If you want to know how to make money on vacation rental properties, this article will prove very helpful.
It explains a lot about how this works, how to get the right vacation rental property and exactly how to make good money!
Vacation rental properties are popular with people who seek alternatives to the high cost of hotel accommodation.
For families who want to save money on hotel bills during their vacation, going for vacation rentals would be the perfect alternative.
If you would like to make money from a vacation rental property then you will find this article very interesting.
It discusses what you should know about the vacation rental and different tips that would help you start making money from having one or more such properties.
Related: How to Earn Money in Real Estate… Using Top Secret Tips Most Don’t Know!
What is a Vacation Rental Property?
A vacation rental property is a home or property that can be rented for a short period.
The time is usually shorter than the period for renting a home full-time.
Usually, this short-term vacation rental is for less than one month.
Vacation rental property is the perfect alternative to hotel rooms.
This rental property is perfect for people who don’t want to stay in hotel rooms when they are traveling.
Tourists can go for vacation rental properties instead of the normal hotel bookings.
These properties provide safe, affordable, and comfortable accommodation for tourists.
Types of Vacation Rental Properties
Vacation rental properties come in different forms. They include:
- Villas – These are luxurious country residences with extensive grounds. They provide more privacy and those staying within them with the beauty that you would only get from a home in the Roman period.
- Houses – These are regular homes with one or two floors. They could be located in the city, suburb, or right on the coast.
- Apartments – These are a suite of rooms usually on one floor of an apartment house. They range in different sizes and have lower upfront costs and maintenance fees.
- Cabins – These are houses built of wood; usually in a wooded area.
- Bungalows – These are small houses with a single story. Some are built with a second story that is considered as the attic of the home.
- Cottages – These small houses with a single story. They are built for a small group of people and maybe built around the beach and in the woods.
- Chalets – A chalet is a Swiss house with a sloping roof and wide eaves or a house built in this style. Most chalets are built to be stronger and rugged than cabins. These are mostly found around hillsides. It would interest you to know that chalets provide more upscale amenities than cabins.
- Condominiums – A Condominium is a type of home attached to other homes within a community. These homes are also called condos. They have shared amenities and a range of sizes. These homes are usually found in warmer climates and around oceans.
- Mansions – A mansion is a large and imposing home. It is a large and upscale house that can hold many people at once.
- Studios – A studio is an apartment with one main room. It has everything a person needs to stay comfortable. It is small and built for one or two people.
- Townhomes – Townhomes or townhouses are homes attached to another one on the other side. They provide everything that a person would find in a full-size, detached home. They can also be described as identical houses situated side by side and sharing common walls.
- Unusual homes – Other types of vacation rental properties include RVs, tents, treehouses, Campers, houseboats, barns, nature lodges, shipping containers, and more.
Why Vacation Rentals Are Good Investments
If you are planning to make money with vacation rental properties then you are in for a good investment.
The following are reasons why we think you are making a good investment.
Related: Flipping Real Estate for Money.
1. Vacation Rental Properties Are Always In Demand
Tourists are always on the lookout for vacation properties they can use.
Therefore the value of these property increases daily.
If you invest in it, then you will always get valuable returns now.
Also, if you decide to sell the proper in the future, you should also expect valuable returns.
2. It’s Easy to Find and Communicate with Guests for the Vocational Rental Property
If you have a vacation property you want to rent out, then you will not have a hard time finding renters.
There are a lot of options for you to find and communicate with renters with ease.
You can list your property online and have guests connected with you.
Also See: How to Make Money with Stash Investing App.
3. You Too Can Enjoy the Vacation Rental Property
You can make money renting out your vacation property. It can still serve as a place where you can go for your vacation.
All you need do is make sure the time you are renting it out for guests doesn’t clash with the time you intend to use it for your vacation.
4. You Can Charge Higher Rates During higher Demand for the Vacation Rental Property
You can call the shots when it comes to the rate that guests will pay.
If demand is high – as it usually does – then you can charge higher rates.
Higher demands for vacation rentals may be caused by seasonal demands.
So, you can always make more money during busy times.
Also See: How To Rent-to-Own Your Home.
5. You Can Get Gain Experience to Grow Your Vacation Rental Property Business
The more vacation property rentals you do, the more experience you will get.
Yes, you will get knowledge and experience on how to improve your guests’ experiences and make more money.
Related: Ways to Get Help with Rent.
Ways to Start Making Money with Vacation Rental Properties
There are two main options you can consider if you want to start making money with vacation rental properties. These are:
1. Make Money on Vacation Rentals as the Property Owner
You can buy a vacation property to be used as your second home. You can then rent out this property.
2. Make Money on Vacation Rentals Without Owning the Property
In this option, you can rent a home long-term and then rent it out to guests as vacation homes for a short-term.
Of course, this must be with the permission of the landlord.
Also See: How to Make Money with a Van.
Why People choose Vacation Rental Properties
Most people prefer vacation rental properties to hotel rooms because of the following reason:
1. They Want To More Privacy in Their Accommodation
Most people choose vacation rentals because of the privacy they enjoy.
These vacation rental properties may be set in secluded and intimate locations where guest can do their things privately.
They do not have to deal with shared facilities associated with hotel rooms.
2. They Want To Stay In an Accommodation Furnished With Better Amenities
Vacation rental homes are home away from home.
They are often equipped and furnished with everything you need in a home.
Most importantly, there are furnished kitchen and laundry spaces.
So, you can cook your meals and do your laundry.
3. They want a place they can save cost
The rate of most vacation rental properties is cheaper when compared to what obtains with hotel rooms.
4. They Want To Explore New Cultures and Meet New People
You can meet new people and explore cultures and places depending on the location of your vacation rental properties.
How To Start Profitable Vacation Rental Property Investment Business
The following are steps that would guide you to start a profitable vacation rental property and investment business.
1. Buy the Right Vacation Rental Property
If you want to start making money with vacation rentals, then the first thing you have to do is to either buy the vacation home out rightly or lease it from a landlord.
There are many factors you should consider to buy the right vacation home.
- The location – Make sure the property is located nearby a tourist attraction.
- The Seasonal Appeal – You will make more money if the property and location have seasonal appeal. This means that year-round, people still desire it.
- The size – If you have more bedrooms, bathrooms, and other spaces, then you are likely to make more money.
- Regulations – You need to check out local regulations and ordinances about starting a vacation rental business near you.
This will help you get in tune with what can affect how much you earn.
For instance, you will get to know the legal restrictions concerning the number of guests you are supposed to host in the short term.
Make sure you avoid renting out to those who want ways to live in houses rent-free!
2. Decorate and Furnish your Vacation Rental Property
To make more money from your vacation rental home, you need to beautify it.
You can decorate and furnish it well so that guests can appreciate it.
You will get free promotions from guests who have enjoyed the beauty of your home.
Some decoration and furnishing ideas include fluff up the bed, spruce up the kitchen, and dress the windows.
Also, you can hire home staging professionals to help you out with the decoration and furnishing.
3. Decide On the Right Rate
You can make money with vacation rental properties if deliver the right rate.
You should know how much a guest can pay to cover your average cost.
The price of homes should be dynamic on-season and off-season, weekends and weeknights.
So, put a system in place to set the right rate.
Of course, you must keep in mind the industry standard.
You always put a system in place to monitor and update your pricing.
4. Make Stellar Listing And Advertise Your Vacation Rental Homes
You can list your vacation rental homes at the right places.
Use clear pictures of your property and add very good descriptions.
List your property on multiple sites to improve your chances of attracting guests.
You can also promote your property at various places.
Set up a professional website for your business, advertise on social media, and promote on various tourist or travel agency websites.
Also See: Best Online Sites to Sell Gift Cards.
14 Best Sites List Your Vacation Rental Property to Make Money
The following is a list of some of the best websites where you can list your vacation rentals to make money:
6. Kid and Coe
7. Perfect Stay
10. Trade Station
As this article has revealed, it’s not that hard to make money with vacation rental properties, especially if you know what to do and get right on doing the right things.
Thankfully this article also proceeded to explain a lot about how this works, how to get the right vacation rental property and exactly how to make good money!