Recommendations For A Successful Short-Term Vacation Rental
The rental property market can provide you with a great opportunity to collect some passive income while your real estate property increases in value over time. However, to ensure your short-term vacation rental is successful, you need to implement a few important elements to avoid common pitfalls that some property owners make. The following information will provide you with several ideas to help you make your vacation rental property a success.
Calculate Your Cash Flow
One of the first steps you should take in your vacation rental property preparation is to evaluate and calculate your cash flow. This should include an evaluation of the market to see how much you can charge in rent and also calculate your rental property expenses. Doing so will ensure you will not simply break even in your property costs, but that you will make a profit that you can put in your own pocket for your time and personal risk.
The income from vacation rental should pay for the property's upkeep so you can make repairs to maintain it and make improvements where needed. For example, you will want to have the income from the property to repair a leaky faucet in the bathroom or replace the cracked tile in the kitchen. Also plan to cover expenses, such as water, electricity, internet, pool service, and cleaning. If you are hiring a property management company, this should be an essential cost you should include in your cash flow evaluation.
Make sure you understand how much you can charge for the property's rent, which should be based on similar vacation properties in your area. Also look at any price adjustments you may need to make for weekends, holidays, and specific seasons. For example, if you own a vacation rental on the beach, you may be able to charge more during the summer vacation season or during the winter months if the property is in a southern climate.
Set Up Cleaning and Maintenance
The vacation rental property is going to have regular guests and use, which will require a cleaning routine that keeps it in pristine condition. The appearance of your rental will make a direct impact on your guest reviews, which can affect how successful your rental is and how much you can ultimately charge.
If you are not living in close proximity to the rental, you will not likely be able to handle the cleaning yourself. A professional cleaning service will have the time and expertise to get your rental ready for the next guests. You don't want your rental to have smudges on the mirrors, wrinkly sheets, and crumbs on the floor, as examples, and a cleaning service can manage these issues for you.
Reach out to a company like Skye Management to learn more about vacation property management.
