What does it take to unlock the full income potential of your short term rental? The truth is, it takes more than having a fabulous home in a great location. That’s a great start, but savvy investment property owners know that, to get the best ROI, they have to implement a multifaceted strategy that appeals to guests visually, emotionally, and practically.
Some investment property owners manage all of this themselves. Others outsource the responsibility to a property management company that specializes in short term rentals (such as B4K). While multiple factors impact a short term rental’s income potential, we have found that three key factors can make a big difference.
Visual Presentation and Details
Improving the visual appeal of your short term rental will transform its first impression and increase the chances that a guest will click “Book Now.” This doesn’t necessarily require you to overhaul the landscaping and interior decor. While doing so will help, you can make other improvements that are very affordable (and even free).
High Quality Photos
When potential guests consider booking your short term rental, they will spend a lot of time clicking through your photos. That means that you want your photo gallery to give users a welcoming tour.
Pictures shot with a wide angle, with bright natural light, from multiple vantage points will help potential guests envision themselves inside. Thoughtfully taken pictures are a powerful promotional strategy, as they help potential guests feel confident in their booking decision.
For example, potential guests can see that the dining room table has adequate space for their family, that the bathroom has a tub for their baby, or that the view from the bedroom adds the perfect tranquil touch for their getaway.
Pro Tip: We recommend making an investment in a professional photographer, who is skilled in photographing homes. Their expertise will make sure you have many high resolution, clear, bright, beautifully angled photos to make guests feel like your short term rental is the perfect place for them.
Staging and Seasonal Details
Staging isn’t just a buzz word for realtors. It’s a smart strategy that invites potential guests to consider how they would use the space. And when potential guests can clearly visualize relaxing on your deck furniture while they gaze at the waterfront or sipping morning coffee at the cafe table in your kitchen, they’re more likely to make a reservation.
To improve the staging of your short term rental, start by decluttering and cleaning. Make sure the space is free of extraneous items that cramp the space or serve no purpose. Arrange furniture thoughtfully, so that guests can use the space naturally (think: add coffee mugs to a cafe table or a cozy blanket on a comfy couch).
You can increase warmth by adding carpets to anchor the space or pillows to make it feel more comfortable. If you don’t have a huge budget for decorating, simply create a cohesive color scheme throughout your space to stage a feeling of calm and comfort.
Pro Tip: Don’t be shy about adding seasonal decor to stage your space. Take pictures of this and add those photos to your listing. Potential guests looking for a great place to spend the Christmas holidays might love to see that you have a Christmas tree set up or sleds ready for snowy fun!
Descriptions and Keywords
Simple improvements to the written description of your listing will make a huge difference. Potential guests want to know details about lifestyle benefits, location and access, and key amenities. While some narrative description is great, try including subheadings with bullet points that allow potential guests to scan details easily.
Include details like these:
- Location
- Walking or driving distance to local sites
- Access to public transportation
- Access to popular attractions, such as a pool, dock, trailheads, or ski lift
- Sleeping accommodations
- Useful amenities, such as chairs, toys, and towels for the beach
Pro Tip: Consider clearly listing desired amenities that your short term rental provides. A recent market report from PriceLabs showed that properties with the following amenities were booked most:
- Extra pillows/blankets
- Cleaning products
- Essentials
- Hangers
- Hairdryers
- Self Check-in
- Iron
- Coffee
- Dishes
- Outdoor furniture
- Wine glasses
Forecasting Market Opportunities for Your Short Term Rental
Different seasons bring financial opportunities for short term rental property owners. For example, PriceLabs‘ recent Annapolis market report forecasted two key opportunities for property owners to increase their rental income: the Christmas holidays and Commissioning Week for the U.S. Naval Academy.
Forecasted seasons of increased visitor traffic offers a unique opportunity to maximize the income potential of your short term rental.
Dynamic Pricing
Keep a close watch on your calendar and read market reports about bookings in your area. Increased visitor traffic presents an excellent opportunity to maximize your rental income. Because demand for short term rentals will be higher, you can increase your nightly booking rate. Popular local events, high-tourist seasons, and other holidays are common opportunities to maximize your income potential.
Minimum Night Stay
Require a minimum night stay for bookings during certain times of year, events, or holidays. Doing so will increase your income potential in a number of ways. First, when combined with an increased nightly rate, it will automatically increase your immediate cash flow. But it does more than that; requiring a minimum night stay also increases your income potential by reducing costs for cleaning and other turnover operations. (Generally, guests who stay for longer periods are less likely to throw parties or engage in other rowdy behavior, which can lead to expensive damage or maintenance!)
Advanced Promotion
When a popular event or time of year is on the horizon, potential guests are more likely to book well in advance. (Think: college graduations or major sporting events.) Potential guests want to edge out their competition and get the best location for the best rate. Take advantage of this by promoting your short term rental in advance. Investing even a modest amount of money in a social media advertisement or Google advertisement can increase bookings. When combined with the tips listed above, you’re in a prime position to maximize your income potential!
Unlock the Most from your Short Term Rental
Many short term rental property owners manage their properties on their own. But often, when they add more properties to their portfolio, property management becomes a full time job – and then some.
That’s when an experienced property management company like B4K can help. As a Veteran-owned company with over a decade of experience in short term rentals, we are committed to delivering excellent service and helping our homeowners maximize their income potential.
We’d love to do the same for you! Book a call now and talk to an expert about how to make the most from your short term rental in Annapolis!