiful in person, but if the only photos you have were taken on a smartphone in poor lighting, your bottom line will suffer.

5. Allow time for reviews. 

A few positive reviews can do wonders for a vacation home’s reservation rate. An attractive listing is important, but reviews provide potential guests with a first-hand account of what staying in the home is really like. If someone is planning a special getaway, they want assurance that everything will be perfect and as advertised, with zero chance of unpleasant surprises. Reviews add trust and validation.

 

We have helped many clients acquire and rent their Vail Valley homes. Some self managed others choose to have the home professionally managed. Do you need a recommendation to local service providers to help? We have a list of quality locksmiths, photographers, cleaners, handyman, full service property managers even copywriters. Our goal is to help you get the most out of your investment. Please do not hesitate to contact us about vacation rentals.