How to Turn Your Home into a Profitable Vacation Rental

Written by Posted On Tuesday, 17 December 2019 20:26

It is essential nowadays to have a secondary source of income if you want to be free financially. With that said, if you have any vacation homes that you don't use often, then you might want to consider turning them into a rental property so that you can get a profit out of it.

Getting into the vacation rental business is promising and offers a lot of advantages to you. This is especially profitable if your vacation home is in a well-known vacation spot.

Although it is advantageous if you get into it, it also means that there are certain things you have to do first to be able to turn your home into a profitable vacation rental. 

If this is something that you're interested in doing, then read further to find out how the way you can turn your home into a profitable vacation rental:

Apply for a rental permit

Before turning an unoccupied property into a vacation rental, you need to apply for a rental license first.

Depending on where you are situated, you have to make sure that you have all the right permits and licenses to be able to operate a rental facility. 

However, managing these rental permits and licenses can be quite a hassle. Not to mention that it can take a lot out of your time.

So if you can do so, consider hiring a vacation rental property manager to help you. 

Acquire landlord insurance

Another part of the formalities that you have to take care of when you're turning your home into a profitable vacation rental is the insurance policy.

In some places, you should apply for a landlord insurance policy. Doing so can help cover you for any sort of rental situation. These landlord insurance policies can range from short term rentals to long term rentals.

Discuss with your insurance agent about how you plan on renting out your facility or your home so they can help you figure out which policy fits you the best.

Establish your rates

Once you've got the ball rolling, it's time to set the price of your rental property.

A lot of rookies make the mistake of either setting their rates too high or setting their prices too low. If you set it too high, then the people who can afford your place might not want to rent it because the facilities aren't enough for the price that you offer. 

Meanwhile, if you set your rates too low, then you're going to lose out on business, and then your property would not be as profitable as it could have been.

A simple way to establish a rate is simply by looking at the other rental properties around you and figuring out how much it costs to rent these places. You have to make sure that you are renting out your home in a competitive way so that you get customers without losing business. 

Prepare your vacation home inside and out

With your rates setup and any formalities completed, you should then figure out how you plan on decorating and preparing your vacation home. 

Your rental vacation home must create a great first impression by having a great look on the outside. Also, it should well-kept and aptly decorated inside.

Moreover, everything should be functional and in a good state.

Hire a reputable cleaning service

When you're turning your home into a profitable vacation rental, you have to establish strong business relationships so that you can handle the growth of your business.

An important business relationship to start with is one with a reputable rental cleaning service.

A reputable cleaning service can help you clean and prepare your in-between property guests thoroughly and efficiently.

Prepare a vacation rental agreement

Before you get yourself a tenant, you must have a premade vacation rental agreement for every guest that you might have.

By having a vacation rental agreement, you ensure that nobody's expectations are shattered both on you and your guest's end. 

The vacation rental agreement also should include a set of house rules that you have on your property that your guests should follow.

Set some house rules

As part of the vacation rental agreement, it is ideal that you already have set some house rules with them before they even consider renting out your rental property. That way, they won't have to agree to any terms or rules that they don't like in the first place.

House rules are important because it helps your guests figure out how to navigate your rental property in a way that won't be in the offense to you. At the same time, it also helps you communicate how you want your property treated. 

Create an availability calendar

Once you have a stronger vacation rental business up and running, you might want to consider creating an availability calendar for potential guests to view.

An availability calendar simply shows which days your rental property is unavailable, as well as when can people book your place.

It makes renting out your vacation home a lot easier for guests.

Create your online listings

One way to generate more traffic or more interest in your vacation rental is by creating an online listing. There are plenty of reputable sites such as Airbnb that will help you find more guests. 

Wrap Up

Turning your home into a profitable vacation rental doesn't have to be a complicated procedure.

With the tips listed above, you can have an easier time setting up your vacation home and getting guests booking the place as soon as possible.

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