Whether subletting a home while out of town or buying property specifically for this purpose, renting to vacationers can be a profitable business venture. The most successful enterprises of this type cover some key considerations.
Here are five tips for turning a property into a successful vacation rental:
1. Decorate for Widespread Appeal
If a residence will be sublet as a vacation rental, the owner should remove and store family photos or anything that makes the home overly personalized. Opt for modern, warm and appealing design styles, paint and flooring colors, furniture and accents. Consider adding a few elements that epitomize the region, such as framed art prints of the landscape done by local artists.
2. Offer Guest Services
Hiring an outside company to assist with check-in, cleaning and even a concierge service by phone can all make the renter’s stay more comfortable and enjoyable. The most satisfied vacation renters feel as if their rental was like a “home away from home” and are more likely to leave good feedback and reviews.
3. Create An Outdoor Lounge Space
An outdoor patio area with a gas grill, dining table, a shaded area and lounge chairs can add to the appeal for vacationers. Owners should consider making outdoor lounging an option and feature of their vacation rental.
4. Consider Security Deposits and Cleaning Fees
Make added fees clear in the property description, rental terms and rental agreement. The type and amount of fees are, of course, at the discretion of the property owner. Stays of just a few days or a week or two may not warrant a security deposit, but a cleaning fee is almost always justified. The cleaning fee can be identical to what is paid to the cleaning service, or a slight markup can be added for administrative costs. Be sure to report rental income and expenses appropriately on the Schedule E tax form.
5. Screen Long-Term Renters
While weekenders or those using the property for short visits may not be considered high risk, longer term renters or sub-letters should undergo tenant screening to help ensure that they will be respectful of the property and a quality, desirable renter. One important component of tenant screening is asking for and verifying references of a rental applicant.
Vacation rentals can be a lucrative business opportunity for property owners renting out their own homes or income properties; however, planning and coordination is key. Landlords can use these five steps to help ensure a successful and profitable vacation rental business.
Disclaimer Statement: All information presented is never intended as legal advice and is for information purposes only.