Short term rentals can be an extremely lucrative investment for landlords when managed properly. However, optimizing your short term rental business takes careful planning and strategic decision making. This article will provide landlords with the top 10 tips to maximize profits and success when renting your property on a short term basis.
1. Choose the Right Short Term Rental Platform
The first critical choice is selecting the right online platform to list and manage bookings for your rental property. Popular options like Airbnb provide great exposure and streamlined booking systems but charge higher fees. Other sites like Vrbo or direct booking may be more cost-effective in the long run. Take time to research all the short term rental platforms available and consider testing a few to see which works best for your specific needs and goals.
2. Set Competitive yet Profitable Nightly Rates
Conduct market research on comparable local short term rental listings to identify the optimal nightly rate to charge. Aim to be competitive for your area and property type, but don’t underprice – you want to maximize income without pricing yourself out of the market. Consider adjusting rates seasonally or for peak demand periods to capture increased revenue when possible.
3. Highlight Your Short Term Rental’s Best Features
Your online listing should showcase everything that makes your rental attractive to guests. Write compelling descriptions highlighting amenities, location perks, recent updates or renovations, and anything else that showcases the property’s unique value. Include professional high-quality photos of every room, outdoor areas, and local attractions. This content will catch the eye of prospective renters browsing listings.
4. Review Your Rental Agreement Carefully
Ensure your short term rental lease agreement protects you from liability risks, property damage, and non-payment by clearly outlining policies, fees, and security deposits. Consider requiring renters insurance. Make sure all local short term rental laws and regulations are followed. Having an ironclad rental contract is crucial.
5. Invest in Quality Furnishings and Updates
While not always essential, putting some budget towards improving or refreshing the furnishings, appliances, linens, and overall appearance of your rental can pay off by boosting perceived value and command higher rental rates. Even small upgrades like fresh paint or updated decor can make a difference. Prioritize updates that will impress guests or address previous guest complaints.
6. Manage Your Calendar Strategically
Map out seasonality, peak travel times, and any big local events, then adjust minimum stay requirements and pricing accordingly to maximize occupancy and revenue. Use calendar blocking tools to ensure adequate cleaning and maintenance time between bookings. Enable instant booking for increased convenience, but screen guests and decline any deemed high risk.
7. Provide Exceptional Guest Experiences
The more satisfied guests are with their stay, the more likely they are to leave positive reviews, refer friends, and choose your rental for repeat visits. Provide detailed check-in instructions, a house manual covering rules and provided amenities, and a local recommendations guide. Be available as needed to address questions or issues. Little touches like a welcome basket can also elevate the experience.
8. Stay on Top of Cleaning and Maintenance
Nothing turns off guests more than a dirty or poorly maintained property. Conduct a deep clean after each rental, and schedule regular maintenance like HVAC servicing, landscaping, pest control, etc. Fix issues immediately as they arise. Consider hiring a cleaner and/or property manager if your rental volume grows.
9. Monitor Your Listing Reviews Closely
Guest reviews make or break success in the short term rental market. Follow up with guests during and after stays to encourage positive reviews. If any negative reviews come in, address the issues mentioned immediately and contact the reviewer to try resolving the problem to potentially get the review removed.
10. Focus on Continuous Optimization
Consistently evaluate your pricing, fees, occupancy rates, reviews, listing content, and all other aspects of your short term rental business. Look for areas of opportunity or improvement. Test tweaks and changes to see if performance increases. Adopt an agile, data-driven approach to maximize rental income year after year.
Let Letzi.co Take the Work Off Your Plate
Managing a thriving short term rental business takes significant time and effort. If you’re feeling overwhelmed, the property management experts at Letzi.co can handle all day-to-day rental operations for you: marketing, listings, managing reservations, coordinating cleaning and maintenance, addressing guest issues, and more!
Contact Letzi.co today to discuss outsourcing your short term rental management. Our team’s experience optimizing performance and profitability provides serious peace of mind. Don’t shoulder the entire workload yourself – let us maximize your rental success!
