These days, several real estate investors are looking for vacation rentals to add to their investment portfolios. Vacation rental properties are residential real estate that houses temporary tenants, usually for six months or less. They are a sound investment, even for first-time investors. Still, there are certain things that need to be considered in order to make sure that your vacation rental property will actually earn you money. Here are four things to focus on to ensure that your vacation rental property is profitable.
The top vacation rental listings on rental websites are very descriptive to give the potential tenant an idea of what to expect when they’re staying on the property. You don’t want to oversell your property, because people can usually tell when they’re trying to be sold something that’s probably too good to be true. Your listings should give basic information, such as the number of bedrooms and bathrooms, but it’s also a good idea to highlight your property’s best feature(s), which can be something like a spacious kitchen, a balcony or a pool, and all the amenities that are available to your guests.
Once again, certain features of a rental property can attract more tenants. When looking for a vacation rental property specifically, there are certain things to consider that you probably wouldn’t consider when buying a traditional rental property. Vacation rentals are temporary homes for people on vacation, so when looking for properties to invest in, think about things that most people don’t already have in their homes. This can be something as simple as home upgrades (hardwood floors, granite countertops, high-end fixtures in the kitchen and bathroom, and stainless-steel appliances. It can also be luxurious amenities such as a fireplace, pool, or jacuzzi— whatever makes sense for the location of the property.
No matter what features are included in the vacation rental you plan on investing in, it’s important to keep up with the maintenance of your rental property. Thoroughly clean and disinfect the entire property between tenants (whether done yourself or with a cleaning service) to ensure that your property is ready for the next guests. Make sure all appliances are working properly, including all heating and air conditioning/ventilation systems. If your property has a pool, make sure it is also clean and available for use, especially if it’s mentioned in your listing. Well-kept properties are more likely to get higher ratings, meaning they’re more likely to be rented by guests.
Possibly the most important factor that can determine whether or not a vacation rental will be successful is where it is located, especially in the post-pandemic era. When people visit sites like Airbnb, they’re looking for a place to stay while they’re on vacation, which is usually located in a place that sees a lot of tourists each year, or even all year long.
For example, in the United States, Florida is a popular travel destination because the state offers several beaches, amusement parks, and enjoyable weather most of the year. Consider purchasing a vacation rental in Florida, as this state sees tons of tourists each year. Some of the most visited cities in Florida include Orlando, Miami, the Florida Keys, Pensacola, Tampa, and Jacksonville.
One last thing to remember is to always be a good landlord. A good landlord is responsive and attentive to his or her tenants. When you’re considered a good person to rent property from, word gets around and more people will be willing to rent from you, thus making your vacation rental profitable. Also, keep in mind that seeing a profit takes time, so it’s important to be consistent in all of your efforts. Within time, you’ll see your efforts being paid off if you take into consideration these tips when looking for and maintaining a vacation rental property.