There is a lot more to securing a decent return on your investment property than just letting it out. In fact, so many moving parts go into creating a viable asset that it can be overwhelming for new people to the process. However, there are tips and tricks to help landlords and property owners become more confident in their ability to navigate the ins and outs of investment profit margins, and this guide from Upper Key has the best ways below.
Find the Right Property
The key to successfully investing in short term vacation rentals is picking the right property for the task at hand. What kind of thing are you looking for? If it is a studio apartment for businesspeople, or a villa for families, or even a luxury cottage for couples and romantic getaways, the property in mind has to fit the bill. This means you have to shop around, take some time to view a range of houses/apartments, and create a compelling argument for why this is the perfect place to put your money. A project you feel more passionate about is bound to spark an ongoing interest, which will retain your engagement in wanting to see bigger returns overall.
Understand Local Area Short-Term Let Regulations
Investment properties tend to be more focussed on the short-term lettings market. This means, getting to know the pros and cons of this type of property owner arrangement and understanding how to invest in short term rentals legally as per the regulations of the chosen area. With knowledge about how it should work, you will be able to find ways to move within that scope to ensure your investment is always viable.
Consider Using a Property Management Service
There is also the option of using a property management service like Upper Key, that will bring the best features to the forefront of the letting process, and ensure your property is looked after. They will work with you to increase profits, keep fees and booking prices viable, and generally improve the standards so that the return on your investment is exactly what it should be all year long.
Make Sure It Has a Fair Rental Price
A short term vacation rental investment must have a fair rental price attached to the listing. While services like property management companies can help with this, if you decide to do it alone, it is still advisable to take professional advice in this area. If the property is listed at an unreasonable price, guests are going to raise their eyebrows and think twice before booking. There is a significant risk that they won’t book at all, and instead turn to a similar property close by that offers a fairer listing cost.
People need to feel as though their money is going on the right purchase, and no one will pay a premium price for a property that should cost less. If your property has a unique selling point that you feel drives the price of booking up above average in comparison to comparable listings in the area, make sure this is stated clearly on the booking page, so people know why you are charging the stated rate.
Choose the Best Location for the Purpose
The best short term rental investments are the ones in the right place at the right time. So, when you are hunting the property market for a potential investment venture, include area research into the mix. Certain places are highly popular at peak holiday times, for instance in summer, and others are a great listing to have in the winter. Some locations are great all year round, so it has to be a place that is suitable to your agenda. Are you planning on living in the property yourself for a part of the year? If so, this is a major deciding factor to throw in! The best profit will always be found in vacation-friendly areas, so these are the best places to start.
Renovate the Property
One trick when it comes to investing in short term vacation rentals is knowing how best to renovate them. Lots of properties come onto the market with subpar facilities, dated décor and questionable features. Your main job will be to flip it in a short timeframe on a tight budget to make it beautiful, eye-catching, and fully functional. When you buy a property, you have to look at what it could become and whether or not you have the energy, funds, and resources to get the job done right. Renovations are essential, and don’t forget to include the key components that guests will expect in a short-term rental.
For instance:
Storage
En-suites
Snug zones
Home comforts
Exceptional décor
These things will all contribute towards making your property stand out on the market as a great option for holiday-goers around the world.
Understand How to Market It
Short-term rentals need a strong marketing strategy behind them to boost their success rates in the right direction. As a property owner looking to increase the returns on your investment, this means learning how to advertise in the best ways and through the most impactful channels. Guests need to see what exactly you have to offer, and this means professional photography, clever content, and attractive amenities in plain sight. What makes your property stand out from the crowd? Figure this out, and this will be your main selling point that will attract the biggest profit potential.
Choose the Optimum Platform for Your Property Listing
Don’t ever forget that where you list your property has a significant impact on who sees it, and the number of people that actually click through to book. If you market your short-term rental option on a reputable platform, the likelihood that you will fill up the calendar becomes more realistic. Always explore all the options in this sense, because you will open up a lot of space to create better returns overall.
Consider the Airbnb Option
Airbnb changed the short-term lettings market. There has been an unprecedented level of uptake in hosts that the platform is thriving for good reason. Therefore, it makes sense that a viable option for maintaining and maximising the asset’s profit potential is through engaging with a platform such as this. There are accessible booking options, set fees and management perks, and plenty of helping hands along the way.
Before you buy an investment property, you must get to know the current market for it. Profit is only possible if you know how to manage a property successfully and professionally, and accept help when help is required. Retaining a steady flow of bookings, maintaining high standards, and working with reputable platforms like Airbnb or property management options like Upper Key are always beneficial too.