There are two options for renting out a property: short-term rentals and long-term rentals. Although long-term rentals provide stability, short-term rentals may be a more lucrative option. The high-interest economy has affected property owners as it has pushed them to consider switching to long-term rentals due to the need for a stable income. This blog will discuss how you can have a profitable short-term rental in a high-interest market without switching to a long-term rental.
Tip 1: Have a good revenue management strategy
It is important that you have a good revenue management strategy in place as it will allow you to stay up to date with the rates offered by your competitors and therefore, you can change your rates accordingly. A good revenue management strategy will utilise specialised software which will make it easier for you to spot patterns in the data and figure out the optimal time to lower or increase your rates.
Tip 2: Improve your advertising campaigns
Both short-term and long-term rentals should prioritise occupancy because the more guests you have, the more you will earn. To prioritise occupancy, you need to think about your advertising strategy thoroughly. Ensure your listing stands out and includes bullet points of all the key features as well as unique selling points so that it can attract the attention of potential guests on online sites such as Airbnb. You should also utilise social media platforms to draw attention to your short-term rental business.
Tip 3: Calculate Your Margins
It is important that you calculate your margins when thinking of having a short-term rental business. Make sure you think about your costs and deduct them from your revenue to see how much you can earn in total.
Tip 4: Make use of Reviews
Reviews are important as they set the first impression. Potential guests will read them to see what other people have to say about your short-term rental and to make an informed decision about whether it is worth the price. The better your reviews, the more guests you are likely to get. Therefore, you should focus on increasing the number of positive reviews you receive by providing excellent customer service, responding promptly to guests’ needs, and ensuring the property is clean. You can also follow up with guests after they check out to ask for feedback and encourage them to leave a review.
The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.
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