How to make money on a short-term rental
Owning a short-term rental property in Orlando can bring fairly lucrative returns for relatively little work. But while the passive income generated by a short-term rental requires little direct involvement from you, the investor, it’s not quite as easy as just signing up with a vacation rental website and raking in the cash. If you don’t take a business-minded approach to your investment, you won’t see profits.
With the vacation rental market becoming an ever-increasingly competitive field, and with your reputation relying heavily on costumer reviews, you want your property to stand out from the competition, and to impress the travelers who book it. By employing a few proven, business-minded strategies, you can increase your short-term rental’s visibility, market appeal, and most importantly, profitability.
Location, Location, Location!
As with any business, with short-term rentals, location is one of the most important factors in determining your venture’s success. You can have a beautiful single-family home full of modern amenities, even offer below-market rates, and if your house isn’t well-located, no one will rent it. In Orlando, this is especially true. Vacationers want to be close to the parks, so the closer your rental to Disney or Universal Studios, the better.
Vacationers also want the finer things when they rent a vacation home. This is their chance to live beyond their usual means, and most are willing to pay for the temporary upgrade in lifestyle. Keep this in mind when choosing a location for your vacation rental. Look for beautiful communities with plenty of amenities.
If the community happens to have a gate, it’s a big plus. Most visitors to Orlando have kids in tow, so safety, like the kind offered by a gated entrance, is in high demand. Research the area’s crime rate before you buy, too. You can be sure potential renters will.
The Proper Property
Again, a vacation is an escape to an upgraded lifestyle. Make sure your rental offers this sense of escapism with a picturesque property and surroundings. And make sure the inside offers an escape, too, by incorporating features like game rooms and Disney-themed rooms. Also, and this is especially true in Florida, a private pool is always a positive.
HOW TO MAKE MONEY ON A SHORT-TERM RENTAL
Focus on Furniture
Filling your vacation home with attractive, high-quality furniture has two effects: it brings out the best in your home’s visual appeal and offers renters a more comfortable stay and transports them to a better reality than the one they share day to day. Furniture is one of the first things renters will notice when they enter your home and it’s something they’re sure to remember when writing their reviews.
When choosing your furniture, you’ll not only need to choose the best styles for your rental, but also the best price for your budget and goals. Furniture is expensive, but keep in mind that while it may be tempting to buy used or low-quality pieces, these will wear out faster and be less comfortable for guests than high-quality new brands.
We get it. It’s easy to say it will save you money in the long run, but buying quality furniture is an important investment to make in the short term. We understand very well that our clients’ financial profiles are as diverse as they are. That’s why our team of industry professionals ensures that whatever your needs, we are grounded in the philosophy that we understand that your investment in a vacation home is not just about aesthetics, it’s a strategic business decision. Therefore we guide our new homeowners to make the best decisions to maximize their budget and achieve success that is sure to receive rave reviews all year long.
Interior design is the conductor of the space, masterfully balancing functionality and aesthetics. It dictates how a space looks, but also how it feels and functions.
Property Management
In business, presentation is half the battle. Cleaning and maintenance are important for any business, but they are especially important in the hospitality industry. But cleaning up after every guest is more hassle than it’s worth for some investors and downright impossible for owners who live out of state or are foreign. For this reason, many short-term rental owners choose to outsource their cleaning and maintenance to a professional property management company.
A good property management company can handle cleaning, maintenance, marketing, and bookings, all for around 20-50% of your nightly rates. It may seem like a lot, but when you consider what you’ll save in time, travel, and large-scale maintenance issues resulting from a small-scale overdraft, it can be well worth the cost.
Reviews give you direct insight into the minds of your tenants and tell you what you’re doing well and where you can improve.
Check the management company’s rating at Better Business and Bureau, the highest rating is A+, this is an indicator that added to the years they have been in the short rental market, the more years, the better, more experience and expertise that guarantees that your investment is in the right hands!
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