Did you know that in the United States alone, short-term vacation rentals are earning $18,026,000,000 in revenue.? While $18 billion is a substantial amount, revenue is anticipated to continue growing at a rate of 2.5% each year for the next few years and beyond.
What does this mean for you as a potential property owner? It means you picked the right business to be in for making money!
While the thought of purchasing a cute little fixer-upper in a dream location and renting it out to dream vacationers is a fun one, what motivated you the most to begin this venture? It’s probably the thought of earning yourself a good income.
So how do you go from the idea of renting out a vacation property… to actually doing it? Is there a way to make certain you make a healthy profit, rather than lose your investment? What are the things that make all the difference to renters who will leave positive reviews and return to rent from you over and over again?
Grand Welcome Franchise answers all these questions and many more with our go-to guide for starting your own successful vacation rental business. Follow the six steps below thoroughly, and you will find the income you’re after!
Open a Vacation Rental Business
Prior to jumping right in and purchase a property to fix up and rent out, there is a good deal of preparation that has to be made in order to make it work. You must write up a vacation rental business plan, review and understand all the vacation rental rights and laws, undergo a vacation rental property management checklist, and understand how to prepare your house for rent.
Starting a Vacation Rental Business
Knowing how to start a vacation rental business in a way that almost guarantees success is indispensable knowledge. So whatever you do, don’t start your own property letting business without thoroughly understanding every step in this guide.
First of all, it is important to gather a team of professionals that will be on your side. You’ll want the following, all well versed in issues related specifically to vacation properties:
- A realtor to offer real estate insights
- A lawyer to give legal advice
- An accountant to answer the money questions
- An insurance agent to make sure you’re covered
- A cleaning and maintenance team that will keep your guests happy
- A listing platform with unprecedented benefits and impeccable service
A Vacation Rental Property Business Plan
A short-term rental business plan gives yourself (and others on your team) a framework from which you’ll work. It will help you understand:
- The industry in general
- Your company
- Your opponents
- Your customers
Analyzing each of these areas can allow you to prioritize your goals and think of a strategy for success.
- Legal terms
- Tax laws
- Licenses
- Permits
- Insurance Requirements
- Rules
- Rights of owners and rights of guests
Again, having a trusted team of professionals backing you up is applicable so that you don’t find yourself having accidentally broken the law.
Vacation Rental Inspection Checklist
Next up, it’s time to create and review your vacation rental inspection checklist. This will act as a record of the state of your property before it’s rented to guests. This helps to make sure your property is ready to be used, and also helps assess damages should you will need to make a claim to your insurance company after a guest checks out.
This list can include inspecting items such as entrance, appliances, electronics, safety measures, furniture, etc..