Vacation rentals are great and the best option when it comes to doubling your investments at a faster rate, plus an exceptional way to start your real estate investment journey. However, purchasing a vacation rental property at the right time and in the right location is imperative to reach your investment targets.
The boom in online vacation rental platforms has changed the dynamics of the vacation experience by introducing unique and creative ways of presenting personal space. And this has increased the demand for vacation rentals. According to many research and analytics, the estimated revenue of the global vacation rental business will be close to $120 billion by 2030. The market size value in 2022 is $82.63 billion, a sharp increase of $7.99 billion from 2021.
Here are the top five tips to increase the vacation rental business revenue that will help you sustain steady growth in this rapidly growing market.
Location Near Annual Events
Annual Events are a big part of the vacation rental business, as they increase short-term rental bookings and streamline the income. For example, when a guest attends an annual event, they want to have an entertaining and relaxing outing and a stay at the perfect vacation rental can make this experience much more memorable.
If you acquire a vacation rental property in a location that hosts a couple of annual events then chances are that you can earn enough income that will cover your profit margin as well as the property maintenance cost. And any additional booking during the remainder of the year would be a home run.
Music concerts, sporting events, festive events, theater events, shopping events, etc are some of the types of events that need accommodation.
The vacation rental property business is an investment that is more suited for uncertain market conditions. For example, during the Covid-19 pandemic, most of the travel plans were put to rest and as a result, most of the landlords and commercial property owners were not receiving rent. Consequently, this forced them to sell their property quickly at a much lower price.
Similarly, areas undergoing restoration due to natural disasters tend to lower the property price to attract more buyers and increase the economic growth of the region.
The vacation rental business is a very competitive industry, so just buying a property in a prime location and at the right price will be of no help if the guests are not aware of your vacation rental property. In order to make your presence visible and penetrate deep into the vacation rental business, you need top-notch marketing strategies.
Investing in professional photography and technologies such as 360° 3D walkthroughs can be a good way to showcase the best of the property and can improve your property listing. In return, these investments can increase the number of bookings.
Earning a five-star rating for your vacation rental property not just helps in gaining more guests, but it is also a very inexpensive way of marketing. Before establishing your vacation rental business, it is recommended to do research on how to keep your guests happy and what motivates them to give positive reviews about your property.
Listing your property on a top online vacation rental website provides an opportunity for owners to show their property to millions of already established guests. It is easy to use an online solution for booking but doing it on your own is a difficult process, at least during the initial phase. The best part of listing your property is that you can also attract guests from different states and countries. According to one estimate close to 700 million people will switch to online booking mode by 2023.
Amenities are a very essential part of the vacation rental business. These are additional features that offer comfort and improve the guest experience, plus increase the value of the property. According to a recent survey, 97% of vacationers accepted that the amenities do impact the vacation experience. Equipping your vacation rental property with basic amenities like a kitchen set, wifi, cable TV, etc. is low cost and requires less effort, but provides a good return. Investing in premium amenities like a swimming pool or jacuzzi allows the host to charge 20-25% more in comparison with property without luxury amenities.
A 2021 report says one in every eight vacationers opted for a vacation rental home and by 2025, this will increase to one in every five vacationers. The vacation rental market in rural and tourist areas is witnessing serious growth, this is the right time to seize the opportunity by listing your second home with HolidayKeepers and streamline your vacation rental business.