Optimize your short-term rental strategy with these actionable tips for success.
If you are new to the short-term rental industry, it's essential to develop a strategy for your rental business to succeed. Let's discuss the challenges and actionable steps to keep your rentals filled.
The Challenges Behind Creating a Successful Short-Term Rental Strategy
Some challenges faced by those managing short-term rentals revolve around a need for more organization. Common issues include:
- Not adequately keeping track of monthly income and expenses
- Not having a plan in place for emergencies or unexpected repairs
- Not marketing sufficiently, so the rentals spend more time empty than they should
- Not having a streamlined system to manage bookings and cleanings
Keeping up with bookings, cleanings, amenities, repairs, and cash flow can be overwhelming without systems. Short-term rentals have more moving parts than long-term rentals. Plan for issues, track finances, and market to keep guests coming.
1Conduct Research on Short-Term Rental Properties To Target Potential Markets
Research the real estate market and rental needs in your area to know who to market your space to. Some spaces suit couples, families, outdoor adventurers, or business travelers. Knowing your target guests makes marketing easier.
2Map Operating Costs and Income Potential To Evaluate Monthly Cash Flow
Like any business, know how much money comes in versus how much goes out and what your return on investment will be. Develop a short-term rental pricing strategy with nightly and weekly rates.
Ask yourself:
- How much do you need to charge to cover cleaning fees, commission fees, taxes, labor, maintenance, amenities, and other expenses?
- What is your potential cash flow if your rental is booked every single night of the month?
- How many days can it sit empty while still turning a profit?
Knowing your operating costs and financial flexibility will help you decide as you move forward.
3Take High-Quality Photos To Showcase Your Property
Photos are crucial. Potential visitors want to envision themselves in the space, and it needs to feel inviting, safe, and clean. High-quality photos can make all the difference.
Before taking photos, ensure the area is clean and free of clutter. Turn on all the lights, and let in natural sunlight. Take pictures from multiple angles. Include photos of inside spaces, outside spaces, and unique amenities. Consider hiring a professional photographer.
4Utilize Social Media Platforms To Promote Your Property
Social media platforms are great for promoting your property. Steps to create your social media strategy:
- Create a business page on Facebook with information about your short-term rentals and easy booking links.
- Create a page for your rental on Instagram to highlight images and allow visitors to share their photos.
- Create a YouTube tour of your property, highlighting amenities.
Make sure that your social media handles and desired hashtags are listed for your guests to see, such as on the refrigerator or in a welcome packet.
5Leverage Unique Services, Amenities, and Software for Automation
There are many services for short-term rentals that can make managing easier, including amenity services, automated booking services, and software for managing cleanings and maintenance.
Property management software increasingly combines several services into one tool. Check out Guesty, Hostaway, and Lodgify.
6Alongside Airbnb and VRBO, Host Your Own Site for Direct Bookings
Even if you're on Airbnb and VRBO, having your own site for direct bookings maximizes rental income. Integrate booking apps into your website.
Conclusion
If you're ready to automate your short-term rental strategy, consider property management tools to help.