If you wish to earn a passive income and real estate is something you are passionate about then investing in real estate will be a great idea. As long as you do it correctly you will enjoy the returns. However, it’s not enough to get excited just because your vacation rental property is always fully booked. You ought to ensure you are making profits. On the same note, coming up with ways to increase your return on investment will help you achieve your goals fast. Here are some ways to increase ROI on your vacation rental property:
Hire an interior designer
Nobody wants to feel like he is still in his house while on a vacation. Guests look for a resort-like feel when deciding on their holiday accommodation. An interior designer can do great work in transforming your property to a resort level. It needs to be elegant but also comfortable and soothing – the kind of place guests will not mind lazing around the whole day during the trip. Reduce personal items, knickknacks, and clutter.
On the same note, consider the area when decorating. If it is a beach town, make sure guests feel it by just looking at the house. The same goes for a mountainous location – think cozy blankets, natural wood, working fireplaces, stone accents, clean linens, and plush pillows.
Pay attention to guest reviews
At this era of the internet, you cannot afford to ignore the reviews guests leave on various sites about your vacation rental property. Many people now go online for information about services and products before making a purchase. The same goes when it comes to booking a vacation rental property. You can be fully booked a year in advance just because of the good reviews you have received previously.
However, just like social media, you need to engage your online reviewers as far as your vacation rental property is concerned. If you get a positive review, thank the reviewer for that and their stay and invite them to come back. In case it is a negative review, ensure your response is thankful and courteous. Give the guests the assurance that the issue will be looked into and rectified. This builds trust. The worst thing you can do after getting a negative review is flying off the handle. It won’t help you in any way.
Remodel your bathroom and kitchen
Travelers are looking for opulence while on vacation and anyone can tell you that the kitchen and bathroom are the most used rooms in many houses. Even if the guests will not be using the kitchen to prepare meals, a great kitchen adds to the appeal of the property. Bathrooms are the most used rooms during a vacation and they should be comfortable and luxurious so that guests can spend hours there relaxing.
Update kitchen appliances, re-tile the bathrooms, and even add a bathtub/hot tub to give the place a spa-like feel. Even replacing the fixtures can give the bathroom a fresh and polished look. Gleaming shower knobs and faucets will give the place a clean and classic feel. Position the hot tub in such a way that guests will have the best views while in there.
Write an enticing property description
How you describe the property can make potential guests book or turn down the offer. You need to take your time when writing the property description to come up with something thoughtful. You can even ask for the help of professional writers if you are not sure of what to write. The description should not be more than 500 words but it should give potential guests all the information they are looking for.
The sentences should be short and easy to read. It should also be well formatted for those reading on a mobile device – if it is one big block of text no one will bother. Don’t forget SEO when writing the description as well. Include phrases that potential guests use when searching for accommodation in your area so that your property comes on top in search engines.
The headline should have punchy adjectives as well. You don’t have to include the number of beds in the headlines. Give a highlight of the neighborhood too. Tell guests how far the house is from the local restaurants or the beach. If the location of the property is unique then go ahead and include that as well.
Have professional photos of the rental property taken
Professional photography is one of the most important things you can do to increase your return on investment. The first interaction potential guests will have with your property is through the pictures posted online. If they are not impressive no one will come no matter how great the place is. However, the pictures have to capture every room and amenities in the property.
Don’t just post one or two photos and be done. Aim to have a minimum of 25 photos. They should be well-lit, gorgeous, and also perfectly framed. Dark and blurry photos done at bad angles are such a bore and people will keep scrolling without giving your property a second thought. Also, add short captions to the photos as well to describe what is on the photo. You can even add some SEO in the description.
Offer additional services at a cost
Not many people feel like cooking or doing their laundry while on vacation and you can charge an extra amount for that. You can even organize local tours for them and make a good amount of money in the process. You can get someone to help you with these tasks and pay him or her a certain amount. At the end of the day, you will have made a profit. If you are doing this for every guest you will be surprised at the amount you have made in the process looking back a year later.
Consider allowing dogs
Most pet owners going on vacation prefer to take their pets with them especially if there is no one to watch them or the cost of getting a pet sitter is too high. According to research, vacation rental properties that allow pets receive 6000 dollars more in profits compared to the regular rentals. If your worry is the damage the pet can cause then just add a non-refundable pet deposit to the rates. Most pet owners won’t be surprised by this since they expect it whenever they tag their pets along. Not many will mind paying the fee as long as they get to take their pet with them.
Modernize your amenities and stock the pantry
It won’t cost you much to add modern amenities to the property like flat-screen smart TVs, a full-service cable TV package, and a fast Wi-Fi. Get a top-of-the-line coffee make, elegant glassware and dishware as well as high-quality pans and pots. Ensure the pantry is thoughtfully stocked with things like extra paper towels, coffee filters, individually wrapped snacks, and even seasonings. These may seem like little touches but they go a long way in making the stay comfortable and memorable which is a big plus for you.
Update the rates regularly
Don’t just set rates and forget about them for years. Nightly rates vary widely based on the local trends and time of the year. You have to review the rates regularly and compare then to what other vacation rental homes in the area are charging. Check your booking calendar regularly and adjust it accordingly. Remain flexible as well.
Don’t use the property during the peak season
If you want to use your vacation rental property when you go on vacation then do it during the offseason. Using it during the peak season will see you lose a lot of money. Your property is likely to be fully booked during the high season not to mention that rates go up due to high demand and limited supply. This is the time you get the most profits and it will be a shame if you decide to close your doors to renters during this period. You can always vacation at another time but the money you lose will never come back to you. Thus, plan your vacations so that you won’t have to make the last-minute change of plans.
Hire professional management services
It is quite easy to increase the ROI of your vacation rental property when you use professional management services. The professionals are knowledgeable in terms of marketing the property, maximizing bookings, and even dealing with problems as they come up. Just as you hire a real estate agent when buying a home you also need to hire a professional management company to achieve the best ROI on your investment. All you have to do is sit back and watch the cash flow in. It also frees your time so that you can focus on other things like scouting for your next investment.
Allow charity organizations to use the home
This works wonders in marketing the property since a lot of people will attend the charity function not to mention the fact that you can make a charitable deduction when it comes to filing your taxes. However, the charitable deduction is only applicable for the amount made above the “personal benefit made”.