If you’ve been on the fence about purchasing a property with the intention of renting it out, or you have an empty apartment that could use an extra income, it’s time to hop down from that fence. A leading real estate agent Alpharetta says that investing in the rental industry is a great idea, but obviously there are some factors to consider beforehand.
Of course evaluating your finances is a major step. Once you’ve determined that you are in a good financial place to invest in a rental property, consider the location. If you’re interested in the vacation rental market, look for a property with high tourism and rental guest rates. If you’re more interested in long-term tenants, focus on finding something in a good neighborhood that fits your budget.
After weighing all the pros and cons of real estate investment of a rental property, follow these tips to operating the perfect rental business, specifically for vacation guests.
Focus on Interior Design
As potential guests browse listing sites like Airbnb, Booking.com, and HomeAway, they make snap judgements on property postings based on one thing: design. If the photos don’t look good to them, they’ll move on to the next option that falls within their budget (and there are usually hundreds).
As a rental property owner, this is why it’s so important to showcase a place that isn’t just comfortable, but also looks good. If you have no design sense at all, consider hiring a professional interior designer to take over. Not within your budget? Ask a design-savvy friend or family member for help. You place needs to stand out from the other listings, so try to give it some sense of personality.
Price Your Property Appropriately
This is a common mistake of rental property owners around the world. If you price the property too low, you’ll get the bookings – but you won’t get the rental income you were hoping for. If you price it too high, the place is likely to stay vacant, or at least have an extremely low occupancy rate.
Pricing a rental property appropriately can be difficult since there are many factors involved. The nightly rate depends a great deal on the property location, local events or festivals going on at the time, high vs low season, and whether it is a 1-star or 5-star rental. You can receive help with this by investing in an automatic pricing system that uses algorithms to factor these things into the nightly rate.
Invest in a Vacation Rental Property Software
We’ve already discussed the difficulty of pricing the unit, but that is only the beginning of the challenges involved in property rental. There are so many moving parts, including monitoring and managing bookings, using a reservation system, processing payments, and of course, keeping the guests happy so that you receive raving reviews. There are a number of property software programs available – like Guesty and Lodgify – to help with these tasks.