Do you have a property that could make a great vacation home? With the help of vacation rental management experts, you’ll be able to put your vacation property to good use, create sustainable income, and have the property cared for while you are free to enjoy your life.
Vacation rental management has become one of the most preferred methods for home and/or building owners to maximize and manage cash flow for their multiple properties. But we also understand that you may have questions about how exactly vacation rental management works.
To help you out, we have created this detailed blog post, about the vacation rental management process. Here we’ll explore what exactly it is, how it can help you, what a vacation rental management company can do for you and how you can get started.
What are vacation rentals?
Vacation rentals refer to fully furnished apartments, homes, villas or building complexes that are rented out to tourists and other visitors for a temporary stay. A property management company takes over the day-to-day upkeep and overseeing of the rental property, to ensure the property is in top condition and ready for use by the guests.
The guest typically stay at the vacation rental property for a few days to a few months. The property management company provides the guest a starter kit of a few days worth of supplies such as paper towels, toilet, paper. The guest is responsible for purchasing more supplies if they have a longer stay. The property management company is available should the guest have any questions during their stay.
Benefits of renting out your home as a vacation rental
While there are perks to enjoying your beautiful vacation house, there are many more benefits of renting it out to generate income. In exchange for putting your property up as a vacation rental, building owners will experience the following benefits:
- Owners can attract guests who may not wish to spend on hotels and resorts for their stay. Additionally, vacation rentals are hugely popular with digital nomads who want to reside in vacation homes for months at a time.
- Owners can charge rental fees to guests for renting their properties. Depending on the location of the property and access to amenities, property owners can earn anywhere between $35,000 to $300,000 each year typically.
- Owners can get tax advantages, since there are many tax breaks and deductions offered by the California government for rental properties. Common deductions include professional management fees, housekeeping services & supplies, property tax and more.
- Owners can reduce the property expenses – especially if it is an unused asset by getting returns for the utilities they may otherwise have run even without using the property.
- Owners can get a really good sale value in the future, thanks to the excellent condition of their property, which is managed by a professional vacation rental management company. Also if sold as an investment, the owner can disclose the income from the property to a potential buyer.
- Owners will have a place that is completely set-up to host their own personal vacations, without spending extra on hotels.
How to list your home for vacation rentals?
Now that you know why it can help you to rent out your property as a vacation rental, let’s look at how you can list your property to become a vacation rental:
- Search for vacation rental management companies near your locality.
- Check their previous experience by reading customer testimonials, asking existing property owners who are working with them and taking a look at properties they manage.
- Contact the vacation rental management company to discuss your rental preferences and needs.
- Determine what type of guests you’d like to attract.
- Decide on what you wish to offer your guests to elevate their stay experience.
- Ask the vacation rental management company what their commission is. Commissions typically range from 10-35%.
- Discuss and establish the vacation rental management company’s responsibilities towards your property.
- Sign a contract with your chosen vacation rental management company for a specific duration of time.
- Hand over the keys to your property to the vacation rental management specialists and let them work their magic.
- Experience the many benefits we’ve listed above.
Role of vacation rental management company in San Diego – How can they help you?
The truth is, the vacation rental management process will be successful only when you choose the right team of experts to manage your vacation rental property. So, what “magic” is it that vacation rental management companies work for you, in the first place?
A vacation rental management company performs specific roles that are integral to the success of your vacation rental. The roles they perform are as follows:
They price the rental value for your vacation rental property
One of the first and most pivotal roles that vacation rental management specialists do, is to price the rental value of your property. They do this by providing a free vacation rental analysis and evaluating various factors such as:
- Size & dimensions of your vacation property.
- Layout & amenities inside your property.
- Access to public transport.
- Proximity to top tourist spots nearby.
- Access to public facilities such as medical centers, libraries, post office, grocery stores etc.
- Rental inclusions (such as – a stocked bar, open to pets, smoking allowed etc.)
- Rental fees charged by competitors in the same locality.
You may be someone who may not be familiar with vacation rental management. The support you receive from property managers can be very helpful in ensuring that you receive the right payment for your rental property.
They advise you in staging your property to create visual material for your property listings
When it comes to marketing vacation rentals, it’s all about the aesthetics. This is where staging comes in. It is only if a prospective guest likes the way your property looks, that they rent it from you.
Vacation rental management companies can help you here, by setting up your property in the way you prefer. Each room is stylized to sell the experience of vacationing at your property. From boho to luxury – no matter what your theme is, your property manager will be able to create the vibe you desire.
Before they list your property on listing sites, they take beautiful photographs and videos of your staged property. These days, specialized vacation rental management companies also use drone footage to show prospective guests the neighborhood near your property. That way, your guests will know what to expect when they arrive at your door.
Staging of the property also helps later on – during the actual stay of the guest. But pre-listing, it is very important for creating the image of the vacation rental that appeals to the prospective guest and ensures they book your property.
They list your property on various rental websites
Another role that vacation rental management companies perform for you, is listing your property on vacation rental websites. Property managers will not only know the most popular listing websites, but they will also be aware of how to get the best terms for you, when your listing is active.
Your property manager will list your vacation rental across different platforms, so you have the highest visibility. Typically, these listing websites/platforms include Airbnb, Booking.com, Haustay and more. Listings sites charge a varying amount in commissions to hosts, so a vacation rental property manager can help you navigate this market. You want to always make sure you receive the highest dollar amount in your booking. No matter if the booking came in through Airbnb or Booking.com by example.
They promote your vacation property to attract guests
Once your property listing is up, your vacation rental management partner will start to actively promote your listing. Many premier vacation rental management companies have their own in-house marketing teams. They create a variety of content to showcase your listing, These could include travelogues which feature previous guests or even seasonal offers during Christmas and New Year.
Property managers sometimes even run ad campaigns for their properties, so they can be found by people planning vacations, on different social media websites. Haustay performs social marketing for all their vacation rentals with over 1,000 followers on Instagram.
They manage bookings and other appointments
Managing bookings can be a challenging task. Especially around the holidays, when your property may have many booking requests, A key job that your vacation rental management company will perform is scheduling and tracking various bookings.
Your property manager will first off, vet your prospective guests, to make sure they fit the type of guest you want to have in your building. They may do this with a conversation or by asking the individual to answer a short questionnaire. Once they identify that the individual suits your guest preferences, they will answer any questions the person may have. They will take them through the property Do’s & Don’ts, rental inclusions & exclusions and even advise them about the local sights.
In addition to this, your vacation rental property manager will also keep track of the dates of booking, so no two guests are booked on the same day. Also, they make sure that your property doesn’t remain empty for days and it is utilized optimally. If there are any re-schedules or cancellations, your vacation rental management partner will handle these situations as well.
They maintain your property to keep it in pristine condition
One of the greatest responsibilities of a vacation rental management company is housekeeping. They are in charge of keeping your vacation rental in absolutely perfect condition.
Most vacation rental management businesses have their own team of experienced housekeeping professionals, who can manage both the day-to-day cleaning and general upkeep of the property. Your property manager will take care of absolutely all facility-oriented maintenance, right from mopping the premises to fixing faulty utilities to managing your property’s overall sanitation and aesthetics.
They are the first point of contact for your guests
The vacation rental management company also functions as the first point of contact and support for your guests. From giving them directions to local sights to addressing any service-related questions to pick-up-and-drop facility, the company may offer a variety of services to your guests.
When they are managing your vacation rental, your property managers represent you to your guests. If your guests require any particular supplies, your property managers will ensure those supplies are made available to them on time. They act as a liaison between you and your guests. They help answer questions, address any challenges and make the entire vacation experience as enjoyable and effortless as possible for the guest. Plus, they make it as un-intrusive for you – as possible.
They keep you informed about the status of your vacation rental’s performance
Vacation rental management companies also keep track of the technical performance metrics of your vacation property. Ultimately, their goal is to help your property perform well and bring you the profits you desire.
In order to do this, they use various online performance metric tools to evaluate your property’s performance. They track details such as:
- Which website/platform gives you the highest visibility?
- How many views do your listing receive – and what days/time perform the best?
- How many bookings & cancellations have you had each month?
- What is the typical duration of each stay?
- Which group of people tend to rent your vacation property the most – age, gender, income, race etc.?
- How many guests re-visit your property?
- Are seasonal discounts and offers playing an important role in the rentals?
- What services do your guests typically ask for?
- Are there any facilities, services or amenities on your property that don’t get much usage?
- What is the general feedback about your property?
- How often do customer referrals come to your property?
- How much do you earn every quarter or yearly?
The vacation rental management company will create a detailed report for you to read, so you can know exactly what is happening with your vacation rental property. This information will allow you to know if there are any changes that need to be made to your property or services, to offer exceptional experiences to guests.
They advise you about expanding your vacation rental portfolio
Finally, vacation rental management companies will also provide excellent insight about how property owners can tap into upcoming vacation rental trends. They can advise you about acquiring other properties either nearby or in other localities, to increase your earning potential. They can even help you make decisions about property renovation. For example, if your sun deck isn’t being used by most guests because of the hot weather, they may recommend modifying parts of your property to add a pool.
With their insights, you’ll be able to leverage the market opportunities, better understand the psychology of your guests and offer them a vacation rental experience that they can’t resist. Your guests may even recommend your vacation rental to others after their excellent experience with you.
Extent of home/building owner’s involvement in vacation rental management
Apart from all of the above roles that vacation rental management companies perform, their core task is to ensure that you – the property owner – has the most hassle-free rental experience. The vacation rental management company takes over all of the tasks of managing your property. They ensure that you receive your rental fees on time, every time, with the least effort on your part.
How can you get started with vacation rentals?
Want to give out your property for vacation rentals? Need the name of an experienced and reputed vacation rental management company? Contact Haustay for premier vacation rental management services. We are based in Carlsbad, California and have immense experience managing properties along Oceanside, Carlsbad, Encinitas, and Solana Beach.
Speak to us to know more about the services we offer and to start creating your dream vacation rental service.