According to investment experts, you should aim to make an annual rental income of $10,000 for every $100,000 you pay towards your property. Sounds simple enough, but how on earth do you reach this figure as a first-time vacation rental owner?
The truth is, you might not meet these target numbers year on year, but it's a great way to set yourself an income goal and have something to work towards. While a second home/property might not guarantee you an early retirement, it can become a decent stream of passive income.
Here are the vacation rental income tips you need to know.
1. Optimize Your Listing on All Platforms
You must ensure your listing stands out on every platform you list it on. This is the best way for potential guests to see your listing, click on it, and maximize rental profits. A stand-out listing includes the following:
- A clear, concise, and well-written description of your rental, focused on guest experience and the amenities on offer
- High-definition, clear, and professionally staged photos that showcase the best parts of your rental (including the thumbnails)
- Keyword-dense listings - look at the keywords your competitors are focusing on and include them in your listing too
It doesn't matter how great your vacation home is, if you don't take the time to create an effective rental listing and optimize it on the right platforms, no one will see it.
2. Dynamic, Flexible Pricing
One of your best rental income strategies is dynamic pricing that changes with the seasons. Don't fall into the trap of setting your price and sticking to it. Your guests are looking for pricing that suits the time of year.
Adjust your pricing according to the high and low seasons. Keep things flexible around certain events on the yearly calendar in your specific area - adjust your pricing to suit the demand. Make sure you're using a dynamic pricing tool that analyzes local data and recommends the best pricing to suit your local area.
3. Make Your Guests Feel Extra Special
A great strategy to increase rental earnings is by focusing on guest engagement and the guest experience. By making your guests feel seen, heard, and welcome, you can almost guarantee brilliant ratings and even repeat bookings.
A simple example of boosting guest engagement is by reaching out to them when they make a booking, asking what the occasion is. If it's an anniversary getaway, provide them with a complimentary bottle of champagne. Small gestures can make a huge difference in the overall guest experience.
It's also important to engage with your guests after their stay. Ask them to share feedback when they have a chance and use that feedback as a chance to adapt, make changes, and offer better service where you can.
Vacation Rental Income Tips at Your Fingertips
These are just a few of the many vacation rental income tips you can put into place in order to maximize your yearly profits. Establishing your vacation rental success is by no means passive, however, you can eventually create a stable form of passive income with the right effort.
If you're looking for expert guidance on how to manage your vacation rental in Steamboat Springs, PMI offers all the services you need. Whether it's coordinating bookings, finding the best housekeeping crew, or overseeing property maintenance, we do it all.
Learn more about our extensive property management offering today.
