Don’t lose out on your investments! The short-term rental market has leaped to new heights in recent years. When investing or purchasing vacation rental property or any short-term rentals, choose a professional property management company to guide you so that you buy real estate that is in the best locales and will generate maximum income.
These days platforms like Airbnb and VRBO have become all the rage. As a result, buying a short-term rental property has manifold advantages. With good maintenance and upkeep, any home can become a source of income for its owner. It’s a great way to earn because employment opportunities are taking a nosedive after the Covid-19 pandemic. The tourist industry is thriving, and taking advantage of it, is an intelligent choice.
When thinking of buying vacation rentals, it is better to seek help from a leading property management company like us. Kitsap Vacation Rental Management will steer you in the right direction for your short-term rental investments with our vast experience and knowledge of the property and tourism industry.
Some key factors are worth considering when investing in short-term rentals. Before doing anything, the most crucial step to take is to make a comprehensive business plan. The plan should include everything from research, finances, hiring realtors and accountants, technology, maintenance, and guests, to the type of property manager you want. Research possible locations and how popular they are. It’s crucial to take the proper steps initially, and that’s when property management comes in. Many factors should be looked into before making the final choice.
● Research
● Local and market trends
● Forecast expenses
● Maintenance
● Amenities and attractions
● Marketing strategies
● Catering to guests
● Local and state legal knowledge
● Growth of the short-term rentals
Research
Before purchasing or leasing a property, a professional property management firm will thoroughly research the market. An ideal property should be close to businesses and tourist attractions. Any real estate for hire should target tourists and business people, as they are the most common renters. Short-term rentals are usually taken for short periods, like a weekend or a week. So if the home or Airbnb is close to tourist attractions or business centers, the occupancy rate will automatically rise. How seasonality affects the rent rates is another important factor. Knowing what time of year the area is most visited will help set rent rates. Rent fluctuates according to demand; rent can be doubled or tripled during tourist season. The average rent rates of the area around your neighborhood should be ascertained. The rent should be fixed accordingly. Your property management service should know the homeowner association and municipal laws and rules that may limit short-term rentals. How much time is needed before your business breaks even should be calculated by the number of nights your home should be inhabited. How many other short-term rentals operate within your area should forecast your chances of success. Also, the frequency of the rise of rents should be noted. Efficient rental property management companies look into these critical issues and much more.
Local and Market Trends
As the short-term rental industry expands and evolves, property managers should be updated on the latest trends to advise property owners better. Airbnb is fast replacing traditional motels and hotels as people go for new and unique experiences when vacationing or staying away overnight from their homes. Yurts and glamping trips are becoming more popular. Sustainability has become a watchword in modern society. As consumers become environmentally conscious, short-term rental property management focuses on environmentally friendly practices and features in their properties to meet tenants’ and guests’ demands. The rental industry is highly competitive and will become more so. Anyone investing in vacation or short-term rental properties should be prepared to add flavor to the existing industry, differentiating themselves by introducing distinctive and exciting new experiences.
Forecast Expenses
A professional property management company will efficiently forecast predicted expenses. It will consider all initial expenditures such as permits, interior design, landscaping, etc. Before investing in any real estate, an estimated tally should be created to judge the business’s cost. Future rent rates, expected fiscal growth, and monthly and annual revenues should be calculated. A property management company has experience and expertise in these matters and can best advise and assist you in looking after your interests.
Maintenance
A significant portion of your capital will go towards the maintenance and repair of your property. Your home should provide a comfortable and pleasurable experience for your guests to make good headway in your business venture. So, before purchasing vacation rental properties, owners should bring on board a leading rental management company like us. We will make it our business to line up reliable and reasonable vendors for your imminent business. Research into local markets and our long-standing relationships with suppliers and vendors will give your business a good start even before it starts. Responsive and preventative maintenance and repairs are the key to great reviews and maintaining the five-star quality of your rentals. Our exclusive and exceptional property management services ensure your property is well maintained and run by your specific requirements and wants. Maintenance is also very time-consuming, so property managers ease the owner’s burden by taking on this huge burden.
Amenities and Attractions
In our modern-day world, CHANGE is the key word. What is a novelty today is the new normal tomorrow. Tenants, guests, and travelers want something unique and exciting from their vacation or business stay. Standard amenities like pristine towels, linens, and kitchen utensils are expected, but other more exhilarating amenities should also be offered. On-site gyms, vehicles for rent, and excursions to local attractions and activities should be available. Interior designs should be unusual and eye-catching, and the grounds surrounding your property should be breathtaking.
Technology has a starring role in short-term rental property management. Tenants and guests expect uninterrupted Wifi, however remote the locality. Smart appliances and gadgets are essential requirements. Renters want to be constantly in touch with managers in case of any query or emergency.
Marketing Strategies
Technology plays a big part in marketing the property as well. Innovative and state-of-the-art technologies help to advertise your real estate through social media platforms like Facebook and Instagram. Putting up detailed and exciting videos and strategically shot and specially illuminated photographs give a more general target area than simply through local listings. So before buying vacation rentals, be sure to employ tech-savvy property management services. Kitsap Vacation Rental Management has teams skilled in creating a challenging presence for your property on social media to attract potential clients. A property manager not adept at social media skills can cause significant financial loss to the property owner.
Catering to Guests
Before buying a property, your business plan should include how and who will cater to your guests’ needs. Communication plays a vital role in this. Excellent communication with your guests and tenants will get sure good reviews from satisfied customers. It’s always a good choice to welcome guests and travelers with warmth and friendliness. Respond to guests immediately and be vigilant of all they require or need. Answer pre-booking inquiries with detailed information and with patience. Most people lose interest if not given the correct information or enough respect and time. This can cause losses to your business. A professional property management company can take care of this for you. During the peak tourist season, it is only possible to answer some queries for some people. So taking assistance from professionals makes sense.
Local and State Legal Knowledge
Buying or renting any property poses many legal difficulties. Individuals need in-depth guidance to sort out the local and state regulations and rules. Recent times have seen stricter restrictions. Some states, such as Dallas, USA, put in place a law that short-term rentals cannot operate in single-family residential areas. Real estate availability, zoning, and safety and health are some things that businesses need help with. A professional property management company has to deal with issues like this daily. They are aware of new local and state policies and rules. Apart from these permits, contracts, and licenses, all must be scrutinized and understood before signing on the dotted line. A property manager can oversee or contract a legal team on behalf of the owner to resolve legalities.
Growth of the Short-Term Rentals
Most businesses have been adversely affected in the past few years, but the housing industry is not one of these. Traveling is at its zenith, and no sign of any decline. More and more people are traveling, and tenants and guests are looking for comfortable and affordable lodgings.
So now is the time to invest in vacation rentals. With a reliable and experienced rental property management company to assist you, your choice will be the right.