When staying at a vacation rental, have you ever thought, "How great would it be to own this place? I could come here when I want, make great memories, and maybe even retire here one day". Personally, I think this just about every time I stay in a vacation rental. The Vacation Rental Owner's Dream is for guests to help you pay to own that vacation home you have always wanted. This is where the Vacation Rental Goldmine begins. Not everyone makes a profit or even pays all of their expenses, however, done well, the vacation rental business can bring this dream into reach.
Years ago, rental companies were the only way to gain access to vacation homes. Unfortunately, they often took significant percentages of the owner's rental income, which made the economics of owning very challenging. VR by owner came along and cut out the middleman, which was great for guests and owners. Guests got a better deal and owners kept a greater percentage of their rental income.
These improved economics made it possible for many owners to take part in the second main aspect of the goldmine – building wealth through real estate. Starting in about 2008, resort properties took a major value hit as the economy deteriorated. We are in the midst of recovery, and many real estate market analysts are expecting a very strong 2015. Whether 2015 is a big year or not, solid rental income allows you to hold onto your vacation home longer term thus increasing the likelihood you can enjoy appreciation of your investment. Many resort areas are in the early stages of recovery and interest rates are still low. Time it right and you may be able to cash in on the Vacation Rental Goldmine of real estate appreciation.
This sounds great, but how do I get the rental income to live the VR owners' dream? The last and most important aspect of the Vacation Rental Goldmine concept is to get every dollar possible from your vacation home with great guest experience. Excellent guest experience will get you the most money from your vacation home. Historically, the vacation rental industry isn't known for great guest experience, and with the right planning and local support, standing out is not terribly difficult. However, it does require an investment of time and money. For all the change in the vacation rental industry, much of the guest experience is still designed with the interest of owners and rental companies at the forefront. Guests have learned through the years to tolerate the inconveniences, extra work, or perhaps even difficulty getting in touch with someone to help. Clear demonstration of interest in the guest, flexibility, and convenience go a long way toward standing out from the crowd.
When you successfully stand out from the crowd, your percentage of bookings from returning guests goes way up. This fills your calendar nicely and well in advance. Returning guests know what they are buying and are very likely to stay with you as you gradually raise your rates. After all, it's worth every penny for this vacation experience! For the remaining time on the calendar, new guests will shop your listing and see how booked the place is, as well as read your great reviews. Delighted guests are very willing to give you stellar reviews on the listing site. This is especially the case if you spend time cultivating these reviews. So, the new guests shopping your listing will see a full calendar and read exceptional reviews, which will get them booking. The net effect is booking more weeks at a higher rate translating to more profit. Voila, success begets success!
Join me here for future blog articles to learn more about creating great guest experiences and you too can live the Vacation Rental Owners Dream!