Are you an owner of a spacious home, and you want to rent it out for travelers and tourists for additional income? Do you own vacation homes near tourist spots and urban areas, and do you want to establish short-term rentals business using them as a start? You can earn a lucrative income from your properties if you know how to manage them.
Based on statistics, the short term rentals market is booming. In 2019, the market was driven by factors like high hotel prices, demographics, investment opportunities, and the higher desire by homeowners to earn from their properties. The success of the online rental marketplace Airbnb also adds to the market boom.
Questions You Should Ask Before Starting an Airbnb-like Business
Without a doubt, short-term rentals are a profitable business. You can earn a considerable amount of money if you decide to venture into it. However, you can ask yourself these questions first before committing.
- Are you willing to share your home with strangers and lose your privacy?
- Do you have the time to manage your business?
- Are you prepared to do activities like booking management, responding to queries from prospective renters, handling maintenance issues, and a 24/7 presence to resolve the problems that may arise?
- Do you plan to make the business a steady source of income, or are you only looking for a new source of money?
- Does your neighborhood association or local authorities allow your business model?
Useful Tips in Managing Your Property Rental Business
Although you may have initially planned your business as a sideline, you may soon find that it can take a lot of your time to manage it. However, there are several strategies that you can use to make it as easy as possible while earning a lot of money from it. Here are some of them:
- Learn the ins and outs of the market – Conduct comprehensive research on how the business model works. You can also seek advice or attend the training and seminars conducted by industry experts.
- Know your federal and local laws – Make sure you are up to date on all laws and regulations covering your business and properties. You may also communicate with your homeowners’ insurance provider regarding short-term rentals or other things like water damage insurance etc.
- Determine your target market – Identify your target market and position your properties to meet their needs.
- Create a website or list your property in the popular marketplace – Make your business accessible to your target market by creating a website or listing your properties in well-known home-sharing sites like Airbnb.
- Set fair rates –Offer affordable prices and embrace a dynamic pricing model to become profitable.
- Maintain a master schedule to avoid double-booking – Integrate your calendar in your listing sites to prevent double-booking.
- Hire a team of maintenance staff and housekeepers – To keep your properties in good condition, employ dependable housekeeping staff and maintenance experts to maintain them.
- Invest in technology to protect your property and guests – Install new technologies like smart smoke and carbon monoxide detectors, noise detectors, security cameras, and motion-activated lights to ensure your guests are safe and comfortable. However, avoid positioning security cameras inside your home.
Your short-term rentals business can provide you with the income you may have earned only in your dreams. With smart planning, dedication, and determination, you can grow your business to greater heights.
Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.