The ultimate goal in listing your vacation rental is to increase its potential for profitability. You place your offer up on a site like FlipKey, get in front of thousands of interested travelers, and start making money by renting it out – right? Not entirely. In order for your listing to work, you have to run your rental like a savvy small business owner would run a successful storefront. Your home and the customer service that accompanies it must provide the things your renters want and need in order for you to reach the highest level of profitability through renting. If you’re still a bit new to the small business mindset, have no fear! Check out these 6 tips to run your vacation rental like a real-life entrepreneur.
Evaluate and Understand Potential Risks
Outlining and covering your potential risks as a vacation home owner is the first step in successfully managing your rental. Small business owners take time to understand possible causes for profit loss, and find practical solutions to cover each. List your concerns first then pair each with a measure of prevention. Whether these prevention measures include contract modifications, additional security, or specialty insurance, take time to research your options and find those with the highest potential for reducing risks.
Invest in Security
Speaking of security, ensuring the safety of your customers will be critical. This holds true in every industry, however, it is especially important for consumers within the hospitality industry. Many home owners fail to see the importance of a home security system. You may hold this personal preference when it comes to your home, but you shouldn’t treat your rental like your home. It’s your business. Investing in a business security system will help you provide the reassurance your guests need to enjoy a comfortable and safe stay. It will also help you protect your profits from break-ins and potentially dishonest guests.
Think of the Consumers’ Needs Before They Do
Successful business owners are constantly thinking of ways they can further improve their product/service to better meet their consumers’ unique needs. Think like your consumer to get a better idea of what they will want and need during their stay at your rental. Think of the things you appreciate having during an out of town stay, and make these available to guests of your rental. Also understand your area and provide information and materials that stand to benefit visitors. Examples of this could include providing bottled water for vacation rentals located in warm climates like Las Vegas or Phoenix, or offering hot chocolate for winter travelers in Park City or Denver. The FlipKey vacation inspiration page could serve as a useful tool here to get ideas from travel guides and “best of…” galleries.
Consider a Third-Party Cleaning Service
A clean environment is essential to the success of any business. As a business owner in the hospitality industry, it is your responsibility to provide a clean home. Unfortunately, you may not have the time to clean your home well enough to meet the hospitality industry’s standards after every guest. This is where a third party cleaning service can help! Online housekeeping guides like Housekeeping.com can help you find quality housekeeping services that won’t blow your rental profits. Find a service that works for you, then schedule regular cleaning appointments in between stays to ensure each guest is welcomed with a spotless vacation home.
Listen to Consumer Reviews
An important part of continuously meeting your consumers’ needs is to actually listen to their reviews following a stay. Smart entrepreneurs pay attention to both positive and negative reviews and do their best to understand reviewers’ comments from the consumer’s perspective. FlipKey provides a section for consumer reviews to help you with this part of your rental management. If you’d like additional feedback from renters who didn’t leave a review, try sending a quick follow up after their stay to say thank you for choosing your listing and ask if there were any additional amenities/resources they would have found useful during their stay.
Keep up on Market Trends
An integral part of managing your rental like a successful small business is staying competitive. Small business owners are constantly watching market trends and making improvements to keep up in competitive markets. Look at successful listings in your area to see what they’re offering. Check out their reviews to see what travelers are saying about their stays. Are you currently doing these things? What could you do to generate the same raving reviews? Additionally, you should keep up on what’s trending in the promotion of successful listings. How can you get your listing out in front of more interested users and by way of which avenues? FlipKey recently published an article with some great tips for using social media to promote your listing.
Cosette Jarrett is a contributing writer for several lifestyle and tech blogs. Her current work includes roles as the go-to tech girl at HighSpeedInternet.com and regular contributor to the Lifehack and Business 2 Community blogs. She enjoys creating pieces to help both businesses and consumers find increased simplicity and efficiency at work and on the go.