Rent out a townhome, apartment, or condo unit for the short term is a good way to make passive income. According to Travel Weekly, short-term rentals are even outperforming hotels, as travelers look for accommodation that is better equipped to make their stay more comfortable and convenient. And with the pandemic, these rentals can offer the isolation that vacationers need to get the peace of mind that they are safe while on a holiday.
However, short-term rentals would require proper management to be successful. A single negative review can dramatically reduce your occupancy rates. So, before diving into the holiday rental market, do you know how to manage a short-term rental property?
In this article, we’ll discuss actionable management tips on entering this lucrative market from one of the biggest names in the real estate world—Avery Carl.
One of the biggest and initial decisions you want to make is whether you will manage the property yourself. Self-management means you avoid the management fees, but you must learn how to self-manage a rental property to turn a profit.
Self-management offers several benefits, including:
You can keep a close eye on the progress of your property.
You can make sure each guest has a positive customer experience.
You can control your rental calendar.
You can pick up a ton of valuable experience in property management along the way.
Self-management also makes it easy to add a personal touch that has a direct impact on the rental rates. However, it means you do all the work, from creating your online listing to scheduling maintenance and cleaning.
How to Manage a Rental Property from Out of State
Rent-by-owner or self-management is not always the best option for a short-term rental property owner. You are probably short on time, out of state, unsure how to manage such property, or predisposed not to deal with the work involved.
In these cases, hiring a professional rental property management company is a good decision. This is especially true for owners dealing with their first round of bookings. Professional management also removes the burden of dealing with maintenance, guest reception, and cleaning crews.
While you are losing some control over the property and management fees are involved, a property manager also relieves you from dealing with details, such as taxes and booking site management.
However, you should make sure that the property manager you hire is already experienced in handling such type of property, knows your local market, is professional, and is comfortable working with. It should be able to offer a realistic assessment of nightly rates and expected bookings throughout the year.
Learn how to manage a rental property remotely
Notwithstanding your geographical location, you must ensure your guests’ needs are fulfilled through a 5-star experience if possible.
The vacation rental industry is growing, and new online platforms and technology are helping property owners have full control of their short-term rental businesses. These tools ensure efficiency without having to be physically present. Plus, they can help reduce the workload!
A few strategies to managing your vacation rentals remotely include:
Using rental management software to monitor and manage operations.
Adopting an automated check-in and check-out technology.
Installing home automation systems that allow monitoring and controlling of equipment and fixtures, such as the AC and lighting systems.
Creating a lockdown plan that ensures fast response and efficiency depending on severity levels to minimize effects on your business.
You can also gather more insider tips on how to do this properly. Avery Carl will speak at the Real Estate Masters Summit and will share her tips on how to manage vacation rentals remotely.
The online summit brings together some of the biggest real estate industry leaders as speakers. They share their secrets on how they make money and become successful in their businesses.
Follow the local tax and licensing regulations
Short-term rentals are usually registered and are subject to occupancy taxes. The taxes and rules around short-term rentals are increasingly scrutinized all over the US. Before you get bookings, make sure you are registered and have a system to collect and remit your lodging and sales taxes. The first step involves registering with the state, county, or city agencies—sometimes, all three.
You can include rental tax in what your guests will be paying. You should then pay it when the tax season comes. Remember that uncollected or late payments can incur interest and penalties.
A critical step in how to manage a short-term rental property is to set up an easy tax platform that helps remove the burden of calculating it and ensure your tax obligations do not slip through the cracks. A full-service short-term property manager usually handles these tasks as part of their services.
Consider the finer details
Travelers today have numerous websites and listings at their disposal. To stand out, your listing must focus on the strengths of your property and include the most important details. Of course, you should use high-quality photos. A few extras will go a long way to make sure you outperform other properties in your area.
When you ask any Avery Carl realtor, you will also learn that including technology comforts, such as cable 4K TV, internet connection, gaming systems, and active Netflix subscriptions, will make guests wanting to return. Think of the things you would like to have when staying at a vacation home and provide your guests the same. Remember, the thing that makes guests choose a short-term rental over another is the personal experience they get.
You can also have baskets with goodies, like cookies, wine, or fresh roasts. “Welcome” and “Thank You” notes add a personal touch many guests are not likely to forget, as well. These and other minute details can increase your chances of getting glowing online reviews as you are offering a unique service in the short-term rental market.
Aim to get positive guest reviews
Do you want a successful and smooth short-term rental operation? As any Avery Carl real estate agent would say, “high guest satisfaction is critical.” Visible five-star reviews on your online rental listings help establish credibility with travelers taking a peek view of your property. Answering basic questions, like whether there is a parking space, a blender, or any activity that your guests can enjoy, tremendously increases your odds of getting excellent reviews.
When managed properly, short-term rentals are incredibly lucrative as a business. Want to learn more on how to manage a short-term rental property, get online and learn the skills from the experts.
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