Do you own a property that you are considering earning extra income from? You can use your home as a holiday rental and make some money. In fact, getting started in the holiday rental business is much simpler than most people realise. There are several legal and marketing considerations that you have to take into account before you get started. Here are some tips on getting started and a guide to succeeding in the holiday rental business.
Getting started in the holiday rental business
Any business venture starts will thoroughly research the various rules, regulations and legal requirements. As such, it is very important that you understand and meet all the requirements in your area before leasing out your home. When it comes to the holiday rental business, you are responsible for the safety of your tenants. Moreover, you are responsible for the care and maintenance of the holiday home.
One of the most important considerations, when you are looking to enter the holiday rental business, pertains to legal requirements. With this in mind, it is essential that you are clear about any legal limitations or restrictions. Legal requirements can apply to your holiday rental home, neighbourhood, country or region. As such, ensure that you are in compliance with all the necessary legal requirements. Short-term holiday rentals usually yield better and higher returns in comparison to long-term rentals. However, short-term holiday rentals are typically more strictly regulated and have firmer controls. Consult with a lawyer, check with your local Government and talk with your housing authority on all the legal requirements.
Competitive market analysis
Any property owner looking to succeed in the holiday rental business needs to understand competitive market analysis. This means you will need to have an effective pricing strategy for your holiday rental home. One of the most effective pricing strategies is taking advantage of seasonal fluctuations so as to maximise your rental income. While it is important to maximise your rental income, it is vital not to price your property beyond comparative market prices. Start by examining prices for similar homes in close proximity to your holiday rental home. Remember to take into consideration the size, condition and the age of the home to get a base price. You should also contemplate charging premium rates for seasonal fluctuations.
It goes without saying that you should get adequate insurance cover. You and your holiday rental need to be fully covered for any eventuality. Firstly, you need to be covered for any damage that guests may cause to your holiday rental home. In the event of unexpected events such as fires, you need to be covered by insurance. Take the time to research the various insurance providers to find the right fit for you.
Income and expenses
Another equally important step to succeed in the holiday rental industry is to budget income and expenses. As such, calculating your proceeds and costs is essential to managing your holiday rental. Keeping an accurate record of your cash inflow and your outgoing funds will aid you in mitigating any unforeseen expenses.
Do not forget to account for appropriate taxes as failure to do so can result in hefty penalties. This means that you need to calculate and allow for tax payments from your rental income. You should engage a lawyer or accountant to assist you with your tax calculations.
Marketing your holiday rental
Marketing your property is the next step after you have taken care of all the legal aspects and worked out the financial aspects. Needless to say, you need to market your holiday rental effectively to attract as many bookings as possible. These tips will help you make your holiday rental as attractive as possible.
1. Identify the right platform for your holiday rental
There are numerous online holiday rental listing sites that you take advantage of to market your home. Pick the best platform for the area and market you are trying to reach. It is worth it to research what your competitors are doing and how they are doing it.
2. Create professional listings
Any effective marketing strategy will help you stand out from the competition. Start by generating eye-catching titles plus detailed information on your property. Also, include any relevant details of the neighbourhood as well as the local area. Moreover, use professional photography and videos to get high-quality pictures and videos that are visually appealing.