10 tips to start your short-term rental business
Learn why short-term rental businesses have several benefits that make them an attractive investment opportunity – flexibility, higher profits, a source of passive income, and thus freedom we all long for.
Here are 10 tips on How to start your short-term rental business successfully:
- Create the experience. To generate an industry-leading return on investment, your rental has to differentiate. Research your market to know your competition and guest profile. Understand the demand for properties in the area. Family cottages and couples retreats are two completely different experiences. This knowledge is your foundation to create an experience that stands out and finds your niche – is this unique design, sustainability, added services, or some other extra value?
- Choose the right location. This is probably the most difficult task, because the more beautiful and special the location, the stricter the construction restrictions tend to be. Therefore, before buying a plot, check the building permits. We have seen many times how people have bought beautiful plots, but nothing can actually be built there. You should also consider that the place should be accessible and attractive to travellers.
- Know your land permits. Research local regulations, laws and permitting related to building and short-term rentals. Consult with people who are competent in this area.
- Invest in high-quality and low-maintenance design. High-quality exterior and interior materials, furnishings, linens, and appliances matter to make your property appealing, comfortable and time-proof. Don’t forget that the materials should be easy to clean to make your operations run smoothly. Complicated solutions increase your operational costs. Different people will visit your cabin often, so keep the maintenance hassle-free.
- Automate the client journey. A giant leap towards saving your time, money and energy is to automate your booking and reception systems. We are talking about, automated booking confirmation e-mails, contactless check-in and out, and on-site instructions for the house amenities to provide all the answers before the questions are asked.
- Plan your operations. Implement strict cleaning protocols to ensure the property is kept in top condition between guests. You might want to team up with a housekeeper, who will take care of all the details to make your guests feel their best.
- Provide excellent customer service. Prepare to respond promptly to guests’ inquiries and address any issues that may arise. If you don’t answer your client soon enough there’s a big chance that your competition does. So be there for your guests or find someone who can do that for you.
- Provide extra value. Consider offering additional amenities, such as parking, hot tub, activities on the site, food and drink options, and collaboration with local experiences near the site to attract guests. This is also a great opportunity for a marketing partnership to get more exposure to your property.
- Manage your costs. Don’t overload your business with unnecessary extra services and nice-to-have things. All the costs made should provide value for money and provide a return on your investment.
- Price competitively & market properly. Use a combination of seasonal pricing, and online-offline marketing strategies to effectively promote your property and generate bookings. Being present on popular short-term rental platforms by established brands, collaborating with local brands, and being present on social media helps to reach a large audience and generate bookings. People have to know that your accommodation exists to book it!
With travellers looking for unique and local experiences, as well as the growing demand for alternative accommodation options, the nature cabins rental business has become a trend in recent years. And while the short-term rental market is becoming increasingly competitive, this trend continues to grow in the future.
ÖÖD is actively looking for partners with beautiful and secluded land who are interested in generating additional income, in an “investment-light” way. Put simply, partners have unique land and operate the houses, while ÖÖD offers multiple franchise models to best fit your needs. We will help you transform your property into a new business or bring new revenue streams to an existing business.
Build more trust, gain new bookings and be part of the existing travel community by joining the ÖÖD Hötels platform.
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