Renting out holiday properties is potentially a good way of earning a healthy profit if it is done well. There are however, as with any business opportunities, certain risks which need to be reduced or even avoided completely to ensure you see a quality return on your investment. Many people venture into things without properly planning or setting themselves adequate guidelines and therefore leave themselves open to some of the common mistakes which can hinder their potential profits. There are certain considerations you should take into account so have you being doing the right things? Have a quick check through some of these recommendations.
Get Your Pricing Right
You need to observe the market very carefully when it comes to setting yourself the correct rates. What sort of guests do you want to attract? If you are looking for large groups of young holiday makers you will need to set your price lower and aim to work off this providing you with a constant income. However will you have to cover a lot of costs for the potentially poor treatment of your property by such tenants? Obviously if you are looking to attract families you should probably set your price slightly higher to discourage rowdier groups. In addition, be careful not to be too cheap. Whilst you obviously want to attract custom if your price is too low people will wonder why it’s so cheap and possibly ignore your listing.
You need to make sure that you maintain strong customer communication at all times. A failure to do this could see you losing out on business. If somebody makes an enquiry you need to respond promptly else you might run the risk of them looking elsewhere. You should also be available for any sort of issues which may arise during a tenancy. You don’t want to make the people renting from you feel like once you have got them into the property they are forgotten about. They may have maintenance issues or problems which need resolving and if you are not there to resolve them swiftly you could be dealing with complaints and even negative feedback which could affect future business.
You need to decide on maximum occupancy numbers, the type of guests you are looking for, whether smoking is allowed, if they can bring pets etc. and then you need to stick to them. Don’t just accept peoples’ bookings on the viewpoint that no-one else has made an approach so you might as well just take it. If you are doing the other things right you are sure to take bookings and if you just allow anyone to stay for the sake of quick cash you could end up dealing with all sorts of problems you could have done without.
Devote Your Time to It
It might be time consuming and you will have a whole host of other things that need doing but you absolutely must commit enough hours into your property rental management. Failing to do so could lead to issues arising such as poor maintenance and lost business. If you cannot devote the appropriate amount of time you should maybe consider a vacation rental company to do it for you such as Citysleepz Airbnb Management. Lost business and spiralling costs could destroy the returns on your investment so decide which route is most suitable and be honest with yourself about it.